E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 108 CONGRESS, FIRST SESSION

Vol. 149 WASHINGTON, TUESDAY, JUNE 10, 2003 No. 84 Senate The Senate met at 9:30 a.m. and was lic for which it stands, one Nation under hotlining later today a time tomorrow called to order by the President pro God, indivisible, with liberty and justice for people would have to give us a list of tempore (Mr. STEVENS). all. their amendments, that we would have The PRESIDENT pro tempore. To- f a finite list. As I indicated, Senator day’s prayer will be offered by our RECOGNITION OF THE MAJORITY MCCONNELL and I and the two man- guest Chaplain, Dr. Keith Wright, exec- LEADER agers of the bill would immediately utive director of the National Center The PRESIDENT pro tempore. The begin working through that to see for Leadership. majority leader is recognized. what we can do to expedite passage of the Energy bill. We are on track to do PRAYER f that sometime tomorrow. We have the The guest Chaplain offered the fol- SCHEDULE ranking member of the Finance Com- lowing prayer: Mr. FRIST. Mr. President, this morn- mittee here today to deal with the Gracious God, we are grateful for this ing the Senate will resume consider- matter about which Senator MCCON- day and all the possibilities it holds. ation of S. 14, the Energy bill. Under NELL is going to shortly make a unani- Throughout this day, we determine to the order from last night, Senator DOR- mous consent request. live with joy, gratitude, integrity, and GAN’s amendment regarding hydrogen The PRESIDENT pro tempore. The purpose. We are elated to live in the fuel cells will be debated under a 30- Senator from Kentucky. United States of America which offers minute time limit. A vote will occur in f so many freedoms, opportunities, and relation to that amendment at some- UNANIMOUS CONSENT REQUEST— riches. We humbly acknowledge that time this morning before the recess for S. 182 our many blessings are gifts of Your the policy luncheons. The Senate will grace. recess for the policy meetings from Mr. MCCONNELL. Mr. President, I We affirm with the Scriptures that 12:30 to 2:15 today. Other Energy will take very little time. You are more concerned with the con- amendments will be debated during to- To underscore where we are on the dition of our inner lives than our posi- day’s session, and therefore Senators Burma sanctions issue, I tried to get tion, accomplishments, or reputations. can expect votes throughout the day. this bill cleared for this morning for an ‘‘The Lord does not look at the things Again, I will state that each day we hour equally divided and a rollcall people look at. People look at the out- continue to work towards a filing dead- vote, but there was an objection on the ward appearance, but the Lord looks at line or a list of amendments to the En- other side with the suggestion that we the heart.’’ Help us to see life from ergy bill. I will be consulting with the modify the bill to have the sanctions Your perspective and to walk in Your Democratic leadership to see when we end in 1 year. Of course, that is exactly ways. May our hearts find joy in the might lock in a list of amendments to the wrong message to send to the mili- things that bring You joy, and be bro- this bill. I am very hopeful we can do tary junta in Burma. That is not ac- ken by the things that break Your that as soon as possible. It is also our ceptable to this side. heart. hope to reach a consent agreement to The Washington Post, in this morn- Enable each Senator to hear Your allow the Senate to consider the ing’s editorial, gets it right by saying: call, instill within them the character Burma sanctions bill introduced by the Senators supportive of democracy in to match their high calling. Grant distinguished Senator from Kentucky, Burma should vote for the bill without them true wisdom at each decision- the majority whip. He will want to condition for expiration dates. That is making moment. speak on this issue shortly. We will the way the bill ought to pass. That is May these Senators be molded by continue to press for a consent agree- the way the bill was introduced. That Your authority, inspire people with a ment on this measure. is the way I hope we will be able to sense of purpose, practice servant lead- At this juncture, I will withhold a reach consent to take it up in the near ership, and model good stewardship of few of the comments I want to make on future. Your creation. Amen. an issue we will be addressing in 2 In that regard, I ask unanimous con- f weeks on Medicare and strengthening sent that the Foreign Relations Com- Medicare, but at this juncture I will mittee be discharged from further ac- PLEDGE OF ALLEGIANCE yield to the assistant minority leader tion of S. 182, the Burma sanctions leg- The President pro tempore led the for comments and then the Senator islation; that the Senate proceed to its Pledge of Allegiance, as follows: from Kentucky. immediate consideration; further that I pledge allegiance to the Flag of the Mr. REID. Mr. President, responding there be 1 hour of debate equally di- United States of America, and to the Repub- to the majority leader, we are vided in the usual form and that no

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

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VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00001 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.000 S10PT1 S7562 CONGRESSIONAL RECORD — SENATE June 10, 2003 amendments be in order; that upon the lations Committee and both the chair- It is time to act. Aung San Suu Kyi, use or yielding back of time, the bill be man of the Foreign Relations Com- we hope, is still alive. There is some read the third time, and the Senate mittee and the ranking member sup- urgency about this. This is an unusual proceed to a vote in relation to the port the bill, as do the majority and situation. The U.S. needs to send a measure, with no intervening action or minority leaders of the Senate. message about this now and lead the debate. I know the majority leader is waiting rest of the world into a policy of multi- The PRESIDENT pro tempore. Is to speak on another issue. If I could, I lateral sanctions that truly squeeze there objection? will proceed to try to get this on the this regime. I hope we can continue our Mr. BAUCUS. Mr. President, reserv- calendar. I understand S. 1215 is at the discussion and get this bill up for a ing the right to object, this is obvi- desk and is due for its second reading. vote no later than sometime today. ously a very important matter, and we The PRESIDENT pro tempore. Is I thank the majority leader. should address this in a very careful there objection? The PRESIDENT pro tempore. The and appropriate way. I might say to Mr. REID. Reserving the right to ob- majority leader is recognized. Senators, this matter has not been re- ject, Mr. President, I know the deep- Mr. FRIST. Mr. President, I wish to ferred to the Senate Finance Com- ness of the feelings of the Senator from make a few comments on Medicare and mittee. The committee has jurisdiction Kentucky. I want the record to reflect the importance of strengthening and on it. Rather, it is coming straight to that this is bipartisan legislation. One improving Medicare. We are addressing the floor with a request that there be of the chief cosponsors is the Senator this in the Finance Committee cur- no amendments, which I think is a lit- from California. This was not an objec- rently and will have it on the floor of tle bit bizarre. tion made on the other side; it was an the Senate. I want to take this oppor- I might also point out that in other objection made by the chairman and tunity first to comment on the ex- sanctions areas, for example, China, we ranking member of the Finance Com- change that we heard on the floor. had a long, deep, involved debate a few mittee. I hope this most important As my friend and distinguished col- years ago and agreed to how we should issue can be resolved along the lines league from Kentucky stated, both the address sanctions, particularly trade suggested by the ranking member and majority leader and the minority lead- sanctions against China. the chairman of the Finance Com- er are sponsors and strongly support I might also inform Senators, I have mittee, that this resolution will be the legislation on Burma. Burma’s bru- been in consultation with the chairman passed and that each year it would stay tal military regime is perpetrating a of the Finance Committee who agrees in effect until both Houses of Congress wave of crackdowns, including incar- with me that it would be inappropriate say it should stay in effect. I think cerating the Nobel Prize winner, Aung to proceed at this time, certainly in that would be a reasonable resolution San Suu Kyi. That is why there is this the manner suggested by the Senator of this most important issue. I, there- sense of immediacy and why we feel from Kentucky. fore, object. very strongly that this bill should be I might ask the Senator if he will The PRESIDENT pro tempore. Objec- addressed on the floor of the Senate. I agree to modify his request in a way I tion is heard. The Senator from Ken- am very hopeful, in spite of the reac- think is much more appropriate, par- tucky. tion to the unanimous consent request ticularly even stronger than the reso- Mr. MCCONNELL. Mr. President, I we just heard on the floor, that over lution suggested by the Senator. And ask unanimous consent that Senator the course of the morning we can work that would be for similar, as was the HARKIN be added as a cosponsor. out what is necessary to bring this leg- case with China MFN, annual exten- The PRESIDENT pro tempore. With- islation to the floor and have a vote on sions or annual sanctions, but that the out objection, it is so ordered. it today. President would suggest that the sanc- f I do join my colleagues in supporting tions be continued and that would be MEASURE PLACED ON this and the Burmese Freedom and De- the case unless there is a motion of dis- CALENDAR—S. 1215 mocracy Act of 2003, introduced by approval passed by both Houses of Con- Senator MCCONNELL and cosponsored gress. I believe the executive branch Mr. MCCONNELL. Mr. President, I by a bipartisan group of Senators, in- understand that S. 1215 is at the desk should be part of this. This is not just cluding Senators FEINSTEIN, MCCAIN, and due for its second reading; is that a legislative branch issue. When it LEAHY, SPECTER, KENNEDY, MIKULSKI, correct? comes to sanctions, clearly the execu- KYL, DASCHLE, and many others who The PRESIDENT pro tempore. The tive branch should play a very impor- will be added over the course of the Senator is correct. tant role. morning. Mr. MCCONNELL. I ask unanimous I might ask the Senator if he would The legislation, importantly, among consent that it be in order to read the agree to modify his request in the na- other things, would impose a U.S. im- title of the measure. port ban on goods manufactured in ture of an annual request. If the Presi- The PRESIDENT pro tempore. With- Burma and those made by what is dent wants to continue, he certainly out objection, it is so ordered. could make an annual request, and The clerk will read the title of the called the State Peace and Develop- that would be subject to disapproval by bill for the second time. ment Council, SPDC, and companies that are owned by the SPDC. It would both Houses of Congress. A bill (S. 1215) to sanction the ruling Bur- Is the Senator agreeable to make mese military junta, to strengthen Burma’s also freeze the assets of the regime that change? democratic forces and support and recognize itself that are held in the U.S. and re- Mr. MCCONNELL. I would say to my the National League of Democracy as the le- quire the U.S. to oppose and vote friend from Montana, there is already a gitimate representative of the Burmese peo- against loans or other assistance pro- sunset provision in the bill. It occurs ple, and for other purposes. posed for Burma by international fi- as soon as democracy is restored in Mr. MCCONNELL. I ask that the Sen- nancial institutions. Burma. There was a legitimate elec- ate proceed to the measure and object Why? Because the situation in Burma tion there in 1990. Aung San Suu Kyi to further proceeding. indeed is severe. After what apparently and her party won 80 percent of the The PRESIDENT pro tempore. Objec- was an assassination attempt of Aung vote. She has been under house arrest tion is heard. The item will be placed San Suu Kyi, who won a landslide vic- now for 14 years. The sanctions would on the calendar under rule XIV. tory in Burma’s last election, authori- terminate under the bill that I hope we Mr. MCCONNELL. Mr. President, this ties now hold, as we all know, this duly will pass just as soon as she is allowed measure has broad bipartisan support. elected leader and numerous other ac- to take power. Such a provision is al- It was referred to the Foreign Rela- tivists—we don’t know exactly how ready in the bill. I am happy to con- tions Committee, not the Finance many—incommunicado. Reports indi- tinue the discussions with my friend Committee. Both the chairman of the cate that Suu Kyi is being held in a from Montana. Foreign Relations Committee and the military camp about 40 kilometers out- The reason the Finance Committee ranking member support this measure, side of Rangoon. It is believed that she didn’t get the bill is because the Par- as do the majority and minority lead- does suffer from some injuries and lac- liamentarian sent it to the Foreign Re- ers of the Senate. erations of her face and an injured

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.003 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7563 shoulder. This is all current news. There were a couple of concerns ment or chronic disease management. Again, there is a sense of urgency for raised in the last several days that I As we all know, it does not cover out- us as a government to act and dem- briefly want to mention. First, where patient prescription drugs. I do believe onstrate our focus on this issue. are we and why act now? Why can we good health depends on giving seniors Meanwhile, it is reported that the not wait and put this off? It is driven good options, the opportunity to military regime has raided the offices very much by the demographics of the choose the plan that best meets their of Suu Kyi’s political party, the Na- aging population, where, over the next needs. tional League for Democracy, tearing 30 years, we will have a doubling in the I have also heard about Medicare re- down party flags and padlocking doors number of seniors; but in terms of form proposals relating to HMOs, forc- all across the country. Reportedly, workers actually paying into the pro- ing people into HMOs. This plan does military intelligence agents are posted gram itself, that will be falling off con- not do that. Simply, this plan does not outside the offices, preventing any tinually over time. Thus, we need to force anybody into an HMO. It is a vol- entry at the offices in Rangoon and take this opportunity while we are add- untary proposal. Some HMOs have per- Mandalay. The regime has placed nu- ing this prescription drug benefit to formed very well. But the better com- merous democracy movement leaders modernize the program so seniors and parison, instead of looking at HMOs, is under house arrest, surrounding their individuals with disabilities will con- the Federal Employee Health Benefits homes and severing telephone lines. I tinue to get good care and hopefully Program. Seniors will have the option mention this again to explain why we improve that care in this environment to get a plan similar to what we have are attempting to bring this legislation where we have to address the issues of as Senators, Members of the House, directly to the floor. solvency and sustainability. and other Federal employees have. I I commend my colleagues for their The Finance Committee has held should add, this program has a longer efforts on behalf of the Burmese peo- over 30 hearings on Medicare over the history than Medicare. We have ple. As the strongest and most free na- past 4 years, at least 7 devoted to pre- learned how to improve it, modify it, tion in the world, I do believe we have scription drug coverage alone. Last and make it a better program over the a profound duty to support that strug- Friday, now 4 days ago, the Finance last 40 years. I close by saying I believe seniors de- gle for freedom. Again, I am hopeful Committee had another hearing to serve the options that Federal employ- that we can address it this morning focus very specifically on the proposal ees have. We know Federal employees and over the course of the day. put forth by Chairman GRASSLEY and are very satisfied with the quality of Mr. REID. Will the majority leader Senator BAUCUS. That was the third care they receive. Seniors deserve this yield for a unanimous consent request? committee hearing this year on Medi- opportunity to choose. They deserve Mr. FRIST. Yes. care. the opportunity to obtain care that is Mr. REID. Mr. President, I ask unan- On Thursday of this week, the day more flexible, that is less bureaucratic, imous consent that I be added as a co- after tomorrow, the Finance Com- and that has less paperwork. sponsor of this resolution on Burma mittee will meet in executive session Seniors deserve care that keeps them with my friend from Kentucky. to amend and vote on the Grassley- healthy by incorporating those preven- The PRESIDING OFFICER. Without Baucus proposal. And then the fol- tive measures. Seniors deserve care objection, it is so ordered. lowing week, on that Monday, that bill that protects them from catastrophic f will be brought to the floor of the Sen- out-of-pocket expenses. America’s sen- ate and will be debated and likely MEDICARE iors should have the ability to see the amended in some shape or form over a Mr. FRIST. Mr. President, let me doctor they choose, even if that doctor 2-week period. is outside the network. America’s sen- take a few minutes to comment on We are approaching this issue in a iors deserve a system that focuses on what is taking place today in the re- systematic way, in an orderly way, in a their needs to keep them healthy and lease of some initial working docu- way that is reasonable, and in a way not just to respond to acute episodic ments on Medicare modernization by that is thoughtful. illness. members of the Finance Committee. Some concerns people are talking Since 1965, Medicare has admirably Prefacing that, I will say that we about are that Medicare denies some served a generation of America’s sen- have a lot of work to do over the next seniors coverage. Let me be clear, we iors. We owe tomorrow’s seniors no 3 weeks in order to address an issue will make sure this coverage is avail- less. That will take a response in this that is important to every single able to every senior everywhere. We body to give seniors access to the care American, and that is giving our sen- will specifically be working to ensure they truly deserve. I look forward to iors and individuals with disabilities access in rural areas. We will be cre- working with my colleagues to health care security. ating public-private partnerships that strengthen and improve Medicare over Today there are about 35 million sen- will offer choice—again, it is vol- the next few weeks. iors on Medicare and about 5 million untary—but will be offering choice for individuals with disabilities. We are all seniors in every corner of America. f also speaking to and acting for those Secondly, many seniors want the cer- RECOGNITION OF THE ACTING soon-to-be seniors in future genera- tainty of knowing nothing is going to MINORITY LEADER tions. be taken away from them. Seniors The PRESIDENT pro tempore. The I commend my colleagues who have might ask: Do I have to give up what I Senator from Nevada is recognized. done yeoman’s work—Senator BAUCUS have now? Are you forcing me into Mr. REID. Mr. President, we have and Senator GRASSLEY—and for their some new system? The answer is no. conferred with floor staff. Senator MI- commitment to advancing Medicare This is a voluntary program. All of us KULSKI is in the Chamber, and she has modernization, strengthening and mov- will be able to look every senior in a statement regarding prescription ing Medicare down the field so we can their eyes and say: You can keep ex- drugs. I ask unanimous consent that deliver that health care security to our actly what you have now if that is she have an opportunity to respond to seniors. The goal is twofold: to what you want, if that is what you de- the statement of the Senator from Ten- strengthen and improve Medicare and, sire. We will be able for the first time nessee and that she be given 71⁄2 min- at the same time, provide meaningful to say there are options that include utes to do that. Following that, it is prescription drug benefits to seniors choices you may not have today in my understanding the leader is looking and Americans with disabilities. Medicare, such as preventive care, such to vote around 11 o’clock on the Dor- I recognize it is a huge challenge to as chronic disease management. gan amendment and that the time address this very complex program but The fact is the current program is after the statement by Senator MIKUL- it is one that I know this body is up to, fragmented. It does not provide ade- SKI will basically be evenly divided. I one we have been working very hard on quate coverage. I know as a physician am not asking unanimous consent. The for years, and it is one that I believe and I strongly believe as a policymaker time will basically be divided between we can accomplish in the next 3 weeks it does not adequately cover preventive the Senator from North Dakota and in the Senate. care. It does not cover disease manage- whoever opposes his amendment.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.006 S10PT1 S7564 CONGRESSIONAL RECORD — SENATE June 10, 2003 My unanimous consent request at care component to it. Any private in- scription drugs and medical devices this time is that Senator MIKULSKI be surance program must be an option, save lives and help manage chronic recognized for 71⁄2 minutes as in morn- and it must not be mandatory. conditions such as high blood pressure ing business. That goes to my second principle: and diabetes. This is what we need to The PRESIDENT pro tempore. With- voluntary. No one should be coerced or be focusing on. Let’s focus on the out objection, it is so ordered. The Sen- forced into a private program or forced American people for a change and not ator from Maryland. to give up coverage if they already on the so-called hollow opportunities of f have it. structural reform. It is a problem for It must be affordable. Benefits must middle class families. Families worry PRESCRIPTION DRUGS be affordable to business and affordable about their jobs and the weak econ- Ms. MIKULSKI. I thank the Chair, to seniors. That means a definite pre- omy. They do not know how they are and, Mr. President, I thank my col- mium and a reasonable copayment. going to take care of their children and leagues for their courtesy, particularly It must be accessible, available to all their elderly parents. Senator DORGAN. I am very appre- seniors regardless of where they live, American businesses are wondering ciative. and it must be portable so they can about things such as legacy costs, and Mr. President, seniors are facing a take it with them if they visit their small business is wondering how they crisis, and it is caused by the high cost grandchildren in another State. can afford health insurance as well. A of prescription drugs. For so many It must be meaningful and genuine. lot of companies want to do the right years, Congress has talked about pre- It must cover the drugs that doctors thing for their employees and retirees. scription drugs in Medicare. say they need, not what insurance ex- They want to offer comprehensive Let me tell you what my seniors say: ecutive gatekeepers say they are will- health care benefits, but they are Talk, talk, talk. They are fed up with ing to give them. struggling under the cost. That is why our talk, and they want us to take ac- Let’s talk about the meaningful ben- I fought for tax incentives for small tion. They tell me: You can’t talk efit. Congress cannot leave this up to businesses to provide health coverage yourself out of high cholesterol; you the insurance companies. for their employees. But those who need Lipitor. You can’t talk your way We have been down that road in supported the tax bill care more about out of diabetes; you need insulin. Maryland, and it was a rocky road, not special breaks for Joe Billionaire than The problem with the Senate, they only filled with potholes but with land- about basic health care for families. say, is when all gets said and done, mines. We had something called Our businesses do not get any help, more gets said than gets done. The Medicare+Choice that turned out to be but their competitors sure do. The time for talking is over, and we need to nothing more than a racket for seniors playing field is not level. When com- listen to the seniors, to business, and to be gouged and abandoned in my own petitors in other countries do not have we need to act. State. I am not going to support any to pay for prescription drug coverage I have been in communities all over more rackets or gimmicks under the il- because they have a national health Maryland, from diners to boardrooms, lusion of being able to help our seniors. care system, in my own State of Mary- listening to seniors who are desperate, Insurance companies came in. Seniors land this means people are losing jobs listening to their families who want to were going to have choice. They ended in the automobile industry and the help their parents and listening to em- up with no choice and no coverage. The steel industry. That is why I fought for ployers in boardrooms who really want companies came in. They took the tax incentives for small businesses to to help their retirees but are wondering money from our seniors. Then they provide health coverage for their em- if they can afford to do so. said, oh, it is too expensive to do this, ployees, but those who supported the Here is what they tell me: Congress and they left town. They left over tax bill care more about special breaks must do something about the prescrip- 100,000 Maryland seniors without cov- for Joe Billionaire than about basic tion drug benefit, and they want us to erage. We are not going to go that way. health care for families. We have to get real, and the first do it now to help our seniors, our fami- So I do not trust the insurance com- place we have to get real is to have a lies, business, and our economy. panies to be there for the seniors. Get- real prescription drug benefit. The Na- There are several different plans ting rid of Medicare by forcing them tion cannot afford to do nothing. Pre- floating around, and a lot of them have into this is not going to be the way we scription drugs are lifelines to millions wonderful new language: Medicare go. Medicare is the answer. Medicare is of Americans. They enable seniors to Choice, Medicare Advantage, et cetera. not the problem. prevent and manage disease. Without I am not sure what will happen, but I believe honor thy mother and fa- access to medication, seniors are going what I know is, we must have a mean- ther is not just a good commandment to end up with trips to the hospital, ingful prescription drug benefit, not to live by, it is good public policy to longer hospital stays, more visits to just slogans and sound bites, not just govern by. That is why I feel so strong- emergency rooms. something out of the Heritage Founda- ly about Medicare. Congress created All the great research done at NIH is tion, not something out of a think Medicare to provide a safety net for meaningless if people cannot afford the tank, but something that enables sen- seniors. In 1965, seniors’ biggest fear cures. It is time to make prescription iors to afford the prescription drugs, was the cost of hospital care. One heart drug coverage a national priority so we which they paid for the research to de- attack could put a family into bank- can help our seniors, families, Amer- velop. ruptcy. That is what Medicare Part A ican business, and our economy. I have five principles for a prescrip- is all about. Then Congress added Medi- When we stand up for America, we tion drug benefit. These principles are care Part B to help seniors pay for doc- stand up for what America stands for, the yardstick by which I am going to tor visits, an important step to keep which is a safety net for our seniors measure any proposal. seniors healthy and financially secure. and really helping our families be able First, the cornerstone of any pre- New advances in medicine mean sen- to help themselves. scription drug benefit must be Medi- iors are living longer. New treatments By passing a real prescription drug care. It must be in Medicare. It must and therapies such as prescription benefit, Congress will deliver real secu- stay in Medicare. Medicare must be the drugs prolong life and maintain quality rity to America’s seniors. Retirement cornerstone. I am absolutely opposed of life. These costs were not envisioned security means more pension security. to the privatization of Medicare either in 1965. Seniors need healthcare security to be overtly or covertly. Let me repeat, I So as we look at this problem, we at ease in their retirements. In today’s am absolutely opposed to the privatiza- need to know that Medicare has served world, we cannot have healthcare secu- tion of Medicare. the Nation well. Now we know it is rity without prescription drug cov- Any prescription drug benefit that time to expand it to a prescription erage. Congress must keep this promise has a private insurance component to drug benefit. We have covered hos- to America’s seniors. it must be in addition to a Medicare pitalization. We have covered doctor I now yield the floor, but if they benefit, not in lieu of a Medicare ben- visits. Yet because of the advances in come in with some more gimmicks, I efit. It must keep a traditional Medi- medical science in this country, pre- will not yield the floor in this debate.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.009 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7565 RESERVATION OF LEADER TIME about developing hydrogen and fuel be mandatory, but I do say this: Let’s The PRESIDING OFFICER (Mr. cells as part of our future. That made decide where we are headed, and when GRAHAM of South Carolina). Under the sense to me. we give the Department of Energy and previous order, the leadership time is I have spoken often of the first old others $3 billion plus, let’s say here is reserved. car I had when I was a young kid. I where we would like to go, here is our bought a Model T Ford and restored it destination, here is our map. I say let’s f as an old antique. The way you gas up aspire to have 100,000 vehicles on the ENERGY POLICY ACT OF 2003 this 1924 Model T Ford is you pull up to road in the year 2010 that are hydro- The PRESIDING OFFICER. Under a pump, stick a hose in the tank, and gen-powered fuel cell vehicles and 21⁄2 the previous order, the Senate will now pump it full of gas. And what do you do million vehicles by 2020. resume consideration of S. 14, which with a 2003 Ford? Exactly the same My colleague yesterday said, well, we the clerk will report. thing. Nothing has changed in almost a think maybe it is a mandate. I said, no, The legislative clerk read as follows: century. We are still running gasoline it is not a mandate at all. Just ask the A bill (S. 14) to enhance the energy secu- through those carburetors. Department of Energy to develop a rity of the United States, and for other pur- What the President says—and I agree strategy that says here is what we poses. with him—is let’s decide to change would like to do. We cannot force that Pending: that and reduce our dependence on for- to happen, but at least a goal is estab- Campbell/Domenici amendment No. 864, to eign oil because that is where the lished. replace ‘‘tribal consortia’’ with ‘‘tribal en- growth in energy use is coming; that Japan has goals and strategies with ergy resource development organizations’’. is, on America’s roads and America’s respect to hydrogen and fuel cells. Dorgan amendment No. 865, to require that vehicles. Do we want to be at a point They are moving very quickly. Europe the hydrogen commercialization plan of the where we have over one-half of our oil is moving very quickly. Japan wants Department of Energy include a description coming from off our shores, much of it 50,000 by 2010 and 5 million vehicles by of activities to support certain hydrogen from very troubled parts of the world? 2020. General Motors has a goal of hav- technology deployment goals. Do we want to be at the point where we ing 1 million vehicles by 2010—Ford, The PRESIDING OFFICER. Under have 68 percent of it coming from other Nissan, DaimlerChrysler. The fact is, the previous order, there will now be 30 parts of the world, where if, God forbid, the industry is moving very quickly as minutes equally divided for debate in some morning we woke up and discov- well. relationship to the Dorgan amendment ered terrorists had interrupted the sup- I just do not happen to think we No. 865. ply of oil and this American economy ought to throw a bunch of money at The Senator from North Dakota. would be flat on its back? Is that how Energy and say: Do what you can with AMENDMENT NO. 865 what we want to be held hostage? I do it and report back. I guarantee, if $3 Mr. DORGAN. Mr. President, the not think so. billion or $3.5 billion is put into a bu- amendment I have offered is an amend- So the President says let’s strike out reaucratic envelope and sent down to ment we will vote on this morning. I in a new direction. He proposed $1.2 bil- an agency and they are told to report was disappointed yesterday to discover lion on a hydrogen program. It is ex- to us when they have half a notion and that there was opposition to the actly the right thing to do. I commend tell us what they have done, we are not amendment. This is an amendment him for it. But $1.2 billion is timid; it going to make much progress. that passed without opposition in the is not enough. Nonetheless, it is mov- What I believe this Congress ought to last Congress. So surprisingly now I am ing in the right direction, and for this do is say: Here is what we aspire to discovering that some have changed American President to put his adminis- achieve. This is a big, bold plan, and we their mind. tration on the line to move in that di- want to make progress. We would like I will describe why, if this Congress rection is not insignificant at all; it is by the year 2010 on the streets in this has any gumption at all to decide that very significant. country 100,000 automobiles that are we ought to change course and move in I have pushed and pushed, and now powered by hydrogen and use fuel cells. a new direction and be bold and big this Energy bill has almost tripled the We would like 21⁄2 million by the year when we think about our energy fu- amount the President recommended for 2020. ture, they will support this amend- a new hydrogen-based economy and Why do I say we need some targets ment. fuel cell future. and timetables? Because this is not President Bush said the following I proposed $6.5 billion over 5 years, an easy to do. This is not something that about our dependence on foreign oil in Apollo-type program. President Ken- one company can do or one industry his State of the Union Address: Amer- nedy said: Let’s put a man on the Moon can do. This requires a combination of ica’s energy security is threatened by by the end of the decade. He set a goal. private sector investment and initia- our dependence on foreign oil. He said: And we did. I said: Let’s have an Apollo tive, and it requires public policy that We import 55 percent of the oil we con- program, decide we are going to move accommodates this conversion. sume. That is expected to grow to 68 toward a hydrogen fuel cell future for First of all, we have to deal in a percent by 2025. Nearly all of our cars our vehicles. whole range of areas. How do you and trucks run on gasoline. They are Do my colleagues know that a vehi- produce hydrogen? Hydrogen is every- the main reason America imports so cle is twice as efficient using a fuel cell where. It comes from everything. It much oil—that, from President Bush— as it is using gasoline through a carbu- can come from natural gas, from coal, two-thirds of the 20 million barrels of retor? It is double the efficiency get- you can take hydrogen from water. oil we use each day for transportation. ting power to the wheel. And what do You can use a wind turbine and Fuel cell vehicles offer the best hope you get out the back end of a vehicle produce electricity from the air and of reducing our dependence on foreign that uses hydrogen in a fuel cell? use that electricity to separate oxygen oil. The President said that because he Water vapor. You are not driving and hydrogen in water, store the hy- was proposing a new direction for around town belching black smoke. drogen, use it in a fuel cell, and double America’s energy supply: Hydrogen and You get water vapor. It is good for the the efficiency of how you power an fuel cells. environment, good for this country’s automobile and have water vapor com- Following his State of the Union Ad- energy security, and good for this ing out of the tail pipe of the auto- dress in which he proposed that, he had country’s economy. The fact is, this is mobile. How wonderful this country’s a gathering at the Building Museum in moving in exactly the right direction. future. But it will not happen unless Washington, DC. He invited all of the So I commend President Bush. the Congress and the President decide industry leaders throughout the coun- We also made progress in the Energy we are going to move to a different fu- try to come. He gave a great speech. I Committee, saying let’s increase that ture. was there with my colleague Senator which the President recommended, but The first antique car I bought and re- DOMENICI. We were invited to be a part it is still short of where we ought to be, stored when I was a kid was 75 years of it. He talked again about striking No. 1. No. 2, it does not include targets old. I put gas in it the same way I put out in this new direction and talked and timetables. I do not suggest they gas in a car today. It is never going to

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.012 S10PT1 S7566 CONGRESSIONAL RECORD — SENATE June 10, 2003 change unless in public policy we ac- million by 2020. Do you think General I have worked on hydrogen for some commodate the private sector’s invest- Motors has an aspiration of putting 1 while, as have others in the Congress, ment and the initiative that comes million cars on the road by producing 1 Republicans and Democrats. But work- from both the private sector and public million fuel cell cars by 2010? Do you ing on hydrogen and fuel cells to try to policy, to say here is where our coun- think they go to the board of directors move to a different energy future, try aspires to be. Here is where we and say, We have a wild guess to talk while a worthwhile enterprise, is not want our country to move with respect to you about. These are not wild guess- going to move us down the road unless to an energy bill. es. This is public policy, from our this Congress decides to be bold and de- There is a lot to this Energy Bill. standpoint, of stating our goals. cides to have big dreams and big goals. Any energy bill worth anything, in my I find it fascinating; although this is The fact is, we try to incrementalize judgment, has to incentivize additional not a mandate at all, it is trying to es- everything. We talk big and think lit- production. It has to provide for sig- tablish some benchmarks. Instead of tle. If we want to do something, this nificant amounts of conservation be- just giving money to bureaucrats or a amendment should be attached to this cause we are wasting a great deal of en- Federal agency and saying report back Energy Bill. As I said before, this ergy. It has to provide for new effi- when you get half a notion and let us amendment was accepted by voice vote ciencies with respect to all the appli- know how you are doing—the report 2 years ago. I don’t have the foggiest ances we use. Most importantly, in my will show not much is going on. Instead understanding of why someone would judgment, the fourth title of an energy of mandates, I put some targets in and oppose this. It is not a mandate. It is bill has to be limitless renewable say, aspire to achieve these. We ask the not a wild guess. It is not radical. In sources of energy. Yes, that is ethanol, Department of Energy to give us a fact, in many ways it is the most con- which we debated last week; it is bio- strategy on how they will achieve servative of approaches to say, let’s diesel; but most importantly, it is try- these. not spend money unless we know what ing to move toward a new energy fu- Some who would not want to put this we are going to do with it, unless we ture with respect to our vehicle fleet. kind of a strategy or this sort of a tar- have a strategy, unless we aspire to That is hydrogen and fuel cells. get in law will come to the Senate and achieve certain goals good for this I am not talking during this con- say, on national missile defense, we are country and that fit with what the versation about stationary engines, al- going to spend $9 billion this year on President intends to have happen with though that is another application for national missile defense and we de- respect to a hydrogen and fuel cell fu- fuel cells, and we have fuel cells that mand you deploy a system. It does not ture. are deployed and being used in this matter whether it is not ready or I ask unanimous consent Senator country. We also have fuel cells and ve- whether the technology does not exist, FEINSTEIN be added as a cosponsor to hicles using hydrogen. I have driven and it does not matter if you cannot my amendment No. 865 to Senate Bill one. We have had a fuel cell vehicle hit a bullet with another speeding bul- S. 14. drive from California to New York. It let; we demand you deploy that system The PRESIDING OFFICER. Without is not as if this technology does not by 2004. So the mandated targets are objection, it is so ordered. exist. It does. Like all other new tech- fine with respect to a national missile Mr. DORGAN. Mr. President, I under- nologies, it is originally very expen- defense system for which you want to stand my time has expired. sive. As the research and development spend $9 billion. The PRESIDING OFFICER. That is into the new models and prototypes are All of a sudden, when the President correct. done, it is very expensive. But those says, do a hydrogen fuel cell initiative Mr. DORGAN. I ask unanimous con- costs come down, down, way down, as for America’s energy security and you sent for 5 additional minutes and the our country embraces the notion that put in a rather weak, in my judgment, other side will be added 5 additional we want a different future for our vehi- set of targets, just so you have targets minutes to the closing side. cle fleet; we want a hydrogen fuel cell rather than no targets and timetables, The PRESIDING OFFICER. Without future that relieves this country of they say, gosh, what on Earth are you objection, it is so ordered. being held hostage by sources of oil doing here? Why would you suggest Mr. DORGAN. Mr. President, let me that come from out of our country. that? show a couple of photographs that If we just think for a moment about I suggest this, because I think if we might be helpful for people to under- that, this American economy is the are going to spend money, we ought to stand what this issue is about. This is strongest economic engine in the en- spend it effectively. If you are going to a DaimlerChrysler fuel cell bus intro- tire world by far. There is nothing go on a journey, you might want to get duced in Germany in 1997 that runs on close to it. Yet some catastrophic a map. If you want to take a trip to go fuel cells. I rode on a fuel cell bus in event could happen that could shut off to a different kind of energy future, California. For anyone who thinks this this supply of oil to this country be- you might want to have a spot in mind technology does not exist, it does. We cause over half of it comes from out- about your different nation. Those who have fuel cells. We use hydrogen. side of our shores. Something could want to take the taxpayers’ money and Let me give another example of what happen to shut off the supply and this throw it at a problem and send it to an is happening in the private sector: The economy would grind to a halt. It agency and say, do the best you can, I Ford Focus fuel cell vehicle, 2002. would be flat on its back. And every- say, God bless you, but I will show you This is a Nissan Xterra, fueled by body knows it. When it happens, if it how not to make progress. Just do compressed hydrogen that was tested happens, and God forbid it happens, but that, keep doing that, and you will on a California road beginning in 2001. if it happens everyone will say, We told never, ever, make progress. This General Motors Hy-Wire fuel you so. That is why this President If we want a different energy future, cell concept car was unveiled in August wants to move to a different path, go then we have to be driving the train. of 2002. to a different place, to embrace hydro- We have to decide this is what we as- Let me make a point about all of gen and fuel cells, and has stated so in pire to achieve; these are the goals we this. You can’t convert a vehicle fleet a State of the Union Address. He is set for our country. If you do not want in this country from a fleet that pulls dead right. We have to do that. to set goals, do not tell me you support up to the gas pump and you take the I don’t understand why establishing an energy future different from today. cap off and you stick a hose in and an aspired-to target and timetables en- Don’t tell me you want to withdraw pump away—you can’t convert a vehi- genders opposition. A year and a half and disconnect from 55 percent depend- cle fleet from a gasoline-powered vehi- ago when I offered this amendment it ence on foreign energy—55 percent cle fleet to a hydrogen-powered fleet was accepted by voice vote. I have no going to 68 percent. This is a habit that without substantial public policy ini- idea why all of a sudden some people is destructive to this country. It is de- tiatives that complement where the say, this is radical. What a bunch of structive to our future, and it is de- private sector wants to go. One cannot nonsense. Radical? Yesterday, I was structive to our security. It is a habit do it without the other. told, what we are talking about are we must end. This President has sup- That is why, even as all these compa- wild guesses: 100,000 vehicles by 2010, 2.5 ported an approach to do that. nies are working very hard on these

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.015 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7567 issues, they need public sector and pub- timetables and targets and goals. If provisions under this Act relating to domes- lic policy support. This is a picture of you want to spend money, then let’s tic crude petroleum production; a hydrogen fueling station at Power make those who are going to receive (B) assess the effectiveness of those provi- TechLabs. So if you had a car with a the money give us the strategies that sions in meeting the goal described in para- graph (1); and fuel cell that uses hydrogen, where relate to where we want our country to (C) describe the progress in developing and would you go to fuel that car? Where move. Or do we just want to throw implementing measures under subsection (b). would you go to power it? Where would money in the air and sort of mill (b) MEASURES TO REDUCE IMPORT DEPEND- you find a supply of hydrogen? So you around and thumb our suspenders and ENCE THROUGH INCREASED DOMESTIC PETRO- have a whole series of questions. smoke our cigars and say we did a LEUM CONSERVATION.— As I mentioned earlier, you have to great job; we spent $3 billion on hydro- (1) IN GENERAL.—Not later than 1 year after develop the question of how do you gen, and boy, we hope something comes the date of enactment of this Act, the Presi- produce hydrogen in large quantities. of that. That is not the way you do dent shall develop and implement measures to conserve petroleum in end-uses through- It is not terribly difficult. You can business. The way you do business is out the economy of the United States suffi- produce it in many ways, but what you have a plan. You decide where you cient to reduce total demand for petroleum would be the predominant method of want to go for the future of this coun- in the United States by 1,000,000 barrels per production? How do you store it? try and what you want to do and how day from the amount projected for calendar Where do you store it? How do you you want to achieve it. That is what year 2013 in the reference case contained in transport it? All of those are important this amendment does. It just sets out the report of the Energy Information Admin- issues that the private sector and pub- those goals. I am hoping when we have istration entitled ‘‘Annual Energy Outlook lic policy will answer, in my judgment. this vote it will have a very sizable vic- 2003’’. Then, what kind of infrastructure (2) CONTENTS.—The measures under para- tory here in the Senate later this graph (1) shall be designed to ensure contin- can develop and how do you incentivize morning. ued reliable and affordable energy for con- its development so those who are pur- Mr. President, I yield the floor, and I sumers. chasing the new fuel cell vehicles pow- make a point of order a quorum is not (3) IMPLEMENTATION.—The measures under ered by hydrogen have a place to come present. paragraph (1) shall be implemented under ex- where they can fuel those vehicles? The PRESIDING OFFICER. The isting authorities of appropriate Federal ex- We have plans for many areas of pub- clerk will call the roll. ecutive agencies identified by the President. lic policy, whether it is Social Security The assistant legislative clerk pro- Ms. LANDRIEU. Mr. President, we or Medicare—a whole series of issues. ceeded to call the roll. are today continuing a very important We have all these studies and plans of Mr. REID. Mr. President, I ask unan- debate on fashioning an energy policy where we aspire to be and what we as- imous consent that the order for the for our Nation. We will be voting on pire to do. The goals in this amend- quorum call be rescinded. many key amendments as we attempt ment, while not mandates, are very The PRESIDING OFFICER. Without to move this very important bill off the simple. In my judgment they are rea- objection, it is so ordered. Senate floor, to conference with the sonable goals and ones that ought not Mr. REID. Mr. President, I ask unan- House, and to the President’s desk for frighten anyone in this Chamber into imous consent that the pending amend- signature. believing they are mandates. ment be set aside and the Senator from It is crucial that we increase domes- We know California’s Clean Air Act Louisiana be allowed to offer her tic production of oil and gas. requirements will ensure there will be amendment. It is crucial that we invest more many fuel cell vehicles on the road in The PRESIDING OFFICER. Without money in research and technologies for California in the future. By this year, objection, it is so ordered. alternate fuels that are more environ- 2003, 2 percent of California’s vehicles The Senator from Louisiana. mentally friendly. It is crucial that we have to be zero emission vehicles, and AMENDMENT NO. 871 reduce our consumption, particularly around 10 percent must be zero emis- Ms. LANDRIEU. Mr. President, I of oil, as well as have a revitalization, sion by 2018. California will have nearly send an amendment to the desk. in my opinion, in the appropriate ways, 40,000 to 50,000 fuel cell vehicles on the The PRESIDING OFFICER. The of our nuclear industry—they are all road by the end of the next decade. clerk will report. important aspects of this bill—as well One of the other considerations in The assistant legislative clerk read as have the deregulation components of public policy is Federal fleet purchase. as follows: electricity and the expanding of the We can be the first purchaser of these The Senator from Louisiana [Ms. electric grid, in the appropriate ways, technologies and put thousands, tens of LANDRIEU] for herself, Mr. SPECTER, Mr. which is quite difficult because there thousands of vehicles on the road BINGAMAN, and Ms. COLLINS, proposes an are regions of the country that come at through the Federal fleet purchase. amendment numbered 871. that issue from a variety of different Those are the kinds of activities I Ms. LANDRIEU. Mr. President, I ask standpoints, and it has been very dif- think can make a big difference. unanimous consent that reading of the ficult to negotiate those particular as- Let me finish as I started. I am very amendment be dispensed with. pects of the bill. disappointed. I hope perhaps a good The PRESIDING OFFICER. Without But I compliment the chairman from night’s sleep will have persuaded those objection, it is so ordered. New Mexico and our ranking member who came yesterday, who were a little The amendment is as follows: from New Mexico who have worked cranky about this amendment and (Purpose: To reduce the dependence of the beautifully together trying to fashion a wanted to see if they shouldn’t maybe United States on imported petroleum) bill that is balanced and is actually oppose this amendment—I am hoping On page 238, between lines 2 and 3, insert possible to pass and not get logjammed maybe a good night’s sleep would have the following: in ideological battles; it is something provided some sort of epiphany to Subtitle E—Measures to Conserve Petroleum that will help our country move toward those who would have otherwise op- SEC. ll. REDUCTION OF DEPENDENCE ON IM- more energy efficiency and security; posed it and they will decide that they PORTED PETROLEUM. increasing our national security and (a) REPORT.— should support what the Senate unani- (1) IN GENERAL.—Not later than February 1, improving efficiency in our economy, mously supported 2 years ago. This is 2004, and annually thereafter, the President hopefully putting people to work in de- not anything other than a step in ex- shall submit to Congress a report, based on veloping these new technologies. So I actly the right direction. the most recent edition of the Annual En- commend them for their patience and If you want to be big, you want to be ergy Outlook published by the Energy Infor- persistence and their guidance. bold, you want to agree with President mation Administration, assessing the I believe the amendment I offer Bush that we ought to move to a new progress made by the United States toward today will go a long way to minimizing energy future, if you want to do all the goal of reducing dependence on imported the consumption of oil in this country. petroleum sources by 2013. that and believe hydrogen and fuel (2) CONTENTS.—The report under subsection We are a nation that has only 3 percent cells, as the President says, are the fu- (a) shall— of the world’s known oil reserves. Yet ture—and I do—if you believe all that, (A) include a description of the implemen- we consume more oil than any country then let’s do this the right way: Set tation, during the previous fiscal year, of per capita or in any way you might

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.018 S10PT1 S7568 CONGRESSIONAL RECORD — SENATE June 10, 2003 want to arrive at that conclusion. It is sumption of oil is four times the next velop and implement a plan to reduce simply essential that we reduce our two largest oil consumers, Japan and oil consumption by 1 million barrels a consumption of oil. China. day by the year 2013. You might say to me, Mr. President: The price of oil in our country is at I show you a chart I have in the That is strange, Senator, since you are the mercy of world events, and not just Chamber because this amendment from a State that produces oil. We are in the Middle East, which we see would actually put into law—I am hop- a proud producer, as you know, of oil played out on television every day, but ing we can get a broad bipartisan vote and gas. We believe we contribute to in Venezuela, which might be off the on this amendment—it would actually the wealth and security of this Nation. front pages but, believe me, it is not off put into law the words the President We believe and know that these oil and the front pages of the business journals himself spoke in his State of the Union gas wells have brought jobs and wealth in this country where they see their speech when he said U.S. oil consump- and opportunity and prosperity to our prices and their businesses jeopardized tion would be about 1.8 million barrels State. Yes, it has come at some envi- because of the turmoil in Venezuela per day lower in 2020. ronmental cost, particularly 40 and 50 and Nigeria. So what my amendment says is, in- years ago, where the science was not We owe it to ourselves to try to mini- stead of saying there would be a 1.8 where it is today, the technology was mize the volatility of oil prices. We do million reduction by 2020, let’s try to not where it is today, the safety meas- that in two ways: increasing domestic shoot for a 1-million-barrel-per-day re- ures were not where they are today. We production, which obviously Louisiana duction by 2013, which is just about the made mistakes, but we are quickly would support; and also by reducing equivalent—a little different goal but learning from our experience, as any our consumption, which people in Lou- you could argue an equivalent goal. smart individual or enterprise does. We isiana—average families, businesses The benefit and beauty of this amend- are now engaged in new technologies large and small—all would agree to. ment is that it does not tie the Presi- that minimize the footprint. We are en- I continue to advocate for responsible dent’s hands, but it gives him great gaged in making tremendous improve- and robust domestic oil production, as flexibility in how to achieve the goal ments in environmental restoration I said, but we need to do more to re- he has outlined. duce consumption. Oil is a critical projects. There are any number of reasonable So I hope people will not think it is component of nearly everything that and simple measures the President strange that a Senator from Louisiana affects our daily lives: from transpor- could adopt that would help us to con- would be offering what I consider a tation, to food production, to heating. sume a less significant amount of oil very reasonable amendment to reduce And rising oil prices actually act like a and reduce taxes on the American peo- oil consumption in this Nation because tax by foreign oil exporters on the av- ple, increase our national security, im- even our oil and gas producers them- erage American. We have spent a great prove our environment, and create selves are willing, and know, in the deal of time trying to reduce taxes on jobs. It almost sounds too good to be long run it is in everyone’s interests, the floor of the Senate. We have done true, but it is true. including theirs, to diversify our that sometimes in a bipartisan way. We are not mandating a specific ap- source of supply, to minimize our con- Sometimes the majority has pushed proach, which is the beauty of it, be- sumption and our dependence on for- through tax relief. We can debate that cause the approach some have argued eign oil by improving and increasing issue at another time. But there is no for I have actually disagreed with and domestic production of oil and gas, disagreement that when we can reduce want to give the President great flexi- which is a centerpiece of this bill which taxes in a responsible manner, we most bility but hold to this important goal. I am proud to support. certainly should do so. So, therefore, I offer this amendment This amendment, which asks the There are any number of ways we which will save, if adopted—and I am President to reduce the consumption of could do that. The President could con- pleased to offer this amendment with oil in this Nation by 1 million barrels a sider renewable fuels standards. A dif- the Senator from Pennsylvania, Mr. day—we are consuming about 19 mil- ferent approach could save 175,000 bar- SPECTER, as the lead cosponsor; Sen- lion barrels a day, so this would re- rels of oil per day by 2013. Weatherizing ator LAMAR ALEXANDER, from the great quire and basically meet his goals, as of homes under credit enhancements or State of Tennessee; as well as Senator outlined in his State of the Union encouragement or new techniques that COLLINS from Maine—so we offer this speech—gives him broad latitude as to some local and State governments have as a bipartisan amendment to save the how to do that. It would be like a tax found very helpful could save 80,000 taxpayers and the businesses and the reduction because currently middle- barrels per day. Air traffic improve- consumers in this Nation 1 million bar- class families pay about 5 percent of ments, just simple improvements in rels of oil a day. That is the essence of aftertax income for energy needs. As the way and timing of our airplanes this amendment. the price of oil increases, family taking off and landing, which can be Before I explain the details of the aftertax income continues to decline. increased effectively by additional amendment, let me just talk a moment When businesses pay higher taxes, technologies, could save 50,000 barrels about the importance of reducing our pay for higher oil prices and disrup- of oil per day. As to reducing truck dependence on fossil fuels. As I said, we tions in oil supply, this increases infla- idling, there are several new tech- need to develop alternative fuel tion and reduces profits, production, nologies being developed, employing sources. One of the reasons is because investment, and employment. Let me scientists and engineers and putting oil provides nearly 40 percent of U.S. repeat: It increases inflation, reduces Americans to work developing these energy consumption. Sixty percent of profits, reduces production, reduces in- new kinds of technologies which make the oil we consume today is imported, vestment, and reduces employment. We the engines more efficient. They don’t and that number is set to rise. Unless need to be increasing production, in- have to idle or, at the idling stage, this amendment and others like it are vestment, and employment. My amend- don’t use as much oil. That could save adopted, that trend will continue to go ment will help us to do just that. 50,000 barrels of oil a day. Just replac- up, putting at risk our national secu- Consumers are spending $50 billion ing tires, using our tires and keeping rity and putting at risk our inter- more in annual energy bills than a year them filled with air as opposed to flat, national economic competitiveness. ago. If we could reduce our consump- new technology regarding the tires Because oil is truly an international tion by the amount that our amend- could save money. commodity, and the United States is ment suggests, we would begin to save The point of this list—and I could go the world’s largest consumer of oil, it consumers money they could spend on on because I could speak about 30, 40, is particularly vulnerable to any event other most needed and necessary or 50 known actions that could be that would affect supply and demand. things for themselves, their children, taken by the President in this realm As I said earlier, our daily consump- their grandchildren, or their busi- without dictating exactly how the sav- tion of oil is almost four times the next nesses. ings would occur—is to illustrate the two largest oil consumers, Japan and The amendment I offer today, as I plethora of choices where he could go China. Let me repeat: Our daily con- said, would direct the President to de- to achieve these savings.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.021 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7569 The amendment I offer today with I would also like to reference an arti- ergy’’? Or how Jimmy Carter proclaimed in Senators ALEXANDER, BINGAMAN, SPEC- cle by the Concerned Scientists Asso- 1979 that ‘‘beginning this moment, this na- TER, and COLLINS is a clear and reason- ciation, over 2,000 scientists who have tion will never again use more foreign oil than we did in 1977—never.’’ Even Ronald able objective for oil savings. It will re- written a paper, very illustrative, en- Reagan said in 1982 that ‘‘we will ensure that duce our dependence on oil. couraging action on this subject. I say our people and our economy are never again Let me show a couple of examples of that because some of our brightest held hostage by the whim of any country or the way the President could achieve minds, some of the best scientists in cartel.’’ these goals, some of which we have al- the country are thinking along these How empty those vows seem now, when one ready passed on the Senate floor. Eth- lines and fully support this amendment nation, Saudi Arabia, is sitting one the anol is now a part of this bill. There to save 1 million barrels of oil. Perhaps world’s largest proved reserves—265 billion were some Members who disagreed barrels, or 25 percent of the known supplies— we can save more. I would actually be and can send global prices soaring or falling with the ethanol fuels standard. I actu- open to saving more. If someone wants simply by opening or closing the spigot. For ally supported, along with Senator to offer an additional amendment, I now, the Saudis are our friends. They are DASCHLE, Republicans and Democrats, would consider voting for it. But I am boosting production to keep prices from that new standard. This will save oil certain this is something we can ac- spiking too high. But what if Saudi Arabia’s consumption in the country. The Presi- complish. The President himself out- internal politics change? ‘‘The entire world dent would have that option. In addi- lined this as a goal. The President’s economy is built on a bet of how long the tion, I talked about the tire savings, House of Saud can continue,’’ says Philip E. own budget that he laid down cited as Clapp, president of the National Environ- replacement tires with the appropriate a goal the equivalent, basic goal of mental Trust. rules and regulations could save us what I am offering. The good news is that we can make a safer 270,000 barrels of oil. And finally, the We have voted any number of times bet. And it doesn’t entail a vain rush for en- idling engines, this is a visual to show in the Senate and have come very close ergy independence or emancipation from that with some new technologies to to reaching this goal. So while some Middle East oil. Based on interviews with keep our airplanes flying and spending may argue that we should try to save dozens of economists, oil analysts, environ- less time on the ground and more time more, I think this is an amendment mentalists, and other energy experts, BusinessWeek has crafted guidelines for a in the air, which passengers would ap- that can pass, that can get us moving sensible and achievable energy policy. These preciate—believe me, as a frequent in the right direction. I submit both of measures build on the positive trends of the flier myself, if we could just keep our these from a business perspective, from past. If implemented, they would reduce the airplanes flying and keep them from an environmental perspective for the world’s vulnerability to wars in the Middle idling; there are new technologies help- RECORD, to substantiate the value of East, production snafus in Russia, turmoil ing to do this—we could save oil. the amendment. around the Caspian Sea, and other potential In the past, we have focused the de- I see my colleague from Tennessee on disruptions. The plan has the added benefit bate on just one way of saving oil the floor who has probably come to add of tackling global warming, which many sci- which was directed at our transpor- entists consider the greatest economic his good words as a cosponsor of the threat of this century. tation sector. My amendment does not amendment. The energy policy BusinessWeek advocates direct these savings at the transpor- I ask unanimous consent to print the comes down to six essential steps. To deal tation sector, although I acknowledge document I referenced. with oil supplies, the U.S. should diversify that the transportation sector is the There being no objection, the mate- purchases around the world and make better largest user of oil. This amendment rial was ordered to be printed in the use of strategic petroleum reserves. It must provides flexibility. It sets a realistic RECORD, as follows: also boost energy efficiency across the econ- goal that matches the President’s, ba- [From BusinessWeek, Feb. 24, 2003] omy, including making dramatic improve- ments in the fuel efficiency of cars and sically the equivalent of the Presi- TAMING THE OIL BEAST trucks. How do we accomplish this? Nurture dent’s own goals. And I think it would A SENSIBLE, STEP-BY-STEP ENERGY POLICY IS new technologies and alternative energy create, if adopted, a tremendous bal- WITHIN OUR REACH—HERE’S WHAT TO DO sources with research dollars and tax incen- ance in the bill because again we have American troops are massing outside of tives, and consider higher taxes on energy to increased opportunities for production. Iraq, preparing to strike against Saddam more accurately reflect the true costs of We have given incentives for more do- Hussein. And as war jitters rattle the world, using fossil fuels. Projecting the precise ef- mestic production. But that has to be there’s one inevitable effect: a rise in the fects of these policies is impossible, econo- price of oil. Crude is up more than 33 percent mists warn. But BusinessWeek estimates coupled with Senator BINGAMAN’s lead- over the past three months, climbing to $35 that, at a cost of $120 billion to $200 billion ership on energy efficiency and savings per barrel in the U.S. Economic models pre- over 10 years—less than the cost to the econ- to reduce our consumption of oil as we dict that if the price stays high for three omy of a major prolonged oil price rise—it promote in the appropriate ways over months, it will cut U.S. gross domestic prod- should be possible to raise energy efficiency the appropriate timeframe the use of uct by $50 billion for the quarter. If the war in the economy by up to 50 percent and re- other alternative sources of energy. goes badly, with Saddam destroying oil duce U.S. oil consumption by more than 3 I offer the amendment in good faith. fields in Iraq and elsewhere, or if disaster or million barrels a day. There will be Members who will speak unrest chokes off oil flowing from other These steps draw on the lessons of history hopefully for the amendment. Hope- countries, the whole world’s economy is in and help highlight what not to do. Meaning- for a major shock. ful progress has long been held up by myths fully we can pass it by a good margin There’s no escaping the consequences of and misconceptions—and by the scores of to show we are indeed serious about a our thirst for oil. It fuels a vast engine of bad ideas pushed in the name of energy inde- balanced energy policy which promotes commerce, carrying our goods around the pendence. Remember ‘‘synfuels’’ in the 1970s? in the right ways domestic production nation, taking mom and dad to work, and Today’s misguided notions include trying to but also oil savings. carting the kids to soccer practice. As long turn perfectly good corn into ethanol and I will ask unanimous consent to print as the U.S. imports more than 11 million bar- rushing to drill in the Arctic National Wild- in the RECORD a Business Week article rels a day—55 percent of our total consump- life refuge. Indeed, looking over the past that had a great impact with me as I tion—anything from a strike in Venezuela to couple of decades, ‘‘my reaction is, thank read it, ‘‘Taming the Oil Beast.’’ It is unrest in the Persian Gulf hits us hard in the God we didn’t have an energy policy,’’ says pocketbook. ‘‘We are vulnerable to any David G. Victor, director of Stanford Univer- time, since the business community re- event, anyplace, that affects the supply and sity’s Program on Energy Sustainable Devel- alizes we can and should get smart demand of oil,’’ says Robert E. Ebel, director opment. ‘‘The last one had quotas and ra- about oil, that we do so. I think this is of the energy program at the Center for tioning, causing lines at the gas pumps and a very good amendment about getting Strategic & International Studies (CSIS). In incredible inefficiencies in the economy.’’ smart about oil because it sets a goal a Feb 6. speech, President Bush put it blunt- One false notion is that making the U.S. of reduction, but it gives the President ly: ‘‘It jeopardizes our national security to self-sufficient—or doing without Middle and his departments flexibility as to be dependent on sources of energy from Eastern oil—would protect us from supply cutoffs and price spikes. In fact, oil has be- how this would work. countries that don’t care for America, what we stand for, what we love.’’ come a fungible world commodity. Even if I would like to submit that for the It wasn’t supposed to be this way. Remem- we cut the umbilical cord with the Persian RECORD because it would serve as a ber how Richard Nixon insisted in 1973 that Gulf by buying more oil from Canada, Mex- basis for the offering of the amendment the nation’s future ‘‘will depend on main- ico, or Russia, or by producing more at today. taining and achieving self-sufficiency in en- home, other nations will simply switch over

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.024 S10PT1 S7570 CONGRESSIONAL RECORD — SENATE June 10, 2003 to buy the Middle eastern oil we’re shunning. pian resource, surrounded as it is by Iran, a year. One recent innovation: adjustable- The world oil price, and the potential for Kazakhstan, Russia, Azerbaijan, and Geor- speed factory motors that don’t require en- spikes in that price, remains the same. As gia, is a bastion of instability and could eas- ergy-sapping brakes. The efficiency gains long as there are no real oil monopolies, it ily become the backdrop for a future war ‘‘help us reduce our operating costs and our doesn’t matter so much where we get oil. linked to oil. But history shows that even emissions—and the impact that sudden price What really matters is how much we use. Re- bad guys are eager to sell their oil. increases have on our businesses,’’ says 3M ducing oil use brings two huge benefits: Indi- If energy policy were only about econom- energy manager Steven Schultz. vidual countries have less leverage over us, ics, we might argue that the world should Last year, the New York Power Authority and, since oil costs are a smaller percentage take advantage of the ample supplies and put in a digitally controlled power elec- of the economy, any price shocks that do relatively cheap prices and just keep con- tronics system—essentially, a large garage occur have a less dramatic effect. suming at a rapid rate. But there are addi- packed with semiconductor switches and Yet reducing oil use has to be done judi- tional costs of oil not included now in the computers—in a substation that handles ciously. A drastic or abrupt drop in demand price (step 6). And we have other important electric power coming in from Canada and could even be counterproductive. Why? Be- goals, such as doing more to protect the en- northern and western New York. Along with cause even a very small change in capacity vironment and reducing the political lever- conventional improvements, this vastly im- or demand ‘‘can bring big swings in price,’’ age of the Middle East. Says ExxonMobil proved the system’s ability to manage explains Rajeev Dhawan, director of the Eco- Corp. (XOM) Chairman and CEO Lee R. Ray- power. The state now has the capacity to transfer 192 more megawatts of available nomic Forecasting Center at Georgia State mond: ‘‘The key to security will be found in electricity, or enough to power about 192,000 University’s Robinson College of business. diversity of supply.’’ In other words, whim- homes. sical though it may seem, we should strive For instance, the slowdown in Asia in the The nation’s entire antiquated electricity mid-1990s reduced demand only by about 1.5 to maintain a Goldilocks price for oil: It grid should be refashioned into a smart, re- million barrels a day, but it caused oil prices should be high enough to keep companies sponsive, flexible, and digitally controlled to plunge to near $10 a barrel. So today, if and countries investing in oil fields but not network. That would reduce the amount of the U.S. succeeded in abruptly curbing de- so high that it sends the world into a reces- energy required to produce $1 of GDP by 30 mand for oil, prices would plummet. Higher- sionary tailspin. percent and save the country $100 billion a cost producers such as Russia and the U.S. 2. Use Strategic Reserves year, estimates Kurt E. Yeager, CEO of the would either have to sell oil at a big loss or The nation now has 599.3 million barrels Electric Power Research Institute (EPRI). It stand on the sidelines. The effect would be to stored in underground salt caverns along the would eliminate the need to build dozens of concentrate power—you guessed it—in the Texas and Louisiana Gulf Coast. That’s power plants, cut carbon emissions, and hands of Middle Eastern nations, the lowest- enough to replace Iraq’s oil production for at slash the cost of power disruptions, which cost producers and holders of two-thirds of least six months. Yet this stockpile isn’t run about $120 billion a year. Such a network the known oil reserves. That’s why flawed being used correctly, and it never has been, would also break down existing barriers to energy policies, such as trying to override many experts believe. In the 1991 Persian hooking up new sources of power to the grid, market forces by rushing to expand supplies Gulf War, ‘‘oil prices were back to the nor- from solar roofs on thousands of houses to or mandating big fuel efficiency gains, could mal level by the time the U.S. got around to small, efficient heat and power generators at do harm. releasing the strategic petroleum reserve,’’ businesses. And soon, it will be possible to The truth is, the post-1970s de facto policy says energy economist W. David Mont- rack up big efficiency gains by switching to of just letting the markets work hasn’t been gomery of Charles River Associates, Inc. We industrial and home lights made from light- all bad. painful oil shocks brought reces- shouldn’t make that mistake again. With oil emitting diodes (LEDs), which can use less sions. But they also touched off a remark- prices already up, ‘‘we should release the than one-tenth the energy of incandescent able increase in the energy efficiency of the stockpile immediately,’’ he says. bulbs. U.S. economy. From the 1930s to the 1970s, Other experts argue that the reserve These are exciting developments, but what America produced about $750 worth of output should be used as a regular hedging tool do they have to do with oil? The answer lies per barrel of oil. That number doubled, to rather than being saved for extreme emer- in the idea of fungible energy: Eliminate the need for a power plant running on natural $1,500, by the end of the 1980s. But the gencies, which so far have never material- gas, and that fuel becomes available for ev- progress largely stopped in the past decade. ized. One idea: Allow companies to contract erything from home heating to a source of Now we need policies to continue those fuel- with the government to take out barrels of hydrogen for fuel-cell vehicles. A subset of efficiency gains, without the pain of sudden oil when they want to—as long as they agree oil shocks. the nation’s energy policy, therefore, should to replace it later, along with a bit extra. be doubling Federal R&D dollars over the The critical balancing act is reducing oil That way, this big store of oil would smooth use without hurting the economy—or with- next five years to explore technologies that out glitches in supply and demand while also can boost energy efficiency, provide new out allowing energy prices to fall so low that taking away some of OPEC’s power to ma- companies and individuals abandon all ef- sources of power, and, at the same time, ad- nipulate the market. There are similar re- dress the problem of global warming. forts to conserve. Successfully walking this serves in Europe, Japan, and South Korea— 4. Raise Car and Truck MPG tightrope can bring big gains. The next time for a total of 4 billion barrels, including the we are hit with a spike in the price of oil, or U.S.—that should be used in this way as well. To make a real dent in oil consumption, even of natural gas or electricity, we may be And by making the reserves bigger, we gain the U.S. must tackle transportation. The able to avoid the billions in lost GDP that more leverage to dampen the shocks. numbers here dwarf everything else, ac- counting for a full two-thirds of the 20 mil- would otherwise result. Here are the details: 3. Boost Industrial Efficiency 1. Diversify Oil Supplies lion barrels of oil of oil the U.S. uses each After decades of concern over energy prices day. And after rising from 15 miles per gallon The answer to the supply question is a and the big improvement in the overall en- in 1975 to 25.9 mpg in 1988, the average fuel delicate combination of technology, market ergy efficiency of America’s economy, you economy of our vehicles has slipped to 24 forces, and diplomacy. New tools for drilling would think that U.S. companies would be mpg, dragged down by gas-guzzling SUVs and in waters nearly two miles deep, for in- hard-pressed to find new gains. ‘‘In my expe- pickup trucks. Boost that to 40 mpg, and oil stance, are opening up untapped sources in rience, the facts are otherwise,’’ says Judith savings will top 2 million barrels a day with- the Atlantic Basin, Canada, the Caribbean, Bayer, director of environmental govern- in 10 years. Brazil, and the entire western coast of Afri- ment affairs at United Technologies Corp. Detroit says that’s too high a goal. But the ca. (UTX) UT discovered savings of $100,000 in technology already exists to get there. In That’s helping to tip the balance of power just one facility by turning off computer early January, General Motors Corp. (GM) among oil producers. In 1973, the Middle East monitors at night. ‘‘People talk about low- rolled out ‘‘hybrid’’ SUVs that use a com- produced nearly 38 percent of the world’s oil. hanging fruit—picking up a dollar on the bination of gas-engine and electric motors to Now, that percentage has dropped below 30 floor in savings here and there,’’ Bayer says. bump fuel economy by 15 percent to 50 per- percent. ‘‘Our policy has been to encourage ‘‘We picked up thousands off the ground. It’s cent. That same technology is already on the oil companies to search for oil outside the embarrassing that we didn’t do it earlier.’’ road. Honda Motor Co.’s (HMC) hybrid Civic U.S. but away from the Persian Gulf,’’ ex- Just last year, Salisbury (N.C.)-based Food and Toyota Motor Corp.’s (TM) Prius, both plains CSIS’s Ebel. ‘‘It’s been rather success- Lion cut its energy consumption by 5 per- big enough to carry four adults and their ful.’’ cent by using sensors to turn off lights in cargo, each top 45 mpg in combined city and There’s plenty of oil to be tapped. While bathrooms and loading-dock areas and by in- highway driving. there are now about 1 trillion barrels of stalling better-insulating freezer doors. ‘‘The Adding batteries and an electric motor to proved reserves, estimates of potential re- project saves millions a year,’’ says Food vehicles is just one of many ways to increase serves keep rising, from 2 trillion barrels in Lion’s energy-efficiency expert, Rick gas mileage. Researchers can also improve the early 1980s to more than 3 trillion barrels Heithold. the efficiency of combustion, squeezing more today. Even companies with strong efficiency power out of a given amount of fuel. In an The Caspian Sea area, for instance, prom- track records are doing more. 3M Corp. approach called variable valve timing, they ises proved reserves of 20 billion barrels to 35 (MMM) has cut use of energy per unit of out- can adjust the opening and closing of an en- billion barrels—but could have more than 200 put by 60 percent since the Arab oil embar- gine’s intake and exhaust valves. Such en- billion barrels. Skeptics argue that this Cas- go—but is still improving at about 4 percent gines, made by Honda, BMW, and others, are

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.017 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7571 more efficient without sacrificing power. Re- this nationwide, with a target of perhaps 15 Under the Bush Administration, this too, searchers are now working on digitally con- percent, up from the current 6 percent. may be difficult to enact. What’s left are reg- trolled valves whose timing can be adjusted 6. Phase in Fuel Taxes ulations and mandates. There may be just even more precisely. The gains? Well over 10 The main reason fuel-efficiency gains in enough political will to boost CAFE (cor- percent in many cases. the U.S. slowed in the 1990s is that the cost porate average fuel efficiency) standards for More improvement comes from reducing of oil—and energy in general—was so low. vehicles—and to remove the loopholes that the power sapped by transmissions. So-called ‘‘Yes, we are energy hogs, but we became en- hold SUVs to a lower standard. But we need continuously variable transmissions elimi- ergy hogs because the price is cheap,’’ says a smarter rule than the current one. nate individual gears so that engines can Georgia State’s Dhawan. One good idea: give companies whose cars spend more time running at their most effi- Even though it seems like the market is and trucks do better than the fuel-economy cient speed. And auto makers can build working in this regard, it really isn’t. target credits that they could sell to an auto clean-burning diesel engines, which are 20 There’s widespread agreement that the cur- maker whose fleet isn’t efficient enough. percent to 40 percent more efficient than rent price of oil doesn’t reflect its true cost That way, ‘‘good’’ companies such as Honda their gas counterparts. to the economy. ‘‘What Americans need to are strongly motivated to keep improving Estimates vary widely on what it would know is that the cost of gasoline is much technology. By being smarter about regula- cost to raise gas mileage to 40 mpg or higher more than $1.50 a gallon,’’ says Gal Luft of tions and mandates, ‘‘we could do a lot bet- for the entire U.S. fleet of cars. Assuming a the Institute for the Analysis of Global Secu- ter than what we are doing now,’’ explains combination of technologies, we figure the rity. But the invisible hand could work its Stanford professor James L. Sweeney. tab could be $1,000 to $2,000 per car, or $80 bil- magic if we include costs of so-called If we implement these policies, here’s what lion to $160 billion over 10 years. That’s less externalities, such as pollution or the tab for we’ll get: A reduction in projected levels of than fuel savings alone over the life of the fighting wars in the Middle East. That would oil consumption equal to 3 million barrels a new vehicles. Carmakers already have the raise the price, stimulating new energy-effi- day or more within 10 years. That means we technology. What we need now are policies, ciency measures and the use of renewable could choose not to import from unfriendly ranging from higher gasoline prices to fuels. countries (although they will happily sell tougher fuel-economy standards, that will The tricky part is pricing these their oil to others). In addition, oil-price give manufacturers and consumers incen- externalities. Some economists peg it at 5 shocks should be fewer and smaller, allowing tives to make and buy these vehicles. cents to 10 cents a gallon of gas. Others see us to avoid some of those $50 billion (or The ultimate gas-saving technology would the true cost as double or triple the current more) hits to GDP. A more fuel-efficient be a switch to a completely different fuel, price. Just by adding in the more than $100 economy will free up oil for countries such such as hydrogen. Toyota, Honda, and GM al- billion cost of having troops and fighting as China and India, notes Platts Global Di- ready are testing cars that use fuel cells to wars in the Persian Gulf, California State rector of Oil John Kingston. And the tech- power electric motors. Such vehicles are University economist Darwin C. Hall figures nologies we develop will help those econo- quiet, create no air pollution, and emit none that oil should cost at least $13 per barrel mies become more efficient. of the carbon dioxide linked with global more. ‘‘That is an absolutely rock-bottom, Economists will argue about the costs of warming. They also are expensive, and 10 to lowball estimate,’’ he says. More dollars these measures. But the benefits of greater 20 years away from the mass market. come from adding in numbers for the costs of energy efficiency and reduced vulnerability There’s one other problem: Where would air pollution, oil spills, and global warming. should, over the long run, outweigh the $120 the hydrogen come from? The element must Imagine, though, that in an ideal world, we billion (or more) cost of getting there. Pain- now be extracted from gas, water, or other could settle on the size of the externalities— ful though they were, the oil shocks of the substances at relatively high cost. But there maybe $10 per barrel. We obviously don’t 1970s sent the U.S. down the road toward a are intriguing ideas for lowering the tab, want to suddenly slap a $10 tax on oil. Doing more energy-efficient—and less vulnerable— such as genetically engineering bacteria to so would slice more than $50 billion out of economy. Our task now is to find a smoother make the gas or devising more efficient ways GDP and send the economy into a recession, path to continue that journey. to get it from coal. We need a strong re- forecasters calculate. The PRESIDING OFFICER. The Sen- search program to explore these ideas, plus But phasing it in slowly, over 10 years, would give the economy time to adopt fuel- ator from Tennessee. incentives to test fuel-cell technology in Mr. ALEXANDER. The Senator from power plants and vehicles. President Bush’s efficiency measures at the lowest costs. We should also consider additional taxes on gas- Iowa has been waiting for a while. I $1.2 billion hydrogen initiative is just a would like to set the vote for the Dor- start. oline, since a $10-per-barrel price rise amounts to only about 25 cents per gallon of gan amendment if I may, and then I 5. Nurture Renewable Energy gas—not enough to make a big change in would be glad to yield to the Senator Tim Grieves shares a vision with a growing buying habits. This approach works even from Iowa to let him make his re- number of energy giants: harnessing the better if the revenue from these taxes is re- marks. Then I would like as a cospon- wind to generate cheap, clean power. The su- turned to the economy in a way that stimu- perintendent of schools in Spirit Lake, Iowa, lates growth and productivity—by lowering sor to speak in support of the amend- Grieves has overseen the installation of two payroll taxes, for example. Plus, there are ment of the Senator from Louisiana. wind turbines that hum away in a field not big environmental benefits from reduced pol- Mr. REID. I ask unanimous consent far from his office. They generate enough lution. that that be the case, that Senator juice to allow Spirit Lake to proudly call There’s a fierce debate about whether the HARKIN be recognized followed by the itself the only electrically self-sufficient economy gains or loses from such tax-shift- Senator from Tennessee. school district in the nation. ‘‘We’re not de- ing. Many economists agree, however, that The PRESIDING OFFICER. Without pendent on the Middle East,’’ says Grieves. the bad effects would be relatively small. objection, it is so ordered. ‘‘This is just smarter.’’ ‘‘There may not be a free lunch, but there is Mr. ALEXANDER. Mr. President, Although less than 0.5 percent of our power almost certainly a lunch worth paying for,’’ pursuant to the order of last night, I now comes from wind, it’s the cheapest and says Stanford economist Lawrence H. fastest-growing source of green energy. The Goulder. ask unanimous consent that the vote American Wind Energy Assn. believes the If energy taxes prove politically impos- in relation to the Dorgan amendment U.S. could easily catch up with Northern Eu- sible, there’s another way to achieve real- No. 865 occur at 11:30 today with two rope, where wind supplies up to 20 percent of istic fossil-fuel prices: through the back door minutes equally divided prior to the power. In the U.S., that’s the equivalent of of climate-change policy. Already, Europe is vote. 100,000 megawatts of capacity—or more than toying with carbon taxes to fight global The PRESIDING OFFICER. Is there 100 large fossil-fueled plants. The Great warming and multinationals are experi- objection? Plains could become the Middle East of menting with carbon-trading schemes to get Mr. REID. Reserving the right to ob- wind. a jump on any future restrictions. Even Re- ject, I will not object, I would hope Without tax credits and other incentives, publicans such as Senator John McCain (R– wind power couldn’t flourish. but oil and Ariz.) are pushing curbs on carbon dioxide. If that we could also line up the Senator other fossil fuels also have big subsidies. So the U.S. put its weight behind efforts to from Louisiana to have her vote in a we should either eliminate those or provide fight climate change, it could help push the reasonably short period of time. She reasonable incentives for alternatives such entire world toward lower emissions—and has indicated she thinks there may be as wind, solar, and hydrogen. Even if the new moderately higher oil prices. The best ap- a number of others who wish to speak sources still cost more than today’s power, proach: a combination of carbon taxes and a in favor of the amendment. We would continued innovation, spurred by the incen- cap-and-trade system, wherein companies hope we could move on to that. We tives, will lower the price. Moreover, having can trade the right to emit. That way, the want to get to the Wyden amendment. some electricity produced by wind turbines market helps find the greatest reductions at and solar panels helps insulate us from the lowest cost. Economists figure that a There is an order in effect that would spikes in natural-gas prices. Some states $100-per-ton tax on carbon emissions, for ex- set up 2 hours on that amendment. now require that a percentage of power come ample, would equal a rise of 30 cents in the Senator WYDEN will be ready imme- from renewable sources. We should consider cost of a gallon of gas. diately after the caucus. He would have

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.020 S10PT1 S7572 CONGRESSIONAL RECORD — SENATE June 10, 2003 been ready this morning. He would be Well, it was a gamble. Within 2 years, ple to work now. But the majority ready after the caucus to move on that. following the 1981 supply side, trickle- party says no. I hope we can get do that amendment down tax bill, we lost 1.4 million jobs. I also fear that their policies will right after the caucus and dispose of In 2001, the Bush administration tried lead to exploding Government debt. On this even prior to that. it again. They passed the first round of the same day we passed this ‘‘Bill Ben- The PRESIDING OFFICER. Is there massive tax cuts. And guess what. We nett betting bill’’—that is what I call objection? lost 2 million jobs. As all major news- the tax bill—the debt limit was in- The PRESIDING OFFICER (Mr. papers reported this weekend, the na- creased by an amount equivalent to ENZI). The Senator from Louisiana is tional unemployment rate is now at 6.1 putting an additional $3,500 on the recognized. percent, its highest level in 9 years. credit card of every man, woman, and Ms. LANDRIEU. Reserving the right Despite these two previous losing child in America—$3,500 on the credit to object, I have a question. Does the gambles, the President and the major- card of every man, woman, and child in Senator think it would be possible to ity party in Congress decided to give it America—to pay for this ‘‘Bill Bennett do that before lunch? I think my col- a third try last month. I think we betting bill.’’ league would probably only need 30 ought to call the tax bill that was Most of us are aware that the real minutes for our debate, equally divided passed and sent to the President the cost to the Treasury of this recent tax between the Senator from Tennessee ‘‘Bill Bennett betting bill’’ because it cut will be higher than advertised be- and the Senator from Maine. is going to have the same effect on our cause the bill used gimmicks and Mr. REID. I hope that will be the country that Bill Bennett’s gambling tricks to stay within some nominal case. Until Senator DOMENICI gets here, addiction had on him. It cost him, as I budget limit. The Speaker of the House we cannot agree to that. understand it, lost millions. It is going was quoted as saying the real cost will Mr. HARKIN. Mr. President, will the to cost our economy lost billions. be a trillion dollars, at a time when our Chair please state the unanimous con- But in the midst of it all, the exploding deficit is approaching $500 sent now before us. wealthiest Americans will have mas- billion for this year alone. Well, with The PRESIDING OFFICER. The vote sive tax breaks. In fact, on average, typical British clarity, the Financial in relation to the Dorgan amendment those Americans making over $1 mil- Times wrote on May 23, the day the tax will take place at 11:30, with 2 minutes lion a year are going to receive a tax bill passed: On the management of fis- of debate. cut of $93,000 a year. They are going to cal policy, the lunatics are now in Is there objection? have a great time. Unfortunately, who charge of the asylum. Without objection, it is so ordered. is going to pay the bill? Well, it will be The result, as this administration is The Senator from Iowa is recognized. paid by the rest of us, especially the well aware, is that it will put pressure Mr. HARKIN. Mr. President, first, younger generation—those now going on Social Security and Medicare. These briefly, the Dorgan amendment to put through college, going out to make programs are targeted by the adminis- tration for reforms, which means 100,000 hydrogen-powered vehicles on their way in life. They will be saddled privatizing Medicare and Social Secu- the road by 2010 and 2.5 million by 2020, with a huge, new debt. with the requisite fueling infrastruc- As pointed out on the editorial pages rity. We are going to have a debate ture, is one that is going to help grow of the Des Moines Register this week- here, I assume, in the Senate in the our economy, make our economy end, these irresponsible policies will coming weeks on how we are going to stronger. The amendment by Senator create pressure for higher State and provide prescription drug benefits under Medicare. But as I see the Medi- LANDRIEU and others to cut down on local taxes, tuition hikes at State col- care bill progressing and developing, it the use of oil by a million barrels a day leges and universities, rising health is nothing more than a shell, a subter- also is going to help improve our econ- care costs to those lucky enough to fuge to move toward the privatization omy by making us focus on things such have insurance, and further cuts to im- of Medicare, which, of course, has been as ethanol, for example, alternative portant initiatives. fuels, renewable energy and, of course, The wealthiest in America got more the Republican Party’s dream for many along with the Dorgan amendment, than their share under this tax bill, but years. Don’t take my word for it. fuel cell vehicles. It all has to do with the folks in the middle class pay the Former Speaker of the House Newt Gingrich said Medicare ought to wither making us more energy independent, bills. By contrast, the United States on the vine. The third ranking Repub- and that has to do with growing our took a fiscally responsible approach in lican in the Senate, my friend from economy. The more we continue to the 1990s. In 1993, Congress passed a Pennsylvania, said the Medicare ben- send our hard-earned dollars out of the budget to grow the economy, create efit should be phased out. country for the energy we need, the jobs. In the 2 years following that pas- So make no mistake, when we are de- less dollars we are going to have to re- sage, 6.4 million jobs were created. bating the Medicare bill coming up, we build our economy here at home. That plan put us on a path not only to- have to get out of the weeds. What Yesterday, I attended a hearing Sen- ward the lowest levels of unemploy- they are really talking about is taking ator DORGAN had that was devoted to ment in memory, but also to balanced the first step toward privatizing Medi- the question of our economy. The ques- budgets, the largest projected budget care. The President’s own press sec- tion was: Will the Bush economic plan surpluses ever. retary was quoted in the story: create jobs? I find it most remarkable and dis- There is no question that Social Security Well, I think throughout the hearing heartening that at the very time when and Medicare are going to present future what became clear was that the Bush it is obvious that economic policies generations with a crushing debt burden un- economic plan will not create jobs, un- should seek to stimulate demand, stim- less policymakers work seriously to reform fortunately. The plan advocated by the ulate new jobs, the majority party op- those programs. majority rewards their friends and sup- poses those things that would stimu- You pass a tax cut for the richest in porters with large tax cuts but will do late the economy the most, such as in- the country that the Speaker says is very little to create jobs. Many re- creasing the child credit for working going to cost us a trillion dollars, and spected economists warned of this families making under $26,000 a year. then you say we are going to have a lot months ago, but Republicans and the Well, the Democratic priority may of pressure on Social Security and administration paid them no heed. yet prevail, as it did in the Senate last Medicare because the money will not Unfortunately, it is not only experts week. I hope it does. But further stim- be there for them, so now we have to who believe this prediction; history ulus, such as putting people directly to reform them, which is their way of say- gives the same warning. These trickle- work, building new schools, roads, and ing privatize them. I hope we now un- down economic policies have been tried bridges, communications systems, up- derstand the picture: A tax cut for the before, and they have failed before. In grading our water and our waste water wealthiest, huge debts for the rest, im- 1981, Congress passed massive tax cuts systems, making sure we weatherize mense pressure on Social Security and for the rich, just like we did here. Then homes all over America, will also save Medicare; therefore, you have to pri- Director of OMB David Stockman us on imported fuel. These are the vatize them; turn them over to Wall called it a ‘‘riverboat gamble.’’ things we can do now that will put peo- Street. That is where we are heading.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.026 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7573 Exploding deficits and the debt will America. Not only do you put people to Energy bill, which the Senators from act like a cap on our economy. It will work, you build something of a lasting New Mexico have led us to fashion, en- increase interest rates when the econ- nature that provides for a strong foun- courages hydrogen fuel cell cars in the omy does begin to recover. It will un- dation for the private sector in economy. It encourages renewable en- dermine confidence. We need to create America. ergy. It encourages clean coal. It en- jobs in the short term, but we need to Take the issue of weatherization. We courages oil and gas. And it encourages do it in a way that is fiscally respon- could save huge amounts of oil and nuclear power. sible, to take care and protect the re- natural gas each year simply by What I think it is important we also tirement security and health needs of weatherizing homes, and I do not mean do is make sure we encourage con- seniors. We need to change course. The just in the North where it gets cold, servation, and to do that in a way that course set by this administration will but I mean in the South where it gets puts conservation high on the list of only lead to further deficits, further hot in the summertime. Guess what, priorities. It is a low-cost way to have debts piling up on our kids and these are not jobs that take a lot of more energy. It is a no-pollution way grandkids, economic stagnation, im- training. These are jobs we could fill to have more energy. porting more oil from abroad—which is with unemployed people right now. We In my way of thinking, the Senator why I am such a strong supporter of can put them to work weatherizing from Louisiana has come up with a the Landrieu amendment and the Dor- homes all over America. sensible approach. It also helps to have gan amendment. What do we get? We get immediate the President involved. When the I am afraid the administration may job creation. We use materials basi- President said, let’s build a hydrogen be opposed to these amendments, just cally that are made in this country. fuel cell car, he was not the first to say as they are opposed to a sound rational And we get something out of it that is that, but everybody heard it when he means of getting our economy moving going to help us: more fuel-efficient said it and it gave a lot of impetus to again. As I said, the Federal Govern- homes of low-income people who will the work on hydrogen that had been ment can be a great instrument, doing not be using their money to pay high going on in this body from both sides of it in a fiscally responsible manner that heating bills or cooling bills to pay for the aisle. actually provides the basis for further imported oil. So the Senator’s idea is to reduce our private sector growth in our country. Yet, for some strange reason, we can- petroleum import dependence by hav- I was listening to former Congress- not seem to do that here. But, boy, we ing the President come up with a plan man Jack Kemp, an old friend of mine can sure give billions in tax breaks to to conserve oil throughout our econ- of long standing, go on and on about the wealthiest in our society. omy, not just in transportation but how we need to make sure we have I will have more to say about this in throughout the economy; to reduce our more money in the private sector for the weeks ahead. There is another total demand by a million barrels per investments. I understand that, and pathway—that is my point—there is day by 2013. By my computation, that that is a legitimate argument, but another pathway to economic growth would cause us to reduce that by about what about the need for societal in- and jobs in our country, to which this 5 percent by 2013. vestments? What about the need for in- administration has turned a blind eye, We ought to be able to do that. We vesting in human capital? What about by investing in the veins and arteries— ought to be able to go ahead with nu- the need for investing in education? the roads and bridges, the highways, clear powerplants, with all the gas ex- You can give all the tax breaks you the sewer and water systems, the plorations. We ought to be able to go want to the richest in this country and schools, the education, the scientific ahead with renewable energies and coal the corporations. Are they going to research, the mathematical research, gasification. We ought to conserve at turn around and invest in higher teach- the physics research, the chemistry re- the same time. er pay, better teacher training? Are search, the medical research—that will they going to invest in rebuilding and set the stage for future economic Just one example. The Senator from modernizing schools all over America? growth and prosperity in our country. Iowa was mentioning weatherizing There is no return on that capital, at That will not come about by giving homes. That is one good way, if we paid least not in the short term and not in more tax breaks to the wealthy or more attention to it. Another good way a way that would accrue to the bottom business tax breaks. It comes about by is idling trucks. Truckers who are so line of a company. us in the Congress of the United States frequent on our highways often idle As we all know, that kind of an in- fulfilling our responsibility to pass tax their trucks in order to keep their air- vestment accrues to our national econ- bills and energy bills that are respon- conditioner and all the other services omy. Rebuilding our schools all over sible, that are commonsense, and that going that they have in the truck. America—this is something that is es- will lay this kind of secure foundation There are companies that permit the timated to be in the neighborhood of for the future. That is why I support truckers now to turn off their truck $180 billion. Think of the jobs it would the Landrieu amendment so strongly, and to plug in a device and by doing create. When you give someone an because it will start to do that, and so that enabling operation of the appli- extra dollar for consumption right now will the Dorgan amendment that has ances they have but they do not pol- in our society, they may buy a new been set aside. These are commonsense lute the air at the same time. It is such shirt, but that shirt may be made in approaches. These are the programs we a simple idea that we would hope any Malaysia, Thailand, or India. They should be doing for our economy. one of us could have thought of that may buy a new TV set, but that TV set Mr. President, I yield the floor. but, in fact, having the President de- sure is not made in America, or a The PRESIDING OFFICER. The velop a plan that will focus on reducing stereo not made in America. They may Chair recognizes the Senator from Ten- our consumption of oil by 2013 would buy a new car. Maybe that car is not nessee. include such ideas as weatherizing made in America. To be sure, some of Mr. ALEXANDER. I thank the Chair. homes, as encouraging truckers not to that money does fall out in this coun- Mr. President, I stand to congratulate idle, keeping tires properly inflated. try because we have people selling the Senator from Louisiana and join These may seem to be small ideas but those items, storing them, and ship- with her as a cosponsor of her amend- they can add up, we suggest, to a mil- ping them. But the bulk of it could go ment. She and I are members of the lion barrels per day by the year 2013. outside the country. Energy and Natural Resources Com- I congratulate the Senator from Lou- If, however, you make a societal in- mittee. We are very proud of what our isiana on what I think is a common- vestment in building a new school, all chairman and ranking member have sense, reasonable approach to add con- of the workers are in America. Almost done this year in taking a diverse servation to our arsenal of activities, all of the materials used from the array of opinions and coming up with a to give it a higher profile in this bill, lighting to the heating to the wall- very good bill with a very good amount and I am glad to join in cosponsoring board to the sheetrock—everything, of bipartisan consensus. her amendment. building materials—almost all, I would There is consensus about supporting The PRESIDING OFFICER. The Sen- not say all—almost all are made in a diverse array of energy sources. The ator from Maine.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.029 S10PT1 S7574 CONGRESSIONAL RECORD — SENATE June 10, 2003 Ms. COLLINS. Mr. President, I, too, a vote on the Dorgan amendment at The issue is whether we want to add am pleased to join my colleagues, Sen- 11:30? to the bill a target that we have 100,000 ators LANDRIEU, SPECTER, BINGAMAN, The PRESIDING OFFICER. The Sen- hydrogen fuel cell vehicles in the and ALEXANDER, in offering this ator is correct. United States by 2010. I respectfully amendment to reduce our consumption Mr. DOMENICI. Mr. President, I ask suggest that is a wild guess. I drove a of oil by a million barrels a day by the to speak to that amendment until $2 million Ford hydrogen car around year 2013. This is a very reasonable and 11:30. the block in Washington. I did that, I achievable goal, and I congratulate the The PRESIDING OFFICER. We have believe the Senator and several others Senator from Louisiana for coming up already agreed to 2 minutes of debate did, and it costs $2 million to make the with this initiative and reaching out to equally divided at 11:28 so we can vote, car. It actually works. We drove those of us who share her concern that but the time until 11:28 is available so around and got so excited we came up our Nation is too dependent on foreign the Senator has the floor. on the Senate floor and put into law Mr. DOMENICI. Mr. President, I have oil. that we ought to have 100,000 of them already spoken, as have Senator ALEX- Increasing energy efficiency is the by the year 2010. It is not mandatory. ANDER and others, against this amend- single most effective way to reduce our It reminded me, as I mentioned yes- ment. By being against the amend- reliance on foreign oil. Without a terday, my friends were guessing wrong ment, it does not mean we are in any greater focus on energy-efficiency about the facts technology. I respect- way in derogation of the efforts by the measures, the Energy legislation before fully will vote no. distinguished Senator, Mr. DORGAN, in us, which has many valuable provi- The PRESIDING OFFICER. All time his efforts to pursue a hydrogen econ- sions, will not be effective in reducing is expired. The question is on agreeing omy for the United States, in his ef- our dependence on foreign oil. As long to the amendment of the Senator from forts to move forward with the hydro- as we continue to guzzle foreign oil, we gen cell and with the hydrogen car. I North Dakota. will be at the mercy of those nations compliment him for that. Mr. DOMENICI. I suggest the absence that control that oil. We are already His amendment, which says we of a quorum. nearly 60-percent reliant on foreign should move ahead with certain The PRESIDING OFFICER. The sources, and the Energy Information quotas, with specific amounts, with clerk will call the roll. Administration projects that our de- goals, with mandatory achievements, The bill clerk proceeded to call the pendence will increase to 70 percent by should not be done. It would not be of roll. the year 2010 if we do not act. If we do any benefit. Mr. DOMENICI. Mr. President, I ask not do more to improve the energy effi- I yield the floor. unanimous consent that the order for ciency standards, America will only The PRESIDING OFFICER. Under the quorum call be rescinded. grow more dependent on foreign oil and the previous order, there will be 2 min- The PRESIDING OFFICER. Without the price of gas and home heating oil utes of time equally divided on the objection, it is so ordered. will only rise accordingly. Dorgan amendment. Mr. DORGAN. I ask for the yeas and Our amendment would help to reduce Who yields time? The Senator from nays. oil consumption by a million barrels a North Dakota. The PRESIDING OFFICER. Is there a day by the year 2013. It would do so by Mr. DORGAN. This amendment is sufficient second? giving the President the flexibility to very simple. It establishes timelines There is a sufficient second. decide among any number of simple en- and targets: 100,000 vehicles on the road The question is on agreeing to the ergy saving measures to achieve these by 2010, 21⁄2 million by the year 2020. It amendment. The clerk will call the savings. For example, simply is not a mandate, it is not enforceable, roll. weatherizing homes which use home but at least it sets targets that we as- The bill clerk called the roll. heating oil could save 80,000 barrels of pire to achieve. The opposition would Mr. REID. I announce that the Sen- oil per day. Using energy-efficient en- say, well, let’s just throw money at the ator from North Carolina (Mr. ED- gine oil could save another 100,000 bar- Department of Energy and hope some- WARDS) is necessarily absent. rels per day. Just keeping our tires on thing good comes of it. That is not the The PRESIDING OFFICER (Mr. SES- our automobiles properly inflated way to address this issue, in my judg- SIONS). Are there any other Senators in could save 200,000 barrels per day. In ment. the Chamber desiring to vote? short, by taking a few easily adopted I know my colleague complimented The result was announced—yeas 67, measures, we could reduce our con- me but the greatest compliment, of nays 32, as follows: sumption of oil by a million barrels a course, would be voting for my amend- [Rollcall Vote No. 212 Leg.] ment. What is disappointing is that day. YEAS—67 We currently use about 19 million this amendment passed the Senate by barrels a day. So this would make a unanimous voice vote a year and a half Akaka Dorgan Lugar Baucus Durbin McCain real difference. It would result in a re- ago. This amendment has already been Bayh Ensign Mikulski duction of consumption of imported embraced by the Senate. I am dis- Biden Feingold Murray oil. Reducing our consumption by 1 appointed that it will not be passed by Bingaman Feinstein Nelson (FL) million barrels per day will also help to a voice vote today because if we are, in Boxer Graham (FL) Nelson (NE) Breaux Graham (SC) Pryor keep energy prices down and will keep fact, going to move toward a hydrogen Brownback Grassley Reed Burns Harkin billions of American dollars at home fuel cell future, we need to think big Reid Byrd Hollings where they belong. In fact, this pro- and bold. Then we ought to set some Roberts Campbell Hutchison Rockefeller posal we have advanced could save targets and have some aspirations and Cantwell Inouye American consumers upwards of $20 say to the Department of Energy, here Carper Jeffords Santorum Sarbanes billion each year. is three-plus billion dollars and, by the Chafee Johnson Clinton Kennedy Schumer I call upon my colleagues to join us way, this is what we would like to see Coleman Kerry Sessions today in supporting our commonsense achieved with that money. We would Collins Kohl Smith measure to reduce our reliance on for- really like to see these goals Conrad Landrieu Snowe eign oil by reducing our consumption achieved—not mandates, just strategic Corzine Lautenberg Specter Daschle Leahy Stabenow of oil by a million barrels a day. It is goals. Dayton Levin Warner right for our environment. It is right The PRESIDING OFFICER. The Sen- DeWine Lieberman Wyden for our economy. It is right for the ator from Tennessee. Dodd Lincoln American consumer. Mr. ALEXANDER. I compliment the NAYS—32 I yield the floor. Senator but I cannot vote for his Alexander Cochran Fitzgerald AMENDMENT NO. 865 amendment. This committee has added Allard Cornyn Frist The PRESIDING OFFICER. The Sen- to the $1.3 billion proposal by the Allen Craig Gregg President for the hydrogen car, $1.6 bil- Bennett Crapo Hagel ator from New Mexico. Bond Dole Hatch Mr. DOMENICI. Parliamentary in- lion suggested by the Senator from Bunning Domenici Inhofe quiry: Am I correct that there will be North Dakota and others on that side. Chambliss Enzi Kyl

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.032 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7575 Lott Nickles Talent As a Senator from an oil-producing pendent upon any nation, especially McConnell Shelby Thomas State, let me say I agree 100 percent. Saudi Arabia. Miller Stevens Voinovich Murkowski Sununu We like to produce oil. We are proud to The dependence on foreign oil results in a tremendous amount of our imbal- NOT VOTING—1 produce oil. But we know it is in the interest of our State in the short, in- ance on foreign trade, with oil imports Edwards termediate, and long run to have great- now accounting for one-third of the Na- The amendment (No. 865) was agreed er supply, a diversity of supply of fuels, tion’s trade deficit which exceeded $400 to. and not be overreliant. Why? Because billion in the year 2001. Mr. DOMENICI. I move to reconsider it puts our economy, our industrial There is much we could do to reduce the vote. base at risk. our dependence upon foreign oil. I am Mr. REID. I move to lay that motion I also mentioned earlier today the pleased to report on a $100 million on the table. statement by the Union of Concerned grant by the Department of Energy to The motion to lay on the table was Scientists, over 60,000 scientists and a plant in Pottsville, PA; a $612 million agreed to. citizens working together to come up plant which will turn sludge into high- The PRESIDING OFFICER. The Sen- octane fuel is now moving forward. We ator from New Mexico. with some proposals for reducing our dependence on oil, and they are clearly have tremendous coal resources in this AMENDMENT NO. 871 outlined in these articles and these pa- country, some 20 billion tons of bitu- Mr. DOMENICI. Mr. President, I ask pers. minous coal alone in Pennsylvania, 7 unanimous consent that the time until What this amendment simply does— billion tons of anthracite, and coal 12:15 be equally divided in the usual submitted on behalf of those I men- across this country which can be form for debate in relation to the tioned—is give the President all the turned, with clean coal technology, Landrieu-Domenici amendment; pro- flexibility he needs in his administra- into reducing our dependence on for- vided, further, that at 12:15 the Senate tion but to reach very specific goals. eign oil. proceed to a vote in relation to that This amendment, when adopted, will I am pleased to see the distinguished amendment, with no second degrees in save 1 million barrels of oil a day by Senator from New Mexico, chairman of order to the amendment prior to the the year 2013, which is equivalent to the Energy Committee, is now cospon- vote; and, finally, that following the the President’s own goals, but it will soring this amendment so that what vote the Senate stand in recess under put this in law in the underlying En- you have, although slightly different the previous order. than last year on a tabling at 57 to 42, Mr. SPECTER. Mr. President, reserv- ergy bill. I propose this amendment to the Sen- is an amendment gaining very substan- ing the right to object, I would like in- ate for its careful consideration and tial momentum. That is a very good corporated in the unanimous consent hope we will get a broad vote. sign for conservation, a very good sign request 5 minutes. This amendment Mr. President, the Senator from for the future of the American econ- was offered as the Landrieu-Specter Pennsylvania would like to add some omy, and a very good sign for environ- amendment. remarks, as well as other cosponsors mental protection. Mr. REID. No objection. who may be in the Chamber. I yield the floor. Mr. DOMENICI. We have no objec- The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The Sen- tion. ator from New Mexico. ator from Pennsylvania. Mr. President, I add 5 minutes to the Mr. DOMENICI. Mr. President, I am Mr. SPECTER. Mr. President, I am time in the request, with the Senator pleased to join as an original cosponsor pleased to be the original, principal co- from Pennsylvania having that 5 min- of what we are going to call the sponsor, along with Senator LANDRIEU, utes. The vote would occur at 12:20. Landrieu-Domenici amendment. I note on the Landrieu-Specter-Bingaman- The PRESIDING OFFICER. Without the presence of Senator ALEXANDER Collins amendment. I am pleased to see objection, it is so ordered. who was one of the original Senators that now the Senate is on the verge of Mr. DOMENICI. I am sorry, we did who spoke to this matter on the floor. taking a significant step, albeit a mod- not know that, I say to the Senator. I hope in the remaining time he gets a est one, on petroleum conservation, a We would have asked you. chance to speak. Let me say there are The PRESIDING OFFICER. Who step long overdue in this country. Last year, I cosponsored, along with a lot of people who come up with new yields time? formulas, attempt to set new formulas Senator CARPER, an amendment which The Senator from Louisiana. on automobiles, on the mileage that Ms. LANDRIEU. Mr. President, I would have targeted reduction in oil cars will have, and the like. None of thank the chairman and the ranking consumption, and it was defeated on a them seem to work, and none of them member. tabling motion 57 to 42. A few days ago, seem to get through this body. This is Mr. President, the amendment is at I introduced S. 1169, which was a repeat an ingenious idea of my friend from the desk. We will be voting shortly on of the Carper-Specter amendment. And Louisiana who has been extremely the Landrieu-Domenici-Specter-Alex- today I am pleased to join with Sen- helpful in getting an Energy bill ander-Bingaman-Collins-Schumer- ator LANDRIEU on a broader amend- passed. I think when we pass it in a few Feingold oil savings amendment. It is a ment which goes for reduction of oil weeks, and we will, she can take a very reasonable approach to an ex- dependency beyond transportation but great deal of pleasure in knowing that tremely serious problem. That problem calls on the President to set a standard much of it was due to her interest, en- is, unless we make some adjustments— for reduction of oil by 1 million barrels thusiasm, and support. and the time to make those adjust- a day from a projected use of some 24 I hope we will vote for it unani- ments is now—to our policy regarding million barrels. mously, saying to our President, find the consumption of oil, we will be seri- This is a significant step, albeit a ways to do this. I believe it is the best ously increasing, as opposed to decreas- modest one. It is a first step. But it is way for the Senate to handle it. ing, our dependence on foreign oil and very important for the United States I yield the floor. hurting the American economy and that we reduce our dependence on for- The PRESIDING OFFICER. Who taxing American citizens and busi- eign oil for many reasons. First of all, yields time? nesses unnecessarily. simply stated, we use too much foreign Ms. LANDRIEU. Mr. President, I am The amendment has been developed oil. Secondly, we are dependent upon happy to yield to the Senator from by many of us—Democrats and Repub- the OPEC countries, especially upon Kentucky. licans—and it is based on lots of good Saudi Arabia, and it has an effect on Ms. BUNNING. Mr. President, I ask work. Two issues I pointed out earlier influencing our foreign policies in ways unanimous consent to be listed as a co- this morning in the debate are in a which may well be undesirable. There sponsor of the Landrieu amendment. lengthy article recently published by have been very serious charges as to The PRESIDING OFFICER. Without Business Week—not a liberal magazine the Saudis on sponsoring al-Qaida and objection, it is so ordered. by any stretch, a middle-of-the-road sponsoring terrorism. There is much Ms. LANDRIEU. How much more business organization that argues that yet that has to be proved on that sub- time remains under the unanimous we need to get smart about oil. ject, but we should not be tied to or de- consent?

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.002 S10PT1 S7576 CONGRESSIONAL RECORD — SENATE June 10, 2003 The PRESIDING OFFICER. The Sen- nuclear commercial plant amendment AMENDMENT NO. 875 ator has 2 minutes remaining. under the debate limitation which was (Purpose: To strike the provision relating to Ms. LANDRIEU. I would like to have agreed to last week. deployment of new nuclear power plants) 1 minute to close and then turn to one The PRESIDING OFFICER. Without Mr. WYDEN. Mr. President, I send an of the original cosponsors, the Senator objection, it is so ordered. amendment to the desk. from Tennessee, who may want to add. The question is agreeing to amend- The PRESIDING OFFICER. The Let me again thank the chairman and ment No. 871. clerk will report. ranking member for their able help be- The yeas and nays have been ordered. The assistant legislative clerk read cause without their support, this The clerk will call the roll. as follows: amendment would not have been pos- The assistant legislative clerk called The Senator from Oregon [Mr. WYDEN], for himself, Mr. SUNUNU, Mr. BINGAMAN, Mr. EN- sible. We worked on many different ap- the roll. SIGN, Mr. REID, Mr. FEINGOLD, Mr. JEFFORDS, proaches, several different drafts. Fi- The result was announced—yeas 99, and Ms. SNOWE, proposes an amendment nally, we did come upon a way that nays 1, as follows: numbered 875. sets a very clear goal. [Rollcall Vote No. 213 Leg.] Strike subtitle B of title IV. I would agree with Senator SPECTER, YEAS—99 Mr. WYDEN. Mr. President and col- it is somewhat modest, but it is a com- Akaka Dodd Lincoln leagues, this amendment is sponsored promise. It is a clear goal. It is an at- Alexander Dole Lott by three Democrats, three Republicans, tainable goal. It is a reachable goal. It Allard Domenici Lugar and one Independent. I hope this after- gives the President and the administra- Allen Dorgan McCain noon that it will have the support of Baucus Durbin McConnell tion the flexibility they need to do it in Bayh Edwards Mikulski Senators with varying degrees of views a way that is most helpful to this econ- Bennett Ensign Miller about the advisability of nuclear omy. It will create jobs, reduce taxes Biden Enzi Murkowski power. I am particularly pleased that Bingaman Feingold Murray that people pay because of the price of UNUNU Bond Feinstein Nelson (FL) the lead cosponsor, Senator S , is oil and energy, and it gives the flexi- Boxer Fitzgerald Nelson (NE) with us today. bility necessary to come up with a Breaux Frist Nickles I will make a few brief remarks to smart approach to this very serious Brownback Graham (FL) Pryor begin the debate and then I am anxious Bunning Graham (SC) Reed problem. Burns Grassley Reid to have plenty of time for colleagues. I yield to my friend from Tennessee. Byrd Gregg Roberts The reason three Democrats and The PRESIDING OFFICER. The Sen- Campbell Hagel Rockefeller three Republicans and one Independent ator from Tennessee. Cantwell Harkin Santorum are sponsoring this amendment is that Carper Hatch Sarbanes Mr. ALEXANDER. Mr. President, I Chafee Hollings Schumer I think many of us in the Senate are thank the Senator from Louisiana. We Chambliss Hutchison Sessions neither pronuclear nor antinuclear but should not pass an Energy bill that Clinton Inhofe Shelby we are definitely protaxpayer. That is does not put conservation up on the Cochran Inouye Smith why we are on the floor this afternoon, Coleman Jeffords Snowe platform along with our encourage- Collins Johnson Specter because the loan guarantees that are in ment of nuclear power, oil exploration, Conrad Kennedy Stabenow this legislation to construct nuclear and hydrogen fuel cell; all of that is Cornyn Kerry Stevens power facilities are unprecedented and Corzine Kohl Sununu important. And this amendment by the Craig Landrieu Talent represent, in my view, particularly on- Senator and various cosponsors makes Crapo Lautenberg Thomas erous and troublesome risks to the tax- it clear to the country that common- Daschle Leahy Voinovich payers of this country. sense ways to conserve oil are equally Dayton Levin Warner Frankly, people in my part of the DeWine Lieberman Wyden important in our arsenal of having an country know a bit about this. It is not economy that is less dependent on for- NAYS—1 an abstraction for the people of the Pa- eign oil and in a better position to Kyl cific Northwest where we had the produce clean air. The amendment (No. 871) was agreed WPPSS debacle and 4 out of 5 facilities I am proud to join as a cosponsor. I to. were never built. It was the biggest congratulate the Senator and con- municipal bond failure in history, and gratulate our chairman for being able f it has certainly colored my thinking to move this bill forward with such a with respect to why we are on the floor bipartisan consensus. RECESS today. Ms. LANDRIEU. Mr. President, I ask The loan guarantees—we did some re- The PRESIDING OFFICER. Under for the yeas and nays. search into this—are unprecedented The PRESIDING OFFICER. Is there a the previous order, the hour of 12:30 with respect even to nuclear power. As sufficient second? having arrived and passed, the Senate far as I can tell, in the early days of There appears to be a sufficient sec- will stand in recess until 2:15. nuclear power, there were subsidies for ond. Thereupon, the Senate, at 12:56 p.m., nuclear power but never before were The yeas and nays were ordered. recessed until 2:15 p.m. and reassem- the taxpayers on the hook from the The PRESIDING OFFICER. The Sen- bled when called to order by the Pre- get-go. That is what the Senate is con- ator from New Mexico has 3 minutes siding Officer (Mr. THOMAS). fronted with now. remaining. The PRESIDING OFFICER. The Sen- When it comes to the question of Mr. DOMENICI. Mr. President, I ator from Alabama. risk, I hope the Senate will focus on yield back the time I have. I might say what the nonpartisan Congressional to Senators, we tried very hard to get f Budget Office has said on this topic. I the vote within 15 minutes last time. I will quote. It is at page 9 of the Con- was asked by a number of Senators to CHANGE OF VOTE gressional Budget Office analysis that please try to do that on the votes. I Mr. SHELBY. Mr. President, on we have made available to Senators. have no authority to say that will be Thursday, June 5, on rollcall vote No. The Congressional Budget Office con- the rule, but as the floor manager, we 209, I voted yea. It was my intention sidered: have a 15-minute rollcall vote on this then to vote nay. Therefore, I ask The risks of default on such loan guaran- amendment. It is a simple one. It is not unanimous consent that I be permitted tees to be very high, well above 50 percent. too hard to find your way to the floor. to change my vote since it will not af- Colleagues, first, when we are talking I trust that in 15 minutes we will have fect the outcome. about risk—because nothing in life is disposed of this. The PRESIDING OFFICER. Is there foolproof and there are no guarantees In the meantime, before that occurs, objection? of anything—I hope in looking at these I ask unanimous consent that when the Without objection, it is so ordered. guarantees you will first focus on the Senate convenes at 2:15, the pending The PRESIDING OFFICER. Under fact that the Congressional Budget Of- amendment be set aside and that Sen- the previous order, the Senator from fice has specifically said in their anal- ator WYDEN be recognized to offer the Oregon is recognized. ysis that the risk of default on the

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.039 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7577 guarantees is very high. If those plants a high likelihood of default, and a re- taxpayer out there can simply do the default, the exposure to taxpayers is port done by the Congressional Re- math as to what kind of exposure this enormous. search Service talking about exposure would provide. I will quote from the Congressional to taxpayers. It has been a pleasure to work with Research Service report they did with I would finally say to the Senate, it the Senator from Oregon. We are going respect to these subsidies. They said: did not have to be this way. I know the to get into the substance of this debate . . . the potential cost to the federal gov- distinguished chairman of the Energy and the details of this debate over the ernment of the nuclear power plant subsidies Committee feels very strongly about next couple of hours, but at this time I that would be provided by [this title] would this subject. He is a longtime family yield the floor to the Senator from Ne- be in the range of $14–$16 billion in 2002 dol- friend. I was very willing, and I think vada, who has been a very strong voice lars. other Senators were as well, to have on this and other matters having to do I think it is worth noting that the had a modest program. We had been with energy. Senate spent a great deal of time on talking, for example, about one experi- The PRESIDING OFFICER (Mr. the child tax credit last week. There mental initiative to look at advanced DOMENICI). The Senator from Nevada. we were focusing on something involv- technologies of one sort or another. I Mr. REID. Mr. President, I express ing $3 billion. If one or two of these think that would have been acceptable. my appreciation to the Senator from plants go down, taxpayers are on the But here we are talking about guaran- New Hampshire for allowing me to hook for a sum greater than that child tees for up to seven plants. speak. I have to speak at a memorial tax credit. I will make reference to the legisla- service in just a short time, and but for Now, in the course of today’s discus- tion. The bill authorizes DOE to pro- his kindness and generosity I would sion, we will hear a number of argu- vide loan guarantees for up to 50 per- have had to either miss the ability to ments against the Wyden-Sununu cent of the construction costs of new debate this matter or be late to debate amendment. One of the first will be: nuclear plants and, on top of that, this matter. So I appreciate very much There are tax credits for a variety of would authorize the Department of En- the comity of my friend from New energy sources in this legislation, for ergy to enter into long-term contracts Hampshire. I express my appreciation to my wind and solar and a variety of energy for the purchase of power from those longtime friend and colleague, Senator alternatives. That is correct. But those plants. The Secretary could provide WYDEN, for this legislation. I also say tax incentives are fundamentally dif- loan guarantees for up to seven plants. the way this legislation has been ap- ferent than the loan guarantees be- That is not a modest experiment that proached is the way to approach legis- cause in those instances the producer would have been acceptable to this lation. This is a bipartisan amendment. faces substantial risk. Member of the Senate, but it is a very This is a good debate we are having on With respect to, say, a wind facility, significant exposure to the taxpayers if the producer takes the initial risk the Senate floor. of this country at a time when every My friend from New Mexico, the and later on produces some wind Senator is concerned about deficits. manager of this bill, believes very power, they would get a credit in order Mr. President, I intend to allow time deeply in the renewal of nuclear power. to defray some of their costs. With re- for my colleagues. I see Senator I understand how he feels about this. spect to the loan guarantees for nu- SUNUNU is on the floor. Senator REID As I say, this is the way legislation clear power, the producer faces no such has strong views on this. should be handled. This is a good, fair, risk. The producer has the Govern- I also express my appreciation to the open debate. I approach this more from ment, in effect, guaranteeing, right at distinguished ranking minority mem- an environmental perspective than my the outset, much of the risk. ber of the Energy Committee. He has friend from New Hampshire does. Even So with respect to these nuclear loan worked very closely with me. He em- though he has been here just a short guarantees, unlike the incentives for bodies the philosophy of a lot of our period of time, the Senator from New wind or solar, what we are talking colleagues in that he has been sup- Hampshire is always focused on num- about is that the Government will so- portive of nuclear power in the past bers, taxpayer dollars. cialize the losses but will let private but believes these subsidies are too I rise in support of this amendment investors pick up the gains. The losses rich. offered by my colleagues, the Senator will be socialized; the gains will be I am hopeful that today Senators from Oregon and the Senator from New privatized. And that is unique in this with varying degrees of views on the Hampshire. I really do appreciate their legislation. nuclear power issue will agree with the efforts to bring to light the tremendous I also say to my colleagues in the Congressional Budget Office, will agree financial risks this Energy bill places Senate, the White House has never with the Congressional Research Serv- on the backs of American working men asked for these loan guarantees. These ice on these issues with respect to the and women and their families. loan guarantees are not in the House taxpayers, and support the Wyden- Let me underline and underscore, my bill. Senators’ phones are not ringing Sununu amendment. opposition to this amendment has off the hook from the Secretary of En- Mr. President, I yield at this time so nothing to do with the longstanding, ergy or others clamoring that this other colleagues who have time con- seemingly never-ending debate on nu- must be done. This is something that, straints may speak. I will have the op- clear waste. This has nothing to do in my view, is far out of the main- portunity to speak later in the debate. with nuclear waste. stream in terms of energy policy, not The PRESIDING OFFICER. Who This Energy bill contains a provision, because I am antinuclear—and I don’t yields time? which this amendment would strike, intend to talk about safety issues—but The Senator from New Hampshire. that would make the Federal Govern- because it is such a large exposure to Mr. SUNUNU. Mr. President, I begin ment the guarantor of the costs of taxpayers. by thanking my colleague from Oregon building new nuclear powerplants. For example, a number of reports for his work on this amendment. I am The Energy bill would allow the Sec- have come out already with respect to pleased to join as a cosponsor. As he retary of Energy to enter into agree- how nuclear power stands up with re- pointed out, this is ultimately about ments with nuclear powerplant owners spect to other costs such as natural gas what kind of an energy policy we want, to give Federal loan guarantees for or coal. One of the reasons, in my view, what kind of an economic policy makes loans to construct new reactors or to the Congressional Budget Office be- sense, and whether we can do the right enter into new contracts for guaran- lieves there is such a high risk of de- thing and protect taxpayers from being teed purchases of power from these re- fault is that the objective analyses exposed to the potential liability and actors. show that nuclear has not been com- cost that Senator WYDEN described. According to the Congressional Budg- petitive with other sources such as This provision we are trying to strike et Office, what we refer to as CBO, this coal. in this bill guarantees 50 percent of the is an extremely risky financial endeav- I hope Senators will look at those construction costs of up to six nuclear or. In fact, the CBO considers ‘‘the risk two reports: a report done by the Con- powerplants. Those plants could cost of default on such a loan guarantee to gressional Budget Office documenting anywhere from $2 to $4 billion. And any be very high—well above 50 percent.’’

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.042 S10PT1 S7578 CONGRESSIONAL RECORD — SENATE June 10, 2003 That means the American taxpayer clear fleet into achieving record availabil- Holdings Ltd. of South Africa plans to build will be footing the bill for construction ities and load factors, as independent owners soon, would likely risk design changes and of these nuclear powerplants, the way have taken ownership from utilities that di- attendant cost growth if built in the U.S. the Senator from Oregon indicated we vested generation. Even utilities that did not Cost growth and delay can also arise from divest their nuclear plants have experienced design and scope changes due to the efforts would have really a socialization of the greatly improved performance across the of effective interveners, such as the anti-nu- costs and the nonbenefits of this legis- board. Today’s nuclear power plant oper- clear citizen activist groups that success- lation. If this provision remains in the ation and maintenance and fuel costs are re- fully delayed Shoreham and ultimately pre- bill, the Federal Government will be markably low compared with many fossil vented it from going commercial. entering into loan guarantees and fuel plants—as low as 1.68 cents per kWh ac- History also suggests that the construction power purchase agreements that could cording to the Nuclear Energy Institute. Al- and start-up phases of new nuclear power cost at least $14 billion. though the high-profile accidents at Three will likely encounter problems that will re- sult in increased costs and delays. Licensing CBO is not alone in its assessment of Mile Island and Chernobyl greatly raised the threshold for safer operations, operating suc- delays, construction management problem the financial risk of backing the new cess stories may overstate what may be procurement holdups, troubles with new reactor construction. achievable with new designs. Nuclear opera- technologies and construction defects, We have from Standard & Poor’s a tors in the U.S. have had a few decades to among other problems extended construction document I ask unanimous consent to work out operationsl problems, and with beyond 10 years for some U.S. nuclear power print in the RECORD. original debt paid off, more cash resources plants. It would be overly heroic to assume There being no objection, the mate- have been dedicated to improving perform- that the first nuclear plant to be built in more than two decades would escape the in- rial was ordered to be printed in the ance. Providers of new capital for advanced, nuclear energy will want some comfort that dustry’s legacy of construction problems. RECORD, as follows: credit and operating risks are covered. But For a debt-financed construction endeavor, TIME FOR A NEW START FOR U.S. NUCLEAR the industry’s legacy of cost growth, likely to cost hundreds of millions of dollars ENERGY? technolgy problems, cumbersome political (possibly into the billion dollar plus range), (By Peter Rigby) and regulatory oversight, and the newer these problems, or even the possibility of risks brought about by competition and ter- such problems, will likely drive risk-averse Since its beginnings, commercial nuclear lender to demand a significant risk premium energy has offered the tantalizing promise of rorism concerns may keep credit risk too high for even the Senate bill to overcome. unless a third party assumes completion and clean, reliable, secure, safe, and cheap en- delay risks. In the world of cost-of-service, HISTORIC RISKS WILL PERSIST ergy for a modern world dependent upon rate-of-return environments, utilities could, electricity. No one did more than Lewis A nuclear power plant’s life cycle exposes and did, pass these costs onto ratepayers to Strauss, chairman of the U.S. Atomic En- capital providers to four distinct periods of a certain extent. The bankruptcies of El ergy Commission, to define expectations for credit risk that history has shown will per- Paso Electric Co. and Public Service Com- the industry when he declared in 1954 that sist. These periods are pre-construction, con- pany of New Hampshire in the 1980s, how- nuclear energy would one day be ‘‘too cheap struction, operations, and decommissioning. ever, attest to the limits of ratepayers’ ca- to meter.’’ But the record proved far dif- The risks tend to be asymmetrical with an pacity to absorb construction risk. ferent. Nuclear energy became the most ex- enormous downside bias against credit pro- Today, no utility or independent power pensive form of generating electricity and viders and little or no upside benefits. To producer or their capital provide will want the most controversial following accidents attrack new capital, future developers will to take unmitigated construction risk, par- at Three Mile Island and Chernobyl. And to- have to demonstrate that the risks no longer ticularly if it is difficult to quantify. In addi- day’s electricity industry’s credit problems exist or that the provisions of the Energy tion, given the possibility that much of the of too much debt and too many power plants Bill can effectively mitigate the risks. construction risk of a new nuclear plant may will do little to invite new interest in an ad- During a nuclear plant’s pre-construction, lay outside of the engineering, procurement, vanced design nuclear power plant. Yet en- phase, lenders, as they do with other and construction contractor’s control, no ergy bills circulating through the U.S. Sen- projects, face the risks of cost growth and contractor will want to risk its balance ate and House of Representatives hope to delay. When nuclear engineers encountered sheet to provide the fixed-price, date-certain, change that perception and perhaps lower technology problems during the planning turnkey construction contracts that have the credit risk sufficient enough to attract stages in the 1960s and 1970s, solutions inevi- given great certainty to the cost of today’s new capital. Will Washington, D.C.’s new en- tably resulted in scope changes or re-designs, new fossil-fueled power plants. Because of ergy initiatives lower the barriers to new nu- or both. A 1979 Rand Corp. study for the U.S. the long lead-time historically associated clear construction? Many would like to Dept. of Energy still serves as a warning to with nuclear power, securing 100% financing think so, but it will be an uphill battle. investors in new, untested nuclear tech- upfront, as the industry has become accus- The House version of the Energy Bill mod- nology. The study found that cost budget es- tomed to, may be difficult. That could intro- estly ‘‘. . . sets the stage for building new timates grew on average 114% over first esti- duce financing risks if projects encounter nuclear reactors by reauthorizing Price-An- mates and that final actual costs exceeded problems during construction; delays in se- derson. . . .’’ Since 1957, the Price-Anderson those estimates by 141%. Half of the plants curing final financing would, among other Act has indemnified the private sector’s li- in the study never reached commercial oper- problems, drive up capitalized interest costs ability if a major nuclear accident happens ations. An extreme example of delays and during construction and ultimately the on the premise that no private insurance cost overruns, which remains fresh in inves- project’s cost. carriers could provide such coverage on com- tors’ minds, is Long Island Lighting Co.’s While U.S. nuclear power plants have oper- mercial terms. Without Price-Anderson, it is Shoreham nuclear power station. Begun in ated without major mishap for over 20 years, difficult to envision how nuclear plants 1965 at an initial cost estimate of $65 mil- unexpected costs during the operational could operate commercially, now or in the lion–$75 million, Shoreham endured 20 years phase of a nuclear plant can be substantial. future. The more ambitious Senate version of construction delays and design changes And it is unclear whether and if proposed of the Energy Bill seeks to jump-start new due to legal battles, local opposition, regu- government programs will be able, or will- nuclear plants in the U.S. by providing meas- latory and political intervention, and tech- ing, to offset the risk of these costs. Still, to- urable financial resources for new projects. nical problems that pushed the final cost to day’s operators have demonstrated that they According to the latest version of the Senate almost $6 billion. In the end, a complete and can safely operate older nuclear power Energy Bill, the Secretary of Energy could fully licensed power plant never went oper- plants. Yet the potential that incidents,such provide financial assistance to supplement ational, and ratepayers, investors, and tax- as last year’s wholly unanticipated corrosion private sector financing if the proposed new payers are still footing the bill. Another ex- problem at FirstEnergy Corp’s Davis Besse nuclear plant contributes to energy security, ample is TXU Corp.’s 2,300 MW Comanche 900 MW plant, are not unique, one-time af- fuel, or technology diversity or clean air at- Peak Units 1 and 2, which took longer than fairs will keep credit risk high for nuclear tainment goals. The bill would limit finan- any nuclear plant to build and saw costs plant owners. In addition, investors will re- cial assistance to 50% of the project costs mushroom to nearly $12 billion by the time member that the Davis Besse repair costs of with financial assistance being defined as a full operations began in 1993. about $400 million, not including replace- line of credit, secured loan, loan guarantee, That no new nuclear plant construction ment power, are unrecoverable from rate- purchase agreement, or some combination of has begun in the U.S. for over 2 years sug- payers, leaving investors to shoulder the these assistance plans. gests that a new one would be susceptible to costs, incidentally, had the outage occurred In light of how well U.S. nuclear plants cost growth risk as engineers incorporate ad- during a period of high power prices and have generally been operating recently and vances in control and power systems, fuel tight supply, as was the case two years ago, with promising new technology on the hori- systems, safety and regulatory requirements the cost to investors would have been much zon, nuclear energy would seem to have a fu- (which could become more onerous during higher. ture. Currently, about 20% of the nation’s the years of design and construction), mate- Decommissioning costs, which entail the electricity comes from nuclear power plants. rial sciences and information technology. considerable expense of tearing down a plant The introduction of competition and deregu- Even promising new designs, such as the peb- and safely disposing or storing the radio- lation in the U.S. has helped drive the nu- ble bed reactor (PBR) design that Eskom active waste, remain uncertain at best given

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.046 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7579 how few U.S. nuclear plants have undergone For some of the same reasons, public utility U.S. nuclear generation capacity beyond ex- decommissioning. Progress toward creating commissioners may not be so forthcoming isting subsidies, such as Price-Andersen, if a permanent disposal site for nuclear waste with their authority to grant rate-based they are heavily invested in coal and gas. at the government’s Yucca Mountain site in treatment of a new nuclear plant, especially New nuclear energy’s low variable operating Nevada will help mitigate decommissioning in the preconstruction period if cost growth costs would likely displace existing coal- risk, as well as spent fuel disposal costs. risk remains uncovered. For many commis- fired and gas-fired generation units in to- Again, it is not clear who will bear decom- sioners, the all-in costs of alternative gen- day’s environment. It will do little, however, missioning costs, but if lenders foresee any eration will likely seem more predictable to displace oil-fired generation or lower U.S. lender liability risk, they will steer clear of and cheaper than a new nuclear plant. oil imports because so little electricity, new nuclear investments or require steep The current backlash against regulatory about 2% of the U.S. load, is actually gen- compensation. That, as a point aside, may be reform and open markets in parts of the erated by oil and much of that is for peak one of the reasons so many plants have been country could also put a new nuclear plant load, which nuclear energy would not serve granted license extensions. Refurbishing a at risk. A large, new nuclear plant will typi- anyway. But for stakeholders—investors, depreciated nuclear power plant costs far cally need access to a large electrical net- state politicians and regulators, lenders, cus- less than decommissioning one. work with a geographically dispersed cus- tomers—the risk that new nuclear genera- Finally, for many of the reasons described tomer group—the network that a structured tion could strand investment in conventional above and all else being equal, Standard & regional transmission organization, as envi- fossil-fuel-fired generation may be unaccept- Poor’s Ratings Services has found that an sioned by FERC, could provide. However, if able unless the government provides finan- electric utility with a nuclear exposure has transmission access is limited or if states cial compensation. And for a government weaker credit than one without and can ex- have chosen to maintain barriers to elec- trying to contain federal spending, those pect to pay more on the margin for credit. tricity trading and marketing, physical or costs could be prohibitively expensive. Federal support of construction costs will do otherwise, as many have, a new nuclear AN ENERGY BILL COULD MITIGATE THE RISKS power plant may find itself operating within little to change that reality. Therefore, were To attract new capital to build the next a much smaller system, a situation that a utility to embark on a new or expanded nu- generation of nuclear power plants in the could raise its credit risk, all else being clear endeavor, Standard & Poor’s would U.S., developers will need to convince capital equal. One obvious mitigant to this rise likely revisit its rating on the utility. providers that the following risks are not would be to build much smaller nuclear COMPETITION INTRODUCES NEW RISKS FOR plants, such as the 100–MW modular PBR de- materially greater than for fossil fuel power NUCLEAR ENERGY signs. plants: As electricity deregulation and industry Whether a new nuclear plant is financed di- The expense of cost growth, scope change, reform have progressed, capital providers to rectly from the wallets of captive ratepayers technology risk and start-up delay. The costs of unforeseen design problems the nuclear power sector face some of the or with long-term contracts, a large nuclear that manifest themselves well after commer- same risks as capital providers to other plant’s size relative to its market raises out- power generation technologies. Again, if pol- cial operations begin. age-cost risk. A nuclear plant with a long- The costs resulting from the activities of icymakers want to attract capital to the in- term power contract will likely contain pro- dustry, lenders in particular will likely have effective interveners. visions to provide replacement power, or the The costs resulting from regulatory to be convinced that at least some of the financial equivalent, if the plant becomes changes, including growth in oversight and risks are covered or mitigated. The sheer temporarily unavailable. Given nuclear pow- compliance costs. size of most new nuclear investments sug- er’s vulnerability to rare, but extended The cost arising from forced outages in a gests that downside risk for lenders could be forced outages, replacement power costs for competitive wholesale environment. considerable indeed. 1,000–2,000 MW of base load power could be The costs of replacing credit Clearly, buying and selling electricity in a considerable, which would factor into credit counterparties who are unwilling or unable competitive environment comes with its risk. Similarly, a utility that owns a large to honor obligations or commitments upon risks, both market and political. The wake nuclear station could find itself spending which a nuclear plant’s financing decisions of California’s electricity reform problems hundreds of millions of dollars to cover its were made. forced one utility into bankruptcy and short position while its station was down The added and uncertain expense of pro- brought another to the brink of bankruptcy. without assurances of recovery from rate- viding insurance and terrorism protection Independent power producers are resisting payers. Again, smaller PBRs would mitigate that nuclear plants need and that would dis- efforts by California and its Department of this risk. advantage a nuclear plant operating in a Water Resources to abrogate or renegotiate Some the preliminary provisions of the competitive wholesale market. recently executed power sales agreements. Senate Energy Bill contemplate some of The versions of the Energy Bill circulating These events, combined with the credit these risks. A long-term power contract, for around Capital Hill may indeed mitigate crunch that has hit many other utilities and example, with the federal government that enough of the risks that would otherwise dis- energy merchants, have understandably covers 50% of the plant’s costs might miti- suade investors from financing new nuclear moved public utility commissioners and cap- gate some of concerns of operating in a com- capacity. The key drivers will be not so ital providers into more risk-averse postures. petitive environment. Similarly, loan guar- much in the broad generalities of the author- Absent these problems, nuclear power would antees or lines of credit could also offset the izing legislation, but the details of the ena- still be challenged to attract new capital; in costs. However, if gas- and coal-fired plants bling regulations promulgated by the De- this environment, however, the task is all can be built for much less (e.g., 50% less) and partment of Energy. That could take some the more difficult. Competition has dramati- the operational risk of extended nuclear time to draft. However, the Senate markup cally shifted risks from ratepayers to lenders plant outages remains uncovered, a govern- of the bill appears to recognize the issues. and other investors; that is not likely to ment program could fall short of relieving Absent an affordable alternative, if Price- change. investors’ credit concerns. Moreover, as with Anderson is not re-authorized, existing nu- In a competitive wholesale power environ- any government subsidy program, offenders clear power plants could be forced to close ment, nuclear plants would likely sell power would invariably factor U.S. government because of the potential liability of an acci- as a base load generator behind hydroelectric counterparty risk in the form of subsidy re- dent that could run into the billions of dol- and ahead of coal and gas. Capital costs authorization uncertainty. Would the pro- lars. Beyond Price-Anderson, however, con- would be higher than coal plants and much grams envisioned by the Senate bill last siderable government financial support will higher than natural gas plants, but marginal through the capital recovery period? Maybe. like be needed to attract capital, given the operating costs would be very low, as they Maybe not. perceived credit risks. are now. Nonetheless, an owner of a new nu- A new risk for nuclear energy that has The proposed Energy Act’s subtitle sec- clear plant would likely want a long-term— caught everyone’s attention is terrorism. Be- tion, the ‘‘Nuclear Energy Finance Act of 20 years or more—power contract with a cause of the dangers that nuclear energy 2003.’’ provides support for ‘‘advanced reactor creditworthy utility to ensure that fixed and brings, security and insurance costs for nu- designs’’ that covers reactors that enhance variable cost are covered in order to attract clear facilities—new and old—are much high- safety, efficiency, proliferation resistance, or the massive amount of capital needed for er than for fossil or renewable power plants. waste reduction compared with existing construction. Alternatively, a utility that Therefore, in a competitive power environ- commercial nuclear reactors in the U.S. In wants to add a new nuclear plant to its port- ment, stakeholders in power generation may addition, financial support would consider folio would need regulatory assurances from be reluctant to assume new risks that cost ‘‘eligible costs’’ that would cover costs in- its public utility commission that the entire more to mitigate. Again, if a government curred by a project developer to develop and cost of the plant would be recoverable from subsidy can put security costs for new nu- construct a nuclear plant, including costs its rate base. In the first instance, few utili- clear plants on an even playing field with arising from regulatory and licensing delays. ties, or their regulators, want such long- conventional power generation, the industry Financial assistance may take the form of a term contract obligations, especially in an could attract new capital. However, most loan guarantee of principal and interest, a environment of excess generation that can new programs envisioned by Washington power purchase agreement, or some com- be purchased on the cheap. That gas costs only address the construction risk. bination of both. and clean-air compliance costs could be on As a note aside, some power generators and The government’s proposed support of new the rise might offset some of those concerns. utilities may oppose efforts to support new nuclear construction will come with limits.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.008 S10PT1 S7580 CONGRESSIONAL RECORD — SENATE June 10, 2003 The objective is to cover the risks of new nu- ernment to make at this time. The economical as the industry claims, they clear general technology and construction simple truth is if investors on Wall should be able to finance them privately. until capital providers gain confidence that Street won’t invest in new nuclear There is no justification for providing the a new generation of nuclear power plants is mature nuclear industry with these massive commercially sustainable. The act would powerplants, we should not force the subsidies. Again, we strongly urge you to limit support to 50% of eligible project costs families on Main Street to back them vote for the Wyden-Sununu-Bingaman-En- and to the first 8,400 MW of new nuclear gen- with their hard-earned income. We sign amendment to strike Title IV Subtitle eration. The 50% limit would certainly con- have an obligation to protect the B of S. 14. trol the government’s exposure, as well as American taxpayer from having his or Sincerely, mitigate the risks of moral hazard that a her money guarantee investments by Anna Aurillio, Legislative Director, U.S. complete guarantee would invite. However, the Federal Government in these risky Public Interest Research Group. as the industry has learned, some of the programs. This amendment is not Alden Meyer, Director of Government Re- costs that could undermine new nuclear lations, Union of Concerned Scientists. power are not those of construction and de- about whether you support or oppose Jill Lancelot, President, Taxpayers for sign, but are the operational ones that could nuclear power; it is about keeping the Common Sense. arise after government assistance has ended. Federal Government from making Debbie Boger, Senior Washington DC Rep- In addition, given the risk of cost growth risky investments. resentative, Sierra Club. and the likely high capital costs of a new nu- A wide range of national taxpayer, Wenonah Hauter, Director, Public Citizen’s clear plant, a 50% level of financial assist- environmental, and public interest Critical Mass. Michael Mariotte, Executive Director, Nu- ance may not be enough to entice a devel- groups understand these risks. That is oper comparing uncertain estimates of clear Information and Resource Service. $1,500–$2,000 per kW capital cost of a new why more than a dozen of these groups Alyssondra Campaigne, Legislative Direc- generation nuclear plant with more certain signed a letter supporting the Wyden- tor, Natural Resources Defense Council. $500 per kW combined-cycle gas turbine or Sununu amendment. The groups in- Pete Sepp, Vice President of Communica- $1,000 per kW coal capital costs. clude the National Taxpayers Union, tions, National Taxpayers Union. Whether or not the nuclear energy provi- Taxpayers for Common Sense, Council Betsy Loyless, Political director, League sions of the Senate’s version of the Energy for Citizens Against Government of Conservation Voters. Leslie Seff, Esq., Project Director, Sus- Bill are good ecomonic or energy policy is Waste, the U.S. Public Interest Re- beyond the scope or intent of this article. tainable Energy, GRACE Public Fund. New nuclear energy has compelling at- search Group, and the National Re- Erich Pica, Green Scissors Director, tributes, such as supporting energy diver- sources Defense Counsel. Friends of the Earth. sity, replacing an aging U.S. nuclear fleet, I ask unanimous consent that a let- Tom Schatz, President, Council for Citi- offsetting rising natural gas prices, and re- ter from these organizations be printed zens Against Government Waste. Susan Gordon, Director, Alliance for Nu- ducing greenhouse gases and NOX, SOX, and in the RECORD. particulate airborne pollutants. Once the There being no objection, the mate- clear Accountability. capital costs are sunk, the variable oper- rial was ordered to be printed in the Mr. REID. Mr. President, I also have ating cost can indeed be quite low. However, RECORD, as follows: a letter signed by the League of Con- nuclear power tends to raise credit risk con- servation Voters indicating they will cerns during construction and well after con- SUPPORT WYDEN-SUNUNU-BINGAMAN-ENSIGN struction. Investors, particularly lenders AMENDMENT TO STRIKE TAXPAYER FINANC- consider including the vote on this who rarely see any upside potential in cut- ING FOR NEW NUCLEAR REACTORS amendment in their yearly environ- ting-edge technology investments, including June 5, 2003. mental scorecard. I ask unanimous energy, will likely find the potential down- DEAR SENATOR: As national taxpayer, pub- consent that that letter be printed in side credit risk of an advanced, nuclear lic interest, and environmental organiza- the RECORD. power plan too much to bear unless a third tions, we are writing in support of the There being no objection, the mate- party can cover some of the risks. An Energy Wyden-Sununu-Bingaman-Ensign amend- rial was ordered to be printed in the Bill that covers advanced design nuclear ment to strike Title IV, Subtitle B from S. RECORD, as follows: plant construction risk may go a long way 14, the ‘‘Energy Policy Act of 2003.’’ This ir- toward allaying those concerns, but if oper- responsible provision makes taxpayers liable LEAGUE OF CONSERVATION VOTERS, ational and decommissioning risks remain for up to half the cost of constructing new June 10, 2003. uncovered, look for lenders to sit this oppor- reactors, a new and unprecedented extreme Re Wyden-Sununu-Bingaman-Engsign tunity out. in the long history of subsidizing the mature Amendment To Strike Taxpayer Financ- Mr. REID. I will only read one sen- nuclear industry. We urge you to support the ing For New Nuclear Reactors. tence: Wyden-Sununu-Bingaman-Ensign amend- Hon. HARRY REID, ment to strike Title IV, Subtitle B of S. 14. U.S. Senate, But the industry’s legacy of cost growth, Subtitle B authorizes the Department of Washington, DC. technology problems, cumbersome political Energy to provide federal loan guarantees to DEAR SENATOR REID: In response to an in- and regulatory oversight, and the newer finance half the cost of bringing on line an quiry from your staff, this letter will con- risks brought about by competition and ter- additional 8,400 megawatts of nuclear en- firm that the League of Conservation Voters rorism concerns may keep credit risk too ergy) amounting to an estimated taxpayer (LCV) supports an amendment that will be high for even the Senate to overcome. subsidy of $14 to $16 billion. There are no offered by Senators WYDEN (D-OR), SUNUNU In addition, we have the Economist guidelines regarding interest rates and re- (R-NH), BINGAMAN (D-NM) and ENSIGN (R- magazine of May 19 which says, among payment for the loan guarantees, and the NV) to the Senate Energy bill (S. 14) striking other things: Congressional Budget Office considers the a provision that would make taxpayers liable That is why the real argument over risk of default on such a loan guarantee to for up to half the costs of constructing new nuclear’s future should rest on economics. be ‘‘very high—well above 50 percent.’’ reactors, a new and unprecedented extreme Given the industry’s history of cost overruns Additionally, this provision authorizes the in the long history of subsidizing the mature and wasted billions, the claim of dramati- federal government to enter into purchase nuclear industry. cally improved economics would, if true, agreements to buy power back from these S. 14 would provide federal loan guarantees support a revival. Alas, as our special report new reactors. The legislation does not state to finance half the cost of bringing on line an makes clear . . . the claim is dubious. how much energy the federal government additional 8,400 megawatts of nuclear en- Why in the world should a mature, well- will purchase and at what rate, but Depart- ergy, and estimated taxpayer subsidy of $14 capitalized industry receive subsidies, such ment of Energy documents recommend that to $16 billion. There are no guidelines regard- as government liability insurance or help the the federal government contract to purchase ing interest rates and repayment for the loan costs of waste disposal and decommis- nuclear power at above market rates. Offer- guarantees. In addition, this provision au- sioning? ing these subsidies to a mature industry thorizes the federal government to enter into The article closes by saying: would further distort electricity markets by purchase agreements to buy power back from granting nuclear power an unfair and unde- these new reactors. The legislation does not If the private sector wishes to build new sirable advantage over other energy alter- state how much energy the federal govern- nuclear plants in an open and competitive natives. ment will purchase and at what rate, but De- energy market, more power to it. As sub- Even the first nuclear reactors did not re- partment of Energy documents recommend sidies are withdrawn, however, that possi- quire this level of taxpayer financing. Since that the federal government contract to pur- bility will become ever less likely. Nuclear then, federal taxpayers have already pro- chase nuclear power at above market rates. power, which early advocates thought would vided $66 billion in research and development Offering these subsidies to a mature industry be ‘‘too cheap to meter’’, is more likely to be subsidies to the nuclear power industry. would further distort electricity markets by remembered as too costly to matter. Nearly five decades and more than 100 reac- granting nuclear power an unfair and unde- These statements hardly sound like a tors later, it is time for the industry to sup- sirable advantage over other energy alter- sound investment for the Federal Gov- port itself. If proposed new reactors are as natives.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.011 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7581 Even the first nuclear reactors did not re- not generate greenhouse gases. And it now operating. The nuclear industry quire this level of taxpayer financing. Since does so at prices that are competitive did not need loan guarantees to get off then, federal taxpayers have already pro- with coal and natural gas. the ground 50 years ago, and I do not vided $66 billion in research and development I hope in the future we will see addi- believe those guarantees are required subsidies to the nuclear power industry. Nearly five decades and more than 100 reac- tional nuclear power production in this at this point. tors later, it is time for the industry to sup- country and worldwide. I think it is a Moreover, the companies that are port itself. If proposed new reactors are as technology that provides many bene- most likely to build these new nuclear economical as the industry claims, they fits to us. powerplants are the ones that have should be able to finance them privately. There are provisions in the bill that built them before and the ones that are There is no justification for providing the are strongly in support of the nuclear operating them now. These are not mature nuclear industry with these massive power industry and its future: The re- small businesses. subsidies. For this reason, we strongly sup- newal of the Price-Anderson Act, for As a result of the recent wave of port the Wyden-Sununu-Bingaman-Ensign example, that protects the nuclear in- mergers and acquisitions, there are a amendment to strike the nuclear construc- dozen utilities that now own 75 percent tion subsidy from S. 14. LCV’s Political Ad- dustry against liability from accidents. visory Committee will strongly consider in- There are provisions in there to carry of the Nation’s nuclear capacity and cluding votes on this issue in compiling out research and development to help two-thirds of its nuclear reactors. Each LVC’s 2003 Scorecard. If you need more infor- with the training of a workforce. There of these utilities generates billions of mation, please call me or Mary Minette, are many provisions in this bill that dollars in revenues each year. Many LVC’s legislative director, at (202) 785–8683. are very strongly in support of the nu- generate tens of billions of dollars in Sincerely, clear power industry. revenue each year. Collectively, these BETSY LOYLESS, The provision this amendment goes 12 utilities had nearly $12 billion in Vice President, Policy & Lobbying. to would authorize the Secretary of revenues in 2001. Mr. REID. The nuclear power indus- Energy to guarantee up to half the cost There is no evidence of which I am try is a mature, developed industry. It of 8,400 megawatts of nuclear capacity. aware in the record before us that the has had more than 30 years to convince That translates into at least six large nuclear industry needs loan guarantees the wizards on Wall Street of its finan- nuclear powerplants. We do not know of this magnitude to build new nuclear cial merit. The truth is Wall Street is with any precision how much these powerplants. The Energy and Natural not convinced, and until Wall Street is loan guarantees would wind up costing Resources Committee held hearings on convinced, Congress should stay out of taxpayers. That depends on many vari- the state of the nuclear industry in the the risky financial deals. ables, such as how many plants are ac- past Congress. We heard from both the The New York Times today had an tually built under the program, how utility industry and the financial com- article about the empty energy bill. much they cost, whether in fact there munity, and neither one suggested that One of the paragraphs from the New is a default, what the interest rates loan guarantees were appropriate or re- York Times article reads: might be on the defaulted loans, quired. The utility representative said that The biggest addition to this dreary lineup whether the plants would still be able the state of the nuclear industry is [of matters in this bill] is a huge $30 billion to operate if there were default. subsidy for nuclear power. ‘‘very sound’’ and that new plants There is a lot of uncertainty in the would be ‘‘economically competitive’’ It goes on to say that this is simply provision that is the subject of this de- and acceptable to investors. The Wall bad. Even pronuclear allies regard this bate. The Congressional Budget Office Street representative at our committee package as being excessive. has made a number of assumptions hearing testified that a large successful The Washington Post today says: that are favorable to the industry in utility could finance the construction . . . taxpayers should not be asked to pro- coming up with its estimate. It as- of a new nuclear powerplant, and no- vide subsidies for new nuclear power plants sumes, for example, that the Govern- either. As it stands, Senate legislation would body mentioned the need for a Federal ment would only guarantee one, not provide loan guarantees for up to half of the loan program of this type or a loan six, plants during the next 10 years. It construction costs of new nuclear plants. guarantee program of this type. If the Senate wants to encourage nuclear also assumes that it would cost about Second, I do not believe that shifting power plant construction, it should find half as much as Seabrook and the financial risk of constructing these means to do so that don’t risk such a high Shoreham did two decades ago and that plants from industry to the Federal price to the [American] taxpayer. it would still be able to operate after a Government or to the taxpayers is I don’t believe my colleagues should default. Under these assumptions, CBO sound public policy. guarantee these loans, and that is what has concluded that the loan guarantees For most of the last century, utili- we are doing. They wouldn’t do it with would cost in the range of $275 million ties built powerplants in this country, their own money, so we should not for the one plant. whether nuclear or non-nuclear plants, allow the Federal Government to do it The Nuclear Energy Institute takes under what is called the regulatory with taxpayer money. strong exception to these Congres- compact. Utilities were State-regu- I commend and applaud the sponsors sional Budget Office conclusions. NEI lated monopolies. They accepted an ob- of the amendment, the Senator from doubts the industry will default on its ligation to serve everyone in their Oregon and the Senator from New loans. It believes CBO’s estimate is service territories at State-set rates. In Hampshire. I hope their amendment based on noncredible, illogical assump- return, they were shielded from com- will pass. tions and that the CBO estimate is un- petition. They were guaranteed recov- The PRESIDING OFFICER. The Sen- realistically high. ery of their prudently incurred costs ator from New Mexico. So we have experts on all sides of plus a reasonable profit. Mr. BINGAMAN. Mr. President, let this issue. The debate is important, but The regulatory compact has largely me speak briefly also in support of the I do think it glosses over some of the been abandoned in this country during amendment by Senator WYDEN and fundamental questions: Does this nu- the last couple of decades. It has been Senator SUNUNU. This is an amendment clear power industry need these loan replaced by deregulated, competitive, I offered in the committee markup guarantees at this point? Is guaran- wholesale electricity markets. So in- with Senator WYDEN. We were not suc- teeing the nuclear power industry’s stead of wholesale electricity prices cessful at that time, obviously. I con- loans sound public policy? On both of being set based on the utility’s cost of gratulate both sponsors of the amend- those issues, I believe the preponder- production, they are now being set ment for offering it again here. ance of the argument is on the side of more by the market, and title XI of the Clearly, I am not opposed to the the Wyden-Sununu amendment. I do bill before us is intended to further building of new nuclear powerplants. I not believe loan guarantees are nec- these developments. believe nuclear power makes a very essary in this magnitude at this time. Giving Government loan guarantees major contribution to our energy This is a mature industry. We have of this magnitude to one segment of needs. It supplies about 20 percent of been building nuclear powerplants in the utility industry—indeed one of the our Nation’s electricity today. It does this country for nearly half a century. better financed segments of the indus- so safely. It does so reliably. It does We have over 100 nuclear powerplants try—I think unduly interferes with the

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.013 S10PT1 S7582 CONGRESSIONAL RECORD — SENATE June 10, 2003 free market. It runs counter to efforts new energy sources and new energy re- are exactly the right size or targeted to to establish competitive electricity serves, and that is why I supported ex- the right areas, but I give him a lot of markets in this country. ploration in the northern slope of Alas- credit for focusing on strengthening In a competitive market, utilities are ka. our nuclear power industry. I simply do supposed to decide whether to build At the same time, we need to be care- not believe this kind of a guarantee is new powerplants by weighing the eco- ful that our energy policy is not about right for any industry. Equally impor- nomic risk involved against the eco- trying to pick winners and losers in the tant, perhaps more important, I do not nomic reward they might receive. Loan energy markets; that we not digress to- believe this kind of a taxpayer subsidy guarantees skew the market by shift- ward a subsidy ‘‘arms race.’’ We heard is right for the men and women of our ing the risk to the taxpayers while people argue if we give a subsidy to nation who are working long and hard, keeping the rewards for the utility this industry, we should give it to an- sending their taxes to Washington, and shareholders. other, tax credits there or how about a expecting them to be used fairly and We have had this debate before, 50 subsidy here. We should not have a sub- equitably. years ago, at the dawn of the nuclear sidy ‘‘arms race’’ where we burden the There is a lot of uncertainty in the era. The House and Senate debated taxpayers because that is who is pay- energy markets and in the nuclear whether nuclear powerplants should be ing for all of this policy, giving out power industry in particular, and we built and operated by the private sec- subsidies to industries that are favored can ask the question why are not more tor or by the Government. The decision at a particular point in time. And we plants being built, why have we not was made to leave the construction and certainly should not single out an in- had a new plant licensed in over 20 operation of nuclear powerplants to the dustry, as unfortunately a portion of years? I think the answer can be found utilities, to the private sector. this bill does, for an unprecedented in the uncertainty and the risk created The Federal Government encouraged loan guarantee, unprecedented tax- by the regulatory markets, created by support of the utilities through nuclear payer guarantees for the construction the litigious society that we live in and research programs, through fuel sub- of new powerplants. Whether this is the fact that the licensing process can sidies, and through indemnification targeted at the coal-fired electricity be brought to a dead halt time and against accidents. It did not use loans industry or natural gas-fired plants or, again. Whether or not we have the or grants or loan guarantees. as in this case, nuclear plants, I think technology that would allow us to The Federal Government’s faith in it is questionable public policy to pro- build a nuclear powerplant for $100 mil- the utilities 50 years ago was justified vide such loan guarantees. as the more than 100 nuclear power- lion or $500 million versus $2 billion, We are putting the taxpayer at risk, this uncertainty is enough to discour- plants operating today attest, and we and we can call five different econo- should continue to have faith in the age capital markets from lending to mists to try to estimate the size and the large private companies that are free market today and not subsidize scope of that risk, but the provision of the next generation of nuclear power- engaged in the nuclear power industry. the bill we seek to strike allows the I think we will not find private re- plants to this extent by shifting eco- Secretary of Energy to provide loan nomic risks from utility shareholders sources being attracted to the nuclear guarantees for up to half the cost of up industry, and we should not find tax- to the taxpayers. to six plants. That is 50 percent of the payer resources subsidizing the indus- I urge colleagues to support the cost for six plants, each perhaps cost- try, until something is done about that amendment. I yield the floor. ing between $2 billion and $4 billion. uncertainty and that regulatory com- The PRESIDING OFFICER (Mr. That is a $10 billion to $15 billion sub- plexity. VOINOVICH). Who yields time? The Sen- sidy. ator from New Hampshire. The Congressional Research Service, We have an interest rate environ- Mr. SUNUNU. Mr. President, I thank which is about as nonpartisan as you ment right now that benefits anyone my colleague, the Senator from New can get, states that the maximum Fed- building anything just about anywhere Mexico, Mr. BINGAMAN, for his com- eral cost will be in the range of $14 bil- in our country, the lowest interest ments and his very well-reasoned argu- lion to $16 billion in 2002 dollars. The rates in 40 years. That is about as big ment on behalf of our amendment. Congressional Budget Office states that as an incentive as one could possibly As I indicated in my earlier com- the risk of default on these guarantees have for undertaking new construction ments, this is part and parcel of a de- would be quite high, well above 50 per- projects. I certainly do not believe we bate as to what an energy policy really cent. need to put the taxpayers on the hook should be in our country. I support a It is difficult to forecast risk. It is in order to provide even more incen- number of initiatives that I think difficult to forecast cost. Whether tive. would help ensure access to stable, reli- these were guarantees for 25 percent of We are reaching out trying to protect able sources of energy for our country’s the cost or 50 or 100 percent or for one the taxpayers, trying to do the right economy so it can continue to grow. plant or for 71 plants, my concerns and thing, I think trying to make this bill That means conservation, and we just I think the concerns of the Senator better and trying to set a good prece- had an amendment that sets a target of from Oregon would still be the same: dent. Again, I thank RON WYDEN, the conserving some 1 billion gallons of this sets a bad precedent in singling Senator from Oregon, for his work. We gasoline in our automotive industries out one industry for this type of a con- have bipartisan support for this amend- over the next decade. struction loan guarantee. It sets a bad ment, three Republican and three Dem- We also need to make sure we have precedent because in all likelihood ocrat cosponsors. As we move toward a good, sound infrastructure for trans- other areas of private industry would, vote, I think we will see bipartisan sup- porting electricity or natural gas in the long run, seek to be treated in port for the amendment. across State lines and around the coun- the same way. Of course, it sets a bad Again, I thank the chairman of the try. We want a good strong electricity precedent in that it is an unprece- committee for being thoughtful enough title. That has been the effort and the dented sum, an unprecedented guar- to work with us so we could get a con- work of the Energy Committee. We antee. sent agreement to bring this amend- need to make sure we streamline and I would very much like to see a ment up today, to have a fair and reduce unnecessary regulations. I will strong and revitalized nuclear indus- thoughtful debate, and to be able to come back to this point shortly, but try, and I credit the chairman of the have a straight up-or-down vote on the that is one of the real problems the nu- Energy Committee for focusing on this amendment at the conclusion of the de- clear industry faces right now: uncer- issue in his bill, extending Price-An- bate. I reserve the remainder of our tainty due to complexity in the regu- derson, investing in basic research, time. latory environment where the process physics and nuclear technologies, and I yield the floor. of building or licensing a plant can be pushing forward scientific and research The PRESIDING OFFICER (Mr. halted multiple times throughout the initiatives that he has included in the CRAPO). The Senator from New Mexico. licensing process. bill. Mr. DOMENICI. Mr. President, I won- Of course, I believe, as I hope most I disagree on some of the slight nu- der if I might speak with the distin- Americans do, that we need access to ances of those provisions, whether they guished Senator from Oregon about the

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.051 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7583 final vote. We are wondering, from our floor of the Senate, I was known as the nuclear power as a potential reservoir side, for no reasons other than time— person who handled the budget for the of new sources of energy which are not the more time we have left, the more Senate. That is where I had the luxury available by other means. we might get done—whether we might and privilege of meeting the distin- He continues: I think that we ought be able to vote at 3:45 instead of 4:15, guished Senator, who opposes me on to be spending more money and more saving half an hour. We would be de- the floor, Mr. WYDEN, and many others time looking and contemplating the lighted to not ask the Senator to give who serve with me. In fact, that is issue of nuclear power since natural up very much of that time but I wonder where I became a very good friend of gas is a serious problem. if he would consider a consent agree- the distinguished majority leader of This morning I happened to hear a ment for 3:45, which will give us, in- the Senate, who served, as the Senator talk show with typical Americans call- stead of our hour, 40 minutes, and what might recall, on that Budget Com- ing talking about energy. It was rather is left would belong to the Senator, or mittee way down at the end of the Re- nice to hear people from Oklahoma 35 minutes. Would that be fair enough publican side. One of the Senators who City, from somewhere in Tennessee, for the Senator? served for most of that time, that the California, Oregon, obviously average Mr. WYDEN. I want to be accommo- Senator from Oregon will recognize and citizens who were calling in on a radio dating to the distinguished chairman remember, was probably one of the show asking questions. Most questions had to do with, why don’t we have of the committee. Let me spend a cou- most astute and knowledgeable Sen- more natural gas? Finally someone ple of minutes looking into it. ators who we have both had the luxury asked, aren’t there other things we can Mr. DOMENICI. Sure. of knowing. We might both put some use? What about nuclear power? Of Mr. WYDEN. I will try to ascertain other attributes along with those but course, as one might suspect, the an- how many Senators on our side of the he was that, and that was Senator proposition would like to speak, but swers were rather muddled. Gramm of Texas. The real question now before this in- the Senator has always been fair. One day I was exploring a matter stitution is, can nuclear power, held in Mr. DOMENICI. Let’s not agree. with the Senator from Texas. I said: abeyance for about 14 to 16 years in the Let’s put that before them as a possi- Senator, you know I have been on this United States while Japan built new bility. Right now we are exploring the Budget Committee for so long, and I facilities, the country of France is 80 notion of voting at 3:45 instead of 4:15. am thinking about moving over to the percent dependent upon nuclear power, If we did that, we would allocate the Energy Committee where I have been a little country like Taiwan, which is time away from each hour in order to in the second position for all of these booming, is currently constructing two get there. In the meantime, we will years. You are from Texas and I no- facilities with General Electric engi- both ask our cloakrooms if there is any ticed you never did bother to even get neering and design—I cannot recall the problems with any Senators. The Sen- on the Energy Committee. name of the contractor. And the United ator from Oregon will do it on his side He said: Yes, that is right. States sits with everybody saying it is and I will do it on mine. I said: Why is that? almost impossible. With the expo- Mr. President, I assume I can speak Listen carefully. He said: Senator nential growth in electricity needs, at this point; I have the floor? PETE, energy is one of the most dif- where we all expect to use natural gas The PRESIDING OFFICER. That is ficult things to do anything about, in the burners, to create the heat and correct. nigh on impossible to effect by law any electricity, it is nearly impossible that Mr. WYDEN. Would the distinguished real policy regarding energy, if you are we will have enough natural gas. It is Senator yield? talking about advanced policy that has not a question of whether we have a lot Mr. DOMENICI. I would be pleased to any impact. of it. It is a question that we do not use yield. I said: Well, Senator Gramm, I might anything else because we are fright- Mr. WYDEN. I think we may need to agree with you but—and before I could ened to death of using anything else. go to 4 rather than 3:45, but I will try finish he said: However, I would like to Some in this country, a small group, to accommodate the distinguished correct that and say one thing to you. have scared us to death about nuclear chairman. We will spend some time Now, this was 5 years ago. power. When we add up all the energy checking his desire to move the legisla- Senator DOMENICI, there is indeed a produced by nuclear power in the tion, which has transcended any par- probability that you can do something world, including the terrible accident ticular amendment, and we are anxious if you take over the Energy Com- in Russia, which was attributable to a to accommodate. mittee, and I tell you for sure there is very old-fashioned nuclear powerplant Mr. DOMENICI. For the benefit of only one thing and that is to reestab- that we would not dare license in the Senators who would like to speak, lish nuclear power as an option for America, add these together and nu- Senator ALEXANDER has indicated a de- these United States and the world. clear power has been safer than any of sire to speak for a few moments. He is I wish he were here. I am not quoting the other power sources combined—be here. Senator VOINOVICH, who occupies him exactly so do not put it in quotes, it coal or any other—save and except the chair, desires to speak; Senator but he would remember that. for energy produced by dams. I am LANDRIEU, from the other side of the When I decided to take this job and speaking of large quantities. Certainly, aisle, desires to speak. Senator INHOFE give up the Budget Committee, I re- if we speak of windmills, we speak of and Senator LARRY CRAIG. membered that and I even told my solar, we can produce clean energy. I say to all of them, if they would let wife, when discussing at home my next Having said that, the issue before the us know through the cloakroom, we few years in the Senate, that some Senate today is, do we want to support will try to put some times opposite pretty good people think I am taking a committee that put together a bill their names. We will be using 4 as kind on a committee that does not have a that said, fellow Americans, the time of our scheduling time to see what we lot of potential because energy is too has come to quit playing around with can do about setting up a time. tough to legislate and make policy energy and do something about a myr- Would the Senator from Tennessee about. It just sort of happens, except iad of sources. And to say, wherever like to speak at this time or would he for that rascal nuclear power. you can, we are going to produce more rather that the Senator from New Mex- Well, he said it. He may not be right energy. ico speak for a few moments? but I am trying to prove him right in We have tried to produce or cause to Mr. ALEXANDER. I will listen to the this debate today and in this Energy be produced every natural gas source Senator from New Mexico. bill that we are going to try to finish we know of that had impediments. If it Mr. DOMENICI. I thank the Senator. this week, perhaps with 1 additional was too deep, we gave it a benefit of I will try to be brief. week. some sort so it could get taken out, My colleagues know I have been in On May 21 of this year, Alan Green- anyway. If it was too far away in the the Senate 31 years and that for the span, speaking to the House Energy ice lands of Alaska, we gave those com- better part of that time I spent my Committee, said: If we’re going to con- panies something so they could get it time on energy matters but prin- tinue to expand our energy base, we’re down here. If it is coal, we said sub- cipally, from the standpoint of the going to have to be starting to look at sidize.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.055 S10PT1 S7584 CONGRESSIONAL RECORD — SENATE June 10, 2003 They are talking that we should not and it will be there for as long as 50 Mr. DOMENICI. I yield to him and be granting a loan guarantee, presum- years, if that is what is needed by the then to the Senator from Louisiana. ably at market value, to a first-class French scientists to find out how to Mr. ALEXANDER. I would like about company that might want to take a put it away or how to reuse it. 5 minutes. risk at building a powerplant. They are Here we sit fooling around because Ms. LANDRIEU. Fine. saying we should not do that. But when somebody convinced us we ought to be- The PRESIDING OFFICER. The Sen- it comes to coal, we are going to spend come immobilized, when it comes to an ator from Tennessee. over $2 billion on pure research to try alternative, until we have a hole in the Mr. ALEXANDER. Mr. President, I to get to that miracle place of clean ground so deep, so big, in such hard rise in support of the chairman in op- coal. rock that we can figure out, way in ad- position to the amendment. We did not say, my, you just should vance, a way to put the waste in it and In 1987 our family, which included not put your tax dollars in a big waste. monitor it with calculators and say to three teenagers and a 7-year-old, vis- Last but not least, while our oppo- America and the world: We just mon- ited the Peace Park in Hiroshima, nents will find this is not relevant, we itored it, and we can tell you there will Japan. We thought twice before we already have a subsidy for wind energy, be no radiation for 10,000 years. took our children there because it is those 50-foot-tall windmills. Without That is the test because we want to such a staggering experience to see the new one contemplated to be added be so careful we don’t hurt anybody what happened on that August day in to this bill, that has the potential of ever. The test of the technology that is World War II when the atomic bomb producing 245,000 windmills, equivalent going to have to monitor that—and was dropped. source of energy. The powerplants we you can hardly draw the plans, it is I marvel even more that today contemplate lending money to, or of- such an absurdity—is 10,000 years. Japan, because it knows of the impor- fering a loan guarantee, the same Having said all that, we are back to tance of energy, now relies on nuclear amount. Guess how much the taxpayer a simple proposition: Do you or do you energy—the same process that wiped will have given if that occurs. Thirty- not want to let the Energy Committee out half the lives in Hiroshima—for one billion is the direct source for go to a conference with the House and peace, for the peaceful production of those windmills. to take with it a bill that says: All the electricity for homes and jobs for about Now, the opposition to ours might rest of these energies get their help: 80 percent of their electric needs. They say, but you are going to get wind- Biomass gets its assistance, coal gets are producing about one new reactor a mills. When you say to the American its help, the renewables are helped im- year. power industry, if you want to come measurably with tax assistance, every In France, as the chairman said, along and try to build a new nuclear single thing we know how to do to about 80 percent of the electricity, I be- powerplant, modern type, you have to produce more oil and gas is done— lieve, is produced by nuclear power. We go get your money, you have to take right? have about 100 ships in our Navy that Ms. LANDRIEU. Right. all the risks, and we will underwrite operate with little nuclear reactors. Mr. DOMENICI. I could go on and on. half of it with a loan, they would have Yet, for some reason, over the last 30 That is all going to be there. But also us say that is a terrible risk even if it years we became afraid to start a new in the event—and I am looking for the is only $2 billion to $5 billion. But that nuclear powerplant. I guess we became language in the statute as to when the $31 billion that might occur for wind- so accustomed to abundant supplies of Secretary can issue these—we have mills is not? Of course, the windmill is coal and oil and relatively cheap gaso- statutory language that says, very not a risk, but it certainly is throwing line that we thought it would last for- simply—and I will read it and close: your money at something that most ever. But I think we have gotten over Subject to the requirements of the Federal that. At least it is time for us to get Americans would wonder seriously Credit Reform Act [et cetera, et cetera, et about. cetera], the Secretary may, subject to appro- over that and to break away from this Having said that, this Senator is not priations, make available to project devel- national attitude that, since the 1970s, against any of the sources. I think we opers for eligible project costs such financial has kept us from starting a new nu- will win today. When we win, we will assistance as the Secretary determines is clear powerplant. go to conference eventually and come necessary to supplement private-sector fi- Why not nuclear? That is the ques- out with a major new impetus for nu- nancing for projects if he determines that tion we should be asking. We have clear power in this country. For the such projects are needed to contribute to en- heard the testimony of the terrible first time somebody is going to say, let ergy security, fuel or technology diversity, price increases in natural gas and the or clean air attainment goals. The Secretary us build one or two new nuclear power- shall prescribe such terms or conditions for projections that we have a really seri- plants. And the greenhouse gas issue financial assistance as the Secretary deems ous problem with continuing natural that has been raised will not be there necessary. . . . gas prices. because there is no pollution from That then is provided as up to 50 per- This Senate voted not to go explore those two plants that I have just de- cent of the cost, by way of a loan. for more oil in Alaska. scribed, if they come into being—none. Frankly, it is all a question of risks. Windmills are promising, but the Zero. Absolutely clean. It is not a question of philosophy. It is promise of 245,000 of them to produce 2 We are going to have to find some not a question of whose party wants to percent of our energy and to see them way to take care of the waste someday. get on what slope, a slope of entrepre- all over our deserts and ridgetops— If we want to have a debate here today, neurship or a slope of guaranteeship. there is some limit to what windmills or next week, on the waste, suffice it to All of that is meaningless. What this is will be able to do for us. Coal produces say that the United States has scared about is: Is it worth this little risk we half of our electricity, but it produces herself silly about waste. Waste is are speaking of—to get what I just de- carbon and it produces pollution and nothing but a technical problem. If you scribed going again for America? we have not yet quite developed the want to go see all the waste in France, I say, overwhelmingly, absolutely, clean coal technology we all want. get a ticket and go to a city, ask them positively, yes. I do hope, come that Nuclear power more and more seems where it is, and they will take you to a vote time, there will not be 50 Sen- to be imperative. So what are we doing building, and you can go see it all. ators, or half of those who vote today, about it in this bill? We are basically You might say: Who would want to who will say we want to strike this and adding nuclear to the arsenal of weap- see it? kill this opportunity for America. ons we want to use to make ourselves They will just take you to a building With that, I will yield the floor to less dependent on foreign oil and more that looks like a schoolhouse. You Senator ALEXANDER for his time. likely to have clean air and a cheap walk in and say: Can I see the waste? Senator LANDRIEU, are you on some and abundant supply of electricity. And they will say: You are walking on time frame that is urgent? It is said that we are subsidizing the it. They will say: Just take a look Ms. LANDRIEU. I can yield to the idea of nuclear power. In a way we are: down. Senator from Tennessee. He was here, A new type of advanced nuclear power- You look down. It looks like glass, of course, prior to my arrival. How plant that has the promise of building and there sits the waste, encapsulated, much time would he like? plants for $1.5 billion—much cheaper,

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.057 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7585 much more efficient, safer, to start up United States doesn’t need to move gas production will grow by only 14 that industry, to stimulate it. But we backwards as this amendment would percent. are doing exactly the same thing as the suggest. We need to move very quickly The CEO of Dow Chemical recently chairman said with wind power. We are in the other direction. We need to build wrote that the chemical industry—the doing exactly the same kind of thing 1,300 new powerplants in this Nation, Nation’s largest industrial user of nat- with clean coal technology to the tune which is the equivalent of 60 to 90 new ural gas—is particularly vulnerable to of $2.2 billion. We are doing exactly the powerplants per year to keep up with high natural gas prices. same thing with oil and gas, and $2.5 the increased demand of electricity. To remain an economic leader we billion is in the bill for that. Why? Because our economy is more must promote a diversified and robust This morning, we talked about put- productive; because technology is de- energy mix, including the full range of ting a Presidential emphasis, thanks to manding it; because good, old Yankee traditional and alternative energy the Senator from Louisiana, on con- know-how makes it crucial that we sources. servation. We need to add nuclear to provide our businesses with electricity Nuclear energy is also vitally impor- our list. The larger question would be, and with power. If we don’t give them tant for our environment and our Na- Why would we keep it out? Why would power, they can’t operate. If we don’t tion’s clean air goals. Nuclear energy is the Nation’s larg- we encourage every other form of en- give them power that is reliable and af- est clean air source of electricity, gen- ergy and not nuclear energy? fordable, then we will lose jobs to our erating three-fourths of all emission- I strongly urge that we keep in this international competitors. It is as sim- bill nuclear power as an option for our free electricity. ple as that. We need everything and Nuclear energy will be an essential future. There will be great discussions more, everything we thought of and in this body about carbon and the con- partner for future generations of Amer- more than we thought of. icans, whose reliance on electricity cern of greenhouse gases. Nuclear Nuclear is a very important compo- power is carbon free. It is carbon free. will increase and who rightfully will nent of that. The amendment’s authors demand a cleaner environment. There will be a lot of talk about our de- argue that this is a subsidy. It is not a pendence on oil. The most reliable and Just this past Sunday, the Wash- subsidy. It is a loan guarantee. It is our ington Post highlighted the problems largest opportunity to replace oil in intention that these loans be fully paid the next 20 years is nuclear power. that the Shenandoah National Forest with interest. We do this. There are 100 now faces with pollution. Think how There is a lot of talk about the worry examples in the Federal rule book of natural gas prices. The best way to much worse our Nation’s air pollution where we do this. We want to encour- would be if nuclear energy did not gen- keep natural gas prices under control age the development and movement in is to have an alternative. That would erate one fifth of our electricity. a certain way. We can give loan guar- To preserve our current levels of be nuclear power. I strongly urge my antees, and we have done it time and colleagues to vote no on the amend- emission-free electricity generation, again. It is time we do it for the nu- we must build 50,000 megawatts of new ment. clear industry to keep them moving in I yield the floor. nuclear energy production by 2020. The PRESIDING OFFICER. The Sen- the right direction. In addition to providing the largest Let me say to the chairman that I ator from New Mexico is recognized. source of emission-free electricity, nu- Mr. DOMENICI. Mr. President, I ask went down to Louisiana. We have two clear energy possesses the most viable unanimous consent that the vote in re- nuclear powerplants. Seventeen per- solution to our over reliance on foreign lation to the pending amendment occur cent of Louisiana’s fuel is nuclear. As oil, i.e., the potential to someday co- at 3:50 with the remaining time to be the chairman knows, one out of five generate hydrogen as a clean transpor- divided with 20 minutes for the pro- has the clean benefit of nuclear power. tation substitute to oil. ponents and 10 minutes under the con- My producers of natural gas said to The Wyden amendment will hurt our trol of the opponents. me, Senator, please go and fight for nu- Nation’s long-term economic, environ- The PRESIDING OFFICER. Is there clear energy. If we don’t get more en- mental and security goals if passed. objection? ergy into the marketplace, the de- Building a windmill that has a gener- Without objection, it is so ordered. mands on natural gas will become so ating capacity of 2 megawatts should The Senator from Louisiana. high that we cannot pay our gas bills, not be compared to building a nuclear Ms. LANDRIEU. Mr. President, I and it is driving our industry to its power plant that produces 1,000 thank the Senator from New Mexico. I knees. They said, Senator, please go megawatts or more. will take 3 or 4 minutes. I understand and fight for an increase in all sources, I agree with my ranking member that the Senator from Alabama would including nuclear. that the nuclear industry is mature in like to speak in opposition to the Nuclear energy currently generates the sense that it has been safely, effi- amendment as well. electricity for one in every five homes ciently, and effectively producing elec- In all due respect to my colleagues and businesses. tricity for several decades. But we have who are offering this amendment to It is important not only in Lou- not brought a new nuclear plant on strike this very important provision isiana, where two nuclear plants line in this country for over a decade from the bill, I wanted to come to the produce nearly 17 percent of my State’s and a new project will face some uncer- floor to strongly disagree and to add electricity, but also in States such as tainties. my voice at the outset of the debate Connecticut, Illinois, New Hampshire, The costs of the first few plants will and on the points which the chairman New Jersey, South Carolina, and be higher than those that are built of the committee brought to the fore Vermont where nuclear generates more later. Because the business risks will on this very important part of the En- electricity than any other source. be greater for the initial few projects, ergy bill. Nationwide, 103 reactors provide 20 financing will be more difficult to ob- I wish to begin by saying that our percent of our electricity—the largest tain. That is why the Federal Govern- Nation has 103 nuclear powerplants. source of U.S. emission-free power pro- ment needs to step in and provide an The nuclear industry provides 20 per- vided 24–7. incentive to allow the industry to get cent of our electricity. I don’t believe Nuclear energy is one of the most over that hurdle. we will strip the Energy bill of this competitive sources of energy on an Some rather large numbers have been provision, but if we did, we would jeop- operational cost basis. thrown around as to the costs of this ardize the reliable and affordable While I strongly support the use of provision. Were theses numbers accu- source of electricity that this Nation natural gas for our energy needs, we rate, I would share the concerns voiced needs to stay competitive in this world cannot rely, as we have in recent years, by my colleagues. economy. on any one source of energy to meet The construction costs as derived by It will cost jobs and cause hardship. our Nation’s increasing electricity de- CBO would be $2,300 per kilowatt of ca- People would lose their jobs with this mand. pacity is inconsistent with current cost amendment. Over the next 20 years, U.S. natural incurred by other nations building I am not sure my colleagues are gas consumption is projected to grow similar types of advanced nuclear reac- aware that over the next 20 years the by over 50 percent while U.S. natural tors.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.060 S10PT1 S7586 CONGRESSIONAL RECORD — SENATE June 10, 2003 According to a detailed cost analysis to have to pay twice as much. We can support for nuclear energy and for developed by industry the first few meet that demand without any air pol- being totally consistent in the posi- plants will cost less than $1,400 per kil- lution by expanding nuclear power. tions he has taken. owatt hour and will later fall to less There are 29 nuclear plants being I want to argue against hypocrisy. than $1,000 per kilowatt hour, making built around the world. France gets 80 An environmental group handed me a nuclear plants very competitive with percent of its power from nuclear sheet of paper a while ago. They are the costs of other technologies. power. Nearly 50 percent of Japan’s very much against subsidies. As it My colleagues who are opposed to power comes from nuclear power. turns out, a subsidy for nuclear energy these loan guarantees are assuming We have not built a nuclear plant in would be very bad. They are right that a new nuclear plant could rise to America in 20 years. It is time for that about arguing against subsidies. That costs over $3,800 per killowatt, based on to change. Twenty percent of our elec- is why I am going to support this questionable CBO projections. tricity comes from nuclear power pro- amendment. In addition my colleagues also fail to ducing no adverse environmental im- But all of the environmental argu- mention that the Secretary of Energy pacts to the atmosphere. ments I have seen have been for sub- will be required to use stringent cri- I would like to read what we save for sidies when it comes to ethanol, solar teria to provide loan guarantees. the atmosphere by having nuclear power, biomass, wind energy, and you I concede that we probably don’t power. A recent study showed that nu- name it. The point here is that we know what the exact cost will be, but clear energy has prevented the release ought to be consistent. If you think the economic, environmental, and se- of 219 million tons of sulfur dioxide, 98 subsidies are a wonderful idea for these curity benefits of investing in new nu- million tons of nitrogen oxide polluted other things, then maybe you ought to clear plants for our future generations in the atmosphere, and prevented the support the loan guarantee for this ad- are many and great while the financial emission into the air of 2 billion tons of ditional method of producing power. risk to the public sector is by compari- carbon dioxide. That is considered by But if you think subsidies are wrong, son rather small. Let’s give this idea a some to be a global-warming gas. We then you shouldn’t support them for chance. can stop that. We may have offset the anything. In conclusion, I urge my colleagues effects of carbon dioxide already by As the chairman of the committee to vote against the Wyden amendment. producing 20 percent of our energy with knows, I opposed all of these subsidies And I thank the chairman for all his ef- nuclear power. in the Finance Committee. I will offer forts in helping to promote a vital We have to include a provision like amendments again to try to strip them source of energy and for helping to this in the bill. Last year, I introduced out of the finance part of the bill when pave the way towards improving our a bill that would provide a tax credit, it is added to the Energy bill on the Nation’s energy security. similar to that for renewable energy, floor. I strongly oppose the amendment on for the production of nuclear energy. I wish to make the point that if you the floor to strip the provision in this The tax credit would have cost only want to be hypocritical—I am talking bill, and I support the chairman’s one-fifth the amount of tax credits about these organizations and not mark. that other forms of clean energy re- Members of the Senate—then fine. Op- Mr. DOMENICI. Mr. President, how ceive, and it would have encouraged pose this subsidy for nuclear and con- much time does the Senator from New the production of a steady, reliable tinue to support it for all of the rest. Mexico have? source of energy. The provision in this But if you want to be honest about it, The PRESIDING OFFICER. Six min- bill likewise encourages nuclear en- like the chairman and I, though we utes. ergy, and I support it. I reject the no- have come to a different conclusion, Mr. DOMENICI. I yield 3 minutes to tion that there would be a high rate of but at least the chairman has been con- the Senator from Alabama. default on these loans. I have studied sistent and I hope I have been con- The PRESIDING OFFICER. The Sen- nuclear energy and I have visited sistent. ator from Alabama is recognized for 3 plants. These loans are needed to pro- I oppose these subsidies, even for minutes. vide the nuclear industry a small in- those sources of energy which I think Mr. SESSIONS. Mr. President, I wish centive to take a big step towards con- are critical for this country to con- to express my deep appreciation to structing a plant. We need to go to con- tinue to develop, and that includes nu- Senator DOMENICI. He, more than any ference with it. If we do, I would be clear energy. other person in this body, understands willing to work with Senators who op- I support the amendment in order to what role nuclear power must play in pose this. But I think we have to have remain consistent in opposing sub- America and in the world if we are to something in this bill that will allow sidies. maintain a clean environment and a us to encourage nuclear power. Not to The PRESIDING OFFICER. Who healthy energy source. In nations that do so would be a failure of incredible yields time? have readily available electricity in proportions. Mr. SUNUNU. Mr. President, I thank the world, compared to those that do I thank the chairman. I feel very the Senator from Arizona for his sup- not, the lifespan is twice as long. strongly about it. I thank Senator port for our amendment. I will pick up This is a matter of extreme impor- DOMENICI again for his historic leader- a little bit where he left off talking tance. We are trying to simultaneously ship that can lead us into a new way to about the issue of subsidies across a increase our power sources in America produce large sources of energy with- range of areas. and improve the cleanliness of our air out pollution costs to the environment. The distinguished chairman of the and protect our environment. The only I yield the floor. committee spoke earlier about the way that can be done is with nuclear The PRESIDING OFFICER. Who clean coal subsidy, the $2 billion in power. yields time? clean coal subsidy. He suggested that I feel very strongly about this. It is Mr. SUNUNU. Mr. President, I ask if supporters of this amendment also sup- important for America’s economy. the Senator from Oregon would yield 2 ported that subsidy. Alan Greenspan testified at the Joint minutes to the distinguished Senator I just want to be clear. I do not sup- Economic Committee last week and from Arizona. port $2 billion for clean coal. I have, in raised again the crisis that we are fac- Mr. WYDEN. Yes. my service in the House of Representa- ing in natural gas. Natural gas is a The PRESIDING OFFICER. The Sen- tives, opposed the clean coal tech- source for all new electric plants in ator from Arizona. nology program. In addition to that, I America today. We are driving up this Mr. KYL. Mr. President, first, I agree oppose the fossil fuel research and de- tremendous demand on natural gas. If with the comments of the Senator from velopment fund that is in this bill be- we drive up the cost for natural gas, as Alabama that we ought to be pro- cause they effectively provide a sub- we certainly will at the rate we are moting nuclear power. I am a strong sidy for research and development in going, homeowners are going to pay so advocate of that. I compliment the the areas of fossil fuel, areas where pri- much more for their heating. Busi- chairman of committee, Senator vate companies operate in a very prof- nesses that use natural gas are going DOMENICI, for being very strong in his itable and successful way.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.015 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7587 It is not to hold anything against provides incentives to enhance and ex- Mr. FEINGOLD. Mr. President, I am those fossil fuel firms or those coal pand our energy base and usher new ad- pleased to be a cosponsor of this firms, but it is to stand up for some of vanced-design nuclear power tech- amendment and want to detail the rea- the concerns expressed by the Senator nologies. It has been nearly 20 years sons for my support. The amendment from Arizona that we should try to be since a new nuclear plant has been strikes subtitle B of title IV of the bill, as consistent as possible in striking built. The safety and efficiency record the section on deployment of new nu- these unnecessary subsidies. of the industry over that time has been clear plants. This section would pro- The suggestion was made earlier on astounding. Through increased effi- vide new loan guarantees for the con- the floor—in fact, the statement was ciency, nuclear plants have increased struction of new nuclear plants. In ad- made specifically—that this loan guar- their clean generation of energy. The dition to providing the nuclear indus- antee program is ‘‘not a subsidy.’’ I re- increased electricity generation from try loan guarantees, the Senate Energy ject that out of hand. If this was not a nuclear powerplants in the past 10 Bill appears to also authorize the Fed- subsidy, then it would convey no ben- years was the equivalent of adding 22 eral Government to enter into power efit to those who sought the loan guar- new 1,000-megawatt plants in our Na- purchase agreements to buy power antee. And if there were no benefit, tion’s electricity grid. But with energy back from new reactors—potentially at then people should have no objection to demand increasing by at least 30 per- rates above market prices. removing it from the bill. But, of cent over the next 15 years, more gen- I think subtitle B goes too far and course, there is a lot of objection to re- eration will be necessary to meet our the amendment to strike is necessary moving this from the bill because there needs. As we look to the future, if we for several reasons. First, the bill is a big benefit to be gained by having are to meet those needs, provide sta- places no ceiling on these loans, mak- a federally subsidized loan guarantee bility in the marketplace, and ensure ing the Federal Government liable, ac- for the construction of new nuclear clean air, then we will have to continue cording to the Congressional Research plants. to expand our nuclear base load. Nu- Service, for between $14–$16 billion in It was also suggested that perhaps clear energy is America’s only expand- loan guarantees. this is an attack on nuclear power. Let able large-scale source of emission-free me close by reemphasizing that is sim- electricity. Second, I feel strongly that if private ply not the case. I support the Price- The Environment & Public Works investors are not willing to put their Anderson provisions in the bill. I sup- Committee—the committee of which I own money on the line to support new ported the effort to establish a long- have the honor to serve as chairman— nuclear plants, then the Federal Gov- term storage facility for nuclear waste has jurisdiction over the Nuclear Regu- ernment should not put taxpayers’ at Yucca Mountain that could be oper- latory Agency and I have been active money at risk either. Yet, under the ated for the long-term, safely for our in overseeing that agency, both as the provisions currently included in the utilities and energy industries. nuclear subcommittee chairman, and Senate bill, taxpayers would be re- In an effort to suggest this is an at- now as chairman of the full committee. quired to subsidize up to 50 percent of tack on nuclear power, the big guns In 1998 I began a series of NRC over- the cost of constructing and operating have also been rolled out: there’s been sight hearings. I did so with the goal of 8,400 megawatts of power. The Congres- a suggestion that Alan Greenspan, of changing the bureaucratic atmosphere sional Budget Office has estimated the all people, might somehow harbor some that had infected the NRC. By 1998, the risk of default would be ‘‘well above 50 support for this loan guarantee pro- NRC had become an agency of process, percent.’’ I feel that $14–$16 billion is a gram. Let me say, clearly, like Alan not results. I knew that if we were to lot of money to gamble on an invest- Greenspan, I am a proponent and sup- have a robust nuclear energy sector, we ment that has a 50/50 risk of failure. porter of the concept of using nuclear needed a regulatory body that was both Finally, as I have expressed in the power to help meet our energy needs, efficient and effective—and one in past, I am concerned that our current but I do not believe, for a moment, which the public could be sure that nuclear waste storage program is of in- that means Alan Greenspan is a sup- safety is the top priority. If the agency sufficient size to handle our current porter of federally guaranteed loans to was to improve it had to employ a nuclear waste problem. I do not think private industry. And if someone can more results-oriented approach—one it is wise to build more plants, when we produce testimony from Alan Green- that was risk-based and science-based, do not have enough storage for our cur- span supporting a Federal loan guar- not one mired in unnecessary process rent waste. Yucca Mountain is not au- antee program for private industry to and paperwork. I am pleased that in thorized at a size that is big enough to build nuclear powerplants, I will quite the last 5 years, we have seen tremen- take all of the current nuclear waste. literally eat my hat. I simply do not dous strides at the NRC. It has become Among the reasons that I opposed the believe that to be the case. a lean and more effective regulatory Yucca Mountain resolution was its in- I join with the Senator from Oregon agency. I have the utmost confidence sufficient size. I was concerned that my in support of this amendment to strike in the NRC ability to ensure that nu- home state of Wisconsin would go back one provision from this very large En- clear energy in this country is safe and on the list as a possible site for a large- ergy bill; and that will protect tax- reliable. scale nuclear repository. Constructing payers by preventing them from being We have all of the pieces in place to new nuclear plants does nothing to re- exposed to $14 or $16 billion in loan move to the next generation of nuclear lieve those concerns, and instead guarantees to private industry. I do power. If we are to meet the energy de- makes it more likely that we will have not think we need it. mands of the future and we are serious a growing nuclear waste problem for I look forward to a vote on this about reducing utility emissions, then which we will need a permanent stor- amendment. I certainly ask my col- we should get serious about the zero age solution, putting Wisconsin back leagues to support the amendment. emissions energy production that nu- at risk. I yield the floor. clear power provides. And that means I think this amendment makes fiscal Mr. INHOFE. Mr. President, I rise to that we should not be discouraging the and policy sense, and deserves the sup- oppose this amendment. Nuclear power development of new, safe nuclear tech- port of the Senate. is a clean, reliable, stable, affordable, nologies. Quite the opposite, we should and domestic source of energy. It is an provide the incentives and the assur- Mr. VOINOVICH. Mr. President, I essential part of this Nation’s energy ances in order to meet the energy rise in support of nuclear energy and in mix. And if we care about energy sta- needs of this country. support of the provisions in S. 14 that bility and the environment, then nu- The bill before us provides a sensible promote the use of this vital compo- clear power must play an important incentive for future nuclear power nent of our energy portfolio. role in our energy future. projects. Unfortunately, the Wyden/ Nuclear energy accounts for 20 per- I am a strong supporter of nuclear Sununu amendment will remove those cent of our electricity generation—one power and I want to commend Senator incentives—it is a step backward— in five American homes and businesses DOMENICI for his commitment to nu- away from long-term stable and clean are powered by nuclear energy. It is an clear energy in this bill. His legislation energy supplies. important energy source now, and will

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.066 S10PT1 S7588 CONGRESSIONAL RECORD — SENATE June 10, 2003 become even more important in the fu- ments that are required years before on the loans, and that there will likely ture—as we strive to meet growing en- they generate any returns—as opposed be no expenses to the Government. ergy demands while protecting our en- to natural gas generators that are rel- I applaud the work that Chairman vironment. atively inexpensive and easy to build. DOMENICI has done on these provi- As many of my colleagues know, nu- Without new interest in nuclear sions—all of these provisions—and I clear energy provides emissions-free power, our pool of qualified nuclear will oppose any efforts to strip them electricity—no emission of airborne workers is drying up. from the energy bill. pollutants, no emission of carbon diox- From 1990–95, the number of students I urge my colleagues to oppose the ide or other greenhouse gases. In fact, in nuclear engineering dropped by 30 Wyden-Sununu amendment. nuclear energy provides three-fourths percent. Mrs. FEINSTEIN. Mr. President, I of the emissions-free electricity gen- In 1975, there were 76 research reac- rise to support the amendment offered erated in the United States—more than tors on American college campuses— by Senators WYDEN, BINGAMAN, hydro, wind, solar and geothermal en- today there are 32. SUNUNU, and ENZI to strike the section ergy combined. Current estimates project that do- of the energy bill providing Federal President Bush has said many times mestic energy demand will increase by subsidies for the construction of new that energy security is a cornerstone of almost 50 percent by 2030. Without a nuclear plants. national security. He is right—and nu- significant effort to increase our nu- Title IV of the energy bill includes clear energy is a vital component of clear capacity—which must include loans, loan guarantees, and other forms our energy supply. construction of new nuclear facilities— of financial assistance to subsidize the Uranium—the fuel for our nuclear we will have no other choice than reli- construction of new nuclear power- fleet—is mined domestically and by ance on natural gas to meet that de- plants. many of our allies. mand, which will drive up the costs for In the past 50 years, California has Unlike oil, nuclear energy is not sub- both electricity and natural gas built 5 commercial nuclear power- ject to foreign manipulation. through the roof. plants and one experimental reactor. Unlike natural gas, nuclear energy The nuclear energy provisions in S. Today, just two of these nuclear power- does not have domestic shortages and 14 are essential to assure that nuclear plants are still operating in the State. importation problems. energy continues to thrive and provide The plants at San Onofre and Diablo Unlike wind, solar and geothermal its benefits to our Nation: Canyon are running at diminished ca- energy, nuclear energy provides highly Price-Anderson reauthorization: The pacity but still provide 4,400 megawatts affordable and reliable power. bill permanently reauthorizes the of power in California—close to a fifth Production costs of nuclear energy Price-Anderson liability protection of California’s energy supply. were 1.76 cents per kilowatt-hour that is so crucial to all nuclear facili- Impressive as these numbers may be versus 1.79 cents for coal and 5.69 cents ties. in terms of the power-generating ca- for natural gas in 2000. Advanced reactor construction: The pacity of nuclear energy, they tell only Plant capacity utilization exceeded bill will authorize construction of a part of the story of California’s experi- 90 percent in 2002—the fourth year in a new advanced reactor as a research ment with nuclear power. Of six nu- row that the industry set a record for test-bed using the very latest ideas de- clear powerplants built in California, output without building any new veloped in the Generation IV reactor four have been decommissioned due to plants. program. high operating costs and excessive risk. Nuclear energy is safe. Our nuclear Advanced fuel cycle initiative: Au- In the late 1950s, an experimental re- plants are the most hardened of any thorizes funding for development of actor at the Rocketdyne site in Ven- commercial structures in the country technologies to reduce the volume and tura County was shut down after a se- and have a superb safety record and toxicity of final waste projects, sim- vere meltdown. few, if any, industries have oversight plify siting for future repositories and In 1967, the Vallecitos plant closed its comparable to that provided by the recover fuel from spent fuel. doors after 20 years of operating be- NRC for nuclear plants. Federal loan guarantees: The bill cause its owner, General Electric, was Our nuclear Navy is a great example provides loan guarantees for new plant unable to obtain accident insurance of the safety of nuclear energy— construction in order to offset the due to the high risk of operating a nu- The U.S. Navy has safely traveled problems with new development that I clear power plant. over 126 million miles without a single mentioned earlier. In 1976, the Plant at Humboldt Bay reactor incident and with no measur- I want to spend just a minute on the shut its doors after 13 years of oper- able impact on the world’s environ- Federal loan guarantees that are the ation as a result of the discovery of a ment. subject of an amendment by Senator fault line near the plant that would Sailors on a nuclear submarine, WYDEN and Senator SUNUNU. have required millions of dollars in working within yards of a reactor, re- These loan guarantees are necessary seismic retrofits. ceive less radiation while on active to jumpstart construction on new nu- And in 1989, the Rancho Seco plant duty than they would at home from clear plants. In order to begin con- near Sacramento was closed by public natural radiation background. struction of a new facility, the nuclear referendum after 14 years of operation However, we must act now if we want industry needs to move into uncharted plagued by mismanagement that re- to preserve the benefits of nuclear en- waters—they need to go to investment sulted in cost overruns. ergy. bankers and say ‘‘I know that this is a Nuclear power is expensive and risky. The last license for a domestic reac- huge capital outlay, and that we Yet I believe that if private investors tor was issued in 1978—and the tech- haven’t built one of these facilities in are not willing to put their own money nologies used to power our nuclear 30 years, but we need to do this.’’ These on the line to support new nuclear plants are over 30 years old. loan guarantees will ensure that pri- plants, then the Federal Government Our industry has developed advanced vate-sector financing will be available should not put taxpayers’ money at nuclear technologies—and the NRC has for utilities that make the decision to risk either. However, under the nuclear licensed them—but new plants have move forward. subsidy provision in this energy bill, only been built overseas, not in Amer- My distinguished colleague from Or- taxpayers would be required to sub- ica. egon has stated that we are throwing sidize up to 50 percent of construction Our nuclear plants were built in a away good money on these ‘‘subsidies.’’ costs of new nuclear plants—costs that highly regulated market—where re- I must respectfully disagree. As Chair- CRS estimates to be in the range of turns on these investments were guar- man DOMENICI pointed out earlier, this $14–16 billion. CRS also estimates the anteed—not in today’s highly competi- is not a handout program. risk of default on these loan guaran- tive energy markets. These are loan guarantees—for up to tees to be ‘‘very high—well above 50 Nuclear plants present unusual risks 50 percent of the construction costs for percent.’’ to the financial community due to the a new facility—which means that the I strongly believe it is not in the pub- significant up-front capital invest- utilities will have to make payments lic interest for our Nation to subsidize

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.025 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7589 costly nuclear plants. Instead we The PRESIDING OFFICER. The pro- I wrap up this part of the discussion should devote more resources to the de- ponents of the amendment have 14 min- by making sure Senators are clear on velopment of renewable energy. utes 18 seconds; the opponents of the the distinction between nuclear power I strongly believe we should be doing amendment have 2 minutes 35 seconds. and various other sources of power more to encourage the development of Mr. WYDEN. Mr. President, if I could under this proposal. renewable power such as, wind, geo- engage the distinguished chairman of Under the way the Domenici legisla- thermal, and biomass, instead of pro- the committee, I would like to close tion is written, if you do not produce viding subsidies to an industry that has the debate. At this point, I believe the any wind, you get no direct subsidy. not built a new powerplant since the Presiding Officer said I have in the vi- But under the legislation as it stands 1970s. cinity of 14 minutes. I say to the Sen- today, if you do not produce any nu- Unfortunately, this Energy bill cur- ator, you have in the vicinity of 2 min- clear power, you get a subsidy. That is rently has an over-reliance on pro- utes. Would you like to speak now? as clear a distinction as we could pos- moting traditional energy resources, Mr. DOMENICI. No, I would not. sibly make. For all the other sources of such as nuclear power. Mr. WYDEN. Then I will take 5 min- power, if you produce nothing, no sub- The U.S. nuclear power industry, utes of our time at this point. sidy; for nuclear, if you produce noth- while currently generating about 20 The PRESIDING OFFICER. The Sen- ing, you get a big subsidy. The dif- percent of the Nation’s electricity, ator from Oregon. ference—what it all comes down to—is faces an uncertain long-term future. Mr. WYDEN. Mr. President, at that whether Senators believe that one par- No nuclear plants have been ordered point we have 9 minutes remaining? ticular source of power deserves cash since 1978 and more than 100 reactors The PRESIDING OFFICER. About up front and, in effect, putting tax- have been canceled, including all those 1 8 ⁄2. payers on the hook at the outset before ordered after 1973. No units are cur- Mr. WYDEN. Thank you, Mr. Presi- anything is produced. rently under construction. dent. On a bipartisan basis—three Demo- The nuclear power industry’s trou- Mr. President, a couple of arguments cratic Senators, three Republican Sen- bles include high nuclear powerplant need to be addressed at this point. The ators, and an Independent—we think construction costs, public concern Senator from Louisiana, Ms. LANDRIEU, that is unwise. about nuclear safety and waste dis- just recently said the Wyden-Sununu Mr. President, I reserve the remain- posal, and regulatory compliance costs. provision would, in some way, jeop- Controversies over safety have dog- der of my time. ardize the reliability of power and cost The PRESIDING OFFICER. Who ged nuclear power throughout its de- jobs today. That is simply not correct. velopment, particularly following the yields time? No plant that is operating today—not Mr. DOMENICI. Mr. President, I have March 1979 Three Mile Island accident one—would be affected by this amend- in Pennsylvania and the April 1986 been asked because of other people— ment, and not a single job in America not me—that we commence this vote Chernobyl disaster in the former So- would be lost. Now, with respect to viet Union. These events shaped much at 3:45. I ask unanimous consent that jobs of the future—and I think this is be the case. of our opinions about nuclear power. important to note—if you look at the Safety continues to raise concerns Several Senators addressed the official figures of the Federal Govern- today. In a recent example, it was dis- Chair. ment—these are supplied by the En- covered in March 2002 that leaking The PRESIDING OFFICER. The ergy Information Agency—the fact is, boric acid had eaten a large cavity in unanimous consent request has been the top of the reactor vessel in Ohio’s you can build four or five gas-fired made. Is there objection? Davis-Besse nuclear plant. The corro- plants for the cost of one nuclear facil- Mr. WYDEN. Mr. President, reserving sion left only the vessel’s quarter-inch- ity. That is, again, not something just the right to object. thick stainless steel inner liner to pre- made up. Those are the official figures The PRESIDING OFFICER. The Sen- vent a potentially catastrophic release of the Federal Government with re- ator from Oregon. of reactor cooling water. spect to the comparative costs of this Mr. WYDEN. Mr. President, if we Furthermore, nuclear powerplants amendment. could just take a second to make sure have long been recognized as potential I think we ought to note, for exam- we are fair, I note that the Senator targets of terrorist attacks, and I re- ple, just how unprecedented this is. from Nevada would like to have several main skeptical that there are enough When people began to debate nuclear minutes, and we would like the oppor- safeguards in place to defend against power decades ago—50 years ago—when tunity to close. So if we can work out potential terrorist attacks on our nu- the commercial nuclear industry was the opportunity—— clear plants. first getting started, there were not Mr. DOMENICI. I say to the Senator, Concern about nuclear safety and any loan guarantees. In fact, even dur- they want a vote at 3:45, so we don’t waste disposal makes Californians ap- ing the early days, there was no sub- need any time. He can have 3 minutes prehensive about nuclear power. Cali- sidy along these lines. People would and you can close. fornia has shifted away from nuclear say, let’s support research, let’s sup- Mr. WYDEN. I withdraw my reserva- power over the years and activists in port various opportunities to assist tion. the communities surrounding the Dia- with the nuclear reactors but not even The PRESIDING OFFICER. Without blo Canyon and San Onofre plants con- in the early days was there a construc- objection, it is so ordered. tinue to express concerns about the tion subsidy. In fact, in the Atomic En- The Senator from Nevada is recog- safety of the remaining reactors in ergy Act of 1954 there was an explicit nized for 3 minutes. California. prohibition on subsidizing any of these Mr. ENSIGN. Mr. President, I just The construction of new nuclear re- facilities. want to make a couple points and keep actors would also exacerbate the nu- So what we are talking about is it fairly brief. clear waste problem. Since the volume something where a nonpartisan anal- The nuclear power industry has been of nuclear waste in the United States is ysis from the Congressional Budget Of- around for a long time. We hear about expected to exceed capacity at the con- fice has made it clear it is risky. They other new sources of energy that this troversial Yucca Mountain repository said there is upwards of a 50-percent country is trying to develop, and it by 2010, any new plants will create even likelihood of default. The Congres- seems to make sense we would sub- more waste storage problems. sional Research Service has said it is sidize some of that new research. It is I voted with Senator BINGAMAN to going to be costly. Mr. President, $14 to basic research that the Government is strike these nuclear subsidies in com- $16 billion is the appraisal of the Con- involved in. Whether it is health care, mittee and today I will vote with Sen- gressional Research Service. whether it is energy, that seems to be ator WYDEN to do the same. I have made it clear it is unprece- an appropriate role for the Federal The PRESIDING OFFICER. The Sen- dented both with respect to this bill Government. ator from Oregon. and the history. Finally, it is simply But nuclear energy has been around Mr. WYDEN. Mr. President, how unfair when you compare it to other for a long time, and it is commercially much time remains for each side? sources of power. viable in many other countries in the

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.027 S10PT1 S7590 CONGRESSIONAL RECORD — SENATE June 10, 2003 world. To this Senator, it does not Mr. WYDEN. Mr. President, as we Bunning Graham (SC) Nelson (FL) seem to be the right thing to do to be move to the vote, basically all the Burns Grassley Nelson (NE) Carper Hagel Nickles subsidizing nuclear power because it arguments made against the Chambliss Hatch Pryor should have already proven its merit in Wyden-Sununu-Snowe-Ensign-Binga- Cochran Hollings Roberts the marketplace and been able to stand man amendment, all of the arguments Coleman Hutchison Santorum Cornyn Inhofe on its own. made against us were made for the Sessions Craig Inouye Shelby Unfortunately, we have a situation Crapo Landrieu WPPSS facilities which resulted in the Specter DeWine Lincoln where we had a vote last year on the biggest municipal bond failure in his- Stevens Dole Lott Yucca Mountain project, which is the Talent tory. Back then they said it wouldn’t Domenici Lugar Nation’s nuclear waste repository, and be unduly risky. They said there Enzi McConnell Thomas this Senate decided to continue to wouldn’t be any questions with respect Fitzgerald Miller Voinovich Warner build Yucca Mountain. What that indi- to exposure to those who were financ- Frist Murkowski cates is that the Senate is already sub- ing it. Look at what happened. Four ANSWERED ‘‘Present’’—1 sidizing nuclear power. People say, no, out of those five facilities did not get Allen Yucca Mountain is being built by the built. NOT VOTING—1 ratepayers, the people who receive the I say to my colleagues, those who are Lieberman benefits of nuclear energy. They pay a pronuclear, those who are antinuclear, tax on that or a rate on that and, this is not about your position with re- The amendment (No. 875) was re- therefore, they pay into the nuclear spect to nuclear power pro or con. It is jected. Mr. CARPER. I move to reconsider fund that will build on Yucca Moun- about whether or not you are going to the vote. tain. be protaxpayer. The Congressional Re- Mr. CRAIG. I move to lay that mo- According to the General Accounting search Service says the taxpayers are Office, that is not going to be enough. tion on the table. on the hook for $14 to $16 billion. The The motion to lay on the table was So we are going to be subsidizing nu- Congressional Budget Office says there clear power as it is. To add another agreed to. is upwards of a 50-percent likelihood of Mr. DOMENICI. I thank all Members subsidy would be wrong at this time. default. Under this provision, the loan for debate and votes. Whether you look at Japan or Ger- guarantees provide opportunities to I believe the Indian amendment of many, these other countries, they are construct nuclear facilities that no one the Senator from Colorado is next. building them commercially; they are else is getting. Other people don’t get AMENDMENT NO. 864 WITHDRAWN operating them viably. the break unless they produce some- If nuclear power is so good commer- Mr. CAMPBELL. Mr. President, as thing. Here you get the break even if the author of amendment No. 864, the cially, then it should stand on its own. you produce no nuclear power whatso- We have several other provisions in the Indian provision to the Energy Bill, I ever and you get it directly out of the ask unanimous consent to withdraw bill that Senators SUNUNU and WYDEN taxpayer’s pocket. have not touched on nuclear power. the amendment. It is unwise. I hope my colleagues The PRESIDING OFFICER. Without But to actually have Federal loan will vote with three Democratic Sen- guarantees that will leave the taxpayer objection, it is so ordered. ators, three Republican Senators, and The Senator from California. holding the bill would be wrong at this an Independent for this amendment. Mrs. FEINSTEIN. Mr. President, I in- time. If nuclear power is going to I yield the floor. quire as to what the order is. stand, let it stand on its own. The PRESIDING OFFICER. The The PRESIDING OFFICER. There is I yield the floor. question is on agreeing to amendment The PRESIDING OFFICER. The Sen- no unanimous consent agreement at No. 875. ator from Oregon. this time. Mr. DOMENICI. Mr. President, I won- Mr. DOMENICI. Mr. President, I ask AMENDMENT NO. 876 der if the Senator could do me one for the yeas and nays. (Purpose: To Tighten Oversight of Energy favor. Let Senator GRAHAM have 1 The PRESIDING OFFICER. Is there a Markets) minute. Then you wind up with the sufficient second? Mrs. FEINSTEIN. Mr. President, I time you have, the same time you There appears to be a sufficient sec- send an amendment to the desk on be- have. ond. The clerk will call the roll. half of Senators FITZGERALD, HARKIN, Mr. WYDEN. I am happy to accom- The legislative clerk called the roll. LUGAR, CANTWELL, WYDEN, BOXER, and modate the Senator from South Caro- Mr. ALLEN (when his name was LEAHY. lina. How much additional time do I called). Present. The PRESIDING OFFICER. The have? Mr. REID. I announce that the Sen- clerk will report. The PRESIDING OFFICER. Under ator from Connecticut (Mr. LIEBERMAN) The legislative clerk read as follows: the unanimous consent agreement, the is necessarily absent. The Senator from California [Mrs. FEIN- vote was to occur at a quarter to 4. You The PRESIDING OFFICER (Mr. STEIN], for herself, Mr. FITZGERALD, Mr. HARKIN, Mr. LUGAR, Ms. CANTWELL, Mr. have the time between now and then. CHAFEE). Are there any other Senators Mr. DOMENICI. We don’t need to WYDEN, Mrs. BOXER, and Mr. LEAHY, proposes in the Chamber desiring to vote? an amendment numbered 876. have the Senator speak. Go ahead. The result was announced—yeas 48, Mrs. FEINSTEIN. Mr. President, I Mr. WYDEN. Mr. President, I ask nays 50, as follows: ask unanimous consent that the read- unanimous consent that the Senator [Rollcall Vote No. 214 Leg.] from South Carolina have 2 additional ing of the amendment be dispensed YEAS—49 minutes and if I could have 3 additional with. minutes after he is done speaking. Akaka Dodd Lautenberg The PRESIDING OFFICER. Without Baucus Dorgan Leahy objection, it is so ordered. Mr. DOMENICI. We cannot do that. Bayh Durbin Levin The PRESIDING OFFICER. Objec- Biden Edwards McCain (The amendment is printed in today’s tion is heard. Bingaman Ensign Mikulski RECORD under ‘‘Text of Amendments.’’) Mr. DOMENICI. It is not me. I have Boxer Feingold Murray Mrs. FEINSTEIN. Mr. President, I Byrd Feinstein Reed heard the comments of the distin- just been told, after instructions from Campbell Graham (FL) Reid the leadership. Cantwell Gregg Rockefeller guished ranking member that they had Mr. WYDEN. Mr. President, then I Chafee Harkin Sarbanes not had an opportunity to see the would like to accommodate the Sen- Clinton Jeffords Schumer amendment. Of course, we will allow Collins Johnson Smith that opportunity to take place. This ator from South Carolina. I have a cou- Conrad Kennedy Snowe ple of minutes to go. Corzine Kerry Stabenow amendment closes a major loophole Mr. DOMENICI. You don’t have a Daschle Kohl Sununu which allows energy trades to take couple minutes. Dayton Kyl Wyden place electronically, in private, with The PRESIDING OFFICER. You have NAYS—50 no transparency, no record, no audit 2 minutes at this point. The Senator Alexander Bennett Breaux trail, or any oversight to guard against from Oregon. Allard Bond Brownback fraud and manipulation.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.068 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7591 This amendment will close a loophole where you could avoid any scrutiny Under one such trading strategy created in 2000 when Congress passed and do this trading. called Death Star, which was also the Commodity Futures Modernization After the 2000 legislation was en- called Forney’s Perpetual Loop, for Act which exempted energy and metals acted, EnronOnline began to trade en- John Forney, Enron would ‘‘get paid trading from regulatory oversight and ergy derivatives bilaterally, without for moving energy to relieve conges- excluded them completely if the trade being subject to proper regulatory tion without actually moving energy was done electronically. oversight. It should not surprise any- or relieving any congestion,’’ according This amendment was presented by one that without the transparency, to an internal memo. It was a fraud. me before. Senator FITZGERALD spoke, prices soared and games were played. It was a fraud. A was a trading strat- Senator WYDEN spoke, Senator CANT- Three years ago this summer, Cali- egy which was clearly and simply WELL spoke. We got just about a major- fornia’s energy market began to spiral fraudulent and manipulative. ity. Senator Gramm of Texas argued out of control. In May of 2000, families In another strategy detailed in these against it. It did go back to the Agri- and businesses in San Diego saw their memos, Enron would ‘‘create the ap- culture Committee. The Agriculture energy bills soar. The western energy pearance of congestion through the de- Committee held hearings and both Sen- crisis forced every family and business liberate overstatement of loads’’ to ators HARKIN and LUGAR participated in California and many of the other drive up prices. in making changes, which I think has States to pay more for energy. The cri- The above-mentioned strategies re- made this a better amendment. sis forced the State of California into a veal an intentional and coordinated at- We were hoping for a markup, but severe budget shortfall. It forced the tempt to manipulate the Western en- the Congress ended without that mark- State’s largest utility into bankruptcy ergy market for profit. up having taken place. Now the Energy and nearly bankrupted the second larg- This is an important piece of the puz- bill is before us, and it seems to me est publicly owned utility. zle that has been uncovered. Some Now, 3 years and $45 billion in costs this is the time to present this. former Enron traders helped fill in the This bill has had floor discussion. It later, we have learned how the energy blanks. CBS News reported in May 2002 that has had a committee hearing. It has markets in California were gamed and former Enron traders admitted the been modified by the chairman and the abused. Originally everyone around company was directly responsible for ranking member of the Agriculture here said: Oh, it’s the problem of the 1996 deregulation law. I will admit that local blackouts in California. Yet, in- Committee and is now before us. Today, if there is no delivery of phys- law is a faulty law. However, you can- terestingly enough, no one has followed ical energy, there is no price trans- not have the price of energy 1 year up on this report. According to CBS News reporter parency. By that I mean, if I buy nat- being $7 billion throughout the whole Jason Leopold, the traders said Enron’s ural gas from you and you deliver it to State and the next year it is $28 billion former president Jeff Skilling pushed me, the Federal Energy Regulatory and say that is supply and demand. You cannot have a 400 percent increase them to trade aggressively in Cali- Commission has the authority to en- fornia and told them, ‘‘If you can’t do sure that the transaction is trans- just based on supply and demand. Clearly, you do not have a 400 percent that, then you need to find a job at an- parent—meaning it is available to look other company or go trade pork bel- at—and that it is reasonably priced. increase in demand in a 1-year period of time. Nor did that happen in a 1-year lies.’’ However, many energy transactions no The CBS article mentions that Enron longer result in delivery. In other period of time. In March of this year, the Federal traders played a disturbing role in words, if I sell to you and you sell to Energy Regulatory Commission issued blackouts that hit California. The re- Senator CRAIG who sells to Senator a report titled ‘‘Price Manipulation In port mentions specific manipulative DOMENICI who sells to somebody else Western Markets,’’ which confirmed behavior by Enron on June 14 and 15 in who then delivers it, none of these that there was widespread and perva- the summer of 2000 when traders said trades is covered if done electronically. sive fraud and manipulation during the they intentionally clogged Path 26—a That means there is no record; there is western energy crisis. According to the key transmission path connecting no audit trail; there are no capital re- FERC report, the abuse in our energy Northern and Central California. quirements; there is no transparency; markets was pervasive and unlawful. Here is what one trader said about there is no antifraud or antimanipula- Yet this Energy bill does not prevent the event: tion oversight today. It is a huge loop- another energy crisis from occurring What we did was overbook the line we had hole permitted in the Commodity Fu- nor does it curb illegal Enron-type ma- the rights on during a shortage or in a heat tures Modernization Act of 2000. nipulation. wave. We did this in June 2000 when the Bay This lack of transparency and over- Area was going through a heat wave and the Just last week, the FBI arrested ISO couldn’t send power to the North. The sight applies to energy and metals former Enron trader John M. Forney, trading. It does not apply if you are ISO has to pay Enron to free up the line in saying he was a key architect of order to send power to San Francisco to keep selling wheat or pork bellies or any Enron’s well-known trading schemes the lights on. But by the time they agreed to other tangible commodity. Why do we blamed for worsening California’s en- pay us, rolling blackouts had already hit include metals? Fraud and manipula- ergy crisis in 2000 and 2001. California and the price for electricity went tion have not been confined to the en- Mr. Forney was charged with a single through the roof. ergy trading sector. For example, in count each of wire fraud and con- In other words, they waited for the 1996 U.S. consumers were overcharged spiracy. He is the third Enron trader weather. They calculatedly overbooked $2.5 billion from Sumitomo’s manipula- accused by the Justice Department of the line to clog the lines so that power tion of the copper markets. criminal manipulation of western en- could not be transmitted to the north. Furthermore, in 1999 the President’s ergy markets but the first who did not Therefore, what power was transmitted Working Group on Financial Markets reach a plea agreement, leading to his went sky high in terms of price. Sec- recommended excluding only financial arrest last Tuesday. According to the ond, a blackout resulted. derivatives, not energy and metals de- criminal complaint, Forney is alleg- California lost billions. Yet accord- rivatives, from the CFTC’s jurisdiction. edly the architect of the Enron trading ing to the traders, Enron made mil- After intense lobbying by, of all peo- strategies with the now infamous lions of dollars by employing this ple, Enron, a change was made to the names of Ricochet, Death Star, Get strategy alone. Commodity Futures Modernization Act Shorty, Fat Boy, and others. On top of all this, traders disclosed to exempt energy and metals trading These Enron strategies were first re- that Enron’s manipulative trading from CFTC oversight in 2000. It did not vealed on Monday, May 6, 2002, when strategies helped force California to take long for EnronOnline and others the Federal Energy Regulatory Com- sign expensive long-term contracts. It in the energy sector to take advantage mission posted a series of documents is no surprise that Enron and others of this new freedom by trading energy on their Web site that revealed Enron were able to profit so handsomely dur- derivatives absent any transparency manipulated the western energy mar- ing the crisis. and regulatory oversight. In other ket by engaging in these suspect trad- Now, after 3 years, the FBI and the words, a whole new niche was found ing strategies. Justice Department are beginning to

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.072 S10PT1 S7592 CONGRESSIONAL RECORD — SENATE June 10, 2003 bring these traders to justice. In Feb- after allegedly telling a trade publica- the trades. This is exactly what our ruary, Jeffrey Richter, the former head tion about the prices for 48 natural gas legislation aims to stop. of Enron’s Short-Term California en- trades that he never made in an effort Duke Energy disclosed that $1.1 bil- ergy trading desk, pled guilty to con- to boost prices and company profit. lion worth of trades were ‘‘round-trip’’ spiracy to commit fraud as part of In other words, he is telling an en- since 1999. Roughly two-thirds of these Enron’s well known schemes to manip- ergy trade publication about 48 gas were done on the InterContinental Ex- ulate Western energy markets. trades that were never made. It was change owned by banks that oppose Richter’s plea followed that of head bogus information which was given this legislation. Enron trader Tim Belden in the fall of out. Why? Simply to boost the market. Let me repeat that. Duke Energy dis- 2002. Belden admitted that he schemed These indictments are just a few ex- closed that $1.1 billion worth of trades to defraud California during the West- amples of how energy firms reported were bogus ‘‘round-trip’’ trades since ern energy crisis and also plead guilty inaccurate prices to trade publications 1991. And two-thirds of those were done to conspiracy to commit wire fraud. to drive energy prices higher. on the InterContinental Exchange, Nobody can believe this didn’t hap- Industry publications claimed they which is an electronic exchange. That pen, because it did. Two people have could not be fooled by false prices be- means that thousands of subscribers pled guilty, and a third was just ar- cause deviant prices are rejected, but would have seen false price signals. rested for doing just what we hope to this claim was predicated on the fact A lawyer for J.P. Morgan Chase ad- prevent happening with this amend- that everyone was reporting honestly mitted the bank engineered a series of ment. which we now know they weren’t ‘‘round-trip’’ trades with Enron. The plea by Jeff Richter came on the doing. Dynegy and Williams have also admit- heels of FERC’s release of transcripts CMS Energy, Williams, American ted to this ‘‘round-trip’’ trading. And from Reliant Energy in January of this Electric Power Company, and Dynegy although those trades mostly occurred year that reveal how their traders in- have each acknowledged that its em- with electricity, there is evidence to tentionally withheld power from the ployees gave inaccurate price data to suggest that ‘‘round-trip’’ trades were California market in an attempt to in- industry participants. On December 19 made in natural gas and even crease prices. This is one of the most Dynegy agreed to pay a $5 million fine broadband. egregious examples of manipulation for its actions. By exchanging the same amount of a and it is clear and convincing evidence Let us turn to other types of fraudu- commodity at the same price, these of coordinated schemes to defraud con- lent trades that many energy firms companies have not engaged in mean- sumers. have admitted to. ingful transactions but in deceptive Let me read just one part of the tran- Dynegy, Duke Energy, El Paso, Reli- practices to fool investors and drive up script to demonstrate the greed behind ant Resources Inc., CMS Energy Corp., energy prices for consumers. It is, the market abuse by Reliant and its and Williams Cos. all admitted engag- therefore, imperative that the Depart- traders. ing in false ‘‘round-trip’’ or ‘‘wash ment of Justice, the Federal Energy On June 20, 2000 two Reliant employ- trades.’’ Regulatory Commission, the Securities ees had the following conversation that What is a ‘‘round-trip’’ trade, one and Exchange Commission, the Com- reveals the company withheld power might ask? modity Futures Trading Commission, from the California market to drive ‘‘Round-trip’’ trades occur when one and every other oversight agency con- prices up: firm sells energy to another and then duct an aggressive and vigorous inves- RELIANT OPERATIONS MANAGER 1. I don’t the second firm simultaneously sells tigation into all of the energy compa- necessarily foresee those units being run the the same amount of energy back to the nies that may have committed fraud remainder of this week. In fact you will first company at exactly the same and abuse in the western energy mar- probably see, in fact I know, tomorrow we price. No commodity ever actually ket. have all the units at Coolwater off. changes hands, but when done on an ex- Beyond that, I believe strongly that The Coolwater plant is a 526 Mega- change, these transactions send a price Congress must reexamine what tools watt plant. signal to the market and they artifi- the Government needs to keep a better RELIANT PLANT OPERATOR 2. Really? cially boost revenue for the company. watch over these volatile markets RELIANT OPERATIONS MANAGER 1. Poten- How widespread are ‘‘round-trip’’ that, frankly, are little understood. In tially. Even number four. More due to some trades? Well, the Congressional Re- the absence of vigilant Government market manipulation attempts on our part. search Service looked at trading pat- oversight of the energy sector, firms And so, on number four it probably wouldn’t last long. It would probably be back on the terns in the energy sector over the last have the incentive to create the ap- next day, if not the day after that. Trying to few years and reported, ‘‘this pattern pearance of a mature liquid and well uh . . . of trading suggests a market environ- functioning market, but it is unclear RELIANT PLANT OPERATOR 2. Trying to ment in which a significant volume of whether such a market exists. And I shorten supply, uh? That way the price on fictitious trading could have taken don’t believe, for a minute, that such a demand goes up. place.’’ market exists. RELIANT OPERATIONS MANAGER 1. Well, Yet since most of the energy trading The ‘‘round-trip’’ trades, the Enron we’ll see. RELIANT PLANT OPERATOR 2. I can under- market is unregulated by the govern- memos, the FERC report on ‘‘Price Ma- stand. That’s cool. ment, we have only a slim idea of the nipulation in the Western Markets’’ RELIANT OPERATIONS MANAGER 1. ‘‘We’ve illusions being perpetrated in the en- raise questions about the energy mar- got some term positions that, you know, ergy sector. kets of our country. To this end, I be- that would benefit. Consider the following confessions lieve it is critical for the Senate to ap- That is what existed. That is the from energy firms about ‘‘round-trip’’ prove this amendment, which would kind of thing that went on, and it has trades: provide more regulatory oversight of to stop. It has to be made illegal and it Reliant admitted 10 percent of its online energy trading. has to have heavy penalties. trading revenues came from ‘‘round- When the Senate Energy Committee Let’s turn to some other examples. trip’’ trades. The announcement forced marked up the Energy bill in April, On January 27, 2003, Michelle Marie the company’s President and head of there was a consensus to include some Valencia, a 32-year-old former senior wholesale trading to both step down. provisions of the Energy Market Over- energy trader for Dynegy, was arrested These are bogus traders. sight Act, S. 509, I introduced earlier on charges that she reported fictitious CMS Energy announced 80 percent of this year. The Energy bill, S. 14, does natural gas transactions to an industry its trades in 2001 were ‘‘round-trip’’ include higher criminal and civil pen- publication. trades. alties for violations of the Federal On December 5, 2002, Todd Geiger, a Eighty percent of all of the trading Power Act and the Natural Gas Act. former vice president on the Canadian this company did was bogus. Under section 1173 of the bill now on natural gas trading desk for El Paso Remember, these trades are sham the floor, fines will be $1 million in- Merchant Energy, was charged with deals where nothing was exchanged, stead of the current $5,000 for a one- wire fraud and filing a false report yet the company booked revenues from time violation of the statutes. I thank

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.077 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7593 the chairman of the committee for Right now, energy transactions are Senate Energy bill, and it was a sub- this. Jail time will be raised to 5 years regulated by FERC. When there is ac- ject of a hearing in the Senate Agri- instead of the current 2 years. And I tual delivery, that is taken care of. If culture Committee. As I said, time ran thank the chairman of the committee Senator REID sells me energy and I de- out before it could be marked up and for this. Fines will be $50,000 per viola- liver it, that is covered by FERC. But passed. Since that time, both Senators tion per day instead of the current $500 interim trades are not covered by any- LUGAR and HARKIN have made signifi- per violation per day for violations of body. They are on their own in secret. cant improvements to the legislation. the statutes. And I thank the chairman Many energy transactions no longer So today I am pleased to note that of the committee for this. result in delivery, so this giant loop- the following companies and organiza- Furthermore, section 1174 of the En- hole where there is no government tions are supporting this legislation: ergy bill will eliminate the unneces- oversight—when these transactions are the National Rural Electric Coopera- sary 60-day waiting period for FERC to done on electronic exchanges—is tive Association; the Derivatives Study grant refunds. I thank both Senator major. I think it is mega. I think a Center; the American Public Gas Asso- DOMENICI and Senator BINGAMAN, the number of companies have jumped into ciation; the American Public Power chairman and the ranking member of this void simply because they thought Association; the California Municipal the Energy Committee, for their efforts they could make a quick buck by gam- Utilities Association; Southern Cali- to include provisions of S. 509, the En- ing the system, and in fact they have fornia Public Power Authority; the ergy Market Oversight Act, in this En- done just that. Transmission Access Policy Study ergy bill. As I mentioned, in 2000 Congress Group; U.S. Public Interest Research Now let me turn to the specifics of passed the Commodity Futures Mod- Group; the Consumers Union; the Con- the amendment. ernization Act, which exempted energy sumers Federation of America; I am offering this amendment—and I and metals from regulatory oversight, Calpine; Southern California Edison; am hopeful that Senator FITZGERALD and excluded it completely if the trade Pacific Gas and Electric; and the FERC will come to the floor; I know he in- was done electronically. So today, as Chairman Pat Wood. tends to speak on this amendment, and long as there is no delivery, there is no Here is a quick explanation of what I hope he does—I am offering this price transparency, there is no record, this amendment does. It applies anti- amendment to subject electronic ex- there is no audit trail, there is no cap- fraud and antimanipulation authority changes, such as EnronOnline, the ital requirement, there is no antifraud, to all exempt commodity transactions. InterContinental Exchange, and any antimanipulation oversight. An exempt commodity is a commodity other electronic exchange, to the same This lack of transparency and over- which is not financial and not agricul- oversight, reporting, and capital re- sight only applies to energy. It does tural and mainly includes energy and quirements of other commodity ex- not apply if you are selling wheat or metals. The bill sets up two classes of changes, such as the Chicago Mer- pork bellies or any other tangible com- swaps for those made between sophisti- cantile Exchange, the New York Mer- modity. And financial derivatives are cated persons, basically institutions cantile Exchange, and the Chicago not included in this amendment. and wealthy individuals, that are not Board of Trade. It did not take long for Enron and entered into on a trading facility, for Why should there be one secret trad- others to take advantage of this new example, an exchange. Antifraud and ing venue where fraud and manipula- freedom by trading derivatives absent antimanipulation provisions apply and tion can take place abbondanza? I do any regulatory oversight. Thus, after wash trades are prohibited. The fol- not think there should be. I do not the 2000 legislation was enacted, lowing regulations would apply to all think it is in the interests of our citi- EnronOnline, as I said, began to trade swaps made on an electronic trading zens to have that happen. And the energy derivatives bilaterally without facility and a ‘‘dealer market’’ which western energy market should be a being subject to regulatory oversight. includes dealers who buy and sell swaps major case in point. It should not be a surprise to anyone in exempt commodities and the entity I am very pleased that Senators FITZ- that prices soared. on which the swap takes place. Anti- GERALD, HARKIN, LUGAR, CANTWELL, In March, Warren Buffett published a fraud and antimanipulation provisions WYDEN, LEAHY, DURBIN, and BOXER warning in Fortune magazine saying: and the prohibition of wash trades have again signed on to this amend- Derivatives are financial weapons of mass apply. ment. I was very proud of the work we destruction. If the entity on which the swap takes did in the 107th Congress, and I hope we place serves a pricing or price dis- In his annual warning letter to share- can adopt this amendment on this En- covery function, increased notice, re- holders about what worries him about ergy bill because without this type of porting, bookkeeping, and other trans- the financial markets, Warren Buffett legislation, there is insufficient au- parency requirements are provided. called derivatives and the trading ac- thority to investigate and prevent The requirement to maintain sufficient tivities that go with them ‘‘time fraud and price manipulation since par- capital is commensurate with the risk bombs.’’ ties making the trades are not required associated with the swap. We don’t de- In the letter, Mr. Buffett states: to keep a record. That is the problem. termine that in this legislation. The The CFTC will say: Oh, we are al- In recent years some huge-scale frauds and Commodities Futures Trading Commis- ready doing that. But in the law there near-frauds have been facilitated by deriva- tives trades. In the energy and electric util- sion would determine that. In other is no requirement to keep a record. ity sectors, for example, companies used de- words, they would determine what kind There is a specific exemption in the rivatives and trading activities to report of net capital requirement there will law. So I do not see how the CFTC has great ‘‘earnings’’—until the roof fell in when be, and that would be commensurate the adequate tools to do what they they actually tried to convert the deriva- with the degree of risk involved in the need to do without this amendment be- tives-related receivables on their balance transaction. cause this amendment closes that loop- sheets into cash. Except for the antifraud and hole which exists just for energy and We clearly saw this with Enron. Was antimanipulation provisions, the CFTC just for metals and, because of its ex- Enron and its energy derivative trad- has the discretion to tailor the above istence, has allowed EnronOnline and a ing arm, Enron Online, the sole reason requirements to fit the character and number of other exchanges—Dynegy California and the West had an energy financial risk involved with the swap had one; InterContinental Exchange crisis? No. Was it a contributing factor or entity. While the CFTC could re- had one as well—to do all these things to the crisis? I believe it was. quire daily public disclosure of trading in secret with no audit trail, no record, Unfortunately, because of the energy data, such as opening and closing no capital requirements. Nobody has a exemptions in the 2000 Commodities prices, similar to the requirement of responsibility to set any capital re- Futures Modernization Act, which took futures exchanges, it could not require quirements. There is no audit trail and away the CFTC’s authority to inves- real-time publication of proprietary no antifraud and antimanipulation tigate, we may never know for sure. In trading information or prohibit an en- oversight. Clear and simple, it is a the 107th Congress, this legislation was tity from selling their data. So propri- travesty. debated during consideration of the etary information is protected.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.080 S10PT1 S7594 CONGRESSIONAL RECORD — SENATE June 10, 2003 The CFTC may allow entities to meet Mr. REID. You are not yielding to because of the recent energy crisis, certain self-regulatory responsibilities Senator FITZGERALD. metal derivatives have been sold over as provided in a list of core principles. Mrs. FEINSTEIN. Pardon me? the counter for decades. The amend- If an entity chooses to become a self Mr. REID. You are not yielding to ments in 2000 to the Commodities Ex- regulator, these core principles would Senator FITZGERALD. change Act did not change this, and obligate the entity to monitor trading Mrs. FEINSTEIN. I am not? that was proper. They only clarified to prevent fraud and manipulation, as The PRESIDING OFFICER (Mrs. and confirmed the legality of these well as assure that its other regulatory DOLE). Senators are not permitted to markets. obligations are met. yield the floor to one another. Lumping metal derivatives together The penalties for manipulation are Mrs. FEINSTEIN. I thank the Chair with energy derivatives would impose greatly increased. The civil monetary for the clarification. regulatory burdens that never existed penalty for manipulation is increased I wish to make one comment about even before the 2000 amendments and, from $100,000 to $1 million. Wash trades this amendment. This amendment has of course, without justification; there- are subject to the monetary civil pen- been in the Agriculture Committee. It fore, I offer this second-degree amend- alty for each violation and imprison- has had a hearing. It has been reviewed ment to restore metal derivatives trad- ment of up to 10 years. by both staffs, Republican and Demo- ing to exempt commodity status. Met- The FERC is required to improve cratic. The Democratic chairman of als would be treated as if they were communications with other Federal the committee, Senator HARKIN, under the Commodity Futures Mod- regulatory agencies. A shortcoming in worked on this. The ranking member ernization Act of 2000. the main antifraud provision of the at the time, Senator LUGAR, worked on Like other derivatives, metal deriva- CEA is also corrected by allowing this. They have both concurred. They tives markets help companies manage CFTC enforcement of fraud to apply to are supporting this legislation. The the risk of sudden and large price instances of either defrauding a person staffs have reviewed it. changes. for oneself or on behalf of others. We believe it is bona fide, that it is In recent years, derivatives and so- This would also require the FERC solid, and that it will stand the test of called hedging transactions helped the and the CFTC to meet quarterly and time. mining companies in the State of Ne- discuss how energy derivative markets I thank the Chair. I yield the floor. vada, which is the third largest pro- are functioning and affecting energy The PRESIDING OFFICER. The Sen- ducer of gold in the world, second only deliveries. So they are required to look ator from Nevada. to Australia and South Africa, with a at this, to monitor it closely, and to sit AMENDMENT NO. 877 TO AMENDMENT NO. 876 steadily declining gold price by selling quarterly and see how these markets Mr. REID. Madam President, I send mining production forward. are, in fact, functioning. an amendment to the desk. A large mining company in Nevada, This would grant the FERC the au- The PRESIDING OFFICER. The Barrick Gold, had no layoffs during thority to use monetary penalties on clerk will report the amendment. this period of time as a result of these companies that don’t comply with re- The assistant legislative clerk read forward selling programs. The last cou- quests for information. This is essen- as follows: ple of years illustrate the function and tially the same authority the SEC has value in the marketplace of such trans- today. The Senator from Nevada [Mr. REID] pro- It would make it easier for FERC to poses an amendment numbered 877 to amend- actions. Some companies decided not ment No. 876. hire the necessary outside help they to hedge, betting the gold price would need, including accountants, lawyers, Mr. REID. Madam President, I ask rise and hedging contracts would lock and investigators for investigative pur- unanimous consent that the reading of them into below-market prices. Most poses. And it would eliminate the re- the amendment be dispensed with. of those companies are no longer quirement that FERC receive approval The PRESIDING OFFICER. Without around because the gold price has from the Office of Management and objection, it is so ordered. stayed relatively low. Budget before launching an investiga- The amendment is as follows: In contrast, other companies hedged tion or price discovery of electricity or (Purpose: To exclude metals from regulatory some or most of their production. natural gas markets involving more oversight by the Commodity Futures Trad- These companies have survived or even than 10 companies. ing Commission) thrived, for the most part. By choosing This amendment is not going to do On page 17 after line 25: to manage their risk, they accepted the anything to change what happened in ‘‘(10) APPLICABILITY.—This subsection does risk that the gold price could rise, but California and the West. But it does not apply to any agreement, contract, or they stabilized company performance, transaction in metals.’’ provide the necessary authority for the continued to provide jobs and con- CFTC and the FERC which will help Mr. REID. Madam President, first, I tribute to communities in rural Nevada protect against another energy crisis. commend the senior Senator from Cali- where they are so important. No one is immune from this kind of fornia and her cosponsor, the junior The gold mining business in America thing. The gaming, the fraud, the ma- Senator from Illinois, for their amend- is so important. It is important be- nipulation has been extraordinary. ment and their work on this very dif- cause it is one of the few areas where Just the chutzpah to do Death Star, ficult issue dealing with derivatives we are a net exporter, and that is the Get Shorty, Ricochet, just the and how to regulate them. way it has always been. The Feinstein chutzpah to do these kinds of trades in To critics of the amendment, I sug- amendment includes metal derivatives secret, it is a bunco operation. It is gest you put yourself in Senator FEIN- citing fraud in the metals markets, but nothing else but. And who is buncoed? STEIN’s shoes. She represents the larg- there is no example of fraud on any oc- The consumer is buncoed. That is why est State in the United States and one casion regarding the metals markets in consumer organizations feel strongly of the largest governments in the the past decade. about this. world. The State of California’s GDP is Examples of such fraud that did take When regulatory agencies have the larger than most countries’ of the place a long time ago are cases such as will but not the authority to regulate, world. the Hunt brothers in silver and Congress must step in and ensure that In the West, we are still feeling shock Sumitomo in copper. These were regu- our regulators have the necessary waves from the energy crisis that lated markets and over the counter tools. Unfortunately, sometimes an threatened California’s and Nevada’s trades did not exist at that time. The agency has neither. In this case, I am prosperity and brought home to all of Hunt brothers just went out and glad to have the support of FERC, and us that we are in uncharted territory bought silver on the free market. Nei- I hope the CFTC will reconsider its po- with energy deregulation. ther of these fraud cases are addressed sition and support this amendment. Senator FEINSTEIN inadvertently in- by the Feinstein amendment. I note that Senator FITZGERALD is on cluded metal derivatives with the en- The attempt, as I indicated, by the the floor. I would like to yield to him. ergy derivatives that are the intended Hunt brothers in 1979 to ‘‘corner the But before I do, may I just say one target of her amendment. Unlike en- silver market’’ involved manipulation quick thing. ergy derivatives which raise questions of the physical silver market. The

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.090 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7595 Hunt silver scandal involved trading on in metals markets did not involve over- and energy contracts, and she de- regulated exchanges, not in the over- the-counter derivatives. scribed the wash trades that were dis- the-counter derivatives markets. The I suggest the absence of a quorum. covered when Enron fell apart. In fact, trading abuses involved the physical The PRESIDING OFFICER. The many energy companies were simply accumulation of 200 million ounces of clerk will call the roll. engaging in round trip trades with silver. It did not involve over-the- The assistant legislative clerk pro- trading partners. A round trip trade, as counter derivatives. ceeded to call the roll. Senator FEINSTEIN noted, is when one I say in passing, I had a great friend. Mr. FITZGERALD. Madam Presi- party sells a commodity to another His name was Forrest Mars, one of the dent, I ask unanimous consent that the party at a certain price, and the other richest men in the world. He lived in order for the quorum call be rescinded. party sells that same commodity back Las Vegas in a very small apartment The PRESIDING OFFICER. Without at the very same price. Nothing really above his candy store. But as you objection, it is so ordered. transpired in that transaction except know, this giant of commerce was a Mr. FITZGERALD. Madam Presi- that the other party books revenue multi-multibillionaire. After the Hunt dent, I rise today to support my col- from a sale and this party books rev- brothers had manipulated the market, league from California, Senator FEIN- enue from a sale, but nothing really he told me: These guys are so dumb. STEIN, and her amendment, which I happened from an economic point of They should have come to me. I could have cosponsored, which would very view. have told them you cannot have mo- simply close the so-called Enron loop- If party A sells a barrel of oil to nopolies. They do not work. I tried it a hole in the commodity futures trading party B for $30, and party B simulta- couple times. laws of this country. neously sells a barrel of oil back to He said: For example, once I went out This really is not that complex an party A for $30, nothing has really hap- and tried to corner the market on issue. A few years ago, we passed a re- pened. Everybody is still the same. black pepper. Black pepper has been authorization of the Commodity Fu- What we saw in the energy industry part of commerce for so many cen- tures Trading Commission. I am very with a whole bunch of energy compa- turies, and he figured he could corner familiar with the commodities indus- nies, not just Enron, is they were arti- the market on all black pepper, and he try because we are the heart of it in ficially boosting their revenues by en- did. He owned every producing facility, my State of Illinois, particularly the gaging in wash trades, round trip farm, and manufacturing facilities re- city of Chicago, where they have the trades with other energy partners. lated to black pepper in the world. But largest derivative exchanges in the I recall one energy company after he said: They outfoxed me because all country in the Board of Trade, in the this came to light had to restate its they did was dye white pepper and ru- Mercantile Exchange in Chicago. Those revenues downward by $7 billion when ined my monopoly. exchanges trade all sorts of commod- new auditors came in and made them I say this because the Hunt brothers ities from pork bellies to Treasury cancel out all these wash trades. fiasco in 1979 was an effort to have a bonds. They trade financial commod- Senator FEINSTEIN’s amendment sim- monopoly, and it did not work for a lot ities as well as agricultural commod- ply closes this Enron loophole. It says of reasons. ities, corn and soybeans. the CFTC will be able to ban wash The Sumitomo situation involved the The Board of Trade and the Mer- trades on these online derivatives alleged manipulation of the copper cantile Exchange, like the NYMEX, the transaction facilities. That is all we market by a Japanese company acting New York Mercantile Exchange in New are trying to do. She does not impose through a rogue trader acting in Lon- York, or the New York Board of Trade, full-scale regulation by the CFTC like don and Tokyo. The trading abuses oc- are fully regulated exchanges. The re- we have at the Board of Trade or Mer- curred on a fully regulated exchange, authorization of the Commodity Fu- cantile Exchange in Illinois or the New not in the over-the-counter derivatives tures Trading Commission, which we York Mercantile Exchange in New market. The trading abuses involved passed a few years ago, continued that York. They have far more regulation. manipulation of the price of copper on regulation that we have had in this However, we will put a light level of the London Metal Exchange, a futures country over our boards of trades and regulation on online derivative trans- exchange which is fully regulated by our other derivatives or futures trans- actions facilities that trade energy, the UK’s Financial Services Authority. action trading facilities in this coun- metals, and broadband online. Do not Further, the manipulation took place try. forget, Enron was a big trader of overseas, not in United States mar- Somehow, when we were working on broadband, as well. In fact, that is why kets. that legislation in the House and the the Enron loophole as it got written in I repeat, we owe Senator FEINSTEIN Senate—it is funny how little codicils, the House created a special carve-out and Senator FITZGERALD a debt of grat- little paragraphs and sentences get for energy, metals, broadband, and also itude for their interest in this issue added when the bills go to conference weather contracts. and their work in proposing changes to committees between the House and the The question is—why are we picking the Commodity Exchange Act that will Senate. I believe what happened is out energy, metal, broadband, and ensure trading in energy derivatives when that bill was over in the House, a weather contracts and saying these when it is done over the counter with couple of congressmen added some lan- contracts when traded online cannot be transparency, in a way that inspires guage that exempted from all regula- regulated by anyone? What is the pub- public confidence in the markets. tion by the CFTC—and there is no reg- lic policy rationale for this special I urge my colleagues to eliminate ulation by the SEC in this area—online carve-out? Why didn’t they also in- metals from this amendment. I think it facilities that trade energy, metals, clude corn and soybeans in this carve- would help the adoption of their and broadband derivatives contracts or out? Or other commodities? The fact is, amendment. If they decide not to do futures contracts. Online exchanges this was a special interest carve-out for that, I urge my colleagues to support that trade those kinds of contracts are a hand full of companies. my amendment which strikes metal completely exempt from regulation. Now, there is a company owned by a derivatives from the Feinstein amend- This is the so-called Enron loophole. number of banks and energy companies ment. My amendment would not allow At the time, Enron owned called the InterContinental Exchange. metal derivatives markets and partici- EnronOnline and they had an online I believe it is opposed to our amend- pants to trade derivatives without ac- platform for trading energy contracts, ment. Why they are opposed—I gather countability and transparency. Ade- which when Enron went bankrupt later some of their owners are, in fact, for quate recordkeeping needs to be in they sold. this—but the majority of the owners of place. The Commodity Exchange Act Now that EnronOnline was totally this exchange are opposed. They do not already requires some recordkeeping exempted from regulation—as Senator want to be regulated. Our obligation is for these otherwise ‘‘exempt’’ trans- FEINSTEIN very eloquently and very not to those banks that own the Inter- actions. thoroughly described for us all of the Continental Exchange or to the energy Derivatives are essential to the bogus trades that were done on online companies that own the InterConti- health of the metals market, and fraud derivative exchanges that trade metals nental Exchange. Our obligations here

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.093 S10PT1 S7596 CONGRESSIONAL RECORD — SENATE June 10, 2003 are to investors around the country any swap agreement that involves a non- I point to that example as an area and to consumers around the country. financial commodity with a finite supply. where we have pretty light regulations We saw what kind of wool can be In other words, the President’s work- in our security laws. They are simply pulled over people’s eyes when online ing group was saying there should be disclosure laws. Publicly traded com- exchanges are allowed to go on without oversight, there should be regulation of panies have to file disclosure and there any regulation. Not only were a bunch swap agreements, of futures contracts, is not much more regulation than that, of energy companies such as Enron of derivatives contracts, involving non- but that disclosure is very important doing round-trip trades to artificially financial commodities with finite sup- in maintaining the integrity of our boost their own revenues but they were plies. They separated that category of markets. also doing fictitious round-trip trades commodities from financial commod- I believe Senator FEINSTEIN and I to set artificial prices. ities that have an infinite supply, say, have an amendment that is very light Indeed, although I was very skeptical interest rates futures, or futures con- regulation, that simply will help re- at first whether that was happening in tracts or derivative contracts based on store the faith of people who may want California but, in fact, it was. The on- currencies. With those types of finan- to trade, of institutions that may want line exchanges would tell California cial commodities, it is very difficult to trade in an online derivatives facil- that this is the price that has been for someone to corner the market in ity. It will restore their faith in that trading on our online exchange, so that interest rates, for example. I don’t market, give them more trust in that is the price you have to pay for the en- think it is possible. There is not a fi- market and make them more likely to ergy. But, in fact, it was a fictitious nite supply of interest rates. No one use that market. market and most of the trades were fic- could corner the market there. So they Since we have had this scandal in the titious and no one could regulate it. wanted to provide legal certainty for energy industry, the InterContinental All we are trying to do is have a light derivatives involving financial com- Exchange’s volume has just plummeted level of regulation to ban wash trades, modities with infinite supplies and and people who wanted to hedge their round-trip trades, ban fraud and abuse, they have done that. We did not touch positions in energy and metals have and protect consumers and investors, financial derivatives. We allow that been flocking back to the fully regu- have some price discovery so people legal certainty to remain for the finan- lated exchange in New York, the New can know what the prices are for the cial commodities. We do not upset York Mercantile Exchange. commodities that are traded on these that. Instead, we simply treat energy, So the point here, the moral of this online exchanges, a very light level of metals, and broadband, as the other fi- story, I think, is by opposing this regu- regulation to protect the integrity of nite commodities such as corn and soy- lation, the InterContinental Exchange our derivatives market. beans and other agricultural commod- has, in fact, hurt their own cause be- My good friend and colleague from ities are treated. cause people are staying away from the State of Nevada, the senior Senator The President’s working group made their market. They do not trust it, from Nevada, Mr. REID, has proposed this recommendation that all non- they know there is no price discovery, exempting metals contracts from the financial commodities with finite sup- they know there is no regulator there amendment Senator FEINSTEIN and I plies be treated the same. I have to ask who is going to prevent them from have put together. In other words, he my colleagues, what possible public being defrauded. There is no cop there would go along with closing the Enron policy rationale could explain the so nobody wants to trade there. So if the InterContinental Exchange loophole with respect to energy and carve-out in the commodity futures re- and the banks that own it want to en- broadband but he wants to keep a authorization bill for energy and met- courage all the Senators here to vote carve-out for metals. I don’t think that als transactions? If it is proper to ex- against this, I think they are actually is a good idea. We should not have to empt these finite physical commodities wait until we have fraudulent trans- working against their own self-interest from CFTC regulation, why not exempt in the long run, just as Wall Street actions involving a metals contract, agricultural commodities such as corn, say, of gold, silver, or platinum, before would have been working against its soybeans, and pork bellies? It does not own self-interest back in the 1930s if we act. We have already had fraudulent make any sense and we should close transactions in energy markets on the they had come to Washington and tried this loophole. to block the implementation of the Se- online exchanges and we need to stop Some have argued that we shouldn’t curities Exchange Commission Act. that. But certainly we can foresee the have regulation in this area. I know, All the bill does, and Senator FEIN- same problem could occur in an online particularly on my side of the aisle, STEIN has gone through it very thor- contract of metals that is traded on there are a lot of conservative Repub- oughly—but specifically it requires re- one of these online exchanges. All com- licans, and I am certainly a conserv- porting, notification, and record- modities of which there is a finite sup- ative Republican, and very pro-free keeping. In addition, it requires these ply should be treated equally. We markets. I am always reluctant to see energy and metal trading venues to should not have a special carve-out ei- Government regulation and I always keep books and records and maintain ther for energy or for metals or for question the need for it. However, I sufficient capital to operate soundly. broadband. point out that a light level of Govern- Those are just commonsense require- In 1999, a working group was put to- ment regulation can actually be ments. Why anybody would be against gether on the financial markets and healthy in promoting markets. this, I don’t know. the working group was put together There is no finer example than our Finally, on a somewhat more paro- ahead of our rewrite of the Commodity security markets in the United States. chial basis, as someone who represents Futures Modernization Act. The panel Prior to the adoption of the Securities the exchanges in Chicago, the Board of comprised in the working group was and Exchange Commission Act in the Trade and the Mercantile Exchange, made up of Federal Reserve Chairman early 1930s, average people remained they have a much heavier degree of Alan Greenspan, the Treasury Sec- very leery of ever investing in the regulation than we are asking of these retary, the Chairman of the SEC, and stock market. They thought it was a online exchanges that trade in energy the Chairman of the CFTC at the time. fool’s game that was rigged for the in- and metals. I, frankly, think it is un- In their report, the President’s Work- siders on Wall Street and it was very fair to impose super-regulations on one ing Group on Financial Markets, as it risky. In fact, by regulating the securi- type of trading facility and then no was called, that group concluded: ties markets and making it safe for av- regulation at all on another type of fa- Due to the characteristics of markets for erage people to invest in the markets cility. I think that unfairness in the nonfinancial commodities with finite sup- by having some laws against the in- disparate treatment between different plies [energy, metals broadband all fit that sider dealing and so forth, and requir- derivatives transaction facilities is a category; they are nonfinancial commodities ing a thorough dissemination of infor- and there are finite supplies of energy and of disparity and disparate treatment that metals] the working group is unanimously mation so it could be widely shared, we should be eliminated in the name of recommending that the exclusion not be ex- have gotten to the point where over 50 fairness. tended to agreements involving such com- percent of Americans in this country The bottom line is, while there has modities. The exclusion should not extend to invest in the stock market. been a lot of hype surrounding this

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.095 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7597 issue, I think those who study it close- one company said 80 percent of its tors who would want to participate in ly will realize, will recognize it is good trades had been wash trades, just round the market. You have to show there is public policy. It is in the public’s inter- trip trades. Was that an energy firm? oversight. You have to show it is up est. Mrs. FEINSTEIN. Yes, it was CMS and up, that it is a legitimate bona fide I urge my colleagues to support this Energy. The year was 2001. They an- marketplace with trades that mean amendment. It is very well drafted. nounced that. something. Senator LUGAR and Senator HARKIN Additionally, Duke Energy disclosed In my heart of hearts, I believe that have both signed on as cosponsors. It that $1.1 billion worth of trades were a lot of this kind of activity is what was the subject of a hearing in the Ag- round trip, wash trades, since 1999; amounted to a 400-percent increase in riculture Committee, as Senator FEIN- roughly two-thirds of these were done the cost of power in 1 year in California STEIN pointed out, and the Agriculture on the InterContinental Exchange, alone. Committee, of course, is where legisla- which means that thousands of sub- Mr. FITZGERALD. Because they tion dealing with the Commodity Fu- scribers would have seen these false were simply trading back and forth tures Trading Commission goes. The price signals. amongst themselves at a price that Agriculture Committee has worked on I could finish this, if you like? A really was not determined on an arms’ this, and they produced very good leg- class action suit accused the El Paso length basis. They were just engaging islation that will prevent, if we adopt Corporation of engaging in dozens of in bogus trades back and forth to arti- it, the kind of abuses we have seen in round trip energy wash trades that ar- ficially set a price or to artificially in- online derivatives transactions in the tificially bolstered its revenues and crease revenues for the companies on last couple of years. It is a common- trading volumes over the last 2 years. both sides of the trade. Some of these sense amendment. It simply will make CMS Energy Corp. has admitted con- transactions were done on the Inter- it easier to act against fraudulent or ducting wash energy trades that artifi- Continental Exchange. bogus energy or metals or broadband cially inflated its revenue by more As I recall, when we had the hearing trades. It is common sense. I urge my than $4.4 billion. before the Senate Agriculture Com- colleagues to adopt it. So this is important. I have a hard mittee, either early this winter or Unless anyone further wishes to talk, time, I think, as you do, that if I sell maybe even last fall, some shareholder I suggest the absence of a quorum. something to you and you just sell it on the InterContinental Exchange The PRESIDING OFFICER. The back to me and we both boost sales and came before the committee and testi- clerk will call the roll. yet nothing is really sold, that that is fied that notwithstanding the official The legislative clerk proceeded to a legitimate way of doing business. position of the exchange they, as an call the roll. Mr. FITZGERALD. Madam Presi- owner of the exchange, disagreed with Mrs. FEINSTEIN. Mr. President, I the policy of the InterContinental Ex- dent, I ask Senator FEINSTEIN if it is ask unanimous consent the order for true that under the current law no one change on this, and they favored our the quorum call be rescinded. can do anything about these wash elimination of this Enron online loop- The PRESIDING OFFICER. Without trades because of this Enron loophole hole in the commodities laws; they objection, it is so ordered. thought that the company in which Mrs. FEINSTEIN. Madam President, that is in the law. We are trying to take that out, so somebody could actu- they were a shareholder would be bet- I rise to thank the Senator from Illi- ter off if there were some regulation of ally ban this kind of fraudulent trading nois. We have worked on this now their business. practice. Isn’t that correct? through two Congresses. It was very Does the Senator recall that? clear to me that he has a great deal of Mrs. FEINSTEIN. That is absolutely Mrs. FEINSTEIN. I was not at the knowledge in this area. His advice, his correct. That is what we are trying to hearing. I do not recall that. But I support, his efforts have been very do. For the life of me, I don’t under- think whomever that was, they are cer- helpful. I think he has very clearly stand why people are against it. tainly correct because that would give stated the facts of this legislation. Mr. FITZGERALD. Does the Senator confidence to their company and to There are those who, for purposes I know why people would oppose the au- people to invest in that company which do not understand, want to make this thority of regulators to ban wash is on the up and up, which is regulated legislation out to be much more than it trades? Has anybody explained that to and which has transparency. is, some heavy requirement of Govern- the Senator? I think particularly now after what ment. Really, all we are saying is, if Mrs. FEINSTEIN. The only thing I we know has transpired over the past you are going to trade online, energy can figure is they want to do it. They that this is one of the reasons why our and metals and broadband, those trades want the unabashed ability to conduct economy has had problems in that peo- are subject to recordkeeping, to an the bogus trades. That would be the ple have lost confidence. They have audit trail, and to antifraud and only reason they would want this lit- seen these companies go down. antimanipulation oversight. tle, dark, hidden place through elec- The Senator mentioned some of the That is the same as any other finite tronic trading because there is no over- big companies that have gone down commodity. Anywhere else does this sight for fraud or manipulation. There that have done just this kind of thing. same thing. But this loophole, at the is no record kept. There is no audit At some point, Peter has to pay Paul. request, as the Senator from Illinois trail. If they don’t have the capital to handle said, of Enron—by the House, and then Mr. FITZGERALD. And no one can it, there is a problem. in a conference in 2000 they dropped the find out what prices they were trading Mr. FITZGERALD. If we had the requirement for coverage from the at, either. There is no price discovered. same problem somewhere in the stock Commodity Futures Modernization Mrs. FEINSTEIN. That is right. market and people couldn’t figure out Act. Therefore, this loophole was cre- Mr. FITZGERALD. They do not do the price of a stock by looking in the ated into which these companies these wash trades at the exchange in newspaper or looking on the Internet jumped and began to set up these on- New York because all of that would be to see what the published price of a line trading exchanges. transparent to the public. stock was on the exchange, if instead I couldn’t believe my eyes when I saw Mrs. FEINSTEIN. That is exactly you had a similar situation with a that one company announced that 80 right. That is why we suspect it. It is stock as you have with these online en- percent of the trades they did in 2001 hard to prove. ergy derivatives exchanges, and a cus- were round trip or wash trades. Again, there have been three arrests tomer had to call the exchange and ask Senator FITZGERALD just explained of Enron traders who devised these what the price of oil is trading at, but that very clearly, what a round trip or schemes. Actually two were plea-bar- you just had somebody telling you the a wash trade is. gained. There was a recent arrest last price of oil is such and such but you Mr. FITZGERALD. Will the Senator week of this fellow who apparently set had no way of verifying that, I think yield for a question? these trading schemes up for Enron. no one would want to invest in the Mrs. FEINSTEIN. I certainly will. To have a transparent marketplace, I stock market if you couldn’t discover Mr. FITZGERALD. I ask Senator think, gives confidence to the 50 per- the price, or if there was no price dis- FEINSTEIN, I was wondering, you said cent of the people who are small inves- covery.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.097 S10PT1 S7598 CONGRESSIONAL RECORD — SENATE June 10, 2003 Why does the Senator think anybody all those energy companies collapsing. that special carve-out for energy and would even want to trade on an online There were some initial reports out metals and broadband contracts that exchange in which there is no price dis- there about possibly bogus trades but were traded in an online exchange, that covery, or where there is no regulator we didn’t have that proof yet. We had they could be exempt from regulation protecting the customers from fraud, 48 votes, 2 votes shy of passing it. by anybody. Because had we not made manipulation, or abuse? Why is it that Since that time, and in the inter- that mistake, had Congress not made someone would even want to trade on vening year, we have had all the hard that mistake, it might have prevented such an exchange? Isn’t it true that, in evidence come out proving everything the manipulation and fraud and abuse fact, the InterContinental Exchange the Senator and I were saying last year that was done at the hands of a whole volume, the last I heard, was dropping on the floor of this body—that there bunch of energy companies. We might and their legitimate customers were were, in fact, bogus wash trades not have prevented that, if we had not al- going back to trading on a fully regu- only in the millions of dollars but in lowed this loophole to be included in lated exchange in New York, the the billions of dollars. How big were that Commodity Futures Moderniza- NYNEX? some of those? tion Act. And I think it is high time we Mrs. FEINSTEIN. The Senator is Mrs. FEINSTEIN. CMS Energy ad- simply close that loophole. asking me to hypothesize. I sure mitted to conducting wash energy Madam President, I will be interested wouldn’t do it. I can only assume that trades that artificially inflated its rev- to see who comes to the floor to make some sophisticated trader has worked enue by $4.4 billion. an argument that we should still have out some scheme and was utilizing it in Mr. FITZGERALD. That was prob- this loophole so that energy and metals this venue and knew that he or she was ably a huge percentage of their reve- contracts can be traded without any safe because there was no way to pin it nues—all fictitious—from doing wash oversight by any regulator, so no one on them. There were no records kept. trades on an online exchange with no can discover the price, so that there is Mr. FITZGERALD. If someone is op- economic purpose. But that fictitious no protection for the customers of erating a corrupt exchange and there is revenue was fooling the investing pub- these exchanges. no price discovery and no regulation, lic, making people think that company I will be interested to see who comes isn’t it true that a customer could call had more revenue than it actually did. to the floor and what their argument is into that exchange and say, I want to They were all just ‘‘wash’’ trades. in favor of this because, I have to tell trade oil at $30 a barrel, and the broker Mrs. FEINSTEIN. Right. May I ask you, on most pieces of legislation that could tell them he could get some oil the Senator a question? Some, I under- come before this body, it is pretty easy at $35 a barrel and just require the cus- stand, may come to the floor and want to see what the arguments will be on tomer to pay more than that customer a study. The study has already been the other side. There is normally at really should have had to pay because done, and it is the ‘‘Final Report On least a plausible public policy rationale the market wasn’t that high, there is Price Manipulation in Western Energy on both sides of the issue. But in this no way for the customer to know what Markets, Fact-Finding Investigation of case, I have to say that, looked at very the real market price is? The broker Potential Manipulation of Electric and objectively, it is hard to understand could make up a price and then keep Natural Gas Prices.’’ It was prepared how anybody could oppose this com- the difference for himself or for the ex- by the staff of the Federal Energy Reg- monsense measure to protect the integ- change. Isn’t that correct, if there is no ulatory Commission. It was put out in rity of our energy and metals trading price discovery? March of this year. markets in this country. It seems like Mrs. FEINSTEIN. That is correct. I would like to read one section of it a very commonsense piece of legisla- Mr. FITZGERALD. It seems to me to the Senator and see if he is aware of tion. that this is an absolute no-brainer to this. It reads: I compliment Senator FEINSTEIN. She close this indefensible loophole. I can’t Recommend that Congress consider giving has been tenacious in bringing this up, imagine that anybody is going to want direct authority to a Federal agency to en- and she has been persistent to make to defend the concept that we can have sure that electronic trading platforms for sure that we had the opportunity to an online exchange that is open for wholesale sales of electric energy and nat- offer the amendment on the floor. business with the public, although not ural gas in interstate commerce are mon- Madam President, I yield the floor. retail customers, I gather, but institu- itored and provide market information that The PRESIDING OFFICER. The Sen- tional customers, where it is just a is necessary for price discovery in competi- ator from California. black hole which no one can regulate tive energy markets. Mrs. FEINSTEIN. Madam President, and can’t ban wash trades where there Mr. FITZGERALD. So you are saying I would also like to point out another is no price discovery. What in the the FERC has done a study in which study that has been done in a CRS re- world would be the objection to closing they have already concluded that we port for Congress, and that was dated this loophole and having some mod- basically need to close this loophole so January 28 of this year, pointing out icum of oversight to protect the people there can be some price discovery and that this bill was presented in the last who may want to use this exchange and some monitoring of these energy mar- Congress and probably would be pre- to protect the integrity of the market? kets? sented in this Congress. One of the Mrs. FEINSTEIN. The Senator is ab- Mrs. FEINSTEIN. That is correct. points it makes is that if over-the- solutely correct. When we had this vote This is the report. It is a final report. counter derivatives dealers were re- in the last Congress, if I recall cor- It was done in March 2003, so it has quired to keep and make available for rectly, we got 48 votes. It wasn’t really been circulated for a few months. inspection records of all trades and to crystal clear what the excesses were at Additionally, our legislation has the disclose information about trading vol- that time. Now we have documentation support of the chairman of the Federal ume and prices, abuses like the ones we of the excesses. We have literally bil- Energy Regulatory Commission. We have been talking about would be easi- lions of dollars of fraudulent trades, have kept in touch with him so he is er to detect and, thus, presumably less wash trades, round-trip trades, what- aware of what is in the report, and, of likely to occur. ever you call them, but fraudulent course, the former chairman of the Ag- That is really the purpose of this: not trades. So we know. We also know that riculture Committee, Senator HARKIN, to allow sort of a secret niche in the Mr. Fortney was arrested and two oth- and former ranking member of the Ag- trading arena where people could go to ers have plead guilty to creating these riculture Committee, Senator LUGAR. hide and trade, but to bring the sun- schemes. To continue to allow that Mr. FITZGERALD. Madam Presi- shine into that niche and to provide— kind of thing to exist would be a real dent, and my dear colleague from Cali- and it is very conservative—regulation dereliction of this Congress. fornia, I think this is simply common- of what they must do. Mr. FITZGERALD. There really is a sense legislation and long overdue. I I know my friend and senior Senator difference between this year’s vote and think it is unfortunate that we made from Nevada has proposed an amend- last year’s. Last year when the Senator the mistake when passing the Com- ment. Regrettably, I have to vote and I had this amendment on the floor, modity Futures Modernization Act against the amendment. This bill had it was in the immediate aftermath of back a few years ago, which created been worked out with Senator HARKIN

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.100 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7599 and Senator LUGAR. My understanding My point, I repeat, is that I am doing I understand during the night there is they believe we should close the my very best to cooperate as I have was a dissipation of the protest. A loophole entirely, not leave one area been advised by the Democratic leader number of the student protesters—this sort of in the dark, so to speak. we should do everything we can to help was outside Tehran University—who I am troubled by the amendment be- with this bill. But help is a two-way were protesting dissipated. Rather cause our reading of the amendment street. When an amendment is offered than going back to their dorm rooms, indicates that it effectively exempts that people don’t like, you just can’t they have gone and dispersed to other metals entirely without any oversight have them leave rather than a single places because, after the 1999 protest, a or regulation by the CFTC, even less word being spoken against the amend- number of the Iranian military guard than under current law. In good con- ment of the Senator from California went to the dormitories and arrested science, I cannot do that. other than my amendment which they en masse a number of students and So I think we made the arguments, have agreed to accept. they were roundly punished. Madam President. And with what has Having said that, wanting to con- We have also received reports that happened—and now that we know the tinue to move this important piece of Iranian Government forces are beating extent of the fraud that has taken legislation, I note the absence of a up on the protesters, firing warning place online—not to close that loop- quorum. shots at them. I do not have that hole, I think, would be a terrible blot The PRESIDING OFFICER. The verified but we have received these re- on this Congress. clerk will call the roll. ports. So I am hopeful we will have a posi- The assistant legislative clerk pro- I call this to the attention of Mem- tive vote. ceeded to call the roll. bers of this body because there has I thank the Chair for your indulgence Mr. REID. Mr. President, I ask unan- been a lot of discussion going on at the and yield the floor. imous consent that the order for the present time of U.S. policy towards Mr. REID. I suggest the absence of a quorum call be rescinded. Iran. I think it is clear the United quorum. The PRESIDING OFFICER. Without States should clearly stand with those The PRESIDING OFFICER. The objection, it is so ordered. who stand for democracy. clerk will call the roll. Mr. EDWARDS. Mr. President, I was We don’t know if the student protest The legislative clerk proceeded to unavoidably absent for rollcall vote is going to go ahead and mature fur- call the roll. No. 212 on the Dorgan amendment. ther or not, or if it is going to further Mr. REID. Mr. President, I ask unan- Were I present for that vote, I would brutally be put down. imous consent that the order for the have voted in favor of the amendment. This is in a buildup to a July 9 pro- quorum call be rescinded. f test that had been planned for a num- The PRESIDING OFFICER (Mr. AL- MORNING BUSINESS ber of months, to recognize the July 9, EXANDER). Without objection, it is so 1999, student protest that was brutally ordered. Mr. REID. Mr. President, I ask unan- put down by the regime. This has been Mr. REID. Mr. President, I have been imous consent that the Senate now building. In anticipation of that, the working with the two sponsors of this proceed to a period of morning business regime in Tehran—and this is a dic- legislation. They have agreed to take with Senators allowed to speak for a tatorial regime that has never been my amendment. I have spoken with the period not to exceed 10 minutes each. elected, the rulers have never been se- The PRESIDING OFFICER. Without majority and they say, no, they didn’t lected by the people in Iran—arrested objection, it is so ordered. want it to be done tonight, maybe to- these student leaders in advance of Mr. REID. I suggest the absence of a morrow. I would simply say that we in July 9 in an effort to put it down before quorum. good faith have worked, as I told the The PRESIDING OFFICER. The it gets started. majority leader I would do, to try to clerk will call the roll. This is deplorable. This is not democ- move this bill along. Moving this bill The assistant legislative clerk pro- racy. The United States should stand along does not mean they are only ceeded to call the roll. with those who stand for democracy. going to be happy if we offer amend- Mr. BROWNBACK. Mr. President, I We should have a clear official policy ments that they like. The Senator ask unanimous consent that the order that our position toward Iran is to sup- from California in good faith offered for the quorum call be rescinded. port those who support democracy and this amendment. Whether people like The PRESIDING OFFICER. Without we support democracy in Iran. We it or not, if we are going to move this objection, it is so ordered. stand for that with the Iranian people. Energy bill along, we have to vote on it Mr. BROWNBACK. Mr. President, I There has been a growing, bur- in some way. But it is my under- ask unanimous consent to speak in geoning movement in Iran of young standing that tonight nothing is going morning business for up to 10 minutes. people who do not want anything to do to happen. The PRESIDING OFFICER. The Sen- with this dictatorial regime. They have It is pretty obvious nothing is going ator has that right. lived, now, some 25 years, over 25 years to happen. There has been nobody here. f under this militant, dictatorial regime There has been nobody here to oppose that supposedly has put Islamic law in her amendment. Of course, no other IRAN place and they are tired of it and they amendments can be offered until this Mr. BROWNBACK. Mr. President, I want no more of it. They want no more one is set aside. don’t want to overly belabor the point of it and they are willing to put for- I just want the record to so reflect at but there is a very important thing ward their lives in this gallant effort, a later time, when people come and happening on the other side of the this brave push for democracy. That is say, we should try to move this bill world, in Iran, at this very time. My of- their desire. along, and there have been statements fice has been receiving, now, numerous I call on the Iranian Government to on the floor made by the manager and reports of a growing protest in Iran stop beating and harassing their own the majority leader that they wanted taking place right now. This is within people. The students are shouting: to finish this bill this week. the past couple of hours. It is dawn in Khatami, Khatami, go away. I was asked at lunchtime, how did I Tehran, as I speak. It is estimated that These are the same students who feel about finishing the bill this week. this past evening between 5,000 to 8,000 gave President Khatami his start 7 I said to the reporters asking me: When students are joining protests against years ago. He was elected as a re- you step back a little bit, there is the Government’s crackdown on stu- former, which he has not produced on. about as much chance of our finishing dent democracy dissidents. Instead, he has continued with the this bill this week as my turning a Recently, five student leaders were same totalitarian way. back flip here in front of the two of arrested in advance of the July 9 anni- I believe he was one of seven can- you. versary of the original mass student didates at the time selected by the rul- The record should reflect, I can’t protest in 1999. Even though it is now ing mullahs to be able to run in front turn a back flip and never have been almost dawn in Tehran, the protest has of the people, and the people selected able to. continued. the most reformist, most hope minded.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.102 S10PT1 S7600 CONGRESSIONAL RECORD — SENATE June 10, 2003 He has not produced. But they didn’t to as the reachback companies—that I sincerely hope that the Ways and get a free selection. Nor does were no longer in the coal mining busi- Means Committee will take up legisla- Khatami—I want to identify this as ness to participate and assessed them tion during this session of Congress to well—have free control. The ruling liability to pay in to the Coal Act’s continue this program for coal mine re- mullahs continue to control the mili- combined benefit fund, CBF. This ret- tirees and their beneficiaries in a re- tary secret police, foreign policy, and roactive tax has been so crippling for a sponsible fashion, while ending the un- the treasury. number of companies that many have fair taxation imposed on businesses no They control, not President been driven into bankruptcy. The very longer active in the coal mining busi- Khatami. So it is a system where existence of many other companies ness. unelected, unselected dictators bru- that are subject to this tax is in danger Such legislation should do four talize a country, an elected reformer is due to the heavy obligation this tax things. First, it should provide for per- not allowed to reform, and he isn’t imposes on them. manent solvency for the combined ben- even selected by the people. He has to Needless to say, the provisions of the efit fund. Second, it should relieve all go through a selection process by the Coal Act that created the CBF were reachback companies of prospective li- ruling mullahs, so only appropriate hastily crafted and rushed into law ability. Third, the long-overdue refunds candidates can run for office. And the without the benefit of hearings in the to the superreachback companies students are tired of it. They are fed up Senate Finance Committee or serious should be satisfied immediately. Fi- with it, they are protesting, and they examination by the Senate. nally companies with an ongoing are being brutalized in the process. The combined benefit fund is not reachback liability should be given an We should support the student move- only financed by the taxes on these opportunity to prefund their obliga- ment for the July 9 nationwide protest reachback and superreachback compa- tions on an actuarially sound basis. in Iran. We should state that it is U.S. nies. At its inception, the coal miners’ If the Ways and Means Committee policy to stand for true democracy in pension funds were used for part of the can send us this legislation, the Fi- Iran. startup money for the fund. It is addi- nance Committee will be most happy This is a great nation of great people. tionally funded through current trans- to receive and examine it so this issue It is going to make a wonderful open fers of the surplus interest income of can finally be resolved. democracy when it is liberated and the abandoned mine lands reclamation f opened up. These students are trying to fund, or the AML. As of 2003, those BURMESE FREEDOM AND pave the way for that to occur. transfers have been in the hundreds of DEMOCRACY ACT This is how history is made. It is millions of dollars. made one brave act at a time. The Since the beginning, the solvency of Mr. LEAHY. Mr. President, I strong- world is watching how the regime the CBF has been in question. Even ly support the Burmese Freedom and treats the students, the protesters, and now, the possibility exists that, with- Democracy Act of 2002, introduced by it will hold this regime accountable. out reform in the near future, this fund Senator MCCONNELL and Senator FEIN- In Iran they have a saying that they could fail putting in jeopardy the coal STEIN. This legislation seeks to pres- yell frequently: ‘‘Free Iran.’’ As these miner retirees’ health care benefits. To sure the military junta in Burma to re- protesters are yelling ‘‘Free Iran,’’ that temporarily stabilize the CBF, Con- lease Aung San Suu Kyi and help bring should be our call as well: Free Iran. gress appropriated $68 million for fiscal democracy and human rights to Mr. President, I yield the floor. year 2000 and another $96 million for Burma. Several days last week, Senator f fiscal year 2001 and $35 million for fis- cal year 2003. These ad hoc appropria- MCCONNELL came to the floor to speak VOTE EXPLANATION tions are not a permanent solution and on this issue. I want to commend him Mr. BIDEN. Mr. President, yesterday do nothing to guarantee that retirees for his steadfast leadership, and asso- evening the Senate confirmed the nom- will continue to receive health benefits ciate myself with his remarks. I have ination of Michael Chertoff to the in future years. For some younger re- also joined as an original cosponsor of United States Court of Appeals for the tirees, the benefits from the CBF is this legislation. Third Circuit. I was in Delaware at- their only source of health care until The message that we are sending to tending a funeral last evening and, ac- they are eligible for Medicare. For the ruling junta in Burma is clear: Its cordingly, was unable to attend yester- older retirees, it serves as a kind of behavior is outrageous. Aung San Suu day’s vote on Mr. Chertoff’s nomina- Medigap policy. Kyi is the rightful, democratically tion. I wish to note for the record, how- In addition to reachback companies, elected leader of Burma. She and her ever, that I would have voted for Mr. the current law imposed crippling fellow opposition leaders must be im- Chertoff’s confirmation yesterday, hav- taxes on companies such as Plumb Sup- mediately released. This legislation ing voted to report favorably his nomi- ply in my home State of Iowa. Plumb also sends a clear signal to the admin- nation from the Judiciary Committee Supply has been designated as a istration, ASEAN members, and the last month. superreachback company. The international community that we need f superreachback companies were re- to turn up the heat on this illegitimate lieved of their prospective liability by regime. THE COAL ACT the U.S. Supreme Court since 1998. The efforts of Senators MCCONNELL Mr. GRASSLEY. Mr. President, I rise They were not, however, afforded re- and FEINSTEIN are already having an today to call attention to an issue funds of those improperly assessed impact. On June 5, 2003, the State De- whose time for reform and resolution taxes they had been required to pay partment issued a strong statement on has come. I am speaking of the so- into the CBF. This hurts Plumb Supply this matter, which reads: called ‘‘reachback’’ and ‘‘super- and all other similarly situated compa- The continued detention in isolation of reachback’’ issues enacted in the Coal nies. The superreachback companies Aung San Suu Kyi and other members of her Act in the 1992 Energy bill. This insid- have been waiting patiently for the re- political party is outrageous and unaccept- ious tax has caused numerous busi- turn of their money for nearly 7 years. able. We call on the SPDC to release them immediately, and to provide all necessary nesses to fail over the past 10 years as Many of us in the Senate, along with medical attention to those who have been in- a result of its inequitable taking from our colleagues in the House of Rep- jured, including assistance from inter- those that should not have been in- resentatives, pursued legislation aimed national specialists. The offices of the Na- cluded in this effort in the first place. at solving the reachback issue in a tional League for Democracy closed by the The Coal Act obligated companies to comprehensive manner during the SPDC should be reopened without delay and pay an annual tax to cover premiums 106th and 107th Congresses. We took on their activities no longer proscribed. of coal miner retirees’ health care ben- these efforts in order to create sta- But we all know that U.S. actions efits. Not only did the Coal Act require bility and fairness in the combined can only go so far. Bringing democracy companies then active in the coal min- benefit fund, and to thereby provide a and human rights to Burma will re- ing business to pay but it also retro- solution that would address the needs quire active pressure from its neigh- actively required companies—referred of all interested parties. bors in Southeast Asia, particularly

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.105 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7601 Thailand, Japan, and China. It will re- I say to the people of Burma that the stallations here by deployed personnel. quire these and other nations to dis- people of the United States support We also have Idahoans continuing to avow the failed policies of engagement. you and share your values. We admire serve in Operation Enduring Freedom, these policies simply have not worked. your courage, and commend your brav- and in the fight against terrorism. I I am pleased to see that the McCon- ery. We will continue to support your have spoken before of MAJ Gregory nell-Feinstein legislation attempts to struggle, as long as this oppressive re- Stone and CPL Richard P. Carl, both trigger a process that will ratchet up gime remains in power. soldiers from Idaho who lost their lives the regional pressure on the Burmese The United States has a long history in Operation Iraqi Freedom. I now ask Government. I am also glad to see that of supporting democratic change and for a moment of silent prayer and re- the United States has demarched every condemning regimes that repress and flection from my fellow Senators as we government in Southeast Asia on this disregard the will of the people. This consider what their dying, as well as issue. most recent attack on democratic re- over 150 other men and women who In closing, I want to highlight the formers in Burma only underscores the have met the same fate in this conflict, fact that the U.N. Envoy, Razali need for the U.S. to be vigilant in voic- has accomplished for our personal free- Ismail, was finally able to see Aung ing strong disapproval with the actions dom. San Suu Kyi. According to CNN, Mr. of the current regime, and assist the le- Thankfully, many of those who were Ismail said that she shows no signs of gitimately elected leaders of Burma to called to military service from Idaho injury following clashes with a pro- bring much needed democratic reform have just recently returned safely government group. His exact words and respect for universally recognized home. Yet their experiences overseas were ‘‘she did not have a scratch on her human rights to the people of Burma. will remain with them for the rest of and was feisty as usual.’’ That is in- f their lives. deed good. Some may remember lines of tanks I was also glad to see Mr. Ismail call HONORING OUR ARMED FORCES rolling ominously forward under a on the members of ASEAN to drop the Mr. CRAPO. Mr. President, today I dusty sky, marred by waves of heat organization’s policy of noninterven- rise to pay tribute to those members of emanating from the desert floor. That tion. He stated: ‘‘ASEAN has to break the Armed Forces who have served and memory may be infused with the pun- through the straitjacket and start continue to serve in Operation Iraqi gent odor of layers of sweat and grime dealing with this issue. . . . The situa- Freedom. Countless women and men under desert camies, mingled with the tion in Burma can only be changed if have answered the call of our country acrid odor of burning gasoline and oil. regional actors take their positions to to preserve and protect our freedom Others may remember pulling the trig- act on it.’’ against those individuals and regimes ger on their weapon and seeing death I agree. The international commu- that would seek to compromise or de- for the first time in their young life. nity has a responsibility to act to- stroy our way of life. Reservists have They may remember being close gether to pressure the SPDC. The time left civilian lives behind, parting with enough to smell it and feel it, or feel as for appeasement is over. wives, husbands, parents, children, and if their own was but a whisper away. Mr. ALLEN. Mr. President, I rise friends in order to fulfill their commit- Still more may remember the sight of today to condemn the ongoing repres- ment to our country’s defense. Active crowds, pushing against one another, sion of the democracy movement in Duty military members have gone from some greeting the American soldiers Burma. This latest crackdown has in- merely conducting exercises mim- with cheers of gratitude, some scream- cluded the rearrest and injury of Daw icking war, to leaving their homes and Aung San Suu Kyi and brutal attacks ing epithets, some shamelessly begging families to engage in the real thing, on on her supporters. Burma’s regime has for food and water to feed themselves foreign soil, thousands of emotional ignored the basic human rights of its or their starving families, and others and physical miles from familiarity citizens and is intent only on pre- simply greeting this modern army in and comfort. These brave soldiers, air- serving its own brutal grip on power. grim, expressionless silence brought on Since last May, the international man, marines, and sailors do their jobs by years of brutal repression and loss. community has significantly decreased in a place where injury and death lie in The smell of desperate, poverty-strick- pressure on Burma’s regime. During wait at every turn. The next rise in the en humanity, and the sounds of raw that time, we have seen only increased gritty, windblown landscape may hide emotion cascading forth in an uninhib- abuses. The numbers are staggering: 160 pounds of profound desperation ited tidal wave after a lifetime of un- Burma’s regime has forcibly con- peering from behind the barrel of a checked tyranny, may remain forever scripted 70,000 child soldiers, far more gun. The building around the corner embedded in the memories of many of than any other country in the world. needing to be secured might be rigged those soldiers. Finally, and very trag- The regime has tortured and locked up with enough explosives to make a ically, some will never forget a life 1,400 political prisoners. Even worse, small child’s father or mother nothing that slipped away while they clutched the regime has borrowed a tactic from but a memory. floating just beneath a friend’s bleeding body to their chest the Bosnian war by using rape as a the roiling surface of the water, there in shared agony. weapon of war, heaping misery on might be a mine, with deadly patience I give account of these images to re- countless women and girls. waiting for the next ship to pass over- mind us of the grim reality of war, and Clearly, the United States and the head so that it can accomplish its grue- the tremendous sacrifice that these international community must more some mission. These are some of the noble women and men have made so actively address the situation and hazards our military members face in that we can continue to live in glorious Burma and take available steps to pre- their jobs. Frankly, it makes our job in freedom. We tend to take for granted, vent further violence against those these marble halls seem significantly at times, the price that is paid for this seeking desired democratic reform. less perilous. amazing gift. The cost comes not only As my colleague from Kentucky Sen- I speak today to recognize in par- in the loss of life, but the loss of inno- ator MCCONNELL has stated forcefully ticular those faithful men and women cence. The cost is borne by family and eloquently over the last two from my State—Idaho. We have had ap- members as well, and by those, whom weeks, the United States must provide proximately 450 reservists and active- never having set foot outside this coun- international leadership. Next week, duty members called to serve in the try, bear the scars of a father, mother, Thailand’s Prime Minister Thaksin war. That may not seem like a large husband, wife, son or daughter forever Shinawatra will be visiting Wash- number compared to those from some gone from this life. ington, DC to meet with the President other States, but proportionately it This body voted to support a decision and other senior government officials. represents a significant percentage of to send these men and women into This meeting would provide an ideal Idahoans. We also have countless other harm’s way. Lest the proud soldiers opportunity to urge the Prime Minister soldiers who have family and friends from Idaho, and their persevering fami- to make every effort to formulate a who call Idaho home. This number does lies, think that I came to that decision policy to help bring about positive not include the over 160 who were acti- lightly, I stand now before you and rec- change in Burma. vated to fill positions vacated at in- ognize their tremendous bravery in the

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.034 S10PT1 S7602 CONGRESSIONAL RECORD — SENATE June 10, 2003 face of danger, their courage in the of attorney’s fees available to whistle- [From the Rock Hill (SC) Herald, June 9, face of death, and their unequivocal blowers who prevail in court. In addi- 2003] commitment to preserving the ideals of tion, under the bill, consequential dam- FORMER CONGRESSMAN LEAVES LEGACY OF liberty and democracy. I want to con- ages may be suffered by the employee DEDICATION vey no doubt that their decision to be- if they are the result of a prohibited (By Andrew Dys) come a member of the most well- personnel practice. He voted to create Medicaid and was proud trained, professional military in the Whistleblower information is one the rest of his life—but he was just as proud world places them in my highest es- tool in helping the Government and to know the doormen and elevator operators teem. With gravity and sincerity, I in the U.S. Capitol by first name. Tom private sector find ways to prevent fu- Gettys, a working-class man from Rock thank them and I honor them. They ture terrorist attacks as well. Though Hill’s Hampton Street who went on to be- have given me, my wife, and most im- certain safeguards remain for intel- come a Congressman from South Carolina’s portantly, my children, and yours as ligence-related or policy-making func- 5th District from 1964 to 1974, died Sunday at well, the priceless gift of freedom. tions, the Federal Employees Protec- Westminster Towers in Rock Hill. Gettys f tion of Disclosures Act maintains ex- was 90. isting whistleblower rights for inde- Gettys’ legacy of grace, dedication and FEDERAL EMPLOYEE PROTECTION constituent service is one that current 5th OF DISCLOSURES ACT pendently obtained critical infrastruc- District Congressman John Spratt, D-York, ture information without fear of crimi- has tried to emulate during his own 20 years Mr. LEAHY. Mr. President, I am nal prosecution. These protections are proud to be an original cosponsor of in Congress. Gettys’ record is not in the laws needed to encourage individuals to sub- he passed, but the people he helped. the Federal Employees Protection of mit information to the Government ‘‘His life exemplified what living in a de- Disclosures Act, a bill to ensure that about cyberattacks or other threats mocracy is all about,’’ Spratt said Sunday Federal employees can report fraud, that might affect the Nation’s critical night. ‘‘Everybody in this district not only waste, and abuse within their employer infrastructures. respected Tom Gettys, but they loved him as Federal agencies without fear of retal- well. Tom had a natural, easygoing affinity Whistleblowers have proven to be im- iation. I cosponsored this much needed for people and the problems they had to live portant catalysts for much needed Gov- reform in the last Congress and com- through. Tom Gettys will be missed by all of ernment change over the years. From us.’’ mend the junior Senator from Hawaii corporate fraud to governmental mis- Gettys was born on June 19, 1912, and was for reintroducing it today. Congress conduct to media integrity, the impor- educated at the public schools in Rock Hill must encourage Federal employees tance of whistleblowers in galvanizing and later at Clemson and Erskine College. He with reasonable beliefs about govern- positive change cannot be questioned. I was principal at the now-defunct Central El- mental misconduct to report such ementary School in Rock Hill from 1933 to urge my fellow Senators to support fraud or abuse, but it must also protect 1941. this important bill. those who blow the whistle rather than Gettys volunteered for the Navy in World leave them vulnerable to reprisals. War II after the bombing of Pearl Harbor, Unfortunately, whistleblower protec- f and Spratt remembers Gettys was fond of saying ‘‘Admiral Nimitz and I did all right tions under current law have been over there in the Pacific.’’ weakened by the Federal circuit, the IN MEMORY OF FORMER 5th District Congressman Dick Richards court that now possesses exclusive ap- CONGRESSMAN TOM GETTYS called on Gettys to run his staff in Wash- pellate jurisdiction over such claims. Mr. HOLLINGS. Mr. President, to- ington for seven years. A political future hatched in Washington, but Gettys did more The Federal circuit has issued a num- morrow I will be attending the funeral ber of rulings that erode whistleblower than politick the back hallways of Capitol of a former colleague from the South Hill—he studied law at night and passed the rights in direct contradiction to the Carolina congressional delegation, plain language of the law and the con- bar exam, and even was Rock Hill’s post- Tom Gettys, and I rise to recognize master upon his return from Washington gressional intent of established whis- this legend from Rock Hill. from 1951 to 1954. tleblower protections. The potential I have known Congressman Gettys Before Gettys won his spot in Congress in chilling effect of these decisions for many years. He came to Wash- 1964 against a crowded four-man field, he was threatens to undermine the funda- a lion of Rock Hill civic life, serving as presi- ington 2 years before I did, having al- mental purpose underlying whistle- dent of Rotary, the Chamber of Commerce, ready been an officer in the Navy, a blower laws. The Federal Employees the YMCA and even as chairman of the Rock school principal, a postmaster, and so Protection of Disclosures Act will ad- Hill School Board. After his return, he be- he came in with a reputation of a per- came a part of the civic fabric of Rock Hill. dress this problem by expanding judi- son’s person. It did not matter who you The city honored Gettys by naming the old cial review of such cases to all Federal were in the world, he was your buddy; federal courthouse on East Main Street in circuit courts of competent jurisdic- and since he was in a position to help his honor in 1997, a building now called the tion. Jurisdiction will then include the Tom S. Gettys Center. people as a Member of Congress, he place where the whistleblower lives or Gettys had a stroke several years ago and would and he did. where the Government misconduct oc- months ago moved from his longtime Myrtle curred. He stayed just 10 years, but he made Drive home into Westminster Towers. He The bill also updates the current law. an impression for the next 30. I never maintained contact with old friends, how- For example, it clarifies that whistle- heard a single bad thing said about ever, and regularly attended bi-weekly meet- ings of the Rock Hill Rotary Club when his blower disclosures can come in many him, and I don’t know very many poli- ticians I can say that about. He has health would allow. forms—such as oral or written, or for- John Hardin, former Rock Hill mayor and mal or informal disclosures. It also been out of office since 1974, but every- lifelong friend, said Gettys and he were part broadens current law to reflect that re- body in my State still always refers to of a weekly golfing outing with A.W. Huckle, porting occurs in many different areas, him as Congressman because he was publisher of The Evening Herald, and banker such as over policy matters or indi- just one great guy who cared about George Dunlap. vidual misconduct. The law expands people. This Senator will miss this gen- ‘‘I had known him since childhood,’’ Har- din said, ‘‘but we became intimate friends the current list of prohibited personnel tleman, always the statesman, always the one with a good story. after World War II.’’ actions against a whistleblower in two Gettys, a Navy officer, was assigned to ways: One, the opening of an investiga- Tomorrow, I will extend the Senate’s Iowa but requested overseas service and tion of the employee, and two, the rev- sympathy to his wife Mary, and his jumped at duty in the Pacific. ocation of a security clearance. The daughters Julia and Sara. And to share Hardin, who ran First Federal Savings and bill also ensures that appropriate dis- just how much Tom meant to his com- Loan, saw Gettys frequently when he trav- ciplinary actions are taken against munity, I ask unanimous consent that eled to Washington to lobby as president of managers who negative actions toward this article from the Herald in Rock the Savings and Loan League. ‘‘The thing he liked best was trying to help Hill be printed in the RECORD. employees were motivated in any way people,’’ Hardin said. ‘‘He was great at what by the employee’s whistleblowing. There being no objection, the article they call constituent service. He was more More practical reforms are also in- was ordered to be printed in the interested in helping people than in passing cluded, such as making the collecting RECORD, as follows: legislation.’’

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.036 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7603 Gettys was a great teaser, and he often Madisonville and Monroe County had history—a senseless school shooting at would catch people by surprise by asking if been working on this for months. Thurston High School in Springfield. they enjoyed the casserole he sent. When The community joined together to The shock waves from that awful event told that, no, they hadn’t gotten a casserole, make the Veterans Flag Memorial still reverberate in our State and in Gettys would respond, ‘‘Well, I left it on the our schools. But as so often happens in porch. The dogs must have gotten it.’’ something to be proud of. Along with The former congressman cultivated stories the impressive flag, a brick wall was the face of great evil, good people stand about being tightfisted, but in reality, he erected. together in grief to create hope for a was a gentle, caring person, Hardin said. Businesses donated bricks, mortar, better future. ‘‘He had the best sense of humor,’’ Hardin concrete and a variety of services from In the case of the Thurston shooting, said. ‘‘I don’t know anyone who had a better architectural to brick masonry. Citi- that beacon of hope is the Ribbon of one.’’ zens donated approximately $70,000 to Promise campaign. Five years after the Another former Rock Hill Mayor, Betty Jo the project, including contributions shooting, the campaign is continuing Rhea, called Gettys, ‘‘One of my favorite and brick sales. The brick sales were its work to prevent school violence. Be- people.’’ reserved for veterans and active duty cause of the impact the campaign has Gettys’ reputation as the hometown guy made and the lives it has saved, I rise turned legislator is deep in the memories of military. The memorial has been a Rock Hill residents. People knew Gettys had labor of love for the community. The today to recognize this program and its many jobs before he ran for Congress and dedication ceremony to celebrate this volunteers as a Health Care Hero for that he came home when he was finished his hard work was an important event. Oregon. work in Washington. As I drove up to Haven Hill Memorial The Ribbon of Promise National ‘‘Tom was my husband Jimmy’s principal Gardens, where the ceremony was to be Campaign to Prevent School Violence when he was at Central School on Black held, it started to rain; then it poured. was founded on May 22, 1998, the day Street in the early 30s,’’ Rhea said. Thunderstorms arrived, and lightning after the Thurston shooting. Thurston Gettys is survived by daughters Julia and was one of several school attacks oc- Sara and his wife of 55 years, Mary Phillips began to dance in the sky. Not many of us wanted to get too close to the 150 curring across the Nation, from Pearl, Gettys. Funeral arrangements will be an- MS, to Jonesboro, AR. While still in nounced later. foot flagpole. His sister Sara, who still lives in Rock But through it all, the ceremony the throes of grief, the Springfield Hill, said the Tom Gettys people knew from went forward. There must have been community decided enough was enough public life was the same guy the family 500 people who sat there in the rain, ab- and began the work of preventing fu- loved. Even after 10 years in Congress, Tom solutely drenched. And then, the sun ture attacks. Gettys was a Rock Hill boy deep in his Overnight, the Springfield area came out as the program began. bones. bloomed with miles of blue plastic rib- The most impressive moment came ‘‘He was a great person who looked after bons decorating cars, mailboxes, with the raising of the flag. Twenty all of us,’’ Sara Gettys said. ‘‘The man who lampposts, trees and lapels, signaling men marched forward carrying the went to Washington was the same man when the community’s support for the vic- he came home.’’ flag. It was soaking wet and very tims and their families. The ribbons heavy. This is what the organizer of f promised to end the specter of school the event, City Alderman Irad Lee, LOCAL LAW ENFORCEMENT ACT violence, a promise repeated at candle- wrote to me: OF 2003 light vigils, community gatherings, I was told by the commander of the Ten- Mr. SMITH. Mr. President, I rise and funerals. nessee State Guard that had we waited an- But the promise didn’t end when the today to speak about the need for hate other five minutes, the flag would have been media attention subsided. The ribbons crimes legislation. On May 1, 2003, Sen- too heavy for their twenty men to carry. I were woven together into a grassroots ator KENNEDY and I introduced the am unsure how much a saturated 1,800 square organization dedicated to making a na- Local Law Enforcement Act, a bill that foot flag weighs, yet one young man named Dwight Taylor of 312 Atkins Road in Mad- tional impact on the problem of school would add new categories to current isonville, a city maintenance crew worker, violence. The resulting campaign, the hate crimes law, sending a signal that auxiliary policeman and patriot, endured Ribbon of Promise, identified its mis- violence of any kind is unacceptable in while cranking the flag to the top of flag- sion as bringing communities together our society. pole. with schools, law enforcement, and the I would like to describe a terrible I watched Dwight Taylor crank that juvenile justice system to prevent crime that occurred in Lincoln Park, flag to the top of the pole. I was aston- school violence. Today, the organiza- MI, on September 19, 2001. Mr. Ali ished to see one man do that. It was a tion continues to fill its role by acting Almansoop, a 45-year-old U.S. citizen tribute to his patriotism and strength. as resource for communication, edu- originally from Yemen, was shot to It seemed at the time an impossible cation, and action against future at- death by a man who confessed the at- feat. tacks. tack was in retaliation for the Sep- But so does the history of this coun- Since the campaign’s inception, the tember 11 tragedy. The attacker broke try that our flag represents. ribbons have appeared in many impor- into the apartment where Mr. When Americans want to see the tant places. President Clinton wore one Almansoop was asleep, dragged him grandest flag in Tennessee, they will when he traveled to Eugene for a Thur- out of bed, and shot him in the back as travel to Madisonville. And it is appro- ston memorial service. NASA crew- he attempted to flee. The Department priate that they do so. member Wendy Lawrence took the rib- of Justice investigated the slaying as a Congressman JIMMY DUNCAN told the bon on the shuttle Discovery in 1998. hate crime murder. crowd that Monroe County sent more Since that time, over 250,000 lapel rib- I believe that government’s first duty volunteers to Desert Storm in the Gulf bons have been distributed across the is to defend its citizens, to defend them War for its population size than any world. against the harms that come out of other county in America. This is yet Results of the campaign have been hate. The Local Law Enforcement En- another example in our history of Ten- tremendous. The group’s web site has hancement Act is a symbol that can nessee living up to its nickname, ‘‘The become a primary resource for violence become substance. I believe that by Volunteer State.’’ prevention information. Springfield passing this legislation and changing I felt privileged to be a part of the High School’s DECA class developed a current law, we can change hearts and Armed Forces Day event, and I wanted video called By Kids 4 Kids, launching minds as well. the nation to know about the patriotic the student arm of the campaign. This f citizens of Madisonville and Monroe important program, also known as County, TN. BK4K is teaching students to speak out ARMED FORCES DAY f when they hear threats of violence. Mr. ALEXANDER. Mr. President, on This information, spread from student May 17, Armed Forces Day, I drove HEALTH CARE HERO to student, is often the only way down to Madisonville, TN to partici- Mr. SMITH. Mr. President, 5 years schools, parents, and law enforcement pate in the raising of the largest Amer- ago, the State of Oregon witnessed one have the opportunity to prevent vio- ican flag in our State. The people of of the greatest tragedies in its 150 year lent attacks. The BK4K campaign is

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.108 S10PT1 S7604 CONGRESSIONAL RECORD — SENATE June 10, 2003 changing the student culture of our honest and intelligent analyses of the Nation’s seventh national park and the Nation, teaching kids to break their issues. You could count on him to give first one created to protect a cave. It code of silence in order to save lives. you the straight scoop about any issue. was designated as a National Game Scores of other campaign accom- He would not fudge the facts just to fit Preserve on August 10, 1912. plishments include a parent informa- his personal policy preferences. When But Wind Cave’s history is recorded tion program, a network of 24-hour re- my staff gave me information from Al as part of Black Hills history from the port hotlines across the country, and Davis, I knew I could rely on it. time Native Americans told stories of continued research on the problem of The combination of respect and affec- holes in the ground that blow wind. school violence. While there remains tion that many members of the Senate The first recorded discovery of Wind much work to be done, the accomplish- family had for Al Davis is a testament Cave dates to 1881 when Jesse and Tom ments of the Ribbon of Promise cam- to his intelligence, his ability, and his Bingham were first attracted to the paign are very real. But the best result huge and warm heart. The Senate was cave by a whistling noise. As the story of their work is the safe return of stu- considering the conference report on goes, wind was blowing out of the cave dents at the end of each schoolday. the reconciliation tax bill when it be- entrance with such force it blew off Oregon continues to mourn for the came known that Mr. Davis was not Tom’s hat. A few days later, when victims of the Thurston shooting. But likely to recover. The sense of sorrow Jesse returned to show the phenomena we also have hope that through the ef- and loss felt by Senate staff on the to some friends, he was astonished to forts of this outstanding organization, floor that day was immense. For many find the wind had changed directions further violence in our State has been of those staff, it was hard to imagine and his hat was sucked into the cave. Since that time, notable visitors prevented. I thank all the volunteers not being able to pick up the phone to have included Charlie Crary, the first and staff of this great campaign and ask Al about an issue. They understood designate the Ribbon of Promise as a person reported to enter the cave; J.D. the quality of reporting on tax and en- McDonald, whose family gave the first Health Care Hero for Oregon. titlement issues would be diminished f cave tours and sold cave formations to because Al would not be around to ex- J.D.’s son, Alvin; Alvin McDonald, who IN MEMORY OF AL DAVIS plain a complicated issue in a way that was the first explorer of the cave and Mr. CONRAD. Mr. President, today I the average reader or listener could un- who kept a diary and map of his find- wanted to honor the memory of a mem- derstand. And they keenly felt the loss ings; and ‘‘Honest John’’ Stabler who ber of the congressional family whose of a unique and wonderful person. formed a partnership with the McDon- life was tragically cut short last Many people in the Senate family were alds to develop the first passages and month. Albert James Davis, who was touched by Al—benefitted from his staircases into Wind Cave. Indeed, the the Democratic chief economist at the knowledge and wisdom and were lucky early history of the cave was plentiful House Ways and Means Committee, enough to consider him a friend. He and colorful. died on May 30. will be greatly missed. William Jennings Bryan and Gov- Mr. Davis had served the Congress f ernor Lee visited the cave in 1892. That with distinction since 1984, first as a APPOINTMENT OF TIMOTHY A. same year, one of the first attractions senior economist with the Democratic EICHORN TO THE UNITED was put on display. For a quarter, visi- staff of the House Budget Committee, STATES AIR FORCE tors could come to the cave and view a then as chief economist for that com- ‘petrified man’ that had been found mittee, and finally as chief economist Mr. LUGAR. Mr. President, I rise north of the cave. Over the years, visi- for the Ways and Means Committee. today to share with my colleagues my tors would come to view the natural Although Mr. Davis never worked in congratulations to Timothy A. attractions Wind Cave would have to the U.S. Senate, his death is a profound Eichhorn, who on February 25, 2003, offer. personal and professional loss for many was named by the Senate to receive an Captain Seth Bullock became the Members and staff of the Senate. Mr. appointment as a grade of lieutenant cave’s first supervisor in 1902, with Davis was a highly respected and much colonel to the U.S. Air Force. George Boland serving as the area loved member of the group of policy ex- I have known the Eichhorn family for ranger. South Dakota Congressman perts who work largely behind the many years, and I am pleased to join Eben W. Martin was instrumental in scenes to provide Members of Congress his family and friends in congratu- the designation of Wind Cave as a na- with information about the policies lating Timothy on this momentous oc- tional park. General John J. Pershing they are considering. Many Senate casion. This appointment is clearly a visited in 1910 and took important cave staff—and many members of my Budg- testament to his hard work, dedica- room readings with his pocket aneroid et Committee staff—had worked with tion, and enthusiasm for military serv- barometer. In 1914, Ester Cleveland Mr. Davis, either directly in the House ice. Brazell was a ranger guide at the Cave, or through bicameral staff meetings In a time when U.S. Armed Forces possibly making her the first woman to and frequent phone conversations. And are deployed around the world, I am hold the title of ranger in the National although few knew it, many Senators pleased to know that outstanding indi- Park Service. Walt Disney and other benefitted from Mr. Davis’s knowledge viduals, such as Timothy Eichhorn, film and video companies have pro- and wisdom because of the frequent use have been called to public service. duced films in the park and countless made by Senate staff of insightful f rolls of film have been shot by amateur memos and analyses of important photographers for display in home issues that Mr. Davis graciously shared ADDITIONAL STATEMENTS movies and scrapbooks. with them. Today, Wind Cave has more than 108 He was one of the leading experts in miles of explored and mapped passages, WIND CAVE NATIONAL PARK the country on issues involving taxes making it the fourth-longest cave in CENTENNIAL COMMEMORATION and entitlement programs. Just as im- the United States and sixth longest in portant as his deep understanding of ∑ Mr. JOHNSON. Mr. President, I rise the world. Well over 5.5 million people these complex issues was his ability to today in tribute to Wind Cave National have visited Wind Cave over the past express his thoughts about them in a Park on the occasion of the park’s cen- 100 years. simple, straightforward way that oth- tennial anniversary. The first major improvements in the ers—congressional staff, the press, and Nestled in the southeast corner of park were accomplished by the Civilian Members of Congress—could under- the Black Hills of South Dakota and Conservation Corps in the 1930s. Wind stand. And he could do it in a gracious adjacent to Custer State Park, Wind Cave was one of many important and humorous way that did not betray Cave has a rich and colorful history projects CCC workers developed in any impatience with a listener who that has informed and educated genera- South Dakota. Many of the projects might be a little slow to grasp what tions of people from around the world. can still be seen today, including roads, was being explained. Wind Cave was established as a na- the entrance to the cave, concrete Mr. Davis was a committed Demo- tional park by President Theodore stairs in the cave and the elevator crat, but he was more committed to Roosevelt on January 3, 1903, as the building and shaft.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.038 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7605 By 1935, the game preserve became an Michigan public school system. While Administration in 1961, just 7 years integral part of Wind Cave National working in the Farmington schools and after the Brown v. Board of Education Park. Bison, elk, and pronghorn be- Troy schools with students from 4th decision had declared ‘‘separate but came staples of the visitor experience, through 9th grades, she has prided her- equal’’ schools to be unconstitutional. and the park’s boundaries were ex- self on developing new methods of en- On paper, in the annals of the law, panded in 1946 to over 28,000 acres. gaging and motivating her students. things were changing. But in practice, Wildlife management was a main pri- She truly cares about her students’ on the streets and in the schools, those ority and key challenge in the 1950s overall well-being and strives to create who suffered under Jim Crow knew and 1960s as herds grew and restoration an environment that fosters curiosity that America was still defaulting on its and management of native grasses, ex- and challenges students to apply what promissory note. Segregation was still otic plant species, and animal herds be- they have learned to life outside the fierce. America was still failing to live came a main focus. classroom. up to its founding principles. The unique blend of wildlife and aes- Karen’s commitment to Michigan’s During his tenure, Burke worked thetic beauty on the park’s surface, children has been demonstrated in tirelessly to desegregate public facili- combined with the beautiful cave for- many ways throughout her long and ties in the South. In 1961, he helped mations, extensive passageways, and distinguished career. She has received craft the Government’s ban on segrega- informative guided tours beneath the numerous awards including the Detroit tion in interstate travel. In 1962, he surface provide the general public with News’ My Favorite Teacher Award and played a central role in the maneu- a wonderful Black Hills experience and has been nominated for several others, vering that led to the admission of one that provides young people with a including the Disney American Teach- James Meredith to the University of unique learning opportunity. Visitors er Award, the Newsweek/WDIV Out- Mississippi, the first black student to can take in such attractions as Lin- standing Teacher Award, and is cur- pass through the gates of that school. coln’s Fireplace, Petrified Clouds, Dev- rently under consideration for the In Birmingham in 1963, he negotiated a il’s Lookout, Roe’s Misery, Sampson’s JASON Foundation for Education’s settlement between civil rights activ- Palace, Queen’s Drawing Room, the Hilda E. Taylor Award. She has earned ists and the city’s business community Bridge of Sighs, Dante’s Inferno, and such distinguished honors because of that helped bring the city back from the Garden of Eden. the heartfelt respect and admiration of the brink of violence. And in 1964, he I want to commend the 18 super- her peers, students, and parents. helped shape the landmark Civil Rights intendents who have served Wind Cave During the past 7 years, Karen Act, which would outlaw discrimina- National Park, including current su- McCann has served as a Michigan tion in public accommodations nation- perintendent Linda Stoll, for their JASON Teacher Mentor. The JASON wide. leadership and excellent stewardship of Project is a program designed to foster During his tenure, Burke Marshall the park over the past 100 years. I also interest in natural sciences through traveled throughout the South, per- want to applaud the dedication and imaginative hands-on experiences. She suading local authorities to deseg- commitment of the park’s staff over has carefully created new and exciting regate bus stations, train stations, air- the years, from rangers and adminis- opportunities for students to expand ports. This wasn’t glamorous work. It trative staff to tour guides and their knowledge beyond the classroom took patience and persistence, clarity custodians. All of them have partnered by integrating a variety of activities and courage. But without that pa- to ensure the visiting public’s experi- with the general curriculum estab- tience, persistence, clarity, and cour- ence at Wind Cave is a memorable one. lished by the Troy School District. For age, America would have stalled. Wind Cave National Park is one of the example, she has designed field trips America would have regressed. Amer- jewels in the Black Hills crown of tour- and coordinated guest speakers to en- ica would not have grown into the ism destinations. Over the years, it has hance her students’ learning experi- great Nation, full of hope and oppor- been a privilege for me to work on in- ences and also created a series of after- tunity for people of all races and back- frastructure needs and issues of impor- school programs entitled ‘‘JASON U’’ grounds, that it increasingly is today. tance involving Wind Cave National to enrich her students’ lives beyond the Looking back, reading history books, Park. normal schoolday. In addition, Karen some might think the civil rights From earthquakes, floods and fires to has arranged exciting new opportuni- movement was inexorable or its out- the occasional lost spelunker, Wind ties for continuing professional devel- come inevitable. After all, the justice Cave has come a long way since the opment in the form of seminars for of the cause now seems so obvious. But ‘Petrified Man’ displays and 25-cent teachers throughout the State of in those days, nothing was for granted. tours. Wind Cave today offers a com- Michigan. Advancing civil rights was a struggle. plete visiting and educational experi- Michigan’s children have been Young people were being beaten by ence for people of all ages. The ever-ex- touched by Mrs. McCann’s genuine in- mobs; fire hoses and dogs were being panding cave continues to excite and terest and unwavering desire to provide turned on peaceful protestors. Many astonish scientists, cave surveyors, a meaningful learning experience. I defenders of segregation would stop at spelunkers, and the general public. I have no doubt that Karen’s contribu- nothing to stop the march of social wish to congratulate Wind Cave Na- tions to Michigan’s public schools will progress. tional Park on its centennial anniver- continue to foster innovation in the fu- The only reason we were able to build sary and encourage everyone to visit ture. I am confident my colleagues will a better country was because of the ex- the beautiful Black Hills of South Da- join me in offering our heartfelt thanks traordinary heroism of ordinary peo- kota and Wind Wave National Park.∑ and appreciation to Karen McCann and ple, and because of the difficult deci- f in wishing her well in her retirement.∑ sions made every day by people like f Burke Marshall. He chipped away at RECOGNIZING KAREN MCCANN ON the evil of Jim Crow and helped open HER RETIREMENT TRIBUTE TO BURKE MARSHALL the floodgates so that, as the Bible ∑ Mr. LEVIN. Mr. President, it is with ∑ Mr. LIEBERMAN. Mr. President, I said, justice could begin to flow like great pride that I pay tribute to an ex- rise to pay tribute to a life spent in water, and righteousness, like a ceptional educator from my home pursuit of the highest American ideals. mighty stream. State of Michigan. On June 12, Karen Burke Marshall, a wonderful man, a Justice isn’t yet flowing like a McCann will retire after 24 years in frontline soldier in the battle for civil mighty river in America, nor is right- public education. Karen’s creativity rights, and a deeply respected resident eousness flowing like a mighty stream. and dedication to her students has of Connecticut, died Monday, June 2 at We still have hills to climb, as Dr. King deeply enriched the lives of thousands the age of 80. I am honored to have might say, before we reach the moun- of young people throughout Michigan. known him and occasionally benefited taintop. But thanks to the foothold Karen has been an innovative and en- from his wise counsel. that people like Burke Marshall have thusiastic teacher throughout her 24- Burke became assistant attorney given us, we have the ability to keep year career as an educator in the general for civil rights in the Kennedy climbing. We can see the summit. And

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.041 S10PT1 S7606 CONGRESSIONAL RECORD — SENATE June 10, 2003 we have the strength and the inspira- anthropology course at Murray State PERIODIC REPORT ON THE NA- tion to never give up until we reach it. University and a gifted and talented TIONAL EMERGENCY WITH RE- I got to know Burke Marshall be- camp at Western Kentucky University. SPECT TO THE RISK OF NU- cause, in 1970, he moved to Connecticut It is my pleasure to honor such an ex- CLEAR PROLIFERATION CRE- and joined the faculty of Yale Law ceptional and altruistic young lady for ATED BY THE ACCUMULATION School, my alma mater, where he her extraordinary charitable contribu- OF WEAPONS-USABLE FISSILE served as deputy dean and professor. I tions to her community. I thank the MATERIAL IN THE TERRITORY unfortunately had already graduated, Senate for allowing me to laud her OF THE RUSSIAN FEDERATION— but I was lucky to befriend Professor praises. She is one of Kentucky’s fin- PM 37 Marshall around New Haven. He was a est.∑ The PRESIDING OFFICER laid be- warm, kind, decent man, who believed f fore the Senate the following message that the fight for justice was never- from the President of the United ending. TRIBUTE TO DR. HARRY BEGIAN States, together with an accompanying The dean of Yale’s Law School, Tony ∑ report; which was referred to the Com- Kronman, put it well. He said, ‘‘His Mr. LEVIN. Mr. President, today I have the honor of recognizing a great mittee on Banking, Housing, and goodness was so large that I half be- Urban Affairs: lieved and fully wished he would live musician and educator from my home forever. Burke’s generosity brought State of Michigan. During a career To the Congress of the United States: out the best in others. His love of jus- that has spanned more than 50 years, As required by section 401(c) of the tice helped change a nation.’’ Dr. Harry Begian has made numerous National Emergencies Act, 50 U.S.C. Burke Marshall was a quiet man. In contributions to the music and edu- 1641(c), and section 204(c) of the Inter- fact, his wife Violet once said that, be- cation communities across the country national Emergency Economic Powers cause he said so few words, she wasn’t and around the world. He has greatly Act, 50 U.S.C. 1703(c), I transmit here- sure whether he liked her or not until influenced both high school and colle- with a 6-month periodic report pre- he proposed. But he wasn’t quiet when giate bands throughout the Midwest pared by my Administration on the na- it counted. On matters of principle, on and the Nation. On June 21, 2003, a re- tional emergency with respect to the questions of justice, he heeded the wis- union and banquet will be held at Cass risk of nuclear proliferation created by dom of Dr. Martin Luther King, Jr., Technical High School in Detroit to the accumulation of weapons-usable who said: ‘‘Our lives begin to end the honor not only Dr. Begian’s 17 prolific fissile material in the territory of the day we become silent about things that years as Director of Bands at Cass Russian Federation that was declared matter.’’ Technical High School but also his life- in Executive Order 13159 of June 21, Burke Marshall always spoke when it time of musical contributions that 2000. mattered, and that is why his legacy have touched so many. GEORGE W. BUSH. will live on forever in the hearts he Dr. Begian’s early involvement with THE WHITE HOUSE, June 10, 2003. touched and in the country he helped music included studying trumpet and f flute with famed musicians Leonard change for the better. REPORT OF THE CONTINUATION Smith and Larry Teal. Dr. Begian com- My condolences to his wife Violet, OF THE NATIONAL EMERGENCY pleted his undergraduate and master’s his daughters Katie, Josie, and Jane, WITH RESPECT TO THE RISK OF degrees at Wayne State University. He and his grandchildren. May God bless NUCLEAR PROLIFERATION CRE- also earned a doctorate in music at the them and the memory of Burke Mar- ATED BY THE ACCUMULATION University of Michigan. shall.∑ OF WEAPONS-USABLE FISSILE Dr. Begian became Director of Bands f MATERIAL IN THE TERRITORY at Cass Technical High School in 1947, OF THE RUSSIAN FEDERATION TRIBUTE TO KELSEY LADT where he built one of the preeminent BEYOND JUNE 21, 2003—PM 38 ∑ Mr. BUNNING. Mr. President, I rise high school bands in the country. Dur- to honor and pay tribute to Kelsey ing the following 20 years, he served as The PRESIDING OFFICER laid be- Ladt of Paducah, KY, for her inimi- Director of Bands at Wayne State Uni- fore the Senate the following message table sense of giving and community versity, Michigan State University, from the President of the United service. Kelsey, age 8, led an art tour and the University of Illinois. In addi- States, together with an accompanying fundraiser for the Community Founda- tion to his work as a band director, Dr. report; which was referred to the Com- tion of Western Kentucky, with pro- Begian has served as a guest conductor mittee on Banking, Housing, and ceeds benefitting the Lourdes’ Founda- and lecturer throughout the United Urban Affairs: tion patient care fund and the St. Nich- States, Canada, and Australia. In 1987, To the Congress of the United States: olas Free Family Clinic. the Detroit Symphony Orchestra in- Section 202(d) of the National Emer- Kelsey Curd Ladt, daughter of Vicki vited him to conduct a formal concert gencies Act (50 U.S.C. 1622(d)) provides and Ric Ladt, is a gifted and precocious in Detroit’s Orchestra Hall. for the automatic termination of a na- young lady with an exceptional sense The Music Division of the Library of tional emergency unless, prior to the of selflessness and charity. She single- Congress created the Harry Begian Col- anniversary date of its declaration, the handedly led a tour of the artwork in- lection in tribute to his accomplish- President publishes in the Federal Reg- side her parents’ home for 35 people. ments. The permanent collection cur- ister and transmits to the Congress a Kelsey paused by each painting to rently contains 26 reel-to-reel record- notice stating that the emergency is to share historical insight and anecdote, a ings of Dr. Begian’s performances at continue in effect beyond the anniver- remarkable feat for someone so young. Cass Tech. In addition, the collection sary date. In accordance with this pro- Kelsey researched art at Murray also includes 50 records and 15 compact vision, I have sent the enclosed notice, State University under the tutelage of discs from Dr. Begian’s time with the stating that the emergency declared Dr. Joy Navan. With the encourage- University of Illinois Symphonic Band. with respect to the accumulation of a ment from Navan and family friend Dr. Begian is a charter member of large volume of weapons-usable fissile Bill Ford, Kelsey planned the fund- the American School Band Directors material in the territory of the Rus- raiser and interviewed directors of var- Association and a past president of the sian Federation is to continue beyond ious beneficiaries before selecting the American Bandmasters Association. He June 21, 2003, to the Federal Register for Lourdes’ Foundation and the St. Nich- has won the National Band Associa- publication. The most recent notice olas Free Family Clinic. tion’s Citation of Excellence, the continuing this emergency was pub- Kelsey, who is herself an accom- Edwin Franko Goldman Award, and the lished in the Federal Register on June plished artist and pianist, plans on ex- Norte Dame St. Cecelia Award. I know 20, 2002 (67 FR 42181). panding the art tour to four homes in that my Senate colleagues will be It remains a major national security the coming years, in order to better pleased to join me in saluting Dr. goal of the United States to ensure serve her community. Later this sum- Harry Begian’s lifetime full of con- that fissile material removed from mer she will participate in a forensic tributions to the world of music.∑ Russian nuclear weapons pursuant to

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.113 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7607 various arms control and disarmanent ENROLLED BILLS SIGNED EC–2654. A communication from the Sec- agreements is dedicated to peaceful retary of Energy, transmitting, pursuant to The message further announced that law, the Annual Report for the Strategic Pe- uses, subject to transparency meas- the Speaker has signed the following ures, and protected from diversion to troleum Reserve, covering calendar year enrolled bills: 2002; to the Committee on Energy and Nat- activities of proliferation concern. The S. 222. An act to approve the settlement of ural Resources. accumulation of a large volume of the water rights claims of the Zuni Indian EC–2655. A communication from the Presi- weapons-usable fissile material in the Tribe in Apache County, Arizona, and for dent, The Foundation of the Federal Bar As- territory of the Russian Federation other purposes. sociation, transmitting, pursuant to law, the continues to pose an unusual and ex- S. 273. An act to provide for the expedi- report Audit Report of the Foundation of the traordinary threat to the national se- tious completion of the acquisition of land Federal Bar Association for the Fiscal Year curity and foreign policy of the United owned by the State of Wyoming within the ending September 30, 2002; to the Committee on the Judiciary. States. For this reason, I have decided boundaries of Grand Teton National Park, and for other purposes. EC–2656. A communication from the Presi- that it is necessary to continue the na- dent of the United States to the President f tional emergency declared with respect Pro Tempore of the United States Senate, to the accumulation of a large volume MEASURES REFERRED transmitting, consistent with the War Pow- of weapons-usuable fissible material in The following bill, previously re- ers Resolution, the report on recent develop- ments in Liberia and Mauritania and the ac- the territory of the Russian Federation ceived from the House of Representa- and maintain in force these emergency tivities to insure the safety of The United tives for concurrence, was read the States Embassy and Embassy Staff located authorities to response to this threat. first and second times by unanimous in those countries; to the Committee on For- GEORGE W. BUSH. consent, and referred as indicated: eign Relations. THE WHITE HOUSE, June 10, 2003. H.R. 1954. An act to revise the provisions of f f the Immigration and Nationality Act relat- PETITIONS AND MEMORIALS MESSAGE FROM THE HOUSE ing to naturalization through service in the Armed Forces, and for other purposes; to the The following petitions and memo- At 2:19 p.m., a message from the Committee on the Judiciary. rials were laid before the Senate and House of Representatives, delivered by The following bill was read the first were referred or ordered to lie on the Ms. Niland, one of its reading clerks, and the second times by unanimous table as indicated: announced that the House has passed consent, and referred as indicated: POM–127. A resolution adopted by the the following bill and joint resolution, H.R. 1610. An act to redesignate the facility House of the State of Hawaii relative to im- each without amendment: of the United States Postal Service located proving benefits for Filipino Veterans of S. 763. An act to designate the Federal at 120 East Ritchie Avenue in Marceline, World War II; to the Committee on Veterans’ building and United States courthouse lo- Missouri, as the ‘‘Walt Disney Post Office Affairs. cated at 46 Ohio Street in Indianapolis, Indi- Building’’; to the Committee on Govern- HOUSE RESOLUTION NO. 75 ana, as the ‘‘Birch Bayh Federal Building mental Affairs. Whereas, on January 7, 2003, Senator Dan- and United States Courthouse.’’ The following concurrent resolution iel K. Inouye introduced S. 68 in the United S.J. Res. 8. A joint resolution expressing was read, and referred as indicated: States Senate, which bill was read twice and the sense of Congress with respect to raising then referred to the Committee on Veterans’ H. Con. Res. 162. Concurrent resolution awareness and encouraging prevention of Affairs; and sexual assault in the United States and sup- honoring the city of Dayton, Ohio, and its Whereas, S. 68 proposes to amend title 38 of porting the goals and ideals of National Sex- many partners, for hosting ‘‘Inventing the United States Code, to improve benefits ual Assault Awareness and Prevention Flight: The Centennial Celebration’’, a cele- for Filipino veterans of World War II and for Month. bration of the centennial of Wilbur and the surviving spouses of those veterans; and Orville Wright’s first flight; to the Com- Whereas, S. 68 would increase the rate of The message also announced that the mittee on the Judiciary. House has passed the following bill, in payment of compensation benefits to certain f Filipino veterans, designated in title 38 which it requests the concurrence of United States Code section 107(b) and re- the Senate: MEASURES PLACED ON THE ferred to as New Philippine Scouts, who re- H.R. 1610. An act to redesignate the facility CALENDAR side in the United States and are United of the United States Postal Service located The following bill was read the sec- States citizens or lawful permanent resident at 120 East Ritchie Avenue in Marceline, ond time, and placed on the calendar: aliens; and Missouri, as the ‘‘Walt Disney Post Office Whereas, S. 68 would further increase the S. 1215. A bill to sanction the ruling Bur- Building.’’ rate of payment of dependency and indem- mese military junta, to strengthen Burma’s The message further announced that nity compensation of surviving spouses of democratic forces and support and recognize certain Filipino veterans; and the House has agreed to the following the National League of Democracy as the le- Whereas, S. 68 would further make eligible concurrent resolution, in which it re- gitimate representative of the Burmese peo- for full disability pensions certain Filipino quests the concurrence of the Senate: ple, and for other purposes. veterans who reside in the United States and H. Con. Res. 162. A concurrent resolution f are United States citizens or lawful perma- honoring the city of Dayton, Ohio, and its nent resident aliens; and EXECUTIVE AND OTHER Whereas, S. 68 would further mandate the many partners, for hosting ‘‘Inventing COMMUNICATIONS Flight: The Centennial Celebration,’’ a cele- Secretary of Veterans Affairs to provide hos- bration of the centennial of Wilbur and The following communications were pital and nursing home care and medical Orville Wright’s first flight. laid before the Senate, together with services for service-connected disabilities for accompanying papers, reports, and doc- any Filipino World War II veteran who re- The message also announced that sides in the United States and is a United pursuant to 22 U.S.C. 276th and the uments, and were referred as indicated: States citizen or lawful permanent resident order of the House of January 8, 2003, EC–2652. A communication from the Under alien; and the Speaker appoints the following Secretary, Emergency Preparedness and Re- Whereas, S. 68 would further require the Members of the House of Representa- sponse, Federal Emergency Management Secretary of Veterans Affairs to furnish care tives to the Mexico-United States Agency, transmitting, pursuant to law, the and services to all Filipino World War II vet- report relative to the funding of the State of Interparliamentary Group, in addition erans for service-connected disabilities and New York as a result of record/near record nonservice-connected disabilities residing in to Mr. KOLBE of Arizona, Chairman, ap- snowstorms on December 25–26, 2002, and the Republic of the Philippines on an out- pointed on March 13, 2003: Mr. January 3–4, 2003, has exceeded $5,000,000; to patient basis at the Manila VA Outpatient BALLENGER of North Carolina, Vice the Committee on Environment and Public Clinic; now, therefore, Chairman; Mr. DREIER of California; Works. Be it resolved by the House of Representa- Mr. BARTON of Texas; Mr. MANZULLO of EC–2653. A communication from the Direc- tives of the Twenty-second Legislature of Illinois; Mr. WELLER of Illinois; Ms. tor, Human Resources Management, Depart- the State of Hawaii. Regular Session of 2003, ment of Energy, transmitting, pursuant to That the United States Congress is respect- HARRIS of Florida; Mr. STENHOLM of law, the report of a vacancy and designation fully urged to support the passage of S. 68 to Texas; Mr. FALEOMAVAEGA of American of an acting officer for the position of Chief improve benefits for certain Filipino vet- Samoa; Mr. PASTOR of Arizona; Mr. Financial Officer for the Office of Manage- erans of World War II; and FILNER of California; Mr. REYES of ment, Budget and Evaluation; to the Com- Be it further resolved, That certified cop- Texas. mittee on Energy and Natural Resources. ies of this Resolution be transmitted to the

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.045 S10PT1 S7608 CONGRESSIONAL RECORD — SENATE June 10, 2003 President of the United States Senate, the Offset (GPO), which reduces the spousal and society [and] is the only sure guardian of the Speaker of the United States House of Rep- widow(er)s social security benefit, and the rights of man’’; and resentatives, the members of the Hawaii con- Windfall Elimination Provision (WEP), Whereas, Thomas Jefferson also stated, ‘‘A gressional delegation and the Secretary of which reduces the earned social security ben- judiciary independent . . . of the will of the Veterans Affairs. efit for persons who also receive a state or nation is a solecism—at least in a republican local government retirement; and government’’; and POM–128. A joint resolution adopted by the Whereas, the intent of Congress in enact- Whereas, the United States Court of Ap- Legislature of the State of Washington rel- ing the GPO and WEP provisions was to ad- peals for the Ninth Circuit has violated these ative to restoring the deduction of retail dress concerns that public employees who fundamental principles and abrogated the sales tax under the federal income tax; to had worked primarily in state and local gov- ‘‘consent of the governed’’ as set forth in our the Committee on Finance. ernment employment receive the same ben- governing documents; and Whereas, the will of the people can be pro- SENATE JOINT MEMORIAL 8003 efit as workers who had worked in social se- curity employment throughout their careers, tected against further judicial usurpation by Whereas, The federal tax reform act of 1986 the federal courts on this issue through con- put additional financial stress on the tax- thereby providing a disincentive to ‘‘double- dipping’’; and gressional action to limit the jurisdiction of payers of the state of Washington by elimi- the federal courts as explicitly set forth in nating the retail sales tax deduction; and Whereas, the GPO affects a spouse or widow(er) receiving a state or local govern- the Constitution in Article III, Section 2, Whereas, Taxpayers in other states may Paragraph 2 (federal courts ‘‘shall have ap- deduct major state taxes in determining fed- ment retirement benefit who would also be entitled to a social security benefit earned pellate jurisdiction both as to law and fact eral income tax; and with such exceptions and under such regula- Whereas, Taxpayers of the state of Wash- by a spouse; and Whereas, the GPO formula reduces the tions as Congress shall make’’); and ington would realize substantial reductions Whereas, the intent of the Framers regard- spousal or widow(er)s social security benefit in federal tax burdens if they could deduct ing this power of Congress to limit judicial by two-thirds of the amount of the state or retail sales taxes; and overreach was clear, such that Samuel Whereas, Congress is in the process of con- local government retirement benefit re- Chase, a signer of the Declaration of Inde- sideration tax reduction proposals; and ceived by the spouse or widow(er), in many pendence and a United States Supreme Court Whereas, Congress could easily relieve the cases completely eliminating the social secu- Justice appointed by President George Wash- burden on taxpayers of the state of Wash- rity benefit; and ington, declared, ‘‘The notion has frequently ington by restoring the full retail sales tax Whereas, the WEP applies to those persons been entertained that the federal courts de- deduction; who have earned a state or local government rive their judicial power immediately from Now, therefore, Your Memorialists respect- retirement benefit in addition to having the the Constitution; but the political truth is fully pray that the United States restore the necessary credits earned in social security that the disposal of the judicial power (ex- deduction of retail sales tax under the fed- employment; and cept in a few specified instances) belongs to eral income tax. Whereas, the WEP reduces the earned so- Congress. If Congress has given the power to Be it resolved, That copies of this Memo- cial security benefit by using a modified for- this court, we possess it, not otherwise’’; and rial be immediately transmitted to the Hon- mula of the averaged indexed monthly earn- Whereas, Justice Joseph Story, in his au- orable George W. Bush, President of the ings, which may reduce the earned social se- thoritative Commentaries on the Constitu- United States, the President of the United curity benefits by as much as fifty percent; tion, similarly declared, ‘‘In all cases where States Senate, the Speaker of the House of and the judicial power of the United States is to Representatives, and each member of Con- Whereas, the GPO and WEP have a dis- be exercised, it is for Congress alone to fur- gress from the State of Washington. proportionately negative effect on employees nish the rules of proceeding, to direct the working in lower-wage government jobs, process, to declare the nature and effect of POM–129. A concurrent resolution adopted such as policemen, firefighter, teachers, and the process, and the mode, in which the judg- by the legislature of the State of Louisiana municipal, parochial, and state employees; ments, consequent thereon, shall be executed relative to provisions of the Internal Rev- and . . . And if Congress may confer power, they enue Code which provide for the taxation of Whereas, these provisions also affect more may repeal it . . . The power of Congress [is] Social Security income; to the Committee women than men because of the gender dif- complete to make exceptions’’; and on Finance. ferences in salary that continue to exist Whereas, this position is confirmed not HOUSE CONCURRENT RESOLUTION NO. 6 across of nation; and only by signers of the Constitution such as Whereas, current provisions of the Internal Whereas, Louisiana is making every effort George Washington and James Madison but Revenue Code provide for the taxation of up to improve the quality of life of her citizens, also by other leading constitutional experts to eighty-five percent of income derived to encourage them to remain here lifelong, and jurists of the day, including Chief Jus- from Social Security benefits; and and to provide for them in their retirement tice Oliver Ellsworth, Chief Justice John Whereas, Social Security payments are years. Marshall, Richard Henry Lee, Robert Yates, often the primary income of retirees; and Therefore, be it resolved, that the Legisla- George Mason, and John Randolph; and Whereas, retired persons are citizens who ture of Louisiana does hereby memorialize Whereas, the United States Supreme Court can least afford a reduction in income; and the Congress of the United States to review has long recognized and affirmed this power Whereas, retired persons are currently fac- and consider eliminating the GPO and WEP of Congress to limit the appellate jurisdic- ing increased costs of living, including in- social security benefit reductions. tion of the federal courts, as in 1847 when the creased costs of prescription drugs; and Be it further resolved, That a copy of the court declared that the ‘‘court possesses no Whereas, other measures currently being Resolution be transmitted to the presiding appellate power in any case unless conferred reviewed by congress to stimulate the econ- officers of the Senate and the House of Rep- upon it by act of Congress’’ and in 1865 when omy do not address the needs of low- and resentatives of the Congress of the United it declared ‘‘it is for Congress to determine middle-income retired persons. States of American and to each member of how far . . . appellate jurisdiction shall be Therefore, be it resolved, That the Lou- the Louisiana congressional delegation. given; and when conferred, it can be exer- isiana Legislature does hereby memorialize cised only to the extent and in the manner the United States Congress to repeal the pro- POM–131. A concurrent House resolution prescribed by law’’; and visions of the Internal Revenue Code which adopted by the Legislature of the State of Whereas, congress has on numerous occa- provide for the taxation of Social Security Louisiana relative to the Pledge of Alle- sions exercised this power to limit the juris- income. giance; to the Committee on Finance. diction of federal courts, and the Supreme Court has consistently upheld this power of Be it further resolved, That a copy of this HOUSE CONCURRENT RESOLUTION NO. 121 Resolution be transmitted to the presiding congress in rulings over the last two cen- Whereas, Louisiana is one of numerous turies, including cases in 1847, 1866, 1868, 1878, officers of the Senate and the House of Rep- states in which students recite the Pledge of resentatives of the Congress of the United 1882, 1893, 1898, 1901, 1904, 1906, 1908, 1910, 1922, Allegiance in public schools; and 1926, 1948, 1952, 1966, 1973, 1977, and others; States of America and to each member of the Whereas, the practice of including ‘‘under Louisiana congressional delegation. and God’’ in the Pledge was established by fed- Whereas, it is Congress alone that can rem- eral law decades ago and reaffirmed by a new edy this current crisis and return to the POM–130. A concurrent resolution adopted federal law just last year; and by the Legislature of the State of Louisiana states the power to make their own decisions Whereas, recent polls indicate that up to on recitation of the Pledge of Allegiance in relative to reviewing and consider elimi- ninety percent of the public is overwhelm- nating the provisions of law which reduce or public schools. ingly in favor of allowing students to recite Therefore, be it resolved, That the Legisla- totally eliminate social security benefits for the Pledge of Allegiance; and ture of Louisiana does hereby memorialize those persons who also receive a state or Whereas, Constitution signer George Wash- the Congress of the United States to limit local government retirement benefit; to the ington declared, ‘‘the fundamental principle the appellate jurisdiction of the federal Committee on Finance. of our Constitution . . . enjoins [requires] courts regarding the recitation of the Pledge HOUSE CONCURRENT RESOLUTION NO. 39 that the will of the majority shall prevail,’’ of Allegiance in public schools. Whereas, the Congress of the United States and Thomas Jefferson pronounced, ‘‘the will Be it further resolved, That a copy of this has enacted both the Government Pension of the majority [is] the natural law of every Resolution be transmitted to the presiding

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.084 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7609 and chief clerical officers of the Senate and Whereas, because of the historical rela- now known as the Millennium Development the House of Representatives of the Congress tionship between the United States of Amer- Goals; and of the United States of America and to each ica and the Republic of the Philippines, there Whereas, members of the United Nations, member of the Louisiana congressional dele- continue to exist valid reasons to promote including the United States, pledged to meet gation. international friendship and understanding established benchmark for the Millennium for the mutual benefit of both countries to Development Goals by 2015 to: POM–132. A concurrent resolution adopted achieve lasting peace and prosperity as it (1) Reduce by fifty per cent the proportion by the Legislative of the State of Texas rel- serves the common interests of both coun- of people living in extreme poverty and suf- ative to Federal income tax; to the Com- tries; and fering from hunger; mittee on Finance. Whereas, there are historical precedents (2) Achieve universal primary education by SENATE CONCURRENT RESOLUTION NO. 6 exemplifying the common desire to maintain ensuring that all boys and girls complete pri- Whereas, Current federal tax provisions a close cultural, commercial, and financial mary school; place an arbitrary state cap on the volume of bridge between ethnic Filipinos living in Ha- (3) Promote gender equality and empower private activity bonds, which hinders the waii with their relatives, friends, and busi- women by eliminating disparities in primary ability of Texas to meet its rapidly growing ness counterparts in the Philippines, such as and secondary education at all levels; water infrastructure needs; and the previously established sister-city rela- (4) Reduce child mortality by two-thirds Whereas, Private activity bonds afford a tionship between the City and County of among children under five years old; cost-effectiveness, nonrecourse means of fi- Honolulu and the City of Cebu in the Prov- (5) Improve maternal health by reducing nancing the development of adequate waste- ince of Cebu; and the ratio of women’s death during childbirth water and drinking water facilities for the Whereas, similar state-province relation- by seventy-five per cent; future and minimize and drinking facilities ship exist between the State of Hawaii and (6) Combat HIV/AIDS, malaria, and other for the future and minimize the risk to the the Provinces of Cebu and Ilocos Sur, where- diseases by reversing the spread of HIV/ ratepayer; and by cooperation and communication have AIDS, malaria, and other major diseases; Whereas, Other sources of municipal infra- served to establish exchanges in the areas of Whereas, it is critical that initiatives and structure financing, such as general obliga- business, trade, agriculture and industry, programs funding through the Millennium tion bonds, revenue bonds, enterprise bonds, tourism, sports, health care, social welfare, Challenge Account include activities that and loans under the federal Environmental and other fields of human endeavor; and enable women to play active roles in the eco- Protection Agency’s state revolving loan Whereas, a similar sister-state relationship nomic and civic activities of their countries; fund program, are insufficient to allow Texas would reinforce and cement this common now, therefore, to comply with new federal environmental bridge for understanding and mutual assist- Be it resolved by the House of Representa- and public health mandates; and ance between ethnic Filipinos of both the tives of the Twenty-second Legislature of Whereas, The cap on the volume of private State of Hawaii and the Province of Ilocos the State of Hawaii, Regular Session of 2003, activity bonds forces water and wastewater Norte; and the Senate concurring, That the United projects to compete with other projects in Whereas, there is an existing relationship States Congress is urged to fully fund the Texas without regard to the urgent priority between the Province of Ilocos Norte and the Millennium Challenge Account to enable of protecting public health and the environ- State of Hawaii because several notable citi- poor and hungry people around the globe be- ment; and zens of Hawaii can trace their roots or have come self-reliant; and Whereas, Private activity bonds foster in- immigrated from the Province of Ilocos Be it further resolved, That as the Millen- novative public-private partnerships and Norte, including the city of Laoag; now, nium Challenge Account is implemented, it help them develop cost-effective projects for therefore, is crucial that our leaders understand and re- the construction of sewage and drinking Be it resolved by the House of Representa- quire that women be involved in all phases of water facilities and the rehabilitation and tives of the Twenty-second Legislature of establishment and implementation of pro- upgrade of existing water infrastructure; and the State of Hawaii, Regular Session of 2003, grams funded to achieve the Millennium De- Whereas, Removing the financing cap the Senate concurring, That Governor Linda velopment goals; and would give public officials the maximum Lingle of the State of Hawaii, or her des- Be it further resolved, That adequate fund- number of tools for meeting the growing ignee, be authorized and is requested to take ing and meaningful participation of women public demand for water services while en- all necessary actions to establish a state- and girls are essential for successful develop- suring compliance with federal environ- province affiliation with the Province of ment assistance programs in poor nations; mental and public health laws; now, there- Ilocos Norte in the Republic of the Phil- and fore, be it ippines; and Be it further resolved, That certified cop- Resolved, That the 78th Legislature of the Be it further resolved, That the Governor ies of this Concurrent Resolution be trans- State of Texas hereby respectfully urge the or her designee is requested to keep the Leg- mitted to the President of the United States, Congress of the United States to amend the islature of the State of Hawaii fully in- the President of the United States Senate, Internal Revenue Code of 1986 to provide that formed of the process in establishing the re- the Speaker of the United States House of the volume cap for private activity bonds lationship, and involved in its formalization Representatives, and the members of Ha- not apply to bonds for water and wastewater to the extent practicable; and waii’s congressional delegation. facilities; and, be it further Be it further resolved, That the Province Resolved, That the Texas secretary of of Ilocos Norte be afforded the privileges and POM–135. A concurrent resolution adopted state forward official copies of this resolu- honors that Hawaii extends to its sister- by the Legislature of the State of Hawaii rel- tion to the president of the United States, to states and provinces; ative to the establishment of State-Province the Speaker of the house of representatives Be it further resolved, That this state- relations between the State of Hawaii of the and the president of the Senate of the United province relationship shall continue until United States and the Province of Thua States Congress, and to all the members of July 1, 2008; and Thien-Hue of the Socialist Republic of Viet- the Texas delegation to the Congress with Be it further resolved, That certified cop- nam; to the Committee on Foreign Rela- the request that this resolution be officially ies of this Concurrent Resolution be trans- tions. entered in the Congressional Record as a me- mitted to the President of the United States, HOUSE RESOLUTION the Governor of the State of Hawaii, the morial to the Congress of the United States Whereas, the State of Hawaii is actively President of the United States Senate, the of America. seeking to expand its international ties and Speaker of the United States House of Rep- has an abiding interest in developing good- resentatives, Hawaii’s Congressional delega- POM–133. A concurrent resolution adopted will, friendship, and economic relations be- tion, the President of the Republic of the by the Legislature of the State of Hawaii rel- tween the people of Hawaii and the people of Philippines through its Honolulu Consulate ative to the establishment of State-Province Asian and Pacific countries; and General, and the Governor and Provincial relations between the State of Hawaii of the Whereas, as part of its effort to achieve Board of the Province of Ilocos Norte, Re- United States and the Province of Ilocos this goal, the State has established a number public of the Philippines. Norte of the Republic of the Philippines; to of sister-state agreements with provinces in the Committee on Foreign Relations. the Pacific region; and POM–134. A concurrent resolution adopted HOUSE CONCURRENT RESOLUTION NO. 17 Whereas, because of the historical rela- by the Legislature of the State of Hawaii rel- Whereas, the State of Hawaii is actively tionship between the United States of Amer- ative to fully funding the Millennium Chal- seeking to expand its international ties and ica and the Socialist Republic of Vietnam, lenge Account; to the Committee on Foreign has an abiding interest in developing good- there are compelling reasons to promote Relations. will, friendship, and economic relations be- international friendship and understanding tween the people of Hawaii and the people of HOUSE CONCURRENT RESOLUTION NO. 28 for the mutual benefit of both countries to Asian and Pacific countries; and Whereas, in September 2000, the United Na- achieve lasting peace and prosperity, as it Whereas, as part of its effort to achieve tions General Assembly adopted the United serves the common interests of both coun- this goal, Hawaii has established a number of Nations Millennium Declaration, a resolu- tries; and sister-state agreements with provinces on tion establishing international development Whereas, there are historical precedents the Pacific region; and goals to reduce poverty and improve lives, exemplifying the common desire to maintain

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.088 S10PT1 S7610 CONGRESSIONAL RECORD — SENATE June 10, 2003 a close cultural, commercial, and financial goals to reduce poverty and improve lives, is crucial that our leaders understand and re- bridge between ethnic Vietnamese living in now known as the Millennium Development quire that women be involved in all phases of Hawaii with their relatives, friends, and Goals; and establishment and implementation of pro- business counterparts in Vietnam, such as Whereas, members of the United Nations, grams funded to achieve the Millennium De- the previously established sister-city rela- including the United States, pledged to meet velopment goals; and tionship between the City and County of established benchmarks for the Millennium Be it further resolved, That adequate fund- Honolulu and the city of Hue, which is the Development Goals by 2015 to: ing and meaningful participation of women capital of the Province of Thua Thien-Hue; (1) Reduce by fifty percent the proportion and girls are essential for successful develop- and of people living in extreme poverty and suf- ment assistance programs in poor nations; Whereas, a similar state-province relation- fering from hunger; and ship between the State and the Province of (2) Achieve universal primary education by Be it further resolved, That certified cop- Thua Thien-Hue, whereby exchanges and co- ensuring that all boys and girls complete pri- ies of this Resolution be transmitted to the operation could be established in the areas of mary school; President of the United States, the President business, trade, agriculture, environmentally (3) Promote gender equality and empower of the United States Senate, the Speaker of and culturally sensitive tourism, sports, pub- women by eliminating disparities in primary the United States House of Representatives, lic health, education, economic development and secondary education at all levels; and the members of Hawaii’s congressional and humanitarian assistance would reinforce (4) Reduce child mortality by two-thirds delegation. and cement this common bridge of under- among children under five years old; POM—137. A resolution adopted by the standing and mutual assistance between the (5) Improve maternal health by reducing House of the Legislature of the State of Ha- ethnic Vietnamese of both the State and the the ratio of women’s death during childbirth waii relative to International Women’s Day; Province of Thua Thien-Hue; and by seventy-five per cent; (6) Combat HIV/AIDS, malaria, and other to the Committee on Foreign Relations. Whereas, the Province of Thua Thien-Hue, Whereas, International Women’s Day, cele- like Hawaii, has an agricultural economy diseases by reversing the spread of HIV/ AIDS, malaria, and other major diseases; brated throughout the world on March 8, is a that is based upon sugar cane, fruits, and time to: reflect on the status of women in flowers, and aquaculture crops, such as (7) Ensure environmental sustainability by introducing sustainable development prin- the United States and around the world; as- shrimp; and sess progress made and remaining chal- Whereas, the city of Hue, capital of the ciples to: reverse the loss of environmental resources; increase access to safe drinking lenges; and recommit to women’s human Province of Thua Thien-Hue has been des- rights and the full empowerment of the ignated as a World Heritage Site by the water; and achieve significant improvements in the lives of at least one hundred million world’s women as the basis for truly sustain- United Nations Educational, Scientific, and able social, economic, and political develop- Cultural Organization because its cultural slum dwellers; and (8) Develop a global partnership for devel- ment of nations and communities; and and natural properties are considered to be Whereas, 228,000,000 women are in need of of outstanding universal value and must be opment through reform of the trading sys- tem and financial system to allow poor na- effective contraceptive methods; and protected; and Whereas, a woman dies every minute as a Whereas, the Province of Thua Thien-Hue’s tions to sell goods at fair prices to obtain fi- nancial resources to create stable economies result of pregnancy and childbirth-related unique cultural and historical significance causes (approximately five hundred thousand and natural beauty are important resources and eliminate poverty; aiding to the special needs of least developed countries; address- women a year) and for every woman who on which to base an environmentally and dies, thirty other women are injured or dis- culturally sensitive tourism industry; and ing debt problems of developing countries; creating productive work for youth; increase abled; and Whereas, Hawaii’s long experience and ex- Whereas, between seven hundred thousand access to affordable drugs; and make benefits pertise in tourism, agriculture, and aqua- and four million people—mainly women and of new technologies available; and culture could be shared with the Province of children—are trafficked annually across Whereas, in March 2002, President George Thua Thien-Hue; now, therefore, international borders for sexual exploitation W. Bush unveiled the Millennium Challenge Be it resolved by the House of Representa- and forced labor; and Account, a plan to increase significantly de- tives of the Twenty-second Legislature of Whereas, fifty thousand to one hundred velopment assistance to poor, developing the State of Hawaii, Regular Session of 2003, thousand women and girls are trafficked an- countries by an additional $10,000,000,000 in That the Governor of the State of Hawaii or nually for sexual exploitation into the foreign assistance over fiscal years 2004–2006, her designee is requested to take all nec- United States; and essary actions to establish a sister-state af- ultimately doubling United States poverty- Whereas, HIV/AIDS is a women’s epidemic filiation with the Province of Thua Thien- focused assistance when fully implemented; worldwide—with 19,200,000 women worldwide Hue in the Socialist Republic of Vietnam; and currently living with HIV/AIDS and 1,200,000 and Whereas, initiatives to be funded through women dying of AIDS in 2002; and Be it further resolved, That the Governor the Millennium Challenge Account have the Whereas, for the last several years, HIV/ is requested to keep the Legislature fully ap- potential to improve the nutrition, health AIDS has been the fifth leading cause of prised of any progress made in establishing care, education, and drinking water for mil- death for women ages twenty-five to forty- the relationship in order that the Legisla- lions of people in poor nations only if the four in the United States and the third lead- ture may be involved in its formalization to Millennium Challenge Account is fully fund- ing cause of death for African American the extent practicable; and ed by Congress; and women in this same age group; and Be it further resolved, That the Province Whereas, although studies uniformly re- Whereas, gender-based violence against of Thua Thien-Hue be afforded the privileges port that the most effective use of inter- women—including prenatal sex selection, fe- and honors to which Hawaii extends to its national aid is the investment in women, the male infanticide, sexual abuse, female gen- other sister-states and provinces; and reports also indicate that women do not ben- ital mutilation, school and workplace sexual Be it further resolved, That certified cop- efit from international development efforts harassment, sexual trafficking and exploi- ies of this Resolution be transmitted to the unless they are included in all aspects of a tation, prostitution, dowry-killings, domes- President of the United States through the development initiative from its beginning; tic violence, battering, and marital rape— Secretary of State, the Governor of the and causes more death and disability among State of Hawaii, the President of the United Whereas, the involvement of women in any women in the fifteen to forty-four age group States Senate, the Speaker of the United economic growth plan is critical because than cancer, malaria, traffic accidents, and States House of Representatives, Hawaii’s women and girls are more than half of the even war; and congressional delegation, the President of world’s population and represent signifi- Whereas, approximately 4,800,000 rapes and the Socialist Republic of Vietnam through cantly more than half of the population in physical assaults are perpetrated annually its San Francisco Consulate General, the areas particularly devastated by prolonged against women in the United States; and Governor of the Province of Thua Thien-Hue, conflict like Afghanistan; and Whereas, women in many countries lack Whereas, it is critical that initiatives and Socialist Republic of Vietnam, and the Di- rights to own land and inherit property, ob- programs funded through the Millennium rector of Business, Economic Development, tain credit, attend and stay in school, earn Challenge Account include activities that and Tourism. income, work free from job discrimination, enable women to play active roles in the eco- and have access to services that meet their nomic and civic activities of their countries; POM–136. A resolution adopted by the sexual and reproductive health needs; and now, therefore, House of the Legislature of the State of Ha- Whereas, 2,100,000,000 women around the Be it resolved by the House of Representa- waii relative to fully funding the Millennium globe live on less than two dollars a day, and tives of the Twenty-second Legislature of Challenge Account; to the Committee on women in the United States earn seventy- the State of Hawaii, Regular Session of 2003, Foreign Relations. three cents on average for every dollar That the United States Congress is urged to earned by men; and HOUSE RESOLUTION NO. 33 fully fund the Millennium Challenge Ac- Whereas, two-thirds of the 960,000,000 illit- Whereas, in September 2000, the United Na- count to enable poor and hungry people erate adults in the world are women and tions General Assembly adopted the United around the globe become self-reliant; and two-thirds of the 130,000,000 children not en- Nations Millennium Declaration, a resolu- Be it further resolved, That as the Millen- rolled in primary school are girls; now, tion establishing international development nium Challenge Account is implemented, it therefore,

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.091 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7611 Be it resolved by the House of Representa- child, as these family planning services ad- Whereas, The Northwest electricity system tives of the Twenty-second Legislature of dress other health problems such as sexually is different from most of the rest of the na- the State of Hawaii, Regular Session of 2003, transmitted diseases, which indirectly helps tion, including substantial differences in the That this body urges the United States Sen- with economic stability in developing coun- transmission ownership, a hydro-based sys- ate to demonstrate our nation’s commitment tries; and tem where the amount of energy generated is to human rights by ratifying the Convention Whereas, through the global gag rule, the limited by the amount of water in the rivers on the Elimination of All Forms of Discrimi- United States government not only stifles and behind the dams, complex legal arrange- nation Against Women, joining one hundred free speech, but affirmatively discriminates ments for multiple uses of the water to meet seventy other nations in endorsing the most against viewpoints it does not like, some- diverse goals (power, irrigation, fisheries, comprehensive treaty ensuring the funda- thing that would be unconstitutional in its recreation, and treaty obligations), and a mental human rights and equality of women; own country; and hydro-based system that requires substantial and Whereas, this gag rule was created by exe- coordination among plant owners and utili- Be it further resolved, That the United cution order of President Reagan in 1984; and ties, rather than the competitive market- States Congress is urged to affirm women’s Whereas, President Clinton canceled the based structure the SMD promotes; and fundamental right to reproductive health, gag order in 1993, but reluctantly restored it Whereas, The Northwest electricity system including the ability to choose the number of for one year in 1999 in exchange for the Re- has produced affordable, cost-based rates and children they will have and the timing of publicans in Congress agreeing to pay the reliable service for our region; and United States’ back dues to the United Na- their births, by funding high quality, vol- Whereas, Deregulation broke up tradi- tions; and untary family planning and reproductive tional regulated utilities in order to create Whereas, President Bush reimposed the trading markets with the promise of lower health services that enable women to exer- global gag rule by executive order in Janu- cise this right; and costs, more consumer choice, more reli- ary 2001 and reaffirmed his opposition to re- ability, and fewer government bailouts. It in Be it further resolved, That certified cop- productive rights in his state of the union ies of this Resolution be transmitted to the fact produced higher prices, more manipula- address; and tion of consumers, volatility, brownouts, and President of the United States Senate, the Whereas, the gag order is consistent with bailouts running into the tens of billions; Speaker of the United States House of Rep- the United States administration’s recent and resentatives, and members of Hawaii’s con- announcement at an international con- Whereas, The SMD would harm consumers gressional delegation. ference that they support the ‘‘rhythm in our region through increased costs and de- method’’ of contraception; and POM–138. A resolution adopted by the Whereas, the global gag rule: undermines creased reliability; Now, therefore, Your Memorialists respect- House of the Legislature of the State of Ha- the human right to free speech, a right so fully pray that the Federal Energy Regu- waii relative to the Global Gag Rule imposed vigorously championed by our government latory Commission leave the Northwest elec- on International Family Planning Organiza- that it is part of our constitution; undercuts tricity system in place and withdraw the No- tions; to the Committee on Foreign Rela- our foreign policy; and damages women’s re- tice of Proposed Rulemaking establishing a tions. productive health; and Standard Market Design (SMD) for elec- HOUSE RESOLUTION NO. 34 Whereas, this misguided policy would be il- legal were it to be imposed in our own coun- tricity; and Whereas, approximately 120 million cou- Your Memorialists further pray that in the try, and it is unconscionable for the United ples in the third world lack access to modern event that the Federal Energy Regulatory States to force it on other countries; jeop- contraception; and Commission does not withdraw its proposal, ardizing the health of millions of women and Whereas, the United States provides family the President and Congress take action to planning assistance funds to non-govern- children; and Whereas, the Legislature has already dem- prevent the Federal Energy Regulatory Com- mental organizations in fifty-nine countries; onstrated its support for women’s rights in mission from proceeding with their proposal. and Be it resolved, That copies of this Memo- the family context when it adopted House Whereas, these nations have a right to in- rial be immediately transmitted to the Hon- Resolution No. 15 during the 1999 Regular form their own people about legal family orable George W. Bush, President of the Session entitled ‘‘Urging the United States planning options and to discuss changes in United States, the Honorable Spencer Abra- Senate to Ratify the United Nations Conven- their family planning laws, in order to form ham, the Secretary of the United States De- tion on the Elimination of All Forms of Dis- their own policy and development, without partment of Energy, the Members of the Fed- crimination Against Women’’; and interference by the United States; and Whereas, legislation is pending in Congress eral Energy Regulatory Commission, Chair- Whereas, the United States has interfered to remove the global gag rule and permit the man Patrick Wood, III, Commissioner Nora with these non-governmental organizations non-governmental organizations to provide M. Brownell, and Commissioner William L. through the ‘‘global gag rule,’’ by which the appropriate and legal family planning serv- Massey, the President of the United States United States refuses to fund non-govern- ice and information in their home countries; Senate, the Speaker of the House of Rep- mental organizations that provide legal now, therefore, resentatives, and each member of Congress abortion services, lobby their own govern- Be it resolved by the House of Representa- from the State of Washington. ments for abortion law reform, or even pro- tives of the Twenty-second Legislature of POM–140. A resolution adopted by the Leg- vide accurate medical counseling or referrals the State of Hawaii, Regular Session of 2003, islature of the State of Washington relative regarding abortion, even if no United States That the United States Congress is hereby to the Federal Energy Regulatory Commis- money is used for those purposes; and urged to support a ban on the global gag sion; to the Committee on Energy and Nat- Whereas, in almost sixty per cent of these rule; and countries, abortion in some form is legal, yet Be it further resolved, That certified cop- ural Resources. the global gag rule prevents their non-gov- ies of this Resolution be transmitted to the SENATE JOINT MEMORIAL 8012 ernmental organizations from discussing the President of the United States, Speaker of Whereas, The Federal Energy Regulatory option of performing abortions, even if this the United States House of Representatives, Commission recently proposed a new pricing is done with the non-governmental organiza- the President of the United States Senate, policy for the rates of transmission owners tions’ own funds and not with any United and the members of Hawaii’s congressional that transfer operational control of their States funds; and delegation. transmission facilities to a Regional Trans- Whereas, in the countries where abortion mission Organization. (RTO), form inde- is not legal, the global gag rule prevents the POM–139. A joint resolution adopted by the pendent transmission companies within non-governmental organizations from speak- Legislature of the State of Washington rel- RTOs, or pursue additional measures that ing publicly about these issues to foster in- ative to the Federal Energy Regulatory promote efficient operation and expansion of formed debate on abortion, even if this free Commission; to the Committee on Energy the transmission grid; and speech is done with the non-governmental and Natural Resources. Whereas, The proposed policy would create organizations’ own funds; and Whereas, The Federal Energy Regulatory rate incentives based on an unproven theory Whereas, in rural areas, often these non- Commission proposal establishing a standard that it will improve grid performance, re- governmental organizations are the only market design (SMD) for electricity proceeds duce wholesale transmission and trans- health care providers, so restricting their from the premise that a single market model actions costs, improve electric reliability, funding affects the health of all people in the will work for the entire nation, as a result it and make electric wholesale competition community and forces the non-governmental would fundamentally change the way the more effective; and organizations to make an immoral choice: transmission system is operated, expand the Whereas, The proposal offers a single either give up desperately needed funds for Commission’s authority in state decisions model for the entire nation and fails to rec- family planning services, or give up their regarding resource adequacy and demand re- ognize regional differences in electricity gen- right to free speech and to provide their pa- sponse, and dismantle the regional benefits eration and transmission or the benefits de- tients with full and accurate medical infor- derived from public power; and rived from public power; and mation; and Whereas, Washington state has a com- Whereas, Washington state has a com- Whereas, the ‘‘global gag rule’’ process prehensive electricity policy, which encour- prehensive electricity policy, which encour- hurts good family-planning work that has ages efficiency while reflecting our unique ages efficiency while reflecting our unique little to do with the rights of an unborn resource base; and resource base; and

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.093 S10PT1 S7612 CONGRESSIONAL RECORD — SENATE June 10, 2003 Whereas, The Northwest electricity system Michigan businesses are working closely acres comprise the Coastal Plain for which is different from most of the rest of the na- with university researchers on these the potential for oil and gas production was tion and has produced affordable, cost-based projects; and acknowledged by Congress in the Alaska Na- rates and reliable service for our region; and Whereas, Michigan has made a significant tional Interest Lands Conservation Act of Whereas, We believe the proposed pricing commitment to encouraging enterprise in 1980; and incentives would harm consumers in our re- the field of emerging energy development. Whereas, oil and natural gas development gion through increased costs without any The Ninety-first Legislature enacted the and wildlife are successfully coexisting and positive cost-benefit analysis; and ‘‘NextEnergy’’ package of legislation to pro- advanced technology has greatly reduced the Whereas, We believe the proposed pricing mote energy research, especially fuel cell ‘‘footprint’’ of Arctic oil development; and incentives will harm the investment climate technology. These acts created a series of Whereas, the Alaska State AFL–CIO and for new electricity infrastructure in the re- tax credits, exemptions, and deductions for the Alaska Federation of Natives support re- gion due to the Commission’s inability to en- businesses working on alternative energy sponsible oil and gas development on the sure delivery of the promised incentives, and technologies, in addition to providing for al- Coastal Plain of ANWR; and because the incentives first apply to existing ternative energy zones to spur investment. Whereas, environmentally responsible ex- transmission and second to new investment, The Next Energy Authority created in the ploration, development, and production of but only if a utility is a member of an RTO; Department of Management and Budget re- oil on the Coastal Plain of ANWR will pro- and flects the depth of the state’s commitment. vide incomes to federal and state govern- Whereas, We believe the proposed pricing Clearly, Michigan is uniquely suited for re- ments and general jobs and business opportu- incentives will make more difficult the for- search devoted to establishing a hydrogen- nities for residents in all 50 states; and mation of any new regional transmission or- based means of generating energy for our Whereas, the people of Montana, while in ganization that is, in fact, well-designed to cars, homes, and businesses; now, therefore, general and qualified support of continued fit Northwest regional circumstances be- be it development of fossil fuels, recognize that cause the generic incentive is a new cost Resolved by the Senate (the House of Rep- further development of fossil fuels addresses that outweigh any benefits of such an orga- resentative concurring), That we memori- the short-term needs of our nation’s energy nization; alize the President and Congress of the independence; and Now, therefore, Your Memorialists respect- United States to pursue and support fuel cell Whereas, the people of Montana agree with fully pray that the Federal Energy Regu- research projects in Michigan; and be it fur- the comments of President Bush during the latory Commission leave the Northwest elec- ther 2003 State of the Union Address that the de- tricity system in place and withdraw its pro- Resolved, That copies of this resolution be velopment of alternative energy sources, posed new pricing policy for the rates of transmitted to the Office of the President of which would make America truly inde- transmission owners until such time as a the United states, the President of the pendent, is the preferred path for our coun- cost-benefit analysis is completed that indi- United States Senate, the Speaker of the try; and cates a positive benefit from Northwest con- United States House of Representatives, and Whereas, the people of Montana recognize sumers, and the region expresses its desire to the members of the Michigan congressional that development of alternative energy form a new transmission organizations; and delegation. sources, including solar, hydrogen, wind, fuel Your Memorialists further pray that in the cell, ethanol, and biodiesel fuels, constitutes event that the Federal Energy Regulatory POM–142. A joint resolution adopted by the a preferred alternative to long-term energy Commission does not withdraw its proposal, Senate of the Legislature of the State of development; and the President and Congress take action to Montana relative to Arctic National Wildlife Whereas, people of Montana understand prevent the Federal Energy Regulatory Com- Refuge; to the Committee on Energy and that development of certain alternative en- mission from proceeding with their proposal. Natural Resources. ergy sources, such as ethanol and biodiesel fuel, would enhance the economic and agri- Be it resolved, That copies of this Memo- SENATE JOINT RESOLUTION NO. 22 rial be immediately transmitted to the Hon- cultural base of our great state; and Whereas, stable, affordable energy is vital orable George W. Bush, President of the Whereas, people of Montana further ac- to the economy and security of the people of United States, the Honorable Spencer Abra- knowledge that the efficient use of our exist- the State of Montana and the United States ham, the Secretary of the United States De- ing energy resources in a critical and stra- of America; and partment of Energy, the Members of the Fed- tegic priority in order to ensure our energy Whereas, the United States has become in- eral Energy Regulatory Commission, Chair- independence; and creasingly dependent on foreign supplies of man Patrick Wood, III, Commissioner Nora Whereas, America has demonstrated the crude oil to meet our energy needs and is M. Brownell, and Commissioner William L. ability to dramatically reduce the energy now importing more than 55% of the nation’s Massey, the President of the United States consumption in past times of national crisis crude oil needs; and Senate, the Speaker of the House of Rep- through fuel efficiency standards for auto- Whereas, dependence on imports is rising resentatives, and each member of Congress mobiles, installation of industrial efficiency and could exceed 65% by the year 2020 due to from the State of Washington. measures, and a conservation ethic among growth in demand and falling production; consumers. and POM–141. A concurrent resolution adopted Now, therefore, be it resolved by the Sen- Whereas, the recent events in Venezuela by the Legislature of the State of Michigan ate and the House of Representatives of the and other international problems have relative to fuel cell research projects; to the State of Montana: caused uncertainty in the commodities mar- Committee on Energy and Natural Re- (1) That the Congress of the United States kets about the future supply of oil; and sources. be urged to take action to stabilize domestic Whereas, these among other factors have crude oil supplies through facilitating addi- SENATE CONCURRENT RESOLUTION NO. 14 resulted in an increase in the price of crude tional production, to decrease our nation’s Whereas, In his State of the Union address, oil to over $33 per barrel and, with crude oil need for foreign oil from undependable President Bush identified fuel cell research costs being the largest component of the re- sources, to increase federal and state rev- as a national priority. While this move holds tail price of petroleum products, has resulted enue from oil and gas leasing, and, subject to great significance for our entire country, the in a significant increase in the national aver- prioritizing those efforts described in sub- urgency for developing a new energy source age price of gasoline and has similarly in- section (2), to support the economy through is most acutely understood in Michigan; and creased the price of other petroleum prod- addition of good paying jobs by opening the Whereas, Through the resources of the ucts vital to the economy of the United Coastal Plain of the Arctic National Wildlife automotive industry, smaller companies States and the lives of its citizens; and Refuge to oil and gas leasing and environ- across our state, and university research Whereas, the U.S. Department of Energy mentally responsible exploration, develop- being conducted at numerous locales, the estimates the Coastal Plain of the Arctic Na- ment, and production of the petroleum re- drive to develop the fuel cell as the next gen- tional Wildlife Refuge (ANWR) contains be- served. eration energy source has been in high gear tween 5.7 and 16 billion barrels of recoverable (2) That the Congress of the United States in Michigan for many years. The human and oil; and be urged to: technological resources Michigan has as the Whereas, production from the Coastal (a) increase support for development of home of the auto industry indicates both our Plain of ANWR could produce up to 1.5 mil- new sources of renewable energy, such as state’s capacity for fuel cell research and its lion barrels of oil per day for at least 25 biofuels (including biodiesel and ethanol), stake in advancing the next generation of years, which is comparable to the volumes wind, and solar: energy. Michigan’s efforts include innovative the United States is expected to import from (b) pursue development and use of fuel effi- approaches to virtually all aspects of the in- Iraq for the next 25 years and which rep- cient vehicles and development of new tech- frastructure necessary to develop fuel cells, resents nearly 25% of current daily U.S. pro- nologies such as fuel cells and other poten- including work on the storage and transpor- duction, and could save $14 billion dollars per tial applications of emerging hydrogen tech- tation of hydrogen; and year in oil imports; and nology; and Whereas, In addition to well-known efforts Whereas, ANWR consists of 19 million (c) develop programs and standards to en- within the auto industry, Michigan is also acres, of which 8 million are classified as wil- courage efficient use of existing resources in the site of research seeking to develop fuel derness, 9.5 million are designated as na- transportation, industrial and commercial cell applications for homes and businesses. tional refuge lands, and 8% or 1.5 million processes, and consumer end uses.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.096 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7613 Be it further resolved, That the Secretary water, and wildlife resources during the ex- cell applications for homes and businesses. of State send copies of this resolution to the ploration and development of the coastal Michigan businesses are working closely Governor, the Montana Congressional Dele- plain of the Arctic National Wildlife Refuge, with university researchers on these gation, the Speaker of the U.S. House of Rep- Alaska; and projects; and resentatives, the President of the U.S. Sen- Whereas the oil industry is using innova- Whereas, Michigan has made a significant ate, and the U.S. Secretary of the Interior. tive technology and environmental practices commitment to encouraging enterprise in in the new field developments at Alpine and the field of emerging energy development. POM—143. A resolution adopted by the Northstar, and those techniques are directly The Ninety-first Legislature enacted the Legislature of the State of Alaska relative to applicable to operating on the coastal plain ‘‘NextEnergy’’ package of legislation to pro- the Arctic National Wildlife Refuge; to the and would enhance environmental protection mote energy research, especially fuel cell Committee on Energy and Natural Re- beyond traditionally high standards; technology. These acts created a series of sources. Be it resolved by the Alaska State Legisla- tax credits, exemptions, and deductions for LEGISLATIVE RESOLVE NO. 4 ture, That the Congress of the United States businesses working on alternative energy is urged to pass legislation to open the coast- technologies, in addition to providing for al- Whereas, in sec. 1002 of the Alaska Na- al plain of the Arctic National Wildlife Ref- ternative energy zones to spur investment. tional Interest Lands Conservation Act uge, Alaska, to oil and gas exploration, de- The Next Energy Authority created in the (ANILCA) the United States Congress re- velopment, and production, and that the Department of Management and Budget re- served the right to permit further oil and gas Alaska State Legislature is adamantly op- flects the depth of the state’s commitment. exploration, development, and production posed to further wilderness or other restric- Clearly, Michigan is uniquely suited for re- within the coastal plain of the Arctic Na- tive designation in the areas of the coastal search devoted to establishing a hydrogen- tional Wildlife Refuge, Alaska; and plain of the Arctic National Wildlife Refuge, based means of generating energy for our Whereas the oil industry, the state, the Alaska; and be it cars, homes, and businesses; now, therefore, United States Department of the Interior Further resolved, That that activity be be it consider the coastal plain to have the high- conducted in a manner that protects the en- Resolved by the Senate, That we memori- est potential for discovery of very large oil vironment and the naturally occurring popu- alize the President and Congress of the and gas accumulations on the continent of lation levels of the Porcupine Caribou herd, United States to pursue and support fuel cell North America, estimated to be as much as and that uses the state’s work force to the research projects in Michigan; and be it fur- 10,000,000,000 barrels of recoverable oil; and maximum extent possible; and be it ther Whereas the ‘‘1002 study area’’ is part of Further resolved, That the Alaska State Resolved, That copies of this resolution be the coastal plain located within the North Legislature opposes any unilateral reduction transmitted to the Office of the President of Slope Borough, and residents of the North in royalty revenue from exploration and de- the United States, the President of the Slope Borough, who are predominantly velopment of the coastal plain of the Arctic United States Senate, the Speaker of the Inupiat Eskimo, are supportive of develop- National Wildlife Refuge, Alaska, and any United States House of Representatives, and ment in the ‘‘1002 study area’’; and attempt to coerce the State of Alaska into the members of the Michigan congressional Whereas oil and gas exploration and devel- accepting less than the 90 percent of the oil, delegation. opment of the coastal plain of the refuge and gas, and mineral royalties from the federal adjacent land could result in major discov- lands in Alaska that was promised to the POM–145. A resolution adopted by the Sen- eries that would reduce our nation’s future state at statehood. ate of the Legislature of the State of Kansas need for imported oil, help balance the na- Copies of this resolution shall be sent to relative to the F/A–22 Raptor; to the Com- tion’s trade deficit, and significantly in- the Honorable George W. Bush, President of mittee on Armed Services. crease the nation’s security; and the United States; the Honorable Richard B. SENATE RESOLUTION NO. 1871 Whereas domestic demand for oil continues Cheney, Vice-President of the United States Whereas, The Kansas Senate is pleased to to rise while domestic crude production con- and President of the U.S. Senate; the Honor- join citizens across our great state, our na- tinues to fall with the result that the United able Gale Norton, United States Secretary of tion, and the world in congratulating our States imports additional oil from foreign the Interior; the Honorable J. Dennis troops on their recent victory in Iraq, as well sources; and Hastert, Speaker of the U.S. House of Rep- as the hard working men and women across Whereas development of oil at Prudhoe resentatives; the Honorable Bill Frist, Ma- our state who design and assemble essential Bay, Kuparuk, Endicott, Lisburne, and Milne jority Leader of the U.S. Senate; the Honor- equipment and weaponry for our military; Point has resulted in thousands of jobs able Ted Stevens and the Honorable Lisa and throughout the United States, and projected Murkowski, U.S. Senators, and the Honor- Whereas, Air dominance has become a sig- job creation as a result of coastal plain oil able Don Young, U.S. Representative, mem- nature of our armed forces and a deter- development will have a positive effect in all bers of the Alaska delegation in Congress; mining factor when our military is drawn 50 states; and and to all other members the U.S. Senate into combat throughout the world; and Whereas Prudhoe Bay production is declin- and the U.S. House of Representatives serv- Whereas, Kansas’s defense and aerospace ing by approximately 10 percent a year; and ing in the 108th United States Congress. industry invests millions of dollars and em- Whereas, while new oil field developments ploys thousands of highly skilled workers in on the North Slope of Alaska, such as Al- POM–144. A resolution adopted by the Sen- Kansas; and pine, Badami, and West Sak, may slow or ate of the Legislature of the State of Michi- Whereas, Defense and aerospace companies temporarily stop the decline in production, gan relative to the fuel cell research; to the in Kansas provide our military with cutting only giant coastal plain fields have the theo- Committee on Energy and Natural Re- edge technological components that are used retical capability of increasing the produc- sources. to assemble vital military products, like the tion volume of Alaska oil to a significant de- United States Air Force’s new generation SENATE RESOLUTION NO. 17 gree; and fighter, the Lockheed Martin F/A–22 Raptor; Whereas opening the coastal plain of the Whereas, In his State of the Union address, and Arctic National Wildlife Refuge now allows President Bush identified fuel cell research Whereas, Projects like the F/A–22 Raptor sufficient time for planning environmental as a national priority. While this move holds will bring more than $32 million dollars to safeguards, development, and national secu- great significance for our entire country, the the Kansas economy while providing thou- rity review; and urgency for developing a new energy source sands of Kansans with high quality jobs, thus Whereas the 1,500,000-acre coastal plain of is most acutely understood in Michigan; and stimulating the aerospace industry in the the refuge makes up only eight percent of Whereas, Through the resources of the state; and the 19,000,000-acre refuge, and the develop- automotive industry, smaller companies Whereas, The State of Kansas has a tradi- ment of the oil and gas reserves in the ref- across our state, and university research tion of constructing both commercial and uge’s coastal plain would affect an area of being conducted at numerous locales, the military aviation products and is the home 2,000 to 7,000 acres, which is less than one- drive to develop the fuel cell as the next gen- of important components of our military’s half of one percent of the area of the coastal eration energy source has been in high gear air capabilities, such as the 22nd Air Refuel- plain; and in Michigan for many years. The human and ing Wing, as well as dedicated soldiers, sail- Whereas 8,000,000 of the 19,000,000 acres of technological resources Michigan has as the ors, marines and airmen flying and main- the refuge have already been set aside as wil- home of the auto industry indicates both our taining those aircraft at bases across the derness; and state’s capacity for fuel cell research and its country: Now, therefore, be it Whereas the oil industry has shown at stake in advancing the next generation of Resolved by the Senate of the State of Kansas, Prudhoe Bay, as well as at other locations energy. Michigan’s efforts include innovative That the members of this body recognize along the Arctic coastal plain, that it can approaches to virtually all aspects of the in- that the F/A–22 Raptor is critical to the Kan- safely conduct oil and gas activity without frastructure necessary to develop fuel cells, sas economy and that the members of this adversely affecting the environment or wild- including work on the storage and transpor- body implore the Congress of the United life populations; and tation of hydrogen; and States to fully fund the F/A–22 program, thus Whereas the state will ensure the contin- Whereas, In addition to well-known efforts providing our military heroes with the vital ued health and productivity of the Porcupine within the auto industry, Michigan is also resources they need and invigorating our Caribou herd and the protection of land, the site of research seeking to develop fuel economy; and be it further

VerDate Jan 31 2003 05:56 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.117 S10PT1 S7614 CONGRESSIONAL RECORD — SENATE June 10, 2003 Resolved, That the Secretary of the Senate United States Air Force’s new generation Whereas, short-range and medium-range be directed to send enrolled copies of this fighter, the Lockheed Martin F/A–22 Raptor; ballistic missiles launched from ships off the resolution to the President of the United and East Coast of the United States would be States Senate, the Speaker of the United Whereas, Projects like the F/A–22 Raptor outside the protective reach of the Pacific States House of Representatives and to each will bring more than $32 million dollars to Ocean-based and Alaska-based system, and member of the Kansas legislative delegation. the Kansas economy while providing thou- the population of Virginia’s Tidewater, as sands of Kansans with high quality jobs, thus well as the preponderant national naval pres- POM–146. A resolution by the Legislature stimulating the aerospace industry in the ence located there, are now vulnerable and of the State of Arizona relative to weapons state; and will be still vulnerable to such a missile at- of mass destruction; to the Committee on Whereas, The State of Kansas has a tradi- tack with warheads of mass destruction after Armed Services. tion of constructing both commercial and planned deployment in 2005 of missile de- military aviation products and is the home SENATE CONCURRENT RESOLUTION 1021 fenses in Alaska and California; and of important components of our military’s Whereas, the people of the State of Arizona Whereas, missile defense interceptors air capabilities, such as the 22nd Air Refuel- based in Alaska and California may not be view with growing concern the proliferation ing Wing, as well as dedicated soldiers, sail- of nuclear, chemical and biological weapons able to protect the population of Virginia’s ors, marines and airmen flying and main- Tidewater and other East Coast areas from of mass destruction and the missile delivery taining those aircraft at bases across the capabilities of these weapons in the hands of long-range ballistic missiles launched from country: Now, therefore, threatening states in the Middle East and unstable foreign regimes; and Be it resolved by the house of representa- Whereas, the tragedy of September 11, 2001 North Africa; and tives of the State of Kansas, That the mem- Whereas, the United States Navy has dem- shows that America is vulnerable to attack bers of this body recognize that the F/A–22 onstrated its capability to use ships that can by foreign enemies; and Raptor is critical to the Kansas economy and Whereas, the people of the State of Arizona be based in Virginia’s Tidewater area to that the members of this body implore the intercept short-range and medium-range bal- wish to affirm their support of the United Congress of the United States to fully fund States government in taking all actions nec- listic missiles while they are rising from the F/A–22 program, thus providing our mili- their launchers, which could be on nearby essary to protect the people of America and tary heroes with the vital resources they future generations from attacks by missiles ships, and this capability can be improved to need and invigorating our economy; and intercept long-range ballistic missiles; now, capable of causing mass destruction and loss Be it further resolved, That the Chief Clerk of American lives: therefore, be it resolved by therefore, be it of the house of representatives be directed to Resolved, That the Virginia House of Dele- the senate of the State of Arizona, the house of send enrolled copies of this resolution to the gates hereby urge the President of the representatives concurring: President of the United States Senate, the United States to continue to take all actions 1. That the Members of the Legislature Speaker of the United States House of Rep- necessary, directing the considerable sci- support the President of the United States in resentatives and to each member of the Kan- entific and technological capability of this directing the considerable scientific and sas legislative delegation. great Union, to protect all 50 states and their technological capabilities of this nation and POM–148. A resolution adopted by the people, our allies, and our armed forces in taking all actions necessary to protect the House of the Legislature of the Common- abroad from the threat of missile attack; states and their citizens, our allies and our wealth of Virginia relative to missile defense and, be it armed forces abroad from the threat of mis- programs; to the Committee on Armed Serv- Resolved further, That the Virginia House sile attack. ices. of Delegates hereby convey to the President 2. That the Members of the Legislature HOUSE RESOLUTION NO. 40 of the United States and the United States convey to the President and Congress of the Congress that an ocean-to-ocean, effective United States that a coast-to-coast, effective Whereas, Virginia, the Old Dominion, lo- missile defense system will require the de- missile defense system will require the de- cated in the upper South region of the ployment of a robust, multilayered architec- ployment of a robust, multi-layered archi- United States and populated by more than ture consisting of integrated land-based, sea- tecture consisting of integrated land-based, 7,000,000 persons, is noted for its contribution based, air-based, and space-based capabilities sea-based and space-based capabilities to to the founding of the United States through to deter evolving future threats and to meet deter evolving future threats from missiles leadership and political thought, maintains and destroy them when necessary; and as weapons of mass destruction and to meet distinguished centers of higher education and research, is the site of advanced infor- Resolved further, That the Virginia House and destroy them when necessary. of Delegates urge the President of the United 3. That the Members of the Legislature ap- mation and defense technology, is the center States and the United States Congress to peal to the President and Congress of the of national naval force concentration, and is plan and provide funding for a Tidewater United States to plan and fund a missile de- the foremost shipbuilder on its coast, while Virginia and East * * * fense system beyond 2005 that would consoli- possessing natural endowments of mountains date technological advancement and expan- and forests on its western limits and agri- * * * * * sion from current limited applications. culture on its southern tier; and Whereas, the people of Virginia are con- 4. That the Secretary of State of the State POM–149. A concurrent resolution adopted scious of these assets of the Old Dominion of Arizona transmit copies of this Resolution by the Senate of the Legislature of the State and desire a favorable future for their chil- to the President of the United States, the of Michigan relative to homeland security; dren and future generations; and President of the United States Senate, the to the Committee on Environment and Pub- Whereas, Virginia provided leadership in Speaker of the United States House of Rep- lic Works. the Revolutionary War, was the location of resentatives and each member of Congress the surrender of Great Britain that ended it, SENATE CONCURRENT RESOLUTION NO. 20 from the State of Arizona. and has contributed notably to national de- Whereas, As our country continues to put fense through its citizenry both in the mili- in place stronger defenses against terrorism POM–147. A resolution adopted by the tary and industry ever since; and through homeland security measures, a key House of the Legislature of the State of Kan- Whereas, the people of Virginia are aware component will be the establishment of re- sas relative to the F/A–22 Raptor; to the of the global proliferation of short-range, gional headquarters for the United States Committee on Armed Services. medium-range, and long-range ballistic mis- Department of Homeland Security. The HOUSE RESOLUTION NO. 6027 siles as weapons of mass destruction and President has called for regional centers in Whereas, The Kansas House of Representa- their threat to our nation, our allies, and our his 2004 budget proposal; and tives is pleased to join citizens across our armed forces abroad; and Whereas, In the Midwest, an excellent site great state, our nation, and the world in con- Whereas, the United States does not pos- for a regional headquarters is the Selfridge gratulating our troops on their recent vic- sess an effective defense against such mis- Air National Guard Base in Macomb County. tory in Iraq, as well as the hard working men siles launched by hostile states, by terrorist The advantages this location offers range and women across our state who design and organizations within the borders of such from low costs, unsurpassed strategic signifi- assemble essential equipment and weaponry states, or from ships anywhere on the world’s cance, and facilities that can provide for a for our military; and seas and oceans, including near the coastal swift and smooth transition to the respon- Whereas, Air dominance has become a sig- cities of America; and sibilities of homeland security work; and nature of our armed forces and a deter- Whereas, the President of the United Whereas, Located at the heart of the na- mining factor when our military is drawn States has withdrawn from the treaty with tion’s freshwater network and near several into combat throughout the world; and the now-extinct Soviet Union that prohib- of the busiest international points of entry Whereas, Kansas’ defense and aerospace in- ited effective American self-defense against along our northern border, Selfridge is well dustry invest millions of dollars and employs ballistic missile attack and has announced positioned to handle quickly any type of thousands of highly skilled workers in Kan- the deployment of a ground-based and sea- task to protect America’s people, resources, sas; and based limited missile defense system by the and infrastructure. Clearly, this location of- Whereas, Defense and aerospace companies year 2005 as a beginning toward a robust sys- fers opportunities for enhanced responsive- in Kansas provide our military with cutting tem that will be multilayered, meaning land, ness to the challenges before us in safe- edge technological components that are used sea, air, and space interception components; guarding our nation in the years ahead; now, to assemble vital military products, like the and therefore, be it

VerDate Jan 31 2003 05:56 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.121 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7615 Resolved by the Senate (the House of Rep- Whereas, as a result of serious questions that the emergency evacuation plan of ‘‘any resentatives concurring), That we urge the raised regarding the Westchester County’s plant adjacent to high population areas United States Department of Homeland Se- Emergency Evacuation Plan at the Indian should have different requirements than curity to locate its Midwestern headquarters Point Nuclear Power Plants, an independent, plants otherwise situated, because protective at the Selfridge Air National Guard Base in non-governmental assessment was made of actions are more difficult and the con- Macomb County; and be it further the ability of Plan to achieve its goals of sequences of failure or delay are higher,’’ and Resolved, That copies of this resolution be protecting public health and ensuring public be it further transmitted to the Secretary of the United safety, and Resolved, That the New Castle Town Board States Department of Homeland Security, Whereas, under contract with the State of calls upon the Nuclear Regulatory Commis- the President of the United States Senate, New York such as assessment has been made sion to begin the decommissioning process to the Speaker of the United States House of by James Lee Witt associates, LLC and their reduce the vulnerability of the Indian Point Representatives, and the members of the finding included: (1) The plans are built on Nuclear Power Plants at the earliest possible Michigan congressional delegation. compliance with regulations, rather than a date, and be it further strategy that leads to structures and sys- Resolved, That the New Castle Town Board POM–150. A resolution adopted by the Sen- tems to protect from radiation exposure; (2) hereby directs that its will and its desire as ate of the Legislature of the State of Michi- The plans appear based on the premise that expressed through this Resolution be trans- gan relative to Medicare; to the Committee people will comply with official government mitted to all appropriate parties within the on Environment and Public Works. directions rather than acting in accordance County, State and Federal governments em- SENATE RESOLUTION NO. 52 with what they perceive to be their best in- powered to act upon and effect the provisions Whereas, Mental health and emotional sta- terest; (3) The plans do not consider the pos- as stated herein. bility are key components of every person’s sible additional ramifications of a terrorist overall health and well-being. The correla- caused release; (4) The plans do not consider POM–152. A resolution adopted by the tion between mental health and physical the reality and impacts of spontaneous evac- House of the Legislature of the State of health is well established. However, there uation; and (5) Response exercises designed Michigan relative to the transportation are numerous situations in which mental to test the plans are of limited use in identi- funds; to the Committee on Environment health and mental health services are con- fying inadequacies and improving subse- and Public Works. sidered far differently than physical mala- quent responses; and HOUSE RESOLUTION NO. 9 dies; and Whereas, these deficiencies have, in turn, called into question the ability of the Plan Whereas, For several decades, Michigan Whereas, Under the current practices of has sent much more federal highway tax our Medicare system, several types of mental to achieve the goals of protecting public health and ensuring public safety: Now money to Washington than it has received in health and counseling services are not cov- return. This imbalance has helped our nation ered. This omission is especially inappro- therefore be it Resolved, That security at the Indian Point build the country’s highway infrastructure. priate in view of the fact that senior citizens Nuclear Power Plants needs to be placed With the national infrastructure largely often face more challenges to their emo- under the control of the United States mili- completed, the continuation of the imbal- tional and mental well-being than other age tary and that this be done without further ance has created a serious challenge for groups. Senior citizens suffer from depres- delay, and be it further Michigan and other ‘‘donor states’’; and sion at higher rates than other age groups, Resolved, That the New Castle Town Board Whereas, Michigan, which typically loses for example; and calls upon the County, State and Federal between $150 million and $400 million each Whereas, Congress has before it a measure Governments to immediately begin to imple- year by sending more to Washington than it that would address this gap in Medicare cov- ment those recommendations of the Witt Re- receives, is severely hampered. The unfair erage. The Seniors Mental Health Access Im- port relevant to their respective responsibil- practice of contributing hundreds of millions provement Act, S. 310, would amend the ities in and for the Emergency Evacuation of dollars beyond the amount we receive to Medicare system to provide for the coverage Plan, and be it further fund projects in other parts of the country of marriage and family therapist services Resolved, That the New Castle Town Board makes it far more difficult for Michigan to and mental health counselor services under calls upon the County Executive or any maintain the quality of its highways. The Part B of Medicare. The impact of adding other official and/or employee of the County loss of funding also represents a serious loss this coverage would be beneficial not only to of Westchester to not issue a radiological of economic activity; and countless individuals and families, but also emergency preparedness activities form or Whereas, The chairman of the House to the Medicare system through the im- any other official communication that would Transportation and Infrastructure Com- proved overall health it would encourage: in any way state or imply that the Emer- mittee and the chairman of the Senate Envi- Now, therefore, be it. gency Evacuation Plan as it currently exists ronment and Public Works Committee in Resolved by the Senate, That we memori- is capable of achieving its goals of protecting Congress have proposed a major change in alize the Congress of the United States to public health and ensuring public safety in how federal highway funds are distributed. enact legislation to include the services of li- the event of a radiological incident, and be it They have called for a funding formula that censed professional counselors and marriage further would guarantee that all states receive a and family therapists among services cov- Resolved, That the New Castle Town Board minimum of 95 percent of what they each ered under Medicare; and be it further calls upon the Governor of the State of New contribute to the federal highway program; , That copies of this resolution be Resolved York, in recognition of the refusal of the and transmitted to the President of the United County Executives of all four affected Coun- Whereas, The potential impact for Michi- States Senate, the Speaker of the United ties to issue letters of certification (also gan of a guarantee of at least 95 percent of States House of Representatives, and the known as checklists) concerning the this funding would be very significant. Even members of the Michigan congressional efficiacy of the Emergency Evacuation Plan, as the economy calls for more careful public delations. to refuse to certify said Plan to the Federal expenditures, this proposed policy change Emergency Management Agency, and be it would help Michigan and bring greater fair- POM–151. A resolution adopted by the town further ness to the issue of transportation spending. of New Castle of the State of New York rel- Resolved, That the New Castle Town Board Citizens, visitors, and businesses of this ative to the Indian Point Nuclear Power calls upon the Federal Emergency Manage- state would benefit enormously from this Plants; to the Committee on Environment ment Agency to decertify the Emergency long overdue policy: Now, therefore, be it and Public Works Evacuation Plan as inadequate to protect Resolved by the House of Representatives, Whereas, the Town of New Castle seeks to the public health and to ensure public safety, That we memorialize the Congress of the ensure the public health and safety of those and be it further United States to enact legislation to provide who live and/or work within the town, and Resolved, That the New Castle Town Board that all states receive a minimum of 95 per- Whereas, the Town of New Castle has been calls upon the Nuclear Regulatory Commis- cent of transportation funds sent to the fed- coordinating efforts with the Westchester sion, in recognition of the inadequacies of eral government and to urge Congress to County Board of Legislators for the past the Emergency Evacuation Plan to protect make the return of transportation money to three years to monitor the County’s Emer- the public health and to ensure public safety, the states a higher priority within existing gency Evacuation Plan that would be put to order an immediate shutdown of the In- federal revenues; and be it further into effect in the event of a radiological inci- dian Point Nuclear Power Plants until such Resolved, That copies of this resolution be dent at the Indian Point Nuclear Power time as it can be demonstrated that a re- transmitted to the President of the United Plants, and vised emergency evacuation plan, which ad- States Senate, the Speaker of the United Whereas, the Town of New Castle has sup- dresses all the inadequacies of the current States House of Representatives, and the ported the Westchester County Board of Leg- Emergency Evacuation Plan as described in members of the Michigan congressional dele- islator’s efforts to obtain an independent, the James Lee Witt Associates, LLC Report, gation. non-governmental assessment of the ability can achieve its goals of protecting the public of the County’s Emergency Evacuation Plan health and ensuring public safety. Such re- POM–153. A resolution adopted by the to achieve its goals to ensure public health vised emergency evacuation plan should pay House of the Legislature of the State of and safety, and particular attention to the recommendation Michigan relative to the Solid Waste; to the

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.125 S10PT1 S7616 CONGRESSIONAL RECORD — SENATE June 10, 2003 Committee on Environment and Public be taken to significantly reduce nitrogen State and thus the health of the industry is Works. pollution; and inextricably linked to the economic health HOUSE RESOLUTION NO. 10 Whereas, sewage treatment plants in Vir- of the populations in these rural regions; and ginia discharge up to 25 milligrams of nitro- Whereas, Approximately one hundred fifty Whereas, In 1992, the United States Su- gen per liter of wastewater, while current million bushels of wheat is produced annu- preme Court, in Fort Gratiot Sanitary Land- technology allows the nitrogen content of ally on two and one-half million acres by five fill v. Michigan Department of Natural Re- treated wastewater to be reduced to only 3 thousand farms and generates four hundred sources, ruled that states could not ban the milligrams per liter; and fifty million dollars in gross crop value, importation of solid waste because Congress Whereas, United States Senators of Vir- placing Washington State third in the nation has the ultimate authority to regulate inter- ginia and the United States House of Rep- among wheat producing states; and state commerce. Since that time, Michigan resentatives from the 1st, 3rd, 4th, 6th, 8th, Whereas, Washington is one of the largest has become the dumping ground for increas- 10th, and 11th Virginia Congressional Dis- and most heavily reliant of the wheat ex- ing amounts of solid waste from out of our tricts have introduced legislation to provide porting states with up to ninety percent of state and our country; and cost-share grant funding to allow Bay water- the state’s production being exported each Whereas, Michigan is the third-largest im- shed sewage treatment plants to substan- year; and porter of solid waste in the country. Ap- tially reduce their nitrogen pollution by in- Whereas, The wheat production in Wash- proximately 20 percent of all trash in Michi- stalling NRT; now, therefore, be it ington State is predominantly by family gan landfills now originate outside of Michi- Resolved by the House of Delegates, That farm operations that are as efficient and pro- gan. The amounts have increased signifi- the Congress of the United States be urged ductive as any growers in the world and that cantly in the past several years, and recent to adopt legislation in support of funding for produce the highest quality product possible; reports of a major contract with Ontario and nitrogen reduction technology (NRT) in the and of the closing of the nation’s largest landfill 108th Congress; and, be it Whereas, Despite being the most efficient in New York seem to indicate this issue will Resolved further, That the Clerk of the producers of the highest quality product, low loom larger in the future; and House of Delegates transmit copies of this prices received by farmers in recent years, Whereas, An agreement between the city of resolution to the President of the United especially for those farmers with loan obli- Vaughan, Ontario, and Carleton Farms in States Senate, the Speaker of the United gations, have resulted in the continual ero- Wayne County’s Sumpter Township will States House of Representatives, and the sion in many farmers’ net worths and a loss thrust Michigan into being the second-larg- members of the Virginia Congressional Dele- of farming operations; and est importer of solid waste in the country gation so that they may be apprised of the Whereas, Because prices for wheat in re- next year, as Michigan will be accepting a sense of the House of Delegates of Virginia in cent years, including funds from government large majority of the city of Toronto’s mu- this matter. programs, have frequently been at or below nicipal solid waste; and the cost of production, the wheat farming Whereas, Accepting unlimited volumes of POM–155. A joint resolution adopted by the community is very sensitive to significant trash from outside our state has serious Legislature of the State of Washington rel- government actions that affect supply and long-term consequences. Long after the ative to the Forest Service; to the Com- demand and depress wheat prices; and money from the contracts has been spent, a mittee on Agriculture, Nutrition, and For- Whereas, The price of the soft white wheat potential environmental threat continues, as estry. predominately grown in Washington reached does an obligation to monitor disposal sites SUBSTITUTE SENATE JOINT MEMORIAL 8002 a high in early fall of four dollars and eighty to protect water and public health from Whereas, Wildfires in forest areas are in- cents per bushel at the Portland grain ter- toxic releases. Clearly, any state accepting creasing at an alarming rate with the 2002 minal but has fallen dramatically by over these long-term risks should be able to regu- fire season one of the most severe since the one dollar per bushel due to a combination of late the creation of that risk, regardless of 1940s; and factors, including large sales over a short pe- where it originate; now, therefore, be it Whereas, There are over 180 million acres riod of time from federally held grain re- Resolved by the House of Representatives, of public land near communities with a high serves and the labor dispute causing the ces- That we memorialize the Congress of the risk of fire; and sation in the shipment of grain at export fa- United States to enact legislation to give Whereas, Forest health both in Washington cilities; and states the authority to ban importation of state and throughout the nation has been on Whereas, A bushel of wheat makes forty- out-of-state solid waste; and be it further a steady decline in many forests over the two pounds of flour, which makes sixty-six Resolved, That copies of this resolution be last thirty years; and loaves of bread, and comprises only six cents transmitted to the President of the United Whereas, Forest insect infestations, dis- of the one dollar and thirty cents average re- States Senate, the Speaker of the United ease, overly dense forests, weeds, and brush tail price per loaf; States House of Representatives, and the and shrub build-up are increasing problems; Now, therefore, Your Memorialists respect- members of the Michigan congressional dele- and address all forest health issues in order fully pray that new federal procedures be es- gation. to stem the tide of forest and grazing land tablished to assure that future sales of wheat wildfire, insect infestations, disease, and en- stocks from federally held grain reserves be POM–154. A resolution adopted by the Leg- vironmental degradation; and conducted in a manner that such sales will islature of the Commonwealth of Virginia Be it further resolved, That federal and not unduly disrupt the market while also relative to funding nitrogen reduction tech- state agencies work with all stakeholders to fulfilling the original intent of providing for nology (NRT); to the Committee on Environ- promote efforts that provide policy solutions emergency humanitarian food needs in de- ment and Public Works. and to conduct field operations so that our veloping countries. HOUSE RESOLUTION NO. 38 nation’s public forests’ health issues can be Be it resolved, That copies of this Memo- Whereas, the Chesapeake Bay and its trib- addressed; and rial be immediately transmitted to the Hon- utaries are national treasures that play a Be it further resolved, That Congress pro- orable George W. Bush, President of the vital role in many sectors of Virginia’s econ- vide adequate funding levels for the United United States, the Honorable Ann M. omy including the commercial seafood, rec- States Forest Service and continually assess Veneman, Secretary of the United States De- reational fishing, and tourism industries; the progress towards a healthy forest envi- partment of Agriculture, the President of and ronment; the United States Senate, the Speaker of the Whereas, while significant progress has Be it further resolved, That copies of this House of Representatives, and each member been made in restoring the Chesapeake Bay Memorial be immediately transmitted to the of Congress from the State of Washington. and its tributaries, they remain in a signifi- Honorable George W. Bush, President of the cantly degraded condition; and United States, the Honorable Ann M. POM–157. A concurrent resolution adopted Whereas, nitrogen pollution, the most seri- Veneman, Secretary of the Department of by the Legislature of the State of Louisiana ous problem facing water quality in the Bay Agriculture, Dale Bosworth, Chief of the relative to the cotton production insurance; today, results in excessive algae growth that Forest Service, and the Honorable Gail A. to the Committee on Agriculture, Nutrition, clouds water, depletes oxygen, and severely Norton, Secretary of the Department of the and Forestry. impacts vital bay grasses, young fish, and Interior, the President of the United States HOUSE CONCURRENT RESOLUTION NO. 90 crabs; and Senate, the Speaker of the House of Rep- Whereas, the majority of cotton producers Whereas, the Commonwealth Is a signatory resentatives, and each member of Congress in the state of Louisiana are in support of to the Chesapeake 2000 Agreement, in which from the State of Washington. crop insurance based on the cost of produc- Virginia pledged to significantly reduce pol- tion; and lution sufficient to remove the Chesapeake POM–156. A joint resolution adopted by the Whereas, Louisiana has experienced sev- Bay from the United States Environmental Legislature of the State of Washington rel- eral consecutive years with natural disasters Protection Agency’s impaired waters list by ative to the government involvement in the that have reduced actual production history; 2010; and wheat market; to the Committee on Agri- and Whereas, upgrading sewage treatment culture, Nutrition, and Forestry. Whereas, many producers have found that plants, which currently contribute 61 million SENATE JOINT MEMORIAL 8015 their level of coverage is either too high, pounds of nitrogen annually to the Bay, is Whereas, Wheat farming is the major in- eroded, or unavailable as a result of consecu- one of the most cost-effective steps that can dustry in many rural regions of Washington tive years with natural disasters; and

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.130 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7617 Whereas, cost of production insurance will Whereas, In an effort to save this species of Jenkins declaring that federal judges have a provide producers and lending institutions tree, Michigan has asked Congress to provide constitutionally based authority and power more coverage and reliability and reduce the financial assistance to state and municipal to levy or increase taxes; and need for ad hoc disaster spending to cover officials. In addition, these officials need Whereas, many believe that this opinion is production costs in the event of catastrophic technical assistance to develop a sound contrary to the intent and beliefs of our natural disasters; and strategy of combating this destructive Forefathers, wherein, the three branches of Whereas, the taxpayers of this state and vermin, which clearly has the potential to the United States government are to be sepa- country deserve a more fiscally responsible cause great damage not only in Michigan, rate in power and responsibilities; and plan than off-budget emergency spending to but across the country; Now, therefore, be it Whereas, Alexander Hamilton, Federalist deal with catastrophic agricultural losses; Resolved by the House of Representatives, No. 78, states, ‘‘(T)here is no liberty, if the and That we memorialize the Congress of the power of judging be not separated from the Whereas, cost of production insurance is a United States to establish a quarantine for legislative and executive powers’’; and concept that allows producers of cotton to the emerald ash borer and provide assistance Whereas, the CNMI Legislature is in accord insure between seventy and ninety percent of to help Michigan combat the infestation; and with these several states who are looking to their documented variable costs of produc- be it further the U.S. Congress to put an end to this dan- tion; and Resolved That copies of this resolution be gerous practice of exercising legislative au- Whereas, cost of production insurance transmitted to the President of the United thority by the Supreme Court; and would greatly enhance each producer’s abil- States Senate, the Speaker of the United Whereas, this is an effort to maintain our ity to survive natural disasters and eco- States House of Representatives, the United Forefathers intent of establishing a demo- nomic crises; and States Department of Agriculture, and the cratic body with principles that ensure our Whereas, the United States Department of members of the Michigan congressional dele- freedom and liberty, moreover, to protect Agriculture’s Risk Management Agency has gation. the integrity of the U.S. Constitution and its received a proposal for implementation of a intent to separate, and not duplicate, the POM–159. A resolution adopted by the Sen- cost of production insurance pilot program powers of the Executive Branch, Legislative ate of the Legislature of the State of Michi- from AgriLogic, Inc., and the Coalition of Branch, and Judicial Branch; now, therefore gan relative to Emerald Ash Borer; to the American Agriculture Producers, but has not Be it resolved, by the House of Representa- Committee on Agriculture, Nutrition, and yet implemented such a program, although tives, Twelfth Northern Marianas Common- Forestry. the United States Congress has requested wealth Legislature, That the House is re- them to do so. SENATE RESOLUTION NO. 49 quested the U.S. Congress to pass a resolu- Therefore, be it resolved, That the Legisla- Whereas, With alarming swiftness, the em- tion calling for the adoption of an amend- ture of Louisiana does hereby urge and re- erald ash borer, an aggressive Asian insect, ment to the United States Constitution quest the United States Secretary of Agri- is threatening virtually all of the ash trees which shall read: ‘‘Neither the Supreme culture to expeditiously implement and ex- in this state and region. In spite of a quar- Court nor any inferior court of the United pand cost of production insurance for cotton antine in 6 southeastern Michigan counties, States shall have the power to instruct or that is based on a producer’s actual produc- this beetle has killed 5 million of the 28 mil- order a state or political subdivision, there- tion cost history and to implement a cost of lion ash trees in the quarantined area. Over- of, or any official of such state or political production insurance pilot program. all, the emerald ash borer, an invasive spe- Be it further resolved, That a copy of this subdivision, to levy or increase taxes.’’; and cies that is causing similar devastation in Be it further resolved, That the Speaker of Resolution be transmitted to the President Ontario and Ohio, threatens as many as 700 the House shall certify and the House Clerk of the United States, the Secretary of the million trees in our state; and shall attest to the adoption of this resolu- United States Department of Agriculture, Whereas, Ash trees are very important to tion and thereafter transmit copies to the the Speaker of the United States House of the ecology of our state. They are also used Honorable Richard B. ‘‘Dick’’ Cheney, Vice- Representatives, the President of the United for many products in several sectors of the President of the United States and Presiding States Senate and to each member of the economy. Beyond these factors, the ash trees Officer of the U.S. Senate; to the Honorable Louisiana Congressional Delegation. that grace our communities and neighbor- Denny Hastert, Speaker of the U.S. House of hoods are beloved shade trees that con- Representatives; and the Honorable Walt POM–158. A resolution adopted by the tribute enormously to the character and House of the Legislature of the State of Mueller, Senator, 15th District, State of Mis- beauty of Michigan; and souri. Michigan relative to Emerald Ash Borer; to Whereas, The Governor is working to se- the Committee on Agriculture, Nutrition, cure quick help from the federal government POM–161. A resolution adopted by the and Forestry. to deal with this swiftly escalating problem. House of the Legislature of the State of HOUSE RESOLUTION NO. 36 Michigan badly needs technical and financial Michigan relative to Bovine Tuberculosis; to assistance in the face of this emergency. The Whereas, In an amazingly short period of the Committee on Health, Education, Labor, state has taken decisive actions to deal with time, an important species of tree in Michi- and Pensions. gan faces a devastating infestation from an this invasive species, but the magnitude of insect known as the emerald ash borer. This the problem and the immediacy of the issue HOUSE RESOLUTION NO. 58 beetle, which has also been found in Ontario make it clear that we need the swift assist- Whereas, Bovine tuberculosis is an infec- and Ohio, is thought to have entered Michi- ance of Congress and the United States De- tious disease that poses a significant risk to gan in 1997. Already, this insect has killed 5 partment of Agriculture; now therefore, be it domestic livestock, wildlife, companion ani- million trees in the six-county area of south- Resolved by the senate, That we memori- mals, and humans throughout the world; and eastern Michigan. In response, the state has alize the Congress of the United States and Whereas, Bovine tuberculosis has many se- quarantined the six counties, where approxi- the United States Department of Agriculture vere impacts beyond the disease itself. It in- mately 28 million ash trees are at risk; and to provide assistance, including financial as- creases costs, limits markets for livestock Whereas, The potential economic and eco- sistance, in the effort to deal with the infes- producers nationally and internationally, de- system impact of this invading species would tation of the emerald ash borer; and be it presses interest in the state’s hunting and be dramatic across our state and potentially further tourism industries, and requires state re- the entire country. In addition to what the Resolved, That copies of this resolution be sources for its eradication. These factors loss of all ash trees would mean to the ap- transmitted to the President of the United have impacted the families of northeastern pearance of our homes, communities, and the States Senate, the Speaker of the United Lower Michigan significantly; and entire state, ash trees constitute an impor- States House of Representatives, and the Whereas, Since the discovery of bovine tu- tant and versatile lumber resource that may members of the Michigan congressional dele- berculosis in wild white-tailed deer in Michi- be lost without swift and certain actions. As gation. gan in 1995, and in cattle in 1998, the state of with any type of plant so widespread, the Michigan, in a partnership with Michigan loss of Michigan’s estimated one billion ash POM–160. A resolution adopted by the State University, the livestock industry, the trees clearly could have unforeseen effects House of the Legislature of the Common- hunting and outdoors community, and local on our forest ecology; and wealth of the Northern Marianas relative to and federal officials, has worked diligently Whereas, The United States Department of a constitutional amendment to prohibit Fed- to control, contain, and eradicate the dis- Agriculture (USDA) must establish a federal eral Judges from Ordering states, or local ease; and quarantine for the emerald ash borer. Such units of government, to increase or levy Whereas, Through an aggressive testing action would provide uniform rules for slow- taxes; to the Committee on the Judiciary. plan for livestock and wildlife, Michigan is ing or containing the northern advance of HOUSE RESOLUTION NO. 12–109 able to demonstrate to other states and the the insect; guarantee sufficient protections Whereas, several State legislatures in the world that this disease is not present for international commerce with Canada, United States are adopting resolutions ad- throughout the entire state of Michigan and which is also experiencing infestation; and dressing a clear violation of the United that the tremendous efforts undertaken with allow for the compensation of a number of States Constitution and the legislative proc- both livestock and wildlife are moving the growers, distributors, retailers, and contrac- ess; and state toward eradication; and tors within the quarantine area who have Whereas, in 1990 the U.S. Supreme Court Whereas, Federal assistance on technical, lost crops and sales without warning; and issued an opinion in the case of Missouri v. financial, and staff levels has been critical to

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.132 S10PT1 S7618 CONGRESSIONAL RECORD — SENATE June 10, 2003 Michigan’s efforts to eradicate bovine tuber- Committee on Health, Education, Labor, and skills, implementing industry certification culosis; and Pensions. programs, expanding the use of technology, Whereas, With many other current and HOUSE RESOLUTION NO. 6028 providing professional development to career emerging plant and animal diseases, re- Whereas, The provisions of HIPAA are now and technical teachers, involving parents, sources are challenged at both the federal in force with the stated purpose of simpli- local businesses, and labor and industry lead- and state levels to address these diseases fying health care administrative processes, ers in the design, implementation, and eval- adequately; now, therefore, be it and in the process, protecting individual pri- uation of career and technical programs in Resolved by the House of Representatives, vacy rights. Simplification is to be accom- order to meet the needs of the local economy That we memoralize the Congress of the plished through the use of standardized, elec- and to comply with nationally adopted United States to continue providing assist- tronic transmission of administrative and fi- standards; and Whereas, career and technical education ance to Michigan to help eradicate bovine nancial data—which if successful should sim- programs benefit Virginia’s economy by pro- tuberculosis; and be it further plify health care record keeping and enhance Resolved, That copies of this resolution be viding crucial training to students of various the ability of private health insurance pro- transmitted to the President of the United ability levels and economic backgrounds, in- viders to process claims; and cluding gifted and talented students, tradi- States Senate, the Speaker of the United Whereas, While the health and insurance tional high school students, students with States House of Representatives, the mem- industries may be aware of and executing the disabilities, and students who are bound for bers of the Michigan congressional delega- requirements of HIPAA, the recipients of college and those who are bound for the tion, and the United Stated Department of health care, and individuals concerned of world of work; and Agriculture. their condition, are confused and having dif- Whereas, the Virginia Standards of Quality ficulty comprehending the restrictions of the require career and technical education pro- POM–162. A resolution adopted by the Sen- new procedures; and grams in the public schools that are ‘‘infused ate of the Legislature of the State of Iowa Whereas, While patients have a right to into the K though 12 curricula that promote relative to Best Buddies program; to the their own health information, and while in- knowledge of careers and all types of em- Committee on Health, Education, Labor, and formation regarding patients may be ob- ployment opportunities,’’ and ‘‘competency- Pensions. tained by personal representatives or estab- based career and technical education pro- SENATE RESOLUTION NO. 22 lishment of ‘‘significant other’’ relation- grams, which integrate academic outcomes, ships, it is urged information regarding Whereas, there are more than 7.5 million career guidance and job-seeking skills for all whether a person is a patient at a facility, people with intellectual disabilities in the secondary students’’; and United States and as many as 250 million without disclosure of reason or condition, Whereas, Congress will take up reauthor- worldwide; and should be available to interesed parties: now, ization of this important law in the coming Whereas, individuals with intellectual dis- therefore, year and several proposals have been put Be it resolved by the House of Representa- abilities often experience isolation and ex- forth that are troubling to local school divi- tives of the State of Kansas: That we urge clusion from community activities because sions and suggest that consideration may be the Congress of the United States and imple- of limited opportunties to associate with given to diverting the federal dollars to menting federal agencies to consider the pro- persons other than their immediate family other priorities; now, therefore, be it and paid workers; and vision of the information which does not dis- Resolved by the House of Delegates, the Whereas, Best Buddies is a nonprofit orga- close medially sensitive information to be Senate concurring, That the Congress of the nization dedicated to enhancing the lives of available to inquiring persons; and United States be urged to continue the fund- people with intellectual disabilities by pro- Be it further resolved: That the Chief Clerk ing for career and technical education in viding opportunities for one-to-one friend- of the House of Representatives be directed public secondary and postsecondary schools ships and integrated employment; and to send an enrolled copy of this resolution to when reauthorizing the Carl D. Perkins Vo- Whereas, Best Buddies has grown from one the President of the United States Senate, cational and Applied Technology Act of 2003. chapter on one college campus to a vibrant, the Speaker of the United States House of The Congress also shall be urged, in order to international organization involving partici- Representative and to each member of the maintain the vitality and success of Vir- pants annually on more than 750 middle Kansas legislative delegation. ginia’s career and technical education pro- school, high school, and college campuses in grams in the Commonwealth’s public sec- POM–164. A joint resolution adopted by the the United States, Canada, Cuba, Egypt, ondary and postsecondary schools, to con- House of the Legislature of the Common- Greece, Ireland, and Sweden; and tinue the funding of public career and tech- wealth of Virginia relative to the Carl D. Whereas, Best Buddies has touched the nical education in an amount that will con- Perkins Vocational and Applied Technology lives of over 175,000 individuals in its 13-year tinue Virginia’s $27 million in funding or will Act of 2003; to the Committee on Health, existence; and increase this amount; and, be it Whereas, Best Buddies Iowa currently Education, Labor, and Pensions. Resolved further, That the Clerk of the serves nine college chapters and nine high HOUSE JOINT RESOLUTION NO. 752 House of Delegates transmit copies of this school chapters within our state and has a Whereas, funding for career and technical resolution to the Speaker of the United long-term goal of involving all schools with- education, which was formerly known as vo- States House of Representatives, the Presi- in Iowa in its mission to bring friendship to cational/technical education, was initiated dent of the United States Senate, and the individuals with intellectual disabilities; in 1917 by Congress with the passage of the members of the Virginia Congressional Dele- now therefore, Smith-Hughes Vocational Education Act and gation so that they may be apprised of the Be it resolved by the Senate, That the an appropriation of $1.7 million in support of sense of the General Assembly of Virginia in Iowa Senate appreciates the work that Best state programs across the country; and this matter. Buddies Iowa performs and urges the federal Whereas, Congressional funding for career f government to continue to fund this pro- and technical education has been continuous gram; and since 1917 and was extended by the Carl D. INTRODUCTION OF BILLS AND Be it further resolved, That the Iowa Sen- Perkins Vocational and Applied Technology JOINT RESOLUTIONS ate encourages state agencies, county cen- Act of 1984; and The following bills and joint resolu- tral points of coordination, education pro- Whereas, total federal funding for career viders, and area education agencies to work and technical education in the 2003 fiscal tions were introduced, read the first with Best Buddies Iowa to find additional year was $1.3 billion, of which Virginia is re- and second times by unanimous con- funding for a middle school program and to ceiving nearly $25 million in basic grant sent, and referred as indicated: further expand its current programs into funds and another $2.5 million in tech prep By Mr. HOLLINGS (for himself and Mr. additionmal communities; and grant funds; and STEVENS): Be it futher resolved, That copies of this Whereas, 85 percent of Virginia’s state S. 1218. A bill to provide for Presidential Resolution be sent by the Secretary of the grant or nearly $18 million is being distrib- support and coordination of interagency Senate to the President of the United States, uted to local school divisions, while more ocean science programs and development and the President of the Senate of the United than $3.1 million is being distributed to the coordination of a comprehensive and inte- States, the Speaker of the United States Virginia Community College System and the grated United States research and moni- House of Representatives; the majority and remaining $3.7 million is allocated to the De- toring program; to the Committee on Com- minority leaders of the United States Sen- partment of Education for state administra- merce, Science, and Transportation. ate, the majority and minority leaders of the tion of career and technical education pro- By Mr. EDWARDS (for himself, Mr. United States House of Representatives, and grams, including assessment, training, pro- SMITH, and Mrs. CLINTON): each member of Iowa’s congressional delega- fessional development, and improvement of S. 1219. A bill to amend the national and tion. academic skills; and Community Service Act of 1990 to establish a Whereas, local school divisions depend on Community Corps, and for other purposes; to POM–163. A resolution adopted by the the federal funding of career and technical the Committee on Health, Education, Labor, House of the Legislature of the State of Kan- education to accomplish many goals, includ- and Pensions. sas relative to the Health Insurance Port- ing, but not limited to, strengthening stu- By Mr. ALLARD (for himself, Mr. ability Accountability Act (HIPAA); to the dents’ academic, vocational, and technical WYDEN, Mr. SMITH, Mr. INOUYE, Mr.

VerDate Jan 31 2003 05:56 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00058 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.136 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7619 AKAKA, Mr. COLEMAN, Mrs. SUBMISSION OF CONCURRENT AND ALLEN) was added as a cosponsor of S. HUTCHISON, and Mr. CAMPBELL): SENATE RESOLUTIONS 300, a bill to award a congressional gold S. 1220. A bill to amend title XVIII of the The following concurrent resolutions medal to Jackie Robinson (post- Social Security Act to extend reasonable and Senate resolutions were read, and humously), in recognition of his many cost contracts under the medicare program, contributions to the Nation, and to ex- to expand the area in which plans offered referred (or acted upon), as indicated: under such contracts may operate, to apply By Mr. GRAHAM of South Carolina press the sense of Congress that there certain provisions of the Medicare+Choice (for himself and Mr. HOLLINGS): should be a national day in recognition program to such plans, and for other pur- S. Res. 163. A resolution commending the of Jackie Robinson. poses; to the Committee on Finance. Francis Marion University Patriots men’s S. 451 By Mr. SCHUMER: golf team for winning the 2003 National Col- At the request of Ms. SNOWE, the legiate Athletic Association Division II S. 1221. A bill to provide telephone number name of the Senator from Maryland portability for wireless telephone service; to Men’s Golf Championship; to the Committee on the Judiciary. (Mr. SARBANES) was added as a cospon- the Committee on Commerce, Science, and sor of S. 451, a bill to amend title 10, Transportation. By Mr. ENSIGN (for himself, Mr. By Mr. NELSON of Nebraska (for him- CORZINE, Mr. EDWARDS, Mr. BAYH, United States Code, to increase the Mr. SARBANES, Mr. CONRAD, Mr. self, Mr. BUNNING, and Mr. HAGEL): minimum Survivor Benefit Plan basic REED, Ms. LANDRIEU, Mr. JEFFORDS, S. 1222. A bill to amend title XVIII of the annuity for surviving spouses age 62 Mr. KOHL, Mr. LIEBERMAN, Mr. KEN- Social Security Act to require the Secretary and older, to provide for a one-year NEDY, Mr. ALLEN, Mr. BIDEN, Mr. of Health and Human Services, in deter- open season under that plan, and for SANTORUM, Mrs. DOLE, Mrs. BOXER, mining eligibility for payment under the other purposes. and Mr. DURBIN): prospective payment system for inpatient re- S. Res. 164. A resolution reaffirming sup- S. 518 habilitation facilities, to apply criteria con- port of the Convention on the Prevention At the request of Ms. COLLINS, the sistent with rehabilitation impairment cat- and Punishment of the Crime of Genocide egories established by the Secretary for pur- name of the Senator from Massachu- and anticipating the commemoration of the setts (Mr. KERRY) was added as a co- poses of such prospective payment system; 15th anniversary of the enactment of the to the Committee on Finance. Genocide Convention Implementation Act of sponsor of S. 518, a bill to increase the By Mr. BINGAMAN (for himself, Ms. 1987 (the Proxmire Act) on November 4, 2003; supply of pancreatic islet cells for re- COLLINS, Mr. JEFFORDS, and Mr. to the Committee on the Judiciary. search, to provide better coordination DODD): By Mr. FRIST: of Federal efforts and information on S. 1223. A bill to increase the number of S. Res. 165. A resolution commending Bob islet cell transplantation, and to col- well-trained mental health service profes- Hope for his dedication and commitment to lect the data necessary to move islet sionals (including those based in schools) the Nation; considered and agreed to. cell transplantation from an experi- providing clinical mental health care to chil- By Mr. HARKIN (for himself, Mr. mental procedure to a standard ther- dren and adolescents, and for other purposes; CHAFEE, and Mr. KENNEDY): to the Committee on Health, Education, S. Con. Res. 52. A concurrent resolution ex- apy. Labor, and Pensions. pressing the sense of Congress that the S. 557 By Mr. CORZINE (for himself and Mr. United States Government should support At the request of Ms. COLLINS, the LAUTENBERG): the human rights and dignity of all persons name of the Senator from New Hamp- with disabilities by pledging support for the S. 1224. A bill to expand the powers of the shire (Mr. SUNUNU) was added as a co- Attorney General to regulate the manufac- drafting and working toward the adoption of a thematic convention on the human rights sponsor of S. 557, a bill to amend the ture, distribution, and sale of firearms and Internal Revenue Code of 1986 to ex- ammunition, and to expand the jurisdiction and dignity of persons with disabilities by the United Nations General Assembly to of the Attorney General to include firearm clude from gross income amounts re- augment the existing United Nations human products and nonpowder firearms; to the ceived on account of claims based on rights system, and for other purposes; to the Committee on the Judiciary. certain unlawful discrimination and to Committee on Foreign Relations. By Mr. GREGG (for himself, Mr. SCHU- allow income averaging for backpay MER, Mr. MCCAIN, and Mr. KENNEDY): f and frontpay awards received on ac- S. 1225. A bill entitled the ‘‘Greater Access ADDITIONAL COSPONSORS count of such claims, and for other pur- to Affordable Pharmaceuticals Act’’; to the poses. S. 221 Committee on Health, Education, Labor, and S. 569 Pensions. At the request of Mr. FEINGOLD, the At the request of Mr. ENSIGN, the By Mrs. CLINTON (for herself, Ms. COL- name of the Senator from Illinois (Mr. LINS, Mrs. MURRAY, and Mr. BINGA- DURBIN) was added as a cosponsor of S. name of the Senator from Massachu- MAN): 221, a bill to amend the Communica- setts (Mr. KERRY) was added as a co- S. 1226. A bill to coordinate efforts in col- tions Act of 1934 to facilitate an in- sponsor of S. 569, a bill to amend title lecting and analyzing data on the incidence crease in programming and content on XVIII of the Social Security Act to re- and prevalence of developmental disabilities, radio that is locally and independently peal the medicare outpatient rehabili- and for other purposes; to the Committee on produced, to facilitate competition in tation therapy caps. Health, Education, Labor, and Pensions. S. 595 By Mr. SANTORUM (for himself and radio programming, radio advertising, At the request of Mr. HATCH, the Mrs. LINCOLN): and concerts, and for other purposes. names of the Senator from Minnesota S. 1227. A bill to amend title XVIII of the S. 271 Social Security Act to provide for coverage At the request of Mr. SMITH, the (Mr. COLEMAN), the Senator from Cali- of substitute adult day services under the name of the Senator from Mississippi fornia (Mrs. BOXER) and the Senator medicare program; to the Committee on Fi- (Mr. LOTT) was added as a cosponsor of from New York (Mrs. CLINTON) were nance. S. 271, a bill to amend the Internal added as cosponsors of S. 595, a bill to By Mrs. CLINTON (for herself and Mr. Revenue Code of 1986 to allow an addi- amend the Internal Revenue Code of DEWINE): tional advance refunding of bonds 1986 to repeal the required use of cer- S. 1228. A bill to amend the Internal Rev- originally issued to finance govern- tain principal repayments on mortgage enue Code of 1986 to provide a tax credit for mental facilities used for essential gov- subsidy bond financings to redeem property owners who remove lead-based bonds, to modify the purchase price paint hazards; to the Committee on Finance. ernmental functions. By Mr. AKAKA (for himself, Mr. LEVIN, S. 274 limitation under mortgage subsidy Mr. LEAHY, Mr. DURBIN, and Mr. DAY- At the request of Mr. GRASSLEY, the bond rules based on median family in- TON): name of the Senator from Alaska (Mr. come, and for other purposes. S. 1229. A bill to amend chapter 23 of title STEVENS) was added as a cosponsor of S. 610 5, United States Code, to clarify the disclo- S. 274, a bill to amend the procedures At the request of Mr. VOINOVICH, the sures of information protected form prohib- that apply to consideration of inter- name of the Senator from Mississippi ited personnel practices, require a statement state class actions to assure fairer out- (Mr. COCHRAN) was added as a cospon- in nondisclosure policies, forms, and agree- comes for class members and defend- sor of S. 610, a bill to amend the provi- ments that such policies, forms, and agree- ments conform with certain disclosure pro- ants, and for other purposes. sions of title 5, United States Code, to tections, provide certain authority for the S. 300 provide for workforce flexibilities and Special Counsel, and for other purposes; to At the request of Mr. KERRY, the certain Federal personnel provisions the Committee on Governmental Affairs. name of the Senator from Virginia (Mr. relating to the National Aeronautics

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00059 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.053 S10PT1 S7620 CONGRESSIONAL RECORD — SENATE June 10, 2003 and Space Administration, and for the colorectal cancer screening benefit lina (Mr. GRAHAM), the Senator from other purposes. under the medicare program. New York (Mrs. CLINTON) and the Sen- S. 623 S. 756 ator from Illinois (Mr. DURBIN) were At the request of Mr. WARNER, the At the request of Mr. THOMAS, the added as cosponsors of S. 894, a bill to name of the Senator from California name of the Senator from Minnesota require the Secretary of the Treasury (Mrs. BOXER) was added as a cosponsor (Mr. COLEMAN) was added as a cospon- to mint coins in commemoration of the of S. 623, a bill to amend the Internal sor of S. 756, a bill to amend the Inter- 230th Anniversary of the United States Revenue Code of 1986 to allow Federal nal Revenue Code of 1986 to modify the Marine Corps, and to support construc- civilian and military retirees to pay qualified small issue bond provisions. tion of the Marine Corps Heritage Cen- ter. health insurance premiums on a pretax S. 763 S. 973 basis and to allow a deduction for At the request of Mr. ENSIGN, the TRICARE supplemental premiums. name of the Senator from Maine (Ms. At the request of Mr. NICKLES, the name of the Senator from Pennsyl- S. 640 COLLINS) was added as a cosponsor of S. vania (Mr. SANTORUM) was added as a 763, a bill to designate the Federal At the request of Mr. LEAHY, the cosponsor of S. 973, a bill to amend the building and United States courthouse name of the Senator from Oregon (Mr. Internal Revenue Code of 1986 to pro- located at 46 Ohio Street in Indianap- WYDEN) was added as a cosponsor of S. vide a shorter recovery period for the olis, Indiana, as the ‘‘Birch Bayh Fed- 640, a bill to amend subchapter III of depreciation of certain restaurant eral Building and United States Court- chapter 83 and chapter 84 of title 5, buildings. United States Code, to include Federal house’’. S. 982 prosecutors within the definition of a S. 780 At the request of Mrs. BOXER, the law enforcement officer, and for other At the request of Mr. LOTT, the name name of the Senator from South Da- purposes. of the Senator from Oklahoma (Mr. kota (Mr. DASCHLE) was added as a co- S. 664 INHOFE) was added as a cosponsor of S. sponsor of S. 982, a bill to halt Syrian At the request of Mr. HATCH, the 780, a bill to award a congressional gold support for terrorism, end its occupa- name of the Senator from Massachu- medal to Chief Phillip Martin of the tion of Lebanon, stop its development setts (Mr. KENNEDY) was added as a co- Mississippi Band of Choctaw Indians. of weapons of mass destruction, cease sponsor of S. 664, a bill to amend the S. 786 its illegal importation of Iraqi oil, and Internal Revenue Code of 1986 to per- At the request of Mr. BINGAMAN, the hold Syria accountable for its role in manently extend the research credit, name of the Senator from Arkansas the Middle East, and for other pur- to increase the rates of the alternative (Mrs. LINCOLN) was added as a cospon- poses. incremental credit, and to provide an sor of S. 786, a bill to amend the tem- S. 1010 alternative simplified credit for quali- porary assistance to needy families At the request of Mr. HARKIN, the fied research expenses. program under part A of title IV of the names of the Senator from South Caro- S. 665 Social Security Act to provide grants lina (Mr. GRAHAM) and the Senator At the request of Mr. GRASSLEY, the for transitional jobs programs, and for from Connecticut (Mr. DODD) were names of the Senator from Nebraska other purposes. added as cosponsors of S. 1010, a bill to (Mr. NELSON) and the Senator from S. 805 enhance and further research into pa- Pennsylvania (Mr. SANTORUM) were At the request of Mr. LEAHY, the ralysis and to improve rehabilitation added as cosponsors of S. 665, a bill to name of the Senator from Illinois (Mr. and the quality of life for persons liv- amend the Internal Revenue Code of DURBIN) was added as a cosponsor of S. ing with paralysis and other physical 1986 to provide tax relief for farmers 805, a bill to enhance the rights of disabilities. and fishermen, and for other purposes. crime victims, to establish grants for S. 1046 S. 678 local governments to assist crime vic- At the request of Mr. HOLLINGS, the name of the Senator from Montana At the request of Mr. AKAKA, the tims, and for other purposes. name of the Senator from Washington S. 818 (Mr. BAUCUS) was added as a cosponsor of S. 1046, a bill to amend the Commu- (Mrs. MURRAY) was added as a cospon- At the request of Ms. SNOWE, the sor of S. 678, a bill to amend chapter 10 name of the Senator from Montana nications Act of 1934 to preserve local- ism, to foster and promote the diver- of title 39, United States Code, to in- (Mr. BURNS) was added as a cosponsor sity of television programming, to fos- clude postmasters and postmasters or- of S. 818, a bill to ensure the independ- ter and promote competition, and to ganizations in the process for the de- ence and nonpartisan operation of the prevent excessive concentration of velopment and planning of certain poli- Office of Advocacy of the Small Busi- ownership of the nation’s television cies, schedules, and programs, and for ness Administration. broadcast stations. other purposes. S. 874 S. 1046 S. 684 At the request of Mr. TALENT, the At the request of Mr. STEVENS, the name of the Senator from Massachu- At the request of Mr. SMITH, the names of the Senator from Maine (Ms. setts (Mr. KERRY) was added as a co- name of the Senator from Oklahoma COLLINS), the Senator from Michigan sponsor of S. 874, a bill to amend title (Mr. INHOFE) was added as a cosponsor (Mr. LEVIN), the Senator from Nevada XIX of the Social Security Act to in- of S. 684, a bill to create an office with- (Mr. REID) and the Senator from Illi- clude primary and secondary preventa- in the Department of Justice to under- nois (Mr. DURBIN) were added as co- take certain specific steps to ensure tive medical strategies for children and sponsors of S. 1046, supra. adults with Sickle Cell Disease as med- that all American citizens harmed by S. 1083 ical assistance under the medicaid pro- terrorism overseas receive equal treat- At the request of Mr. LUGAR, the ment by the United States Government gram, and for other purposes. names of the Senator from Mississippi regardless of the terrorists’ country of S. 877 (Mr. COCHRAN) and the Senator from origin or residence, and to ensure that At the request of Mr. BURNS, the Massachusetts (Mr. KERRY) were added all terrorists involved in such attacks names of the Senator from Georgia as cosponsors of S. 1083, a bill to give are pursued, prosecuted, and punished (Mr. CHAMBLISS) and the Senator from States the flexibility to reduce bu- with equal vigor, regardless of the ter- Connecticut (Mr. DODD) were added as reaucracy by streamlining enrollment rorists’ country of origin or residence. cosponsors of S. 877, a bill to regulate processes for the medicaid and State S. 740 interstate commerce by imposing limi- children’s health insurance programs At the request of Mr. LIEBERMAN, the tations and penalties on the trans- through better linkages with programs name of the Senator from New Mexico mission of unsolicited commercial elec- providing nutrition and related assist- (Mr. BINGAMAN) was added as a cospon- tronic mail via the Internet. ance to low-income families. sor of S. 740, a bill to amend title XVIII S. 894 S. 1091 of the Social Security Act to improve At the request of Mr. WARNER, the At the request of Mr. DURBIN, the patient access to, and utilization of, names of the Senator from South Caro- name of the Senator from Oregon (Mr.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00060 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.050 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7621 WYDEN) was added as a cosponsor of S. ming (Mr. THOMAS) were added as co- establish a program at the National 1091, a bill to provide funding for stu- sponsors of S. 1203, a bill to amend the Oceanic and Atmospheric Administra- dent loan repayment for public attor- Higher Education Act of 1965 regarding tion to strengthen and coordinate its neys. distance education, and for other pur- work in this very important arena. S. 1116 poses. In recent years, we have gained a re- At the request of Mr. LEVIN, the S. 1215 newed appreciation for the importance name of the Senator from Massachu- At the request of Mr. MCCONNELL, of the ocean to our future and well- being. We now recognize that human setts (Mr. KERRY) was added as a co- the names of the Senator from Nevada health is one are in which the oceans sponsor of S. 1116, a bill to amend the (Mr. REID), the Senator from Ohio (Mr. exert major influences that are both Federal Water Pollution Control Act to VOINOVICH) and the Senator from North positive and negative. However, study- direct the Great Lakes National Pro- Carolina (Mr. EDWARDS) were added as gram Office of the Environmental Pro- cosponsors of S. 1215, a bill to sanction ing this relationship is challenging. To tection Agency to develop, implement, the ruling Burmese military junta, to be successful, a research program must integrate disciplines, bringing together monitor, and report on a series of indi- strengthen Burma’s democratic forces oceanographers and biomedical re- cators of water quality and related en- and support and recognize the National searchers to better understand marine vironmental factors in the Great League of Democracy as the legitimate processes, reduce public health risks Lakes. representative of the Burmese people, and enhance our biomedical capabili- and for other purposes. S. 1125 ties. Pioneering scientists are needed At the request of Mr. HATCH, the S. CON. RES. 3 to tackle marine environmental issues name of the Senator from Nebraska At the request of Mr. MILLER, the that affect human and marine life (Mr. HAGEL) was added as a cosponsor name of the Senator from Georgia (Mr. alike, such as ocean pollution, marine of S. 1125, a bill to create a fair and ef- CHAMBLISS) was added as a cosponsor of pathogens and potential drug discov- ficient system to resolve claims of vic- S. Con. Res. 3, a concurrent resolution eries. A number of Federal agencies tims for bodily injury caused by asbes- recognizing, applauding, and sup- would share responsibility and exper- tos exposure, and for other purposes. porting the efforts of the Army Avia- tise for such a program, requiring that S. 1153 tion Heritage Foundation, a nonprofit capabilities be harnessed across such At the request of Mr. SPECTER, the organization incorporated in the State diverse entities as the National Oce- name of the Senator from Georgia (Mr. of Georgia, to utilize veteran aviators anic and Atmospheric Administration, CHAMBLISS) was added as a cosponsor of of the Armed Forces and former Army the National Science Foundation and S. 1153, a bill to amend title 38, United Aviation aircraft to inspire Americans the National Institute for Environ- States Code, to permit medicare-eligi- and to ensure that our Nation’s mili- mental Health Sciences. ble veterans to receive an out-patient tary legacy and heritage of service are The rich biodiversity of marine orga- medication benefit, to provide that cer- never forgotten. nisms represent an important bio- tain veterans who receive such benefit S. RES. 140 medical resource, a promising source of are not otherwise eligible for medical At the request of Mr. CAMPBELL, the novel compounds with therapeutic po- care and services from the Department name of the Senator from Connecticut tential, and a potentially significant of Veterans Affairs, and for other pur- (Mr. LIEBERMAN) was added as a co- contribution to the national economy. poses. sponsor of S. Res. 140, a resolution des- A 1999 National Research Council re- S. 1182 ignating the week of August 10, 2003, as port, From Monsoons to Microbes, At the request of Mr. MCCONNELL, ‘‘National Health Center Week’’. noted that nature has been the tradi- the names of the Senator from Iowa AMENDMENT NO. 865 tional source of new pharmaceuticals (Mr. HARKIN), the Senator from Ohio At the request of Mr. DORGAN, the and found that over 50 percent of the (Mr. VOINOVICH), the Senator from Min- name of the Senator from California marketed drugs are extracted from nesota (Mr. DAYTON), the Senator from (Mrs. FEINSTEIN) was added as a co- natural sources or produced using nat- Oregon (Mr. SMITH), the Senator from sponsor of amendment No. 865 proposed ural products. Virtually every type of Vermont (Mr. JEFFORDS), the Senator to S. 14, a bill to enhance the energy life that exists on this planet is found from North Carolina (Mrs. DOLE), the security of the United States, and for in the sea and many types of plants Senator from Illinois (Mr. DURBIN), the other purposes. and animals are exclusively marine. While the oceans are a repository for Senator from North Carolina (Mr. ED- f WARDS) and the Senator from New Jer- much of our biodiversity, little of it sey (Mr. LAUTENBERG) were added as STATEMENTS ON INTRODUCED has been catalogued or studied. One cosponsors of S. 1182, a bill to sanction BILLS AND JOINT RESOLUTIONS important aspect that we have yet to the ruling Burmese military junta, to explore is the potential of marine life By Mr. HOLLINGS (for himself and to produce chemicals for treating dis- strengthen Burma’s democratic forces Mr. STEVENS): and support and recognize the National eases. There are only three marine League of Democracy as the legitimate S. 1218. A bill to provide for Presi- compounds now in clinical use—and representative of the Burmese people, dential support and coordination of these were developed in the 1950s. and for other purposes. interagency ocean science programs While there are some new compounds and development and coordination of a in the pipeline, we need to speed this S. 1182 comprehensive and integrated United effort up to ensure we get more ap- At the request of Mr. REID, his name States research and monitoring pro- proved sooner. was added as a cosponsor of S. 1182, gram; to the Committee on Commerce, But our relationship to the sea also supra. Science, and Transportation. has a darker side. The oceans drive cli- S. 1201 Mr. HOLLINGS. Mr. President, today mate and weather factors causing se- At the request of Mr. GRAHAM of I am introducing legislation to spur vere weather events and shifts in tem- South Carolina, the names of the Sen- the advent of an exciting new field of perature and rainfall patterns. These ator from Colorado (Mr. ALLARD) and research, one that explores the role of changes in turn affect the density and the Senator from Massachusetts (Mr. the oceans in human health. I am distribution of disease-causing orga- KERRY) were added as cosponsors of S. pleased to be joined in this effort by nisms and the ability of public health 1201, a bill to promote healthy life- the distinguished Senator from Alaska, systems to address them. In addition, styles and prevent unhealthy, risky be- TED STEVENS, who is cosponsoring this the oceans act as a route of exposure haviors among teenage youth. bill. The Oceans and Human Health Act for human disease and illnesses S. 1203 proposes to establish a national inter- through ingestion of contaminated sea- At the request of Mr. ENZI, the names agency program that will coordinate food and direct contact with seawater of the Senator from Iowa (Mr. GRASS- research efforts and ensure the avail- containing toxins and disease-causing LEY), the Senator from Mississippi (Mr. ability of an adequate Federal invest- organisms. We need to know more COCHRAN) and the Senator from Wyo- ment in this critical area. It also would about how our health is affected by the

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00061 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.052 S10PT1 S7622 CONGRESSIONAL RECORD — SENATE June 10, 2003 marine environment. We must ensure in marine animals, with potential links search efforts. It would also establish that the sea maintains its capacity to to human illness and disease processes an interagency committee on oceans sustain itself without becoming a and natural product chemistry. Sci- and human health to develop a re- ‘‘Dead Zone.’’ We must find ways to entists at HML and its partner NOAA search plan and coordinate participa- monitor and reduce the occurrence of facility use unique medical tools such tion by NOAA, NSF, NIEHS and other ocean toxins that kill marine mam- as nuclear magnetic resonators to help agencies. Governing NOAA’s contribu- mals and taint seafood. As with cancer, ‘‘map’’ cellular and genetic structure tion to the interagency effort, the bill our goal must be understanding and of marine organisms and have devel- would establish a new NOAA program prevention, rather than relying exclu- oped methods for detecting pesticides on oceans and human health. At the sively on treatment. in water, sediments, fish and marine heart of this legislation and key to its Research on the health of marine or- mammals that may potentially affect success is our commitment to building ganisms, including marine mammals both the health of the marine environ- new partnerships—among Federal and other sentinel species, can assist ment and human health. They also are health, science and ocean agencies, scientists in their efforts to investigate developing exposure, toxicology and among diverse scientific disciplines, and understand human physiology and disease models to assess their effects and among academic researchers and biochemical processes, as well as pro- on a variety of marine organisms. government experts. viding a means for monitoring the Their work will better define ocean A more detailed summary of the leg- health of marine ecosystems. Unfortu- health and bridge the gap with existing islation follows: nately such research often does not fall human health models. SECTION-BY-SECTION ANALYSIS OCEANS AND clearly within a single federal agency’s A number of Federal agencies are HUMAN HEALTH ACT mission. The dolphins of Florida’s In- now recognizing the importance of un- The Oceans and Human Health Act would dian River Lagoon provide an example derstanding health-related ocean re- authorize the establishment of a coordinated of a marine population that is the vic- search and to make needed invest- federal research program to aid in under- tim of contaminated habitat and food. ments. Last year, initiatives began standing and responding to the role of oceans The result is unusually high mortality both through our ocean agency, the in human health. The bill would establish a rates and harmful health effects. Not Federal interagency Oceans and Human National Oceanic and Atmospheric Ad- Health initiative coordinated through the only is the population at risk, but it ministration, as well as two of our Fed- National Science and Technology Council, provides a clear indicator of environ- eral research institutions, the National NSTC, as well as create an Oceans and mental pollution concerns for its Institute for Environmental Health Human Health program at the Department human neighbors. We must harness the Sciences, NIEHS, and the National of Commerce’s National Oceanic and Atmos- sciences of genomics, forensics and Science Foundation, NSF. pheric Administration (NOAA). The bill also ecology and put them to work in the This past year, the National Oceanic directs the Secretary of Commerce to estab- marine world, creating an ocean Center and Atmospheric Administration, lish a coordinated public information and for Disease Control—a ‘‘CDC for the NOAA, received appropriations of $8 outreach program with the Food and Drug Administration, FDA, the Environmental Oceans’’. million to develop an oceans and Protection Agency, EPA, the Centers for An exciting example of this new human health initiative. Within NOAA, Disease Control CDC, and the States to pro- interdisciplinary and medically-ori- many programs and laboratories per- vide information on potential ocean-related ented approach to ocean research can form research and related activities human health risks. be found at NOAA’s two marine labora- that could contribute significantly to a SECTION 1. SHORT TITLE tories in Charleston, including a national research effort, but such ef- Section 1 provides the short title of the unique research partnership among forts have not realized their potential. Act is the ‘‘Oceans and Human Health Act.’’ NOAA, the National Institute for Establishment of this coordinated, SECTION 2. FINDINGS Standards and Technology (NIST), the interdisciplinary program consisting of Section 2 sets forth findings and purposes State of South Carolina, the Medical nationally-recognized research centers for the Act. University of South Carolina, and the and an external interdisciplinary re- SECTION 3. NATIONAL SCIENCE AND TECHNOLOGY College of Charleston, formerly known search grant program will enhance the COUNCIL as the Marine Environmental Health NOAA program. In addition, last No- Section 3 would amend the National Research Laboratory, and now referred vember, the National Institute for En- Science and Technology Policy, Organiza- to as the Hollings Marine Laboratory vironmental Health Sciences, NIEHS, tion, and Priorities Act of 1976, 42 U.S.C. (HML). HML works with a variety of 6616, to codify the responsibilities of the Na- National Science Foundation, NSF, in- tional Science and Technology Council Federal, State, and academic partners vited applications for research pro- NSTC, which was established by executive around the Nation and is on the front grams to explore the relationship be- Order in 1993, and whose functions have lines of discovery and prevention, par- tween marine processes and public superceded the Federal Coordinating Council ticularly in the emerging field of ma- health. The joint initiative commits $6 for Science, Engineering, and Technology, rine genomics. They are hard at work million annually to establish centers of FCCSET, the functions of which were trans- on today’s important public and ma- excellence focusing on harmful algal ferred to the President under a 1977 execu- rine environmental health issues. Their blooms, water and vector-borne dis- tive order. The Act is also amended to clar- exciting dolphin health research will ify the director of the Office of Science and eases, and marine pharmaceuticals and Technology Policy, OSTP, serves as chair of for the first time utilize a traditional probes. the NSTC. medical approach to diagnosing and Taken together, the NIEHS-NSF and Subsection b replaces existing section 401 documenting dolphin health, which NOAA research initiatives offer an ex- of the Act (42 U.S.C. 6651) with new text will help us learn more about dolphins cellent basis for building a comprehen- specifying NSTC functions, which focus on in the wild than we have ever known. sive national program. In addition, a prompting domestic and international co- In addition, HML scientists, important number of other Federal agencies are ordination among government, industry and partners in the Coral Disease and poised to make significant contribu- university scientists. Subsection b sets forth the following as NSTC functions: 1. promote Health Consortium, are already ana- tions. interagency efforts and communication with lyzing samples from the two Florida The Oceans and Human Health Act respect to the planning and administration coral reefs ‘‘quarantined’’ by NOAA provides the legislative framework for of Federal scientific, engineering, and tech- today because of a fast-spreading coral a coordinated national investment to nology program. 2. identify research needs; disease. improve understanding of marine eco- achieve more effective use of Federal facili- The HML epitomizes the variety of systems, address marine public health ties and resources; 3. further international important disciplines that must work problems and tap into the ocean’s po- cooperation in science, engineering and tech- side-by-side if we are to make progress tential contribution to new biomedical nology; and 4. develop long-range and coordi- in this area. It is home to cutting-edge treatments and advances. The legisla- nated research plans. The NSTC is directed to carry out these and other related duties research involving algal toxins, natural tion would amend the 1976 Science and with the assistance of the Federal agencies products with potential pharma- Technology Act to clarify the role of represented on the Council. This subsection ceutical applications, and viral and the National Science and Technology also authorizes the NSTC Chairman to estab- bacterial pathogens that cause disease Council in coordinating interagency re- lish standing committees and working

VerDate Jan 31 2003 05:56 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00062 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.066 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7623 groups to assist in developing interagency and implement research and activities with- authorized to establish a training program, plans, conduct studies and make reports for in NOAA related to the role of the oceans in in consultation with NIEHS and NSF, for the Chairman. human health. In establishing the program, scientists early in their careers who are in- SECTION 4. INTERAGENCY OCEANS AND HUMAN the Secretary is required to consult with terested in oceans and human health. HEALTH RESEARCH PROGRAM other Federal agencies conducting inte- SECTION 6. PUBLIC INFORMATION AND RISK Interagency Program. Section 4 provides grated ocean health research or research in ASSESSMENT related areas, including the CDC, NSF, and for the establishment of an Interagency This section directs the Secretary of Com- HIEHS. The NOAA Oceans and Human Oceans and Human Health Research Pro- merce, in consultation with the CDC, FDA, Health Program will provide support for the gram, Interagency OHH Program, to be co- EPA, and the States, to design and imple- following components: 1. a Program and Re- ordinated and supported by the NSTC. Sub- ment a national public information and out- search Coordination Office; 2. an Advisory section (a) directs the NSTC to establish a reach program on potential ocean-related Panel; 3. National Center(s) of Excellence; 4. Committee on Oceans and Human Health human health risks. The outreach program Research grants and 5. Distinguished schol- comprised of at least one representative will collect and analyze information, dis- ars and traineeships. from NOAA, the National Science Founda- Program Office. Subsection (b) directs the seminate the results, to relevant Federal, tion, NSF, the National Institutes of Health, Secretary to establish a program to coordi- State, public, industry or other interested NIH, CDC, EPA, FDA, Department of Home- nate oceans and human health-related re- parties, provide advice regarding precautions land Security, DHS, and other agencies and search and activities within NOAA and to against illness or hazards, and make rec- department deemed appropriate by the carry out the elements of the program. In co- ommendations on observing systems that NSTC. This section also provides for the bi- operation with the Oceans and Human would support the program. ennial selection of a Chairman of the Com- Health Advisory Panel established under Subsection (b) requires the Secretary, in mittee, who shall represent an agency that subsection (c), the program office will serve consultation with the same agencies, to as- contributes substantially to the Interagency as liaison with academic institutions and sess health hazards associated with the OHH Program. other agencies participating in the Inter- human consumption of seafood. Under this 10-Year Implementation Plan. Subsection b agency OHH Program established under Sec- subsection, the Secretary, in consultation directs the NSTC, through the Committee on tion 3. with CDC, FDA, EPA, and the states, would the Oceans and Human Health, to submit to Advisory Panel. Under subsection (c), the assess risks associated with domestically Congress within one year of enactment a 10- Secretary will establish an Oceans and harvested and processed seafood as compared year implementation plan for coordinated Human Health Advisory Panel to assist in with imported seafood harvested and proc- federal activities under the Interagency OHH the development and implementation of the essed outside the United States; commer- Program. In developing the plan, the Com- NOAA Oceans and Human Health Program. cially harvested seafood as compared with mittee is required to consult with the Inter- Membership of the Advisory Group will in- recreational and subsistence harvest; and Agency Task Force on Harmful Algal Blooms clude a balanced representation of individ- contamination due to handling and prepara- and Hypoxia. The implementation plan will uals with multi-disciplinary expertise in the tion of seafood. complement the ongoing activities of NOAA, marine and biomedical sciences. The sub- SECTION 7. AUTHORIZATION OF APPROPRIATIONS NSF, the NIH National Institute of Environ- section provides that Federal Advisory Com- Section 7 provides the authorization of ap- mental Health Sciences, NIEHS, and other mittee Act, 5 U.S.C. App. 1, shall not apply propriations for the NOAA Oceans and departments and agencies, and: 1. establish to the Panel. Human Health Program established under the goals and priorities for Federal research Centers of Excellence. Subsection (d) pro- Section 5, and the public information and related to oceans and human health; 2. de- vides that the Secretary shall, through a risk assessment program established under scribe specific activities required to achieve competitive process, establish and support Section 6. such goals; 3. identify relevant Federal pro- Centers of Excellence that strengthen Subsection (a) provides that there are au- grams and activities that would contribute NOAA’s capabilities to carry out programs thorized to be appropriated to the Secretary to the Interagency OHH Program; 4. consider and activities related to the ocean’s role in of Commerce to carry out the program under and use reports and studies conducted by human health. These NOAA Centers of Ex- Section 5, $8,000,000 for FY 2003, $15,000,000 for Federal agencies and departments, the Na- cellence shall complement and be in addition FY 2004, and $20,000,000 for FY2005–2007. tional Research Council, the Ocean Research to any centers of excellence for oceans and Subsection (b) provides authorizations of Advisory Panel, the U.S. Commission on human health established through NSF or appropriations of $5,000,000 for each of fiscal Ocean Policy and other entities; 5. make rec- NIEHS. Centers selected for funding and sup- years 2004 through 2007 for the public infor- ommendations for the coordination of na- port under Section 4 would focus on areas re- mation and risk assessment program estab- tional and international programs; and 6. es- lated to NOAA missions, including: 1. use of lished under Section 6. timate Federal funding for research activi- marine organisms as indicators for marine I am extremely proud to sponsor this legis- ties to be conducted under the Interagency environmental health; 2. ocean pollutants; 3. lation, and hope that this will mark the be- OHH Program. marine toxins and pathogens, harmful algal ginning of a new century of ocean research Scope of Interagency Program. Subsection blooms, seafood testing, drug discovery, biol- that will reveal how integral and important c outlines the scope of the Interagency OHH ogy and pathobiology of marine mammals; the oceans are to our daily lives and our Program, as follows: and 4. such disciplines as marine genomics, 1. Interdisciplinary and coordinated re- health, whether we live by the edge of the marine environmental microbiology, ecologi- sea or in the heartland. search and activities to improve our under- cal chemistry and conservation medicine. standing of how ocean processes and marine I ask unanimous consent that the The Secretary will consider the need for geo- text of the bill be printed in the organisms can relate to human health and graphic representation and will encourage contribute to medicine and research; proposals that have strong scientific and RECORD. 2. Coordination with the National Ocean interdisciplinary merit. There being no objection, the bill was Leadership Council (established under 10 Research Grants. Subsection (e) authorizes ordered to be printed in the RECORD, as U.S.C. 7902(a)) to ensure any ocean and the Secretary of Commerce to provide grants follows: coastal observing system provides informa- for research and projects that explore the re- S. 1218 tion necessary to monitor, predict and re- lationship between the oceans and human Be it enacted by the Senate and House of Rep- duce marine public health problems; health, and that complement or strengthen resentatives of the United States of America in 3. Development of new technologies and ap- NOAA-related programs and activities. In Congress assembled, proaches for detecting and reducing hazards implementing this subsection, the Secretary to human health from ocean sources and to is directed to consult with the Oceans and SECTION 1. SHORT TITLE. strengthen understanding of the value of ma- Human Health Advisory Panel and the Na- This Act may be cited as the ‘‘Oceans and rine biodiversity to biomedicine; and tional Sea Grant College Program, and may Human Health Act’’. 4. Support for scholars, trainees and edu- work cooperatively with other agencies in SEC. 2. FINDINGS AND PURPOSES. cation opportunities that encourage a multi- the Intergency OHH Program to establish (a) FINDINGS.—The Congress makes the fol- disciplinary approach to exploring the diver- joint criteria for such research projects. This lowing findings: sity of life in the oceans. subsection specifies that the grants shall be (1) The rich biodiversity of marine orga- SECTION 5. NOAA OCEANS AND HUMAN HEALTH awarded through a peer-review or other com- nisms provides society with an essential bio- PROGRAM petitive process and that such a process may medical resource, a promising source of Establishment of NOAA Program. Section be conducted jointly with other agencies par- novel compounds with therapeutic potential, 5 would establish a NOAA program on ticipating in the Interagency OHH Program and a potentially important contribution to Oceans and Human Health that would co- or under the National Oceanographic Part- the national economy. ordinate NOAA activities with the Inter- nership Program, 10 U.S.C. 7901. (2) The diversity of ocean life and research agency OHH Program. Subsection (a) directs Distinguished Scholars. Subsection (f) di- on the health of marine organisms, including the Secretary of Commerce to develop an rects the Secretary to provide financial as- marine mammals and other sentinel species, Oceans and Human Health Program, con- sistance to support distinguished scholars helps scientists in their efforts to investigate sistent with the interagency program devel- working in collaboration with NOAA sci- and understand human physiology and bio- oped under Section 4, that will coordinate entists and facilities. The Secretary is also chemical processes, as well as providing a

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00063 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.069 S10PT1 S7624 CONGRESSIONAL RECORD — SENATE June 10, 2003 means for monitoring the health of marine range and coordinated plans for scientific Science Foundation, the National Institute ecosystems. and technical research which involve the of Environmental Health Sciences, and other (3) The oceans drive climate and weather participation of more than 2 agencies. Such departments and agencies and shall— factors causing severe weather events and plans shall— (1) establish, for the 10-year period begin- shifts in temperature and rainfall patterns ‘‘(1) identify research approaches and pri- ning in the year it is submitted, the goals that affect the density and distribution of orities which most effectively advance sci- and priorities for Federal research which disease-causing organisms and the ability of entific understanding and provide a basis for most effectively advance scientific under- public health systems to address them. policy decisions; standing of the connections between the (4) The oceans act as a route of exposure ‘‘(2) provide for effective cooperation and oceans and human health, provide usable in- for human disease and illnesses through in- coordination of research among Federal formation for the prediction and prevention gestion of contaminated seafood and direct agencies; and of marine public health problems and use the contact with seawater containing toxins and ‘‘(3) encourage domestic and, as appro- biological potential of the oceans for devel- disease-causing organisms. priate, international cooperation among gov- opment of new treatments of human diseases (5) During the past two decades, the inci- ernment, industry and university scientists. and a greater understanding of human biol- dence of harmful blooms of algae has in- ‘‘(c) OTHER DUTIES.—The Council shall per- ogy; creased around the world, contaminating form such other related advisory duties as (2) describe specific activities required to shellfish, causing widespread fish kills, shall be assigned by the President or by the achieve such goals and priorities, including threatening marine environmental quality Chair of the Council. establishment of national centers of excel- and resulting in substantial economic losses ‘‘(d) ASSISTANCE OF OTHER AGENCIES.—For lence, the funding of competitive research to coastal communities. the purpose of carrying out the provisions of grants, ocean and coastal observations, (6) Existing Federal programs and re- this section, each Federal agency rep- training and support for scientists, and par- sources support research in a number of resented on the Council shall furnish nec- ticipation in international research efforts; these areas, but gaps in funding, coordina- essary assistance to the Council. Such assist- (3) identify and address, as appropriate, tion, and outreach have impeded national ance may include— relevant programs and activities of the Fed- progress in addressing ocean health issues. ‘‘(1) detailing employees to the Council to eral agencies and departments that would (7) National investment in a coordinated perform such functions, consistent with the contribute to the program; program of research and monitoring would purposes of this section, as the Chairman of (4) consider and use, as appropriate, re- improve understanding of marine eco- the Council may assign to them; and ports and studies conducted by Federal agen- systems, allow prediction and prevention of ‘‘(2) undertaking upon the request of the cies and departments, the National Research marine public health problems and assist in Chair, such special studies for the Council as Council, the Ocean Research Advisory Panel, realizing the potential of the oceans to con- come within the scope of authority of the the Commission on Ocean Policy and other tribute to the development of effective new Council. entities; treatments of human diseases and a greater ‘‘(e) STANDING COMMITTEES; WORKING (5) make recommendations for the coordi- understanding of human biology. GROUPS.—For the purpose of developing nation of program activities with ocean and (b) PURPOSES.—The purposes of this Act interagency plans, conducting studies, and human health-related activities of other na- are to provide for— making reports as directed by the Chairman, tional and international organizations; and (1) Presidential support and coordination standing committees and working groups of (6) estimate Federal funding for research of interagency ocean science programs; and the Council may be established.’’. activities to be conducted under the pro- (2) development and coordination of a com- SEC. 4. INTERAGENCY OCEANS AND HUMAN gram. (c) PROGRAM SCOPE.—The program shall in- prehensive and integrated United States re- HEALTH RESEARCH PROGRAM. clude the following activities related to the search and monitoring program that will as- (a) ESTABLISHMENT OF COMMITTEE.— role of oceans in human health: sist this Nation and the world to understand, (1) The National Science and Technology (1) Interdisciplinary research among the use and respond to the role of the oceans in Council shall coordinate and support a na- ocean and medical sciences, and coordinated human health. tional research program to improve under- standing of the role of the oceans in human research and activities to improve under- SEC. 3. NATIONAL SCIENCE AND TECHNOLOGY standing of processes within the ocean that COUNCIL. health. In planning the program, the Council may affect human health and to explore the (a) DIRECTOR OF OFFICE OF SCIENCE AND shall establish a Committee on Oceans and potential contribution of marine organisms TECHNOLOGY POLICY TO CHAIR COUNCIL.—Sec- Human Health that shall consist of rep- to medicine and research, including— tion 207(a) of the National Science and Tech- resentatives from those agencies with pro- (A) vector- and water-borne diseases of hu- nology Policy, Organization, and Priorities grams or missions that could contribute to Act of 1976 (42 U.S.C. 6616(a)) is amended— or benefit from the program. The Committee mans and marine organisms, including ma- rine mammals and fish; (1) by striking ‘‘CHAIRMAN OF FEDERAL CO- shall consist of at least one representative (B) harmful algal blooms; ORDINATING COUNCIL FOR SCIENCE, ENGINEER- from— (C) marine-derived pharmaceuticals; ING, AND TECHNOLOGY’’ in the subsection (A) the National Oceanic and Atmospheric (D) marine organisms as models for bio- heading and inserting ‘‘CHAIR OF THE NA- Administration; medical research and as indicators of marine TIONAL SCIENCE AND TECHNOLOGY COUNCIL’’; (B) the National Science Foundation; and (C) the National Institute of Environ- environmental health; (2) by striking paragraph (1) and inserting mental Health Sciences and other institutes (E) marine environmental microbiology; the following: within the National Institutes of Health; (F) bioaccumulative and endocrine-dis- ‘‘(1) serve as Chair of the National Science (D) the Centers for Disease Control; rupting chemical contaminants; and and Technology Council; and’’. (E) the Environmental Protection Agency; (G) predictive models based on indicators (b) FUNCTIONS.—Section 401 of the National (F) the Food and Drug Administration; of marine environmental health. Science and Technology Policy, Organiza- (G) the Department of Homeland Security; (2) Coordination with the National Ocean tion, and Priorities Act of 1976 (42 U.S.C. and Research Leadership Council (10 U.S.C. 6651) is amended to read as follows: (H) such other agencies and departments as 7902(a)) to ensure that any integrated ocean ‘‘SEC. 401. FUNCTIONS OF COUNCIL. the Council deems appropriate. and coastal observing system provides infor- ‘‘(a) IN GENERAL.—The National Science (2) The members of the Committee bienni- mation necessary to monitor, predict and re- and Technology Council (hereinafter referred ally shall select one of its members to serve duce marine public health problems includ- to as the ‘Council’) shall consider problems as Chair. The Chair shall be knowledgeable ing— and developments in the fields of science, en- and experienced with regard to the adminis- (A) baseline observations of physical ocean gineering, and technology and related activi- tration of scientific research programs, and properties to monitor climate variation; ties affecting more than one Federal agency, shall be a representative of an agency that (B) measurement of oceanic and atmos- and shall recommend policies and other contributes substantially, in terms of sci- pheric variables to improve prediction of se- measures designed to— entific research capability and budget, to the vere weather events; ‘‘(1) provide more effective planning and interagency program. (C) compilation of global health statistics administration of Federal scientific, engi- (b) IMPLEMENTATION PLAN.—Within one for analysis of the effects of oceanic events neering, and technology programs; year after the date of enactment of this Act, on human health; ‘‘(2) identify research needs, including the Chair of the National Science and Tech- (D) documentation of harmful algal areas requiring additional emphasis; nology Council, through the Committee on blooms; and ‘‘(3) achieve more effective use of the sci- the Oceans and Human Health, shall develop (E) development and implementation of entific, engineering, and technological re- and submit to the Congress a plan for coordi- sensors to measure biological processes, ac- sources and facilities of Federal agencies, in- nated Federal activities under the program. quire health-related data on biological popu- cluding elimination of unwarranted duplica- In developing the plan, the Committee will lations and detect contaminants in marine tion; and consult with the Inter-Agency Task Force on waters and seafood. ‘‘(4) further international cooperation in Harmful Algal Blooms and Hypoxia. Such (3) Development through partnerships science, engineering and technology. plan will build on and complement the ongo- among Federal agencies, States, or academic ‘‘(b) COORDINATION.—The Council may be ing activities of the National Oceanic and institutions of new technologies and ap- assigned responsibility for developing long- Atmospheric Administration, the National proaches for detecting and reducing hazards

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to human health from ocean sources and to tional Science Foundation and the National (b) SEAFOOD SAFETY.—To address health strengthen understanding of the value of ma- Institute of Environmental Health Sciences. hazards associated with human consumption rine biodiversity to biomedicine, including— (2) The centers shall focus on areas related of seafood, the Secretary, in consultation (A) genomics and proteomics to develop ge- to agency missions, including use of marine with the Centers for Disease Control, the netic and immunological detection ap- organisms as indicators for marine environ- Food and Drug Administration, the Environ- proaches and predictive tools and to discover mental health, ocean pollutants, marine tox- mental Protection Agency and the States, new biomedical resources; ins and pathogens, harmful algal blooms, shall assess risks related to— (B) biomaterials and bioengineering; seafood testing, drug discovery, and biology (1) seafood that is domestically harvested (C) in situ and remote sensors to detect and pathobiology of marine mammals, and and processed as compared with imported and quantify contaminants in marine waters on disciplines including marine genomics, seafood that is harvested and processed out- and organisms and to identify new genetic marine environmental microbiology, ecologi- side the United States; resources; cal chemistry and conservation medicine. (2) seafood that is commercially harvested (D) techniques for supplying marine re- (3) In selecting centers for funding, the and processed as compared with that har- sources, including chemical synthesis, cul- Secretary will consider the need for geo- vested for recreational or subsistence pur- turing and aquaculturing marine organisms, graphic representation and give priority to poses and not prepared commercially; and new fermentation methods and recombinant proposals with strong interdisciplinary sci- (3) contamination originating from certain techniques; and entific merit that encourage educational op- practices that occur both prior to and after (E) adaptation of equipment and tech- portunities and provide for effective partner- sale of seafood to consumers, especially nologies from human health fields. ships among the Administration, other Fed- those connected to the manner in which con- (4) Support for scholars, trainees and edu- eral entities, State, academic, medical, and sumers handle and prepare seafood. cation opportunities that encourage an industry participants. SEC. 7. AUTHORIZATION OF APPROPRIATIONS. interdisciplinary and international approach (e) RESEARCH GRANTS.— (a) NOAA OCEANS AND HUMAN HEALTH PRO- to exploring the diversity of life in the (1) The Secretary is authorized to provide GRAM.—There are authorized to be appro- oceans. grants of financial assistance for critical re- priated to the Secretary of Commerce to SEC. 5. NATIONAL OCEANIC AND ATMOSPHERIC search and projects that explore the rela- carry out the NOAA Oceans and Human ADMINISTRATION OCEANS AND tionship between the oceans and human Health program established under section 5, HUMAN HEALTH PROGRAM. health and that complement or strengthen $8,000,000 for fiscal year 2004, $15,000,000 for (a) ESTABLISHMENT.—As part of the inter- Administration programs and activities re- fiscal year 2005, and $20,000,000 annually for agency program planned and coordinated lated to the ocean’s role in human health. fiscal year 2006 through fiscal year 2008. under section 4, the Secretary of Commerce The Secretary shall consult with the oceans (b) PUBLIC INFORMATION.—There are au- shall establish an Oceans and Human Health and human health advisory panel established thorized to be appropriated to the Secretary Program to coordinate and implement re- under subsection (c) and the National Sea to carry out the public information and out- search and activities of the National Oceanic Grant College Program and may work coop- reach program established under section 6, and Atmospheric Administration related to eratively with other agencies participating $5,000,000 for each of fiscal years 2004 through the role of the oceans in human health. In in the interagency program under section 3 2007. establishing the program, the Secretary to establish joint criteria for such research shall consult with other Federal agencies and projects. By Mr. EDWARDS (for himself, conducting integrated oceans and human (2) Grants under this subsection shall be Mr. SMITH, and Mrs. CLINTON): health research and research in related awarded through a peer-review process that S. 1219: A bill to amend the national areas, including the Centers for Disease Con- may be conducted jointly with other agen- trol, the National Science Foundation, and and Community Service Act of 1990 to cies participating in the interagency pro- establish a Community Corps, and for the National Institute of Environmental gram established in section 3 or under the Health Sciences. The Oceans and Human National Oceanographic Partnership Pro- other purposes; to the Committee on Health Program shall provide support for— gram under section 7901 of title 10, United Health, Education, Labor, and Pen- (1) a program and research coordination of- States Code. sions. fice; (f) DISTINGUISHED SCHOLARS AND Mr. EDWARDS. Mr. President, today (2) an advisory panel; TRAINEESHIPS.— I rise to introduce the School Service (3) one or more National Oceanic and At- (1) The Secretary shall designate and pro- Act of 2003. mospheric Administration national centers vide financial assistance to support distin- Across our Nation, as more and more of excellence; guished scholars from academic institutions, (4) research grants; and people participate in national service industry or State governments for collabo- programs, young people, too, are mak- (5) distinguished scholars and traineeships. rative work with scientists and facilities of (b) PROGRAM OFFICE.—The Secretary shall the Administration. ing real contributions to their commu- establish a program office to identify and co- (2) In consultation with the Directors of nities. These students are learning les- ordinate oceans and human health-related the National Institutes of Health and the Na- sons that are more valuable than any research and activities within the National tional Science Foundation, the Secretary of taught in the classroom, lessons about Oceanic and Atmospheric Administration Commerce may establish a program to pro- and carry out the elements of the program. what it means to be a part of a commu- vide training and experience to scientists at The program office will provide support for nity and what it means to be an Amer- the beginning of their careers who are inter- administration of the program and, in co- ican. ested in the role of the oceans in human operation with the oceans and human health In my home State, schools and com- health. advisory panel, will serve as liaison with munities have seen the benefit of stu- academic institutions and other agencies SEC. 6. PUBLIC INFORMATION AND OUTREACH. dent service. High school kids have participating in the interagency oceans and (a) ESTABLISHMENT.—The Secretary of built community centers in run-down Commerce, in consultation with the Centers human health research program planned and neighborhoods. They’ve cleaned up pol- coordinated under section 3. for Disease Control, the Food and Drug Ad- (c) ADVISORY PANEL.—The Secretary shall ministration, the Environmental Protection luted ponds. They’ve helped small chil- establish an oceans and human health advi- Agency and the States, shall design and im- dren learn to read, and offered comfort sory panel to assist in the development and plement a national public information and to the elderly and sick. implementation of the Oceans and Human outreach program on potential ocean-related And the students have learned that Health Program. Membership of the advisory human health risks, including health haz- their efforts matter, a lesson that group shall provide for balanced representa- ards associated with the human consumption they’ll carry with then their whole tion of individuals with multi-disciplinary of seafood. Under such program, the Sec- lives. The research shows this. In one retary shall— expertise in the marine and biomedical study, adults who had completed serv- sciences. The Federal Advisory Committee (1) collect and analyze information on Act (5 U.S.C. App.) shall not apply to the ocean-related health hazards and illnesses, ice projects more than 15 years earlier oceans and human health advisory panel. including information on the number of indi- were still more likely to be volunteers (d) NATIONAL CENTERS.— viduals affected, causes and geographic loca- and voters than adults who hadn’t. In (1) The Secretary shall identify and pro- tion of the hazard or illness; another program, kids who served had vide financial support through a competitive (2) disseminate the results of the analysis a 60 percent lower drop-out rate and 18 process to develop, within the National Oce- to any appropriate Federal or State agency, percent lower rate of school suspension anic and Atmospheric Administration, for the public, involved industries, and other in- than kids who didn’t. one or more centers of excellence that terested persons; I applaud these students’ dedication, strengthen the capabilities of the Adminis- (3) provide advice regarding precautions tration to carry out programs and activities that may be taken to safeguard against the as well as the dedication of the teach- related to the oceans’ role in human health. hazard or illness; and ers, parents and administrators who Such centers shall complement and be in ad- (4) assess and make recommendations for support them. But we should do more dition to the centers established by the Na- observing systems to support the program. than simply applaud these efforts—we

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00065 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.057 S10PT1 S7626 CONGRESSIONAL RECORD — SENATE June 10, 2003 should provide the resources to support service copayment, seniors with cost and strengthen the Medicare cost con- and expand them. contracts can use any Medicare pro- tract program, and they help stream- That is why I am introducing, to- vider whether they participate in the line the dual administration of gether with Senator GORDON SMITH and health plan’s network. Medicare+Choice and cost contracts. Senator CLINTON, the School Service Cost contracts are especially impor- Last, the Medicare Cost Contract Ex- Act of 2003. The proposal is very sim- tant in rural Colorado. Of the 19,500 tension and Refinement Act would ple: We say to a limited number of Coloradans with cost contract plans, allow certain health plans, called group States and cities, if you have schools about 90 percent live in rural Colorado, model health plans, to offer Medicare that will make sure students engage in where few basic Medicare and patients a cost contract plan. These high-quality service before graduation, Medicare+Choice providers operate. If group model health plans have tradi- we will support those schools’ efforts. Medicare cost contracts are elimi- tionally been shown to provide care ef- All that we ask is that you ensure that nated, then thousands of seniors will be ficiently and at a cost lower than the students are engaging in meaningful forced into these other Medicare pro- costs that would be incurred if the service with real benefits to commu- grams. services are furnished under the Medi- nities. We want kids seeing these expe- Seniors with cost contracts value care fee-for-service program. Group riences not as another chore, but as an them. According to the 1999 Medicare health plans are health insurers that exciting initiation into long lives of ac- Managed Care Consumer Assessment of offer health care through providers tive citizenship. Health Plans Study, conducted by the that are employed by the insurer, such Here in Congress, it is our responsi- U.S. Department of Health and Human as the Kaiser Foundation Health Plan. bility to give opportunities for service Services, Medicare beneficiaries gave If, for example, Kaiser provides Medi- to our young people. We do not want to Medicare cost contract health insurers care patients the cost contract option, create a new national mandate, and we higher ratings than non-cost contract then Colorado’s approximate 50,000 sen- will not require any State or city to do providers. Beneficiaries noted cost con- iors, who are now enrolled in Kaiser’s anything. But for those State and tracting HMOs solved problems, pro- Medicare+Choice plans, would be eligi- school districts with schools that are vided care, and provided customer serv- ble to obtain a cost contract plan. ready, we ought to make sure every ice better than the majority of non- Medicare beneficiaries deserve a child has the opportunity and the re- cost contracting providers. These rat- choice in how they receive their health sponsibility to engage in service. When ings demonstrate that cost contract care. Congress should allow one of we do, our country will be richly re- plans provide the quality service sen- these choices to remain Medicare cost warded in the years and decades to iors want and need. contracts. On behalf of the 19,500 Colo- come. Unfortunately, under current law rado Medicare beneficiaries who obtain cost contracts soon will terminate. In their health care from cost contract By Mr. ALLARD (for himself, , 1997, in an effort to refine plans, I am pleased to sponsor the Mr. WYDEN, Mr. SMITH, Mr. Medicare+Choice, Congress passed the Medicare Cost Contract Extension Act. INOUYE, Mr. AKAKA, Mr. COLE- Balanced Budget Act. Among other I ask unanimous consent that the MAN, Mrs. HUTCHISON, and Mr. provisions, this bill terminated the text of this legislation be printed in CAMPBELL): Medicare cost contract program effec- the RECORD S. 1220. A bill to amend title XVIII of tive December 31, 2002. To prevent the There being no objection, the bill was the Social Security Act to extend rea- termination of this valuable plan, in ordered to be printed in the RECORD, as sonable cost contracts under the medi- 1999 I introduced legislation to extend follows: care program, to expand the area in cost contracts. That year Congress S. 1220 which plans offered under such con- passed the Balanced Budget and Re- Be it enacted by the Senate and House of Rep- tracts may operate, to apply certain finement Act, which extended cost con- resentatives of the United States of America in provisions of the Medicare+Choice pro- tracts for two years through 2004. Congress assembled, gram to such plans, and for other pur- Congress should extend Medicare cost SECTION 1. SHORT TITLE. poses; to the Committee on Finance. contracts further. Legislation I am in- This Act may be cited as the ‘‘Medicare Mr. ALLARD. Mr. President, cur- troducing, the Cost Contracting Exten- Cost Contract Extension and Refinement Act rently approximately 19,500 Colorado sion and Refinement Act, would accom- of 2003’’. seniors are beneficiaries of Medicare plish this by extending by ten years SEC. 2. EXTENSION OF REASONABLE COST CON- health plans called ‘‘cost contracts.’’ the cost contract sunset date of De- TRACTS. Under current law, cost contracts will cember 31, 2004 to December 31, 2014. (a) TEN-YEAR EXTENSION.—Section 1876(h)(5)(C) of the Social Security Act (42 expire. Along with Senator WYDEN, While the goal of Congress in the Bal- U.S.C. 1395mm(h)(5)(C)) is amended by strik- Senator SMITH, Senator INOUYE, Sen- anced Budget Act of 1997 was to provide ing ‘‘2004’’ and inserting ‘‘2014’’. ator AKAKA, and Senator COLEMAN, I an alternative to basic Medicare (b) TEN-YEAR EXTENSION OF PERIOD DURING am pleased to introduce the Medicare through Medicare+Choice, WHICH COST CONTRACTS MAY EXPAND SERVICE Cost Contract Extension and Refine- Medicare+Choice has not yet met this AREAS.—Section 1876(h)(5)(B)(i) of the Social ment Act of 2003 to refine and to allow goal in rural Colorado. Until Security Act (42 U.S.C. 1395mm(h)(5)(B)(i)) is seniors to continue using these valued Medicare+Choice coverage is readily amended by striking ‘‘2003’’ and inserting health plans. available to rural cost contract recipi- ‘‘2013’’. Medicare cost contracts are managed SEC. 3. APPLICATION OF CERTAIN ents, Congress should extend the cur- MEDICARE+CHOICE REQUIREMENTS care plans that are reimbursed at the rent cost contract sunset for an addi- TO COST CONTRACTS EXTENDED OR cost of providing health benefits. Cur- tional 10 years. RENEWED AFTER 2003. rently, seniors have three Medicare This legislation would provide an- Section 1876(h) of the Social Security Act plans to choose from: basic Medicare other reform. It would apply certain (42 U.S.C. 1395mm(h)), as amended by sub- fee-for-service, Medicare+Choice, and existing requirements under the sections (a) and (b), is amended— Medicare cost contracts. Medicare+Choice program to Medicare (1) by redesignating paragraph (5) as para- graph (6); and Cost contract plans offer more bene- cost contract plans in order to allow (2) by inserting after paragraph (4) the fol- fits than basic Medicare and is avail- better administration, education, and lowing new paragraph: able in more areas than protections to patients, providers, and ‘‘(5)(A) Any reasonable cost reimbursement Medicare+Choice. Cost contracts also insurers. The legislation would allow contract with an eligible organization under offer lower out-of-pocket expenses and beneficiaries to be informed and edu- this subsection that is extended or renewed more benefits than supplemental cated about the option of cost con- on or after the date of enactment of the Medigap, such as preventive care and tracts, apply quality assurance require- Medicare Cost Contract Extension and Re- prescription drug benefits. In addition, ments, prevent plans from discrimi- finement Act of 2003 or that is entered into pursuant to paragraph (6)(C) for plan years cost contract premiums cover Medicare nating against certain patients by of- beginning on or after January 1, 2004, shall deductibles and additional benefits not fering lower premiums, and prohibit provide that the provisions of the covered by basic Medicare. Further, for States from taxing cost contract pre- Medicare+Choice program under part C de- the costs of a normal Medicare fee-for- miums. These provisions help refine scribed in subparagraph (B) shall apply to

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.074 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7627 such organization and such contract in a Committee on Health, Education, health Professional Shortage Areas by substantially similar manner as such provi- Labor, and Pensions. the Federal Government. The Presi- sions apply to Medicare+Choice organiza- Mr. BINGAMAN. Mr. President, I rise dent’s New Freedom Commission has tions and Medicare+Choice plans under such today because there is a crisis in our recognized the shortage and has made a part. ‘‘(B) The provisions described in this sub- country that begs our attention. This recommendation to develop a strategic paragraph are as follows: crisis is the overwhelming lack of ade- plan to address it. The Council on ‘‘(i) Section 1851(d) (relating to the provi- quate mental health services available Graduate Medical Education and the sion of information to promote informed to the children and adolescents in our State Mental Health Commissioners choice). Nation and it is time that we address have also recognized this shortage of ‘‘(ii) Section 1851(h) (relating to the ap- it. As I speak, over 13,700,000 young mental health professionals. proval of marketing material and applica- people are suffering from diagnosable The Child Healthcare Crisis Relief tion forms). psychiatric disorders. Sadly, fewer Act will help remove one of the key ‘‘(iii) Section 1852(a)(3)(A) (regarding the than one-third of these have access to authority of organizations to include supple- barriers to treatment for children and mental health care benefits under the plan mental healthcare. Today I am intro- adolescents with mental illnesses: the subject to the approval of the Secretary). ducing the ‘‘Child Healthcare Crisis Re- lack of available specialists trained in ‘‘(iv) Paragraph (1) of section 1852(e) (relat- lief Act’’ along with Senators COLLINS, this field. This bill creates incentives ing to the requirement of having an ongoing JEFFORDS, and DODD in an effort to re- to help recruit and retain child mental quality assurance program) and paragraph duce the disparity between the need for health professionals providing direct (2)(B) of such section (relating to the re- mental health services and resources clinical care and to improve, expand, quired elements for such a program). available to meet that need. ‘‘(v) Section 1852(e)(4) (relating to treat- or help create programs to train child The landmark report ‘‘Mental mental health professionals through ment of accreditation). Health: A Report of the Surgeon Gen- ‘‘(vi) Section 1852(j)(4) (relating to limita- several mechanisms. The bill provides tions on physician incentive plans). eral’’ illuminated the crisis in 1999. loan repayment and scholarships for ‘‘(vii) Section 1854(c) (relating to the re- 13,700,000 young people have child mental health and school-based quirement of uniform premiums among indi- diagnosable mental disorders including service professionals to help pay back viduals enrolled in the plan). 6–9,000,000 children and adolescents who educational loans. It provides grants to ‘‘(viii) Section 1854(g) (relating to restric- meet the definition for having a serious graduate schools to provide for intern- tions on imposition of premium taxes with emotional disturbance and 5–9 percent respect to payments to organizations). ships and field placements in child of youth who meet the definition for mental health services. It provides ‘‘(ix) Section 1856(b)(3) (relating to relation having severe functional impairment. to State laws). grants to help with the preservice and ‘‘(x) Section 1857(i) (relating to Unfortunately, few of these young peo- inservice training of paraprofessionals Medicare+Choice program compatibility ple have access to adequate mental who work in the children’s mental with employer or union group health plans). health services. The resulting lack of health clinical settings. It also pro- ‘‘(xi) The provisions of part C relating to treatment leads to a lifetime cycle of vides grants to graduate schools to timelines for contract renewal and bene- difficulties from unresolved mental help develop and expand child and ado- ficiary notification.’’. health issues. These difficulties are lescent mental health programs. Fi- SEC. 4. PERMITTING DEDICATED GROUP PRAC- often as severe as school failure, sub- TICE HEALTH MAINTENANCE ORGA- nally, the bill allows for an increase in NIZATIONS TO PARTICIPATE IN THE stance abuse, job and relationship in- the number of child and adolescent MEDICARE COST CONTRACT PRO- stability, and even criminal behavior psychiatrists permitted under the GRAM. or suicide. In many cases, young people Medicare Graduate Medical Education Section 1876(h)(6) of the Social Security who do not receive the mental health Act (42 U.S.C. 1395mm(h)(6)), as redesignated Program, extends the Board Eligibility treatment that they need end up in fos- period for residents and fellows from 4 and amended by section 2, is amended— ter care or even in the juvenile justice (1) in subparagraph (A), by striking ‘‘After years to 6 years, and instructs the sec- the date of the enactment’’ and inserting system. In my state of New Mexico, a retary to prepare a report on the dis- ‘‘Except as provided in subparagraph (C), 2002 report concluded that 1 in 7 incar- tribution and need for child mental after the date of the enactment’’; cerated youth is currently in a deten- health and school-based professionals. (2) in subparagraph (B), by striking ‘‘sub- tion center solely because there is no I ask my colleagues in the Senate to paragraph (C)’’ and inserting ‘‘subparagraph appropriate treatment option avail- join me along with Senators COLLINS, (D)’’; able. These youth are actually cleared (3) by redesignating subparagraph (C) as JEFFORDS, and DODD in supporting this to leave as soon as they have adequate essential legislation. Over 13 million subparagraph (D); and treatment in place. In fact, from Janu- (4) by inserting after subparagraph (B), the children in our country are counting following new subparagraph: ary 2001 to December of 2001 an esti- on us. ‘‘(C) Subject to paragraph (5) and subpara- mated 718 New Mexico youth were col- As Walt Disney once said, ‘‘Our Na- graph (D), the Secretary shall approve an ap- lectively incarcerated for 31.3 years tion’s greatest national resource is the plication to enter into a reasonable cost con- waiting for a treatment opening. Most minds of our children.’’ Let us not fail tract under this section if— other States are facing similar situa- these 13 million people. ‘‘(i) the application is submitted to the tions. In fact, studies have found that I ask unanimous consent that the Secretary by a health maintenance organiza- nationally more than 1 in 3 youth in tion (as defined in section 1301(a) of the Pub- text of the bill be printed in the lic Health Service Act) that, as of January 1, detention centers have a mental health RECORD. 2004, and except as provided in section disorder. Clearly, this is an issue that There being no objection, the bill was 1301(b)(3)(B) of such Act, provides at least 85 demands our immediate attention. ordered to be printed in the RECORD, as percent of the services of a physician which One of the key barriers to treatment follows: are provided as basic health services through is the shortage of available specialists S. 1223 a medical group (or groups), as defined in trained in the identification, diagnosis, Be it enacted by the Senate and House of Rep- section 1302(4) of such Act; and and treatment of children and adoles- resentatives of the United States of America in ‘‘(ii) the Secretary determines that the or- cents with emotional and behavioral Congress assembled, ganization meets the requirements applica- disorders. The 1999 Surgeon General’s ble to such organizations and contracts SECTION 1. SHORT TITLE. under this section.’’. Report stated, ‘‘there is a dearth of This Act may be cited as the ‘‘Child Health child psychiatrists, appropriately Care Crisis Relief Act’’. By Mr. BINGAMAN (for himself, trained clinical child psychologists, SEC. 2. FINDINGS. Ms. COLLINS, Mr. JEFFORDS, and and social workers.’’ There are particu- Congress finds the following: Mr. DODD): larly acute shortages in the number of (1) The Center for Mental Health Services S. 1223. A bill to increase the number mental health service professionals estimates that 20 percent or 13,700,000 of the of well-trained mental health service serving children and adolescents with Nation’s children and adolescents have a diagnosable mental health disorder, and professionals (including those based in serious emotional disorders as well as about 2⁄3 of these children and adolescents do schools) providing clinical mental those serving rural areas. Nationwide, not receive mental health care. health care to children and adoles- 4,358 urban, suburban, and rural local- (2) According to ‘‘Mental Health: A Report cents, and for other purposes; to the ities have been designated mental of the Surgeon General’’ in 1999, there are

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approximately 6,000,000 to 9,000,000 children ‘‘(ii)(I) is a mental health service profes- ‘‘(2) ELIGIBLE STUDENT.—For purposes of and adolescents in the United States (ac- sional who completed (but not before the end this subsection, the term ‘eligible student’ counting for 9 to 13 percent of all children of the calendar year in which this section is means a United States citizen or a perma- and adolescents in the United States) who enacted) specialized training or clinical ex- nent legal United States resident who— meet the definition for having a serious emo- perience in child and adolescent mental ‘‘(A) is enrolled or accepted to be enrolled tional disturbance. health services described in subparagraph in a graduate program that includes special- (3) According to the Center for Mental (A); or ized training or clinical experience in child Health Services, approximately 5 to 9 per- ‘‘(II) is a physician who graduated from and adolescent mental health in psychology, cent of children and adolescents in the (but not before the end of the calendar year school psychology, psychiatric nursing, so- United States meet the definition for ex- in which this section is enacted) an accred- cial work, school social work, marriage and treme functional impairment. ited child and adolescent psychiatry resi- family therapy, school counseling, or profes- (4) According to the Surgeon General’s Re- dency or fellowship program in the United sional counseling; or port, there are particularly acute shortages States. ‘‘(B) is enrolled or accepted to be enrolled in the numbers of mental health service pro- ‘‘(3) ADDITIONAL ELIGIBILITY REQUIRE- in an accredited graduate training program fessionals serving children and adolescents MENTS.—The Secretary may not enter into a of allopathic or osteopathic medicine in the with serious emotional disorders. contract under this subsection with an eligi- United States and intends to complete an ac- (5) According to the National Center for ble individual unless the individual— credited residency or fellowship in child and Education Statistics in the Department of ‘‘(A) is a United States citizen or a perma- adolescent psychiatry. Education, there are approximately 513 stu- nent legal United States resident; and ‘‘(3) PRIORITY.—In awarding scholarships dents for each school counselor in United ‘‘(B) if enrolled in a graduate program (in- under this subsection, the Secretary shall States schools, which ratio is more than dou- cluding a medical residency or fellowship), give— ble the recommended ratio of 250 students has an acceptable level of academic standing ‘‘(A) highest priority to applicants who for each school counselor. as determined by the Secretary. previously received a scholarship under this (6) According to a year 2000 estimate of the ‘‘(4) PRIORITY.—In entering into contracts subsection and satisfy the criteria described Bureau of Health Professions, the demand under this subsection, the Secretary shall in subparagraph (B); and for the services of child and adolescent psy- give priority to applicants who— chiatry is projected to increase by 100 per- ‘‘(A) are or will be working with high pri- ‘‘(B) second highest priority to applicants cent by 2020. ority populations; who— (7) The development and application of ‘‘(B) have familiarity with evidence-based ‘‘(i) demonstrate a commitment to work- knowledge about the impact of disasters on methods in child and adolescent mental ing with high priority populations; children, adolescents, and their families has health services; ‘‘(ii) have familiarity with evidence-based been impeded by critical shortages of quali- ‘‘(C) demonstrate financial need; and methods in child and adolescent mental fied researchers and practitioners special- ‘‘(D) are or will be— health services; izing in this work. ‘‘(i) working in the publicly funded sector; ‘‘(iii) demonstrate financial need; and (8) According to the Bureau of the Census, ‘‘(ii) working in organizations that serve ‘‘(iv) are or will be— the population of children and adolescents in underserved populations; or ‘‘(I) working in the publicly funded sector; the United States under the age of 18 is pro- ‘‘(iii) willing to provide patient services— ‘‘(II) working in organizations that serve jected to grow by more than 40 percent, from ‘‘(I) regardless of the ability of a patient to underserved populations; or 70,000,000 to more than 100,000,000 by 2050. pay for such services; or ‘‘(III) willing to provide patient services— SEC. 3. LOAN REPAYMENTS, SCHOLARSHIPS, AND ‘‘(II) on a sliding payment scale if a patient ‘‘(aa) regardless of the ability of a patient GRANTS TO IMPROVE CHILD AND is unable to pay the total cost of such serv- to pay for such services; or ADOLESCENT MENTAL HEALTH ices. ‘‘(bb) on a sliding payment scale if a pa- CARE. ‘‘(5) MEANINGFUL LOAN REPAYMENT.—If the tient is unable to pay the total cost of such Part B of title VII of the Public Health Secretary determines that funds appro- services. Service Act (42 U.S.C. 293 et seq.) is amended priated for a fiscal year to carry out this ‘‘(4) REQUIREMENTS.—The Secretary may by adding at the end the following: subsection are not sufficient to allow a award a scholarship to an eligible student ‘‘SEC. 742. LOAN REPAYMENTS, SCHOLARSHIPS, meaningful loan repayment to all expected under this subsection only if the eligible stu- AND GRANTS TO IMPROVE CHILD applicants, the Secretary shall limit the dent agrees— AND ADOLESCENT MENTAL HEALTH ‘‘(A) to complete any graduate training CARE. number of contracts entered into under para- program, internship, residency, or fellowship ‘‘(a) LOAN REPAYMENTS FOR CHILD AND ADO- graph (1) to ensure that each such contract applicable to that eligible student under LESCENT MENTAL HEALTH SERVICE PROFES- provides for a meaningful loan repayment. paragraph (2); SIONALS.— ‘‘(6) AMOUNT.— ‘‘(B) to maintain an acceptable level of ‘‘(1) ESTABLISHMENT.—The Secretary, act- ‘‘(A) MAXIMUM.—For each year of the em- ing through the Administrator of the Health ployment period described in paragraph academic standing (as determined by the Resources and Services Administration, may (1)(A), the Secretary shall not, under a con- Secretary) during the completion of such establish a program of entering into con- tract described in paragraph (1), pay more graduate training program, internship, resi- tracts on a competitive basis with eligible than $35,000 on behalf of an individual. dency, or fellowship; and individuals (as defined in paragraph (2)) ‘‘(B) CONSIDERATION.—In determining the ‘‘(C) to be employed full-time after gradua- under which— amount of payments to be made on behalf of tion or completion of a residency or fellow- ‘‘(A) the eligible individual agrees to be an eligible individual under a contract de- ship, for at least the number of years for employed full-time for a specified period of scribed in paragraph (1), the Secretary shall which a scholarship is received by the eligi- at least 2 years in providing mental health consider the income and debt load of the eli- ble student under this subsection, in pro- services to children and adolescents; and gible individual. viding mental health services to children ‘‘(B) the Secretary agrees to make, during ‘‘(7) APPLICABILITY OF CERTAIN PROVI- and adolescents. the period of employment described in sub- SIONS.—The provisions of sections 338E and ‘‘(5) USE OF SCHOLARSHIP FUNDS.—A schol- paragraph (A), partial or total payments on 338F shall apply to the program established arship awarded to an eligible student for a behalf of the individual on the principal and under paragraph (1) to the same extent and school year under this subsection may be interest due on the undergraduate and grad- in the same manner as such provisions apply used to pay for only tuition expenses of the uate educational loans of the eligible indi- to the National Health Service Corps Loan school year, other reasonable educational ex- vidual. Repayment Program established in subpart penses (including fees, books, and laboratory ‘‘(2) ELIGIBLE INDIVIDUAL.—For purposes of III of part D of title III. expenses incurred by the eligible student in this section, the term ‘eligible individual’ ‘‘(8) AUTHORIZATION OF APPROPRIATIONS.— the school year), and reasonable living ex- means an individual who— There is authorized to be appropriated to penses, as such tuition expenses, reasonable ‘‘(A) is receiving specialized training or carry out this subsection $10,000,000 for each educational expenses, and reasonable living clinical experience in child and adolescent of fiscal years 2004 through 2008. expenses are determined by the Secretary. mental health in psychiatry, psychology, ‘‘(b) SCHOLARSHIPS FOR STUDENTS STUDYING ‘‘(6) AMOUNT.—The amount of a scholarship school psychology, psychiatric nursing, so- TO BECOME CHILD AND ADOLESCENT MENTAL under this subsection shall not exceed the cial work, school social work, marriage and HEALTH SERVICE PROFESSIONALS.— total amount of the tuition expenses, reason- family therapy, school counseling, or profes- ‘‘(1) ESTABLISHMENT.—The Secretary, act- able educational expenses, and reasonable sional counseling and has less than 1 year re- ing through the Administrator of the Health living expenses described in paragraph (5). maining before completion of such training Resources and Services Administration, may ‘‘(7) APPLICABILITY OF CERTAIN PROVI- or clinical experience; or establish a program to award scholarships on SIONS.—The provisions of sections 338E and ‘‘(B)(i) has a license in a State to practice a competitive basis to eligible students who 338F shall apply to the program established allopathic medicine, osteopathic medicine, agree to enter into full-time employment (as under paragraph (1) to the same extent and psychology, school psychology, psychiatric described in paragraph (4)(C)) as a child and in the same manner as such provisions apply nursing, social work, school social work, adolescent mental health service profes- to the National Health Service Corps Schol- marriage and family therapy, school coun- sional after graduation or completion of a arship Program established in subpart III of seling, or professional counseling; and residency or fellowship. part D of title III.

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‘‘(8) AUTHORIZATION OF APPROPRIATIONS.— individual who is not a mental health service ‘‘(B) the institution will provide to the There is authorized to be appropriated to professional, but who works at the first Secretary such data, assurances, and infor- carry out this subsection $5,000,000 for each stage of contact with children and families mation as the Secretary may require; and of fiscal years 2004 through 2008. who are seeking mental health services. ‘‘(C) with respect to any violation of the ‘‘(c) CLINICAL TRAINING GRANTS FOR PRO- ‘‘(3) PRIORITY.—In awarding grants under agreement between the Secretary and the in- FESSIONALS.— this subsection, the Secretary shall give pri- stitution, the institution will pay such liq- ‘‘(1) ESTABLISHMENT.—The Secretary, act- ority to organizations that— uidated damages as prescribed by the Sec- ing through the Administrator of the Health ‘‘(A) have demonstrated the ability to col- retary by regulation. Resources and Services Administration, and lect data on the number of paraprofessional ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— in cooperation with the Administrator of the child and adolescent mental health workers There is authorized to be appropriated to Substance Abuse and Mental Health Services trained by the applicant and the populations carry out this subsection $15,000,000 for each Administration, may establish a program to served by these workers after the completion of fiscal years 2004 through 2008. award grants on a competitive basis to ac- of the training; ‘‘(f) DEFINITIONS.—In this section: credited institutions of higher education to ‘‘(B) have familiarity with evidence-based ‘‘(1) HIGH PRIORITY POPULATION.—The term establish or expand internships or other field methods in child and adolescent mental ‘high priority population’ means a popu- placement programs for students receiving health services; and lation that has a high incidence of children specialized training or clinical experience in ‘‘(C) have programs designed to increase and adolescents who have serious emotional child and adolescent mental health in the the number of paraprofessional child and ad- disturbances, are racial and ethnic minori- fields of psychiatry, psychology, school psy- olescent mental health workers serving high ties, or live in underserved urban or rural chology, psychiatric nursing, social work, priority populations. areas. school social work, marriage and family ‘‘(4) REQUIREMENTS.—The Secretary may ‘‘(2) MENTAL HEALTH SERVICE PROFES- therapy, school counseling, or professional award a grant to an organization under this SIONAL.—The term ‘mental health service counseling. subsection only if the organization agrees professional’ means an individual with a ‘‘(2) PRIORITY.—In awarding grants under that— graduate or postgraduate degree from an ac- this subsection, the Secretary shall give pri- ‘‘(A) any training program assisted under credited institution of higher education in ority to applicants that— the grant will prioritize cultural com- psychiatry, psychology, school psychology, ‘‘(A) have demonstrated the ability to col- petency; psychiatric nursing, social work, school so- lect data on the number of students trained ‘‘(B) the organization will provide to the cial work, marriage and family counseling, in child and adolescent mental health and Secretary such data, assurances, and infor- school counseling, or professional coun- the populations served by such students mation as the Secretary may require; and seling. after graduation; ‘‘(C) with respect to any violation of the ‘‘(3) SPECIALIZED TRAINING OR CLINICAL EX- ‘‘(B) have demonstrated familiarity with agreement between the Secretary and the or- PERIENCE IN CHILD AND ADOLESCENT MENTAL evidence-based methods in child and adoles- ganization, the organization will pay such HEALTH.—The term ‘specialized training or cent mental health services; and liquidated damages as prescribed by the Sec- clinical experience in child and adolescent ‘‘(C) have programs designed to increase retary by regulation. mental health’ means training and clinical the number of professionals serving high pri- ‘‘(5) APPLICATION.—Each organization de- experience that— ority populations. siring a grant under this subsection shall ‘‘(A) is part of or occurs after completion ‘‘(3) REQUIREMENTS.—The Secretary may submit to the Secretary an application at of an accredited graduate program in the award a grant to an applicant under this sub- such time, in such manner, and containing United States for training mental health section only if the applicant agrees that— such information as the Secretary may re- ‘‘(A) any internship or other field place- quire including a description of the experi- service professionals; ment program assisted under the grant will ence of the organization in working with ‘‘(B) consists of at least 500 hours of train- prioritize cultural competency; paraprofessional child and adolescent mental ing or clinical experience in treating chil- ‘‘(B) students benefiting from any assist- health workers. dren and adolescents; and ‘‘(C) is comprehensive, coordinated, devel- ance under this subsection will be United ‘‘(6) AUTHORIZATION OF APPROPRIATIONS.— States citizens or permanent legal United There is authorized to be appropriated to opmentally appropriate, and of high quality States residents; carry out this subsection $5,000,000 for each to address the unique ethnic and cultural di- ‘‘(C) the institution will provide to the of fiscal years 2004 through 2008. versity of the United States population.’’. Secretary such data, assurances, and infor- ‘‘(e) CHILD AND ADOLESCENT MENTAL SEC. 4. AMENDMENTS TO SOCIAL SECURITY ACT mation as the Secretary may require; and HEALTH PROGRAM DEVELOPMENT GRANTS.— TO IMPROVE CHILD AND ADOLES- ‘‘(D) with respect to any violation of the ‘‘(1) ESTABLISHMENT.—The Secretary, act- CENT MENTAL HEALTH CARE. agreement between the Secretary and the in- ing through the Administrator of the Health (a) INCREASING NUMBER OF CHILD AND ADO- stitution, the institution will pay such liq- Resources and Services Administration, may LESCENT PSYCHIATRY RESIDENTS PERMITTED uidated damages as prescribed by the Sec- establish a program to increase the number TO BE PAID UNDER THE MEDICARE GRADUATE retary by regulation. of well-trained child and adolescent mental MEDICAL EDUCATION PROGRAM.—Section ‘‘(4) APPLICATION.—Each institution of health service professionals in the United 1886(h)(4)(F) of the Social Security Act (42 higher education desiring a grant under this States by awarding grants on a competitive U.S.C. 1395ww(h)(4)(F)) is amended by adding section shall submit to the Secretary an ap- basis to accredited institutions of higher at the end the following: plication at such time, in such manner, and education to enable such institutions to es- ‘‘(iii) INCREASE ALLOWED FOR TRAINING IN containing such information as the Sec- tablish or expand accredited graduate child CHILD AND ADOLESCENT PSYCHIATRY.—In ap- retary may require including a description of and adolescent mental health programs. plying clause (i), there shall not be taken the experience of such institution in working ‘‘(2) PRIORITY.—In awarding grants under into account such additional number of full- with child and adolescent mental health this subsection, the Secretary shall give pri- time equivalent residents in the field of issues. ority to applicants that— allopathic or osteopathic medicine who are ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(A) demonstrate familiarity with the use residents or fellows in child and adolescent There is authorized to be appropriated to of evidence-based methods in child and ado- psychiatry as the Secretary determines rea- carry out this subsection $10,000,000 for each lescent mental health services; sonable to meet the need for such physicians of fiscal years 2004 through 2008. ‘‘(B) provide experience in and collabora- as demonstrated by the 1999 report of the De- ‘‘(d) PROGRESSIVE EDUCATION GRANTS FOR tion with community-based child and adoles- partment of Health and Human Services en- PARAPROFESSIONALS.— cent mental health services; titled ‘Mental Health: A Report of the Sur- ‘‘(1) ESTABLISHMENT.—The Secretary, act- ‘‘(C) have included normal child develop- geon General’.’’. ing through the Administrator of the Health ment education in their curricula; and (b) EXTENSION OF MEDICARE BOARD ELIGI- Resources and Services Administration, and ‘‘(D) demonstrate commitment to working BILITY PERIOD FOR RESIDENTS AND FELLOWS in cooperation with the Administrator of the with high priority populations. IN CHILD AND ADOLESCENT PSYCHIATRY.— Substance Abuse and Mental Health Services ‘‘(3) USE OF FUNDS.—Funds awarded under (1) IN GENERAL.—Section 1886(h)(5)(G) of Administration, may establish a program to this subsection may be used to establish or the Social Security Act (42 U.S.C. award grants on a competitive basis to expand any accredited graduate child and ad- 1395ww(h)(5)(G)) is amended— State-licensed mental health nonprofit and olescent mental health program in any man- (A) in clause (i), by striking ‘‘and (v)’’ and for-profit organizations, including accredited ner deemed appropriate by the Secretary, in- inserting ‘‘(v), and (vi)’’; and institutions of higher education, (in this sub- cluding improving the coursework, related (B) by adding at the end the following: section referred to as ‘organizations’) to en- field placements, or faculty of such program. ‘‘(vi) CHILD AND ADOLESCENT PSYCHIATRY able such organizations to pay for programs ‘‘(4) REQUIREMENTS.—The Secretary may TRAINING PROGRAMS.—In the case of an indi- for preservice or in-service training of para- award a grant to an accredited institution of vidual enrolled in a child and adolescent psy- professional child and adolescent mental higher education under this subsection only chiatry residency or fellowship program ap- health workers. if the institution agrees that— proved by the Secretary, the period of board ‘‘(2) DEFINITION.—For purposes of this sub- ‘‘(A) any child and adolescent mental eligibility and the initial residency period section, the term ‘paraprofessional child and health program assisted under the grant will shall be the period of board eligibility for the adolescent mental health worker’ means an prioritize cultural competency; specialty of general psychiatry, plus 2 years

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00069 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.048 S10PT1 S7630 CONGRESSIONAL RECORD — SENATE June 10, 2003 for the subspecialty of child and adolescent Because of a loophole in current law, the number of rounds that a gun can psychiatry.’’. firearms are virtually the only con- fire without reloading, and have in- (2) CONFORMING AMENDMENT.—Section sumer product not subject to any Fed- creased the size of their ammunition, 1886(h)(5)(F) of the Social Security Act (42 eral health and safety standards. Yet making the firearms far more lethal. U.S.C. 1395ww(h)(5)(F)) is amended by strik- Given the threat posed by unreason- ing ‘‘subparagraph (G)(v)’’ and inserting firearms are the second leading cause ‘‘clauses (v) and (vi) of subparagraph (G)’’. of product-related death in America. In ably dangerous firearms to gun owners (3) EFFECTIVE DATE.—The amendments 2000 alone, 28,663 Americans died by and the general public, there is no ex- made by paragraph (1) shall apply to resi- gunfire and nearly twice that number cuse for exempting firearms from dency training years beginning on or after were treated in emergency rooms for health and safety standards applicable July 1, 2003. non-fatal gunshot injuries. to most other consumer products. In SEC. 5. CHILD MENTAL HEALTH PROFESSIONAL Of course, all firearms are lethal. But fact, there is evidence that the public REPORT. many guns are much more dangerous would support such regulation. A 1999 (a) STUDY.—The Administrator of the National Opinion Research Center sur- Health Resources and Services Administra- than they have to be. First, many fire- tion (in this section referred to as the ‘‘Ad- arms are manufactured poorly or with vey found that two-thirds of Americans ministrator’’) shall study and make findings components of inadequate quality. want the Federal Government to regu- and recommendations on the distribution These guns can pose a severe threat to late the safety design of guns. and need for child mental health service pro- gun owners, as well as members of the The Firearms Safety and Consumer fessionals, including— public. For example, one firearm man- Protection Act would do just that. The (1) the need for specialty certifications; ufacturer settled a class action suit for bill would give the Department of Jus- (2) the breadth of practice types; tice the authority to: set minimum (3) the adequacy of locations; more than $31 million in 1995, and thereafter improved the quality of safety standards for the manufacture, (4) the adequacy of education and training; design and distribution of firearms; and their guns, after gun owners alleged (5) an evaluation of best practice charac- that their firearms were produced from issue recalls and warnings; collect data teristics. steel that was too weak, and thus on gun-related death and injury; and (b) DISAGGREGATION.—The results of the prone to explode. limit the sale of products when no study required by subsection (a) shall be Unfortunately, the lack of safety other remedy is sufficient. It is impor- disaggregated by State. standards in current law means that tant to emphasize that the bill would (c) REPORT.—Not later than 1 year after many defective firearms remain in cir- not limit the public’s access to guns for the date of enactment of this Act, the Ad- hunting and other legitimate sporting ministrator shall submit to the appropriate culation, with the government largely committees of Congress and make publicly unable to do anything about it. We purposes. available a report on the study, findings, and cannot recall such firearms. We cannot More than 120 national, state and recommendations required by subsection (a). require that warning labels be attached local organizations support this bill, (d) REVISION.—Each year the Adminis- to them. We can do very little to pro- including: the American Academy of trator shall revise the report required under tect gun owners and the public from Pediatrics, American Bar Association, subsection (c). the threat they pose. American Jewish Congress, American (e) AUTHORIZATION OF APPROPRIATIONS.— Public Health Association, Brady Cam- There are authorized to be appropriated to Beyond the need to better regulate carry out this section such sums as may be firearms that are manufactured defec- paign to Prevent Gun Violence, Coali- necessary for each of fiscal years 2004 tively, we also need to do more to en- tion to Stop Gun Violence, Consumer through 2008. sure that firearms are designed prop- Federation of America, the NAACP, SEC. 6. REPORTS. erly, with features that reduce unrea- National Coalition Against Domestic (a) TRANSMISSION.—The Secretary of sonable risks. Unfortunately, too many Violence, United Church of Christ Jus- Health and Human Services shall transmit a firearms lack readily available features tice and Witness Ministries, and the report described in subsection (b) to Con- Violence Policy Center. gress— that could make them much less likely to be involved in an accident. For ex- There simply is no reason to main- (1) not later than 3 years after the date of tain the existing loophole that exempts the enactment of this Act; and ample, many guns lack so-called maga- (2) not later than 5 years after the date of zine disconnects, which disable a fire- firearms from basic health and safety the enactment of this Act. arm when its magazine is removed. protections. This loophole is creating a (b) CONTENTS.—The reports transmitted to This feature could prevent many acci- serious public safety problem, espe- Congress under subsection (a) shall address dental deaths caused when a firearm cially for gun owners themselves. each of the following: In conclusion, I hope my colleagues user, seeing that the magazine has (1) The effectiveness of the amendments will consider this: under current law, been removed, wrongly concludes that made by, and the programs carried out the safety of toy guns is regulated. The a gun is not loaded. Along the same under, this Act in increasing the number of safety of real guns is not. Even if my child and adolescent mental health service lines, too few firearms include a load colleagues in the Senate cannot agree professionals and paraprofessional child and indicator, which allows an individual on much else when it comes to guns, adolescent mental health workers. to readily see whether the gun is load- surely we should all agree that this (2) The demographics of the individuals ed. Both of these features would ad- makes no sense. served by such increased number of child and dress the most common scenario for adolescent mental health service profes- I ask unanimous consent that the unintentional shootings, which in- sionals and paraprofessional child and ado- text of the bill be printed in the volves a person who does not realize lescent mental health workers. RECORD. that there is still a round in a gun’s There being no objection, the bill was By Mr. CORZINE (for himself and chamber. ordered to be printed in the RECORD, as Mr. LAUTENBERG): By regulating the manufacture and follows: S. 1224. A bill to expand the powers of design of firearms, we can significantly S. 1224 the Attorney General to regulate the reduce the number of accidental shoot- Be it enacted by the Senate and House of Rep- manufacture, distribution, and sale of ings, and the serious injuries and resentatives of the United States of America in firearms and ammunition, and to ex- deaths they cause. However, better Congress assembled, pand the jurisdiction of the Attorney safety regulation also holds the prom- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. General to include firearm products ise of reducing the number of deaths (a) SHORT TITLE.—This Act may be cited as and nonpowder firearms; to the Com- from homicides and suicides. the ‘‘Firearms Safety and Consumer Protec- mittee on the Judiciary. In recent years, firearm manufactur- tion Act of 2003’’. Mr. CORZINE. Mr. President, I rise ers have taken a number of steps to (b) TABLE OF CONTENTS.—The table of con- today to introduce the Firearms Safety make firearms more likely to be used tents for this Act is as follows: and Consumer Protection Act of 2003, in crimes, and more deadly if they are. Sec. 1. Short title; table of contents. Sec. 2. Purposes. legislation to protect gun owners and For example, many guns are being pro- Sec. 3. Definitions. the public by establishing safety stand- duced in a manner that makes them TITLE I—REGULATION OF FIREARM ards for firearms such as those cur- readily concealable, and thus more at- PRODUCTS rently in place for other consumer tractive to criminals. In addition, Sec. 101. Regulatory authority. products. many manufacturers have increased Sec. 102. Orders; inspections.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00070 Fmt 0624 Sfmt 0655 E:\CR\FM\A10JN6.048 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7631 TITLE II—PROHIBITIONS designed to discharge BBs, pellets, darts, or (C) in the case of a dealer in the product, Sec. 201. Prohibitions. similar projectiles by the release of stored the manufacturer of the product and the Sec. 202. Inapplicability to governmental au- energy. other persons known to the dealer as dealers thorities. (8) QUALIFIED FIREARM PRODUCT DEFINED.— in the product; TITLE III—ENFORCEMENT The term ‘‘qualified firearm product’’ means (2) bring the product into conformity with a firearm product— the regulations prescribed under this Act; SUBTITLE A—CIVIL ENFORCEMENT (A) that— (3) repair the product; Sec. 301. Civil penalties. (i) is being transported; (4) replace the product with a like or equiv- Sec. 302. Injunctive enforcement and seizure. Sec. 303. Imminently hazardous firearms. (ii) having been transported, remains alent product which is in compliance with Sec. 304. Private cause of action. unsold; those regulations; Sec. 305. Private enforcement of this Act. (iii) is sold or offered for sale; or (5) refund the purchase price of the prod- Sec. 306. Effect on private remedies. (iv) is imported or is to be exported; and uct, or, if the product is more than 1 year SUBTITLE B—CRIMINAL ENFORCEMENT (B) that— old, a lesser amount based on the value of (i) is not in compliance with a regulation the product after reasonable use; Sec. 351. Criminal penalties. prescribed or an order issued under this Act; (6) recall the product from the stream of TITLE IV—ADMINISTRATIVE or commerce; or PROVISIONS (ii) with respect to which relief has been (7) submit to the Attorney General a satis- Sec. 401. Firearm injury information and re- granted under section 303. factory plan for implementation of any ac- search. (b) OTHER TERMS.—Each term used in this tion required under this subsection. Sec. 402. Annual report to Congress. Act that is not defined in subsection (a) shall (c) AUTHORITY TO PROHIBIT MANUFACTURE, TITLE V—RELATIONSHIP TO OTHER LAW have the meaning (if any) given that term in IMPORTATION, TRANSFER, DISTRIBUTION, OR Sec. 501. Subordination to the Arms Export section 921(a) of title 18, United States Code. EXPORT OF UNREASONABLY RISKY FIREARM Control Act. TITLE I—REGULATION OF FIREARM PRODUCTS.—The Attorney General may issue Sec. 502. Effect on State law. PRODUCTS an order prohibiting the manufacture, im- SEC. 2. PURPOSES. SEC. 101. REGULATORY AUTHORITY. portation, transfer, distribution, or export of a firearm product if the Attorney General The purposes of this Act are to— (a) IN GENERAL.—The Attorney General (1) protect the public against unreasonable shall prescribe such regulations governing determines that the exercise of other author- risk of injury and death associated with fire- the design, manufacture, and performance of, ity under this Act would not be sufficient to arms and related products; and commerce in, firearm products, con- prevent the product from posing an unrea- (2) develop safety standards for firearms sistent with this Act, as are reasonably nec- sonable risk of injury to the public. (d) INSPECTIONS.—When the Attorney Gen- and related products; essary to reduce or prevent unreasonable eral has reason to believe that a violation of (3) assist consumers in evaluating the com- risk of injury resulting from the use of those this Act, or of a regulation or order issued parative safety of firearms and related prod- products. under this Act, is being, or has been, com- ucts; (b) MAXIMUM INTERVAL BETWEEN ISSUANCE mitted, the Attorney General may, at rea- (4) promote research and investigation into OF PROPOSED AND FINAL REGULATION.—Not the causes and prevention of firearm-related later than 120 days after the date on which sonable times— deaths and injuries; and the Attorney General issues a proposed regu- (1) enter any place in which firearm prod- (5) restrict the availability of weapons that lation under subsection (a) with respect to a ucts are manufactured, stored, or held, for pose an unreasonable risk of death or injury. matter, the Attorney General shall issue a distribution in commerce, and inspect those SEC. 3. DEFINITIONS. regulation in final form with respect to the areas where the products are manufactured, stored, or held; and (a) SPECIFIC TERMS.—In this Act: matter. (2) enter and inspect any conveyance being (1) FIREARMS DEALER.—The term ‘‘firearms (c) PETITIONS.— dealer’’ means— (1) IN GENERAL.—Any person may petition used to transport a firearm product. (A) any person engaged in the business (as the Attorney General to— TITLE II—PROHIBITIONS defined in section 921(a)(21)(C) of title 18, (A) issue, amend, or repeal a regulation SEC. 201. PROHIBITIONS. United States Code) of dealing in firearms at prescribed under subsection (a) of this sec- (a) FAILURE OF MANUFACTURER TO TEST AND wholesale or retail; tion; or CERTIFY FIREARM PRODUCTS.—It shall be un- (B) any person engaged in the business (as (B) require the recall, repair, or replace- lawful for the manufacturer of a firearm defined in section 921(a)(21)(D) of title 18, ment of a firearm product, or the issuance of product to transfer, distribute, or export a United States Code) of repairing firearms or refunds with respect to a firearm product. firearm product unless— of making or fitting special barrels, stocks, (2) DEADLINE FOR ACTION ON PETITION.—Not (1) the manufacturer has tested the prod- or trigger mechanisms to firearms; and later than 120 days after the date on which uct in order to ascertain whether the prod- (C) any person who is a pawnbroker. the Attorney General receives a petition re- uct is in conformity with the regulations (2) FIREARM PART.—The term ‘‘firearm ferred to in paragraph (1), the Attorney Gen- prescribed under section 101; part’’ means— eral shall— (2) the product is in conformity with those (A) any part or component of a firearm as (A) grant, in whole or in part, or deny the regulations; and originally manufactured; petition; and (3) the manufacturer has included in the (B) any good manufactured or sold— (B) provide the petitioner with the reasons packaging of the product, and furnished to (i) for replacement or improvement of a for granting or denying the petition. each person to whom the product is distrib- firearm; or SEC. 102. ORDERS; INSPECTIONS. uted, a certificate stating that the product is (ii) as any accessory or addition to the fire- (a) AUTHORITY TO PROHIBIT MANUFACTURE, in conformity with those regulations. arm; and SALE, OR TRANSFER OF FIREARM PRODUCTS (b) FAILURE OF MANUFACTURER TO PROVIDE (C) any good that is not a part or compo- MADE, IMPORTED, TRANSFERRED, OR DISTRIB- NOTICE OF NEW TYPES OF FIREARM PROD- nent of a firearm and is manufactured, sold, UTED IN VIOLATION OF REGULATION.—The At- UCTS.—It shall be unlawful for the manufac- delivered, offered, or intended for use exclu- torney General may issue an order prohib- turer of a new type of firearm product to sively to safeguard individuals from injury iting the manufacture, sale, or transfer of a manufacture the product, unless the manu- by a firearm. firearm product which the Attorney General facturer has provided the Attorney General (3) FIREARM PRODUCT.—The term ‘‘firearm finds has been manufactured, or has been or with— product’’ means a firearm, firearm part, non- is intended to be imported, transferred, or (1) notice of the intent of the manufacturer powder firearm, and ammunition. distributed in violation of a regulation pre- to manufacture the product; and (4) FIREARM SAFETY REGULATION.—The scribed under this Act. (2) a description of the product. term ‘‘firearm safety regulation’’ means a (b) AUTHORITY TO REQUIRE THE RECALL, RE- (c) FAILURE OF MANUFACTURER OR DEALER regulation prescribed under this Act. PAIR, OR REPLACEMENT OF, OR THE PROVISION TO LABEL FIREARM PRODUCTS.—It shall be (5) FIREARM SAFETY STANDARD.—The term OF REFUNDS WITH RESPECT TO FIREARM PROD- unlawful for a manufacturer of or dealer in ‘‘firearm safety standard’’ means a standard UCTS.—The Attorney General may issue an firearms to transfer, distribute, or export a promulgated under this Act. order requiring the manufacturer of, and any firearm product unless the product is accom- (6) IMMINENTLY HAZARDOUS FIREARM PROD- dealer in, a firearm product which the Attor- panied by a label that is located prominently UCT.—The term ‘‘imminently hazardous fire- ney General determines poses an unreason- in conspicuous and legible type in contrast arm product’’ means any firearm product able risk of injury to the public, is not in by typography, layout, or color with other with respect to which the Attorney General compliance with a regulation prescribed printed matter on the label and that con- determines that— under this Act, or is defective, to— tains— (A) the product poses an unreasonable risk (1) provide notice of the risks associated (1) the name and address of the manufac- of injury to the public; and with the product, and of how to avoid or re- turer of the product; (B) time is of the essence in protecting the duce the risks, to— (2) the name and address of any importer of public from the risks posed by the product. (A) the public; the product; (7) NONPOWDER FIREARM.—The term ‘‘non- (B) in the case of the manufacturer of the (3) the model number of the product and powder firearm’’ means a device specifically product, each dealer in the product; and the date the product was manufactured;

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00071 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.058 S10PT1 S7632 CONGRESSIONAL RECORD — SENATE June 10, 2003 (4) a specification of the regulations pre- SEC. 303. IMMINENTLY HAZARDOUS FIREARMS. (1) collect, investigate, analyze, and share scribed under this Act that apply to the (a) IN GENERAL.—Notwithstanding the with other appropriate government agencies product; and pendency of any other proceeding in a court circumstances of death and injury associated (5) the certificate required by subsection of the United States, the Attorney General with firearms; and (a)(3) with respect to the product. may bring an action in a United States dis- (2) conduct continuing studies and inves- (d) FAILURE TO MAINTAIN OR PERMIT IN- trict court to restrain any person who is a tigations of economic costs and losses result- SPECTION OF RECORDS.—It shall be unlawful manufacturer of, or dealer in, an imminently ing from firearm-related deaths and injuries. for an importer of, manufacturer of, or deal- hazardous firearm product from manufac- (b) OTHER DATA.—The Attorney General er in a firearm product to fail to— turing, distributing, transferring, importing, shall— (1) maintain such records, and supply such or exporting the product. (1) collect and maintain current production information, as the Attorney General may (b) RELIEF.—In an action brought under and sales figures for each licensed manufac- subsection (a), the court may grant such require in order to ascertain compliance turer, broken down by the model, caliber, temporary or permanent relief as may be with this Act and the regulations and orders and type of firearms produced and sold by necessary to protect the public from the issued under this Act; and the licensee, including a list of the serial risks posed by the firearm product, includ- (2) permit the Attorney General to inspect numbers of such firearms; ing— and copy those records at reasonable times. (2) conduct research on, studies of, and in- (1) seizure of the product; and (e) IMPORTATION AND EXPORTATION OF vestigation into the safety of firearm prod- (2) an order requiring— UNCERTIFIED FIREARM PRODUCTS.—It shall be ucts and improving the safety of firearm (A) the purchasers of the product to be no- unlawful for any person to import into the products; and tified of the risks posed by the product; United States or export a firearm product (3) develop firearm safety testing methods (B) the public to be notified of the risks that is not accompanied by the certificate and testing devices. posed by the product; or required by subsection (a)(3). (c) AVAILABILITY OF INFORMATION.—On a (f) COMMERCE IN FIREARM PRODUCTS IN VIO- (C) the defendant to recall, repair, or re- regular basis, but not less frequently than LATION OF ORDER ISSUED OR REGULATION PRE- place the product, or refund the purchase annually, the Attorney General shall make SCRIBED UNDER THIS ACT.—It shall be unlaw- price of the product (or, if the product is available to the public the results of the ac- ful for any person to manufacture, offer for more than 1 year old, a lesser amount based tivities of the Attorney General under sub- sale, distribute in commerce, import into the on the value of the product after reasonable sections (a) and (b). United States, or export a firearm product— use). (1) that is not in conformity with the regu- (c) VENUE.—An action under subsection (a) SEC. 402. ANNUAL REPORT TO CONGRESS. lations prescribed under this Act; or may be brought in the United States district (a) IN GENERAL.—The Attorney General (2) in violation of an order issued under court for the District of Columbia or for any shall prepare and submit to the President this Act. district in which any defendant is found or and Congress at the beginning of each reg- (g) STOCKPILING.—It shall be unlawful for transacts business. ular session of Congress, a comprehensive re- any person to manufacture, purchase, or im- SEC. 304. PRIVATE CAUSE OF ACTION. port on the administration of this Act for port a firearm product, after the date a regu- (a) IN GENERAL.—Any person aggrieved by the most recently completed fiscal year. lation is prescribed under this Act with re- any violation of this Act or of any regulation (b) CONTENTS.—Each report submitted spect to the product and before the date the prescribed or order issued under this Act by under subsection (a) shall include— regulation takes effect, at a rate that is sig- another person may bring an action against (1) a thorough description, developed in co- nificantly greater than the rate at which the such other person in any United States dis- ordination with the Secretary of Health and person manufactured, purchased, or im- trict court for damages, including con- Human Services, of the incidence of injury ported the product during a base period (pre- sequential damages. In any action under this and death and effects on the population re- scribed by the Attorney General in regula- section, the court, in its discretion, may sulting from firearm products, including sta- tions) ending before the date the regulation award to a prevailing plaintiff a reasonable tistical analyses and projections, and a is so prescribed. attorney’s fee as part of the costs. breakdown, as practicable, among the var- SEC. 202. INAPPLICABILITY TO GOVERNMENTAL (b) RULE OF INTERPRETATION.—The remedy ious types of such products associated with AUTHORITIES. provided for in subsection (a) shall be in ad- the injuries and deaths; Section 201 does not apply to any depart- dition to any other remedy provided by com- (2) a list of firearm safety regulations pre- ment or agency of the United States, of a mon law or under Federal or State law. scribed that year; State, or of a political subdivision of a State, SEC. 305. PRIVATE ENFORCEMENT OF THIS ACT. (3) an evaluation of the degree of compli- or to any official conduct of any officer or (a) IN GENERAL.—Any interested person ance with firearm safety regulations, includ- employee of such a department or agency. may bring an action in any United States ing a list of enforcement actions, court deci- TITLE III—ENFORCEMENT district court to enforce this Act, or restrain sions, and settlements of alleged violations, Subtitle A—Civil Enforcement any violation of this Act or of any regulation by name and location of the violator or al- prescribed or order issued under this Act. SEC. 301. CIVIL PENALTIES. leged violator, as the case may be; (b) ATTORNEY’S FEE.—In any action under (4) a summary of the outstanding problems (a) AUTHORITY TO IMPOSE FINES.— this section, the court, in its discretion, may (1) IN GENERAL.—The Attorney General hindering enforcement of this Act, in the award to a prevailing plaintiff a reasonable order of priority; and shall impose upon any person who violates attorney’s fee as part of the costs. section 201 a civil fine in an amount that (5) a log and summary of meetings between SEC. 306. EFFECT ON PRIVATE REMEDIES. does not exceed the applicable amount de- the Attorney General or employees of the (a) IRRELEVANCY OF COMPLIANCE WITH THIS scribed in subsection (b). Attorney General and representatives of in- ACT.—Compliance with this Act or any order (2) SCOPE OF OFFENSE.—Each violation of dustry, interested groups, or other interested issued or regulation prescribed under this parties. section 201 (other than of subsection (a)(3) or Act shall not relieve any person from liabil- (d) of that section) shall constitute a sepa- ity to any person under common law or TITLE V—RELATIONSHIP TO OTHER LAW rate offense with respect to each firearm State statutory law. SEC. 501. SUBORDINATION TO ARMS EXPORT product involved. (b) IRRELEVANCY OF FAILURE TO TAKE AC- CONTROL ACT. (b) APPLICABLE AMOUNT.— TION UNDER THIS ACT.—The failure of the At- In the event of any conflict between any (1) FIRST 5-YEAR PERIOD.—The applicable torney General to take any action author- provision of this Act and any provision of amount for the 5-year period immediately ized under this Act shall not be admissible in the Arms Export Control Act, the provision following the date of enactment of this Act litigation relating to the product under com- of the Arms Export Control Act shall con- is $5,000, or $10,000 if the violation is willful. mon law or State statutory law. trol. (2) AFTER 5-YEAR PERIOD.—The applicable Subtitle B—Criminal Enforcement amount during any time after the 5-year pe- SEC. 502. EFFECT ON STATE LAW. riod described in paragraph (1) is $10,000, or SEC. 351. CRIMINAL PENALTIES. (a) IN GENERAL.—This Act shall not be con- $20,000 if the violation is willful. Any person who has received from the At- strued to preempt any provision of the law of torney General a notice that the person has SEC. 302. INJUNCTIVE ENFORCEMENT AND SEI- any State or political subdivision thereof, or ZURE. violated a provision of this Act or of a regu- prevent a State or political subdivision (a) INJUNCTIVE ENFORCEMENT.—The Attor- lation prescribed under this Act with respect thereof from enacting any provision of law ney General may bring an action to restrain to a firearm product and knowingly violates regulating or prohibiting conduct with re- any violation of section 201 in the United that provision with respect to the product spect to a firearm product, except to the ex- States district court for any district in shall be fined under title 18, United States tent that such provision of law is incon- which the violation has occurred, or in which Code, imprisoned not more than 2 years, or sistent with any provision of this Act, and the defendant is found or transacts business. both. then only to the extent of the inconsistency. (b) CONDEMNATION.—The Attorney General TITLE IV—ADMINISTRATIVE PROVISIONS (b) RULE OF CONSTRUCTION.—A provision of may bring an action in rem for condemna- SEC. 401. FIREARM INJURY INFORMATION AND State law is not inconsistent with this Act if tion of a qualified firearm product in the RESEARCH. the provision imposes a regulation or prohi- United States district court for any district (a) INJURY DATA.—The Attorney General bition of greater scope or a penalty of great- in which the Attorney General has found and shall, in coordination with the Secretary of er severity than any prohibition or penalty seized for confiscation the product. Health and Human Services— imposed by this Act.

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00072 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.058 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7633 By Mrs. CLINTON (for herself, I am working to incorporate this leg- of the Public Health Service Act (42 U.S.C. Ms. COLLINS, Mrs. MURRAY, and islation into the reauthorization of the 241). Mr. BINGAMAN): Individuals with Disabilities Education (c) PRIVACY.—In pursuing activities under S. 1226. A bill to coordinate efforts in Act because I believe so strongly that this section, the Secretary and the Director shall ensure the protection of individual collecting and analyzing data on the our children and families, indeed our health privacy consistent with regulations incidence and prevalence of develop- entire society, benefits when we pre- promulgated in accordance with section mental disabilities, and for other pur- vent developmental diseases rather 264(c) of the Health Insurance Portability poses; to the Committee on Health, than treating them after they occur. and Accountability Act of 1996 (42 U.S.C. Education, Labor, and Pensions. And thank you to my friend Senator 1320d–2 note), the Family Educational Right Mrs. CLINTON. Mr. President, I rise COLLINS for her hard work and commit- to Privacy Act (20 U.S.C. 1232g), and State today to discuss a rising epidemic that ment to this important issue. and local privacy regulations, as applicable. is preventing a growing number of chil- I ask unanimous consent that the dren in our Nation from learning and text of the bill be printed in the By Mr. SANTORIUM (for himself and Mrs. LINCOLN): contributing fully as members of our RECORD. society. There being no objection, the bill was S. 1227. A bill to amend title XVIII of Twelve million children under the ordered to be printed in the RECORD, as the Social Security Act to provide for age of eighteen now suffer from a de- follows: coverage of substitute adult day serv- velopmental, learning or behavioral S. 1226 ices under the medicare program; to the Committee on Finance. disability. Since 1977, enrollment in Be it enacted by the Senate and House of Rep- special education programs for chil- resentatives of the United States of America in Mr. SANTORUM. Mr. President, I dren with learning disabilities has dou- Congress assembled, rise to join my colleague Mrs. LINCOLN bled. In New York, there are 206,000 SECTION 1. SHORT TITLE. of Arkansas to reintroduce bipartisan learning disabled children—this is fifty This Act may be cited as the ‘‘2003 Act to legislation aimed at improving long- percent of the special education popu- Prevent Developmental Disabilities in Edu- term care health and rehabilitation op- lation in New York. cation’’. tions for Medicare beneficiaries, and While we know that developmental SEC. 2. FINDINGS AND PURPOSES. also assisting family caregivers. (a) FINDINGS.—Congress makes the fol- We all recognize that our Nation disabilities are affecting more children lowing findings: and costing us more money, we still (1) Seventeen percent of children in the needs to address sooner rather than know relatively little about the causes United States under 18 years of age have a later the challenges of financing long- of developmental disabilities. A Na- developmental disability. term care services for our growing tional Academy of Sciences study sug- (2) Since 1977, enrollment in special edu- aging population. The Congressional gests that genetic factors explain only cation programs for children with learning Budget Office has projected that na- ten to twenty percent of developmental disabilities has doubled. tional expenditures for long-term care disabilities. Considerable research sug- (3) Federal and State education depart- services for the elderly will increase ments spend about $43,000,000,000 each year each year through 2040. But it is in just gests that toxic chemicals such as mer- on special education programs for individ- cury, pesticides, and dioxin contribute uals with developmental disabilities who are over a decade when we will see these to these problems, but proving the between 3 and 21 years of age. challenges become even more pro- exact role of environmental factors in (4) Research suggests that genetic factors nounced, when the 76 million baby these problems will take time and sig- explain only 10 to 20 percent of develop- boomers begin to turn 65. Baby nificant research dollars. mental diseases, and a National Academy of boomers are expected to live longer We can simply not stand back and Sciences study suggests that at least 28 per- and greater numbers will reach 85 and watch our children suffer from this in- cent of developmental disabilities are due to older. creasing epidemic. That is why I have environmental causes. Congress’ attention in this area is (b) PURPOSE.—It is the purpose of this Act worked hard to develop the 2003 Act to to ensure a collaborative tracking effort be- critical, given the expected growing Prevent Developmental Disabilities in tween the Department of Education and the costs of long-term care services, and Education, which I am proud to intro- Centers for Disease Control and Prevention the fact that so many American fami- duce today with my colleague, Senator for developmental disabilities and potential lies are already serving as caregivers COLLINS. It would help us lower the environmental links. for aging or ailing seniors and pro- costs of developmental disabilities by SEC. 3. DEPARTMENT OF EDUCATION TRACKING viding a large portion of long-term identifying the preventable, non-ge- ACTIVITIES. care services. It is more important (a) IN GENERAL.—The Secretary of Edu- netic causes that are affecting so many cation (in this section referred to as the than ever that we have in place quality children in our nation. ‘‘Secretary’’) shall coordinate efforts with options in how to best care for our sen- Our legislation would require the De- the Director of the National Center for Birth ior population about to dramatically partment of Education to coordinate Defects and Developmental Disabilities of increase. with the CDC to improve data collec- the Centers for Disease Control and Preven- This is why we are introducing the tion on environmental hazards that tion (in this section referred to as the ‘‘Di- Medicare Adult Day Services Alter- cause disabilities. At this time, the De- rector’’) in collecting and analyzing data on native Act. This legislation would offer partment of Education collects infor- the incidence and prevalence of develop- home health beneficiaries more options mental disabilities to determine localities mation on the prevalence of disabil- with a high incidence of developmental dis- for receiving care in a setting of their ities among children in schools and the abilities and study possible causes of the in- own choosing, rather than confining CDC collects information on environ- creased incidence of these diseases, dis- the provision of those benefits solely to mental toxins, but the two data sys- orders, and conditions. the home. tems are not coordinated. If they were, (b) EXISTING SURVEILLANCE SYSTEMS, REG- This legislation would give bene- policymakers and researchers could ISTRIES, AND SURVEYS.—To the maximum ex- ficiaries the option to receive some or better identify where environmental tent practicable in implementing the activi- all of their Medicare home health serv- hazards may be causing developmental ties under this section, the Secretary and ices in an adult day setting. This would the Director shall develop methods for recon- disabilities and target resources to ciling data collected in accordance with the be a substitution, not an expansion, of these areas for abatement. A National Individuals with Disabilities Education Act services. The bill would not make new Academy of Sciences study suggests (20 U.S.C. 1400 et seq.) on the prevalence of people eligible for Medicare home that 28 percent of developmental dis- developmental disabilities with existing sur- health benefits or expand the list of abilities are due to environmental veillance and data collection systems, reg- services paid for. In fact, this legisla- causes, and a recent study in the New istries, and surveys that are administered by tion may be designed to produce net England Journal of Medicine dem- the Centers for Disease Control and Preven- savings for the Medicare program. onstrated that exposure to low levels of tion, including— Permitting homebound patients to (1) State birth defects surveillance systems lead can result in a drop of 7.4 IQ as supported under section 317C of the Public receive their home health care in a points, which can turn a healthy child Health Service Act (42 U.S.C. 247b–4); and clinically-based senior day center, as into one with a developmental dis- (2) environmental public health tracking an alternative to receiving it at home, ability. program grants authorized under section 301 could result in significant benefits to

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00073 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.054 S10PT1 S7634 CONGRESSIONAL RECORD — SENATE June 10, 2003 the Medicare program, such as reduced (4) nearly 75 percent of those actively pro- ices facility’ means a public agency or pri- cost-per-episode, reduced numbers of viding such care are women who also main- vate organization, or a subdivision of such episodes, as well as mental and phys- tain other responsibilities, such as working an agency or organization, that— ical stimulation for patients. outside of the home and raising young chil- ‘‘(i) is engaged in providing skilled nursing Moreover, the Medicare Adult Day dren; services and other therapeutic services di- (5) the average loss of income to these rectly or under arrangement with a home Services Alternative Act could well caregivers has been shown to be $659,130 in health agency; have a positive impact on our econ- wages, pension, and Social Security benefits; ‘‘(ii) provides the items and services de- omy, as it would enable caregivers to (6) the loss in productivity in United scribed in paragraph (1)(B); and attend to other facets in today’s fast- States businesses ranges from $11,000,000,000 ‘‘(iii) meets the requirements of para- paced family life, such as working a to $29,000,000,000 annually; graphs (2) through (8) of subsection (o). full- or part-time job and caring for (7) the services offered in adult day serv- ‘‘(B) Notwithstanding subparagraph (A), children, knowing their loved ones are ices facilities provide continuity of care and the term ‘adult day services facility’ shall an important sense of community for both include a home health agency in which the well cared for. It is unfortunate that items and services described in clauses (ii) today many caregivers have to choose the senior and the caregiver; (8) there are adult day services facilities in through (iv) of paragraph (1)(B) are pro- between working or caring for a family every State in the United States and the Dis- vided— member. It is estimated that the aver- trict of Columbia; ‘‘(i) by an adult day services program that age loss of income to these caregivers (9) these centers generally offer transpor- is licensed or certified by a State, or accred- is more than $600,000 in wages, pension, tation, meals, personal care, and counseling ited, to furnish such items and services in and Social Security benefits. And by in addition to the medical services and so- the State; and extension, the loss in productivity in cialization benefits offered; and ‘‘(ii) under arrangements with that pro- gram made by such agency. United States businesses is pegged at (10) with the need for quality options in how to best care for our senior population ‘‘(C) The Secretary may waive the require- more than $10 billion annually. ment of a surety bond under paragraph (7) of But it does not have to be an either- about to dramatically increase with the aging of the baby boomer generation, the subsection (o) in the case of an agency or or- or proposition. The Medicare Adult ganization that provides a comparable sur- time to address these issues is now. Day Services Alternative Act is a cre- ety bond under State law.’’. SEC. 3. MEDICARE COVERAGE OF SUBSTITUTE (b) PAYMENT FOR SUBSTITUTE ADULT DAY ative solution to health care delivery, ADULT DAY SERVICES. which would adequately reimburse pro- SERVICES.—Section 1895 of the Social Secu- (a) SUBSTITUTE ADULT DAY SERVICES BEN- rity Act (42 U.S.C. 1395fff) is amended by add- viders in a fiscally responsible way. Lo- EFIT.— ing at the end the following new subsection: cated in every state in the United (1) IN GENERAL.—Section 1861(m) of the So- ‘‘(f) PAYMENT RATE FOR SUBSTITUTE ADULT States and the District of Columbia, cial Security Act (42 U.S.C. 1395x(m)) is DAY SERVICES.— adult day centers generally offer trans- amended— ‘‘(1) PAYMENT RATE.—For purposes of mak- portation, meals, personal care, and (A) in the matter preceding paragraph (1), ing payments to an adult day services facil- by inserting ‘‘or (8)’’ after ‘‘paragraph (7)’’; counseling in addition to the medical ity for substitute adult day services (as de- (B) in paragraph (6), by striking ‘‘and’’ at fined in section 1861(ww)), the following rules services and socialization benefits of- the end; fered. shall apply: (C) in paragraph (7), by adding ‘‘and’’ at ‘‘(A) ESTIMATION OF PAYMENT AMOUNT.— We can and should offer both our the end; and The Secretary shall estimate the amount Medicare beneficiaries and family care- (D) by inserting after paragraph (7), the that would otherwise be payable to a home givers more and better options for following new paragraph: health agency under this section for all health care delivery, and that is ex- ‘‘(8) substitute adult day services (as de- home health services described in paragraph actly what the Medicare Adult Day fined in subsection (ww));’’. (1)(B)(i) of such section under the plan of Services Alternative Act is designed to (2) SUBSTITUTE ADULT DAY SERVICES DE- care. do. This legislation is bipartisan, and FINED.—Section 1861 of the Social Security ‘‘(B) AMOUNT OF PAYMENT.—Subject to Act (42 U.S.C. 1395x) is amended by adding at paragraph (3)(B), the total amount payable has been supported by more than 20 na- the end the following new subsection: tional non-profit organizations con- for substitute adult day services under the ‘‘Substitute Adult Day Services; Adult Day plan of care is equal to 95 percent of the cerned with the well-being of Amer- Services Facility amount estimated to be payable under sub- ica’s older population and committed ‘‘(ww)(1)(A) The term ‘substitute adult day paragraph (A). to representing their interests. services’ means the items and services de- ‘‘(2) LIMITATION ON BALANCE BILLING.—An I hope our colleagues will join us in scribed in subparagraph (B) that are fur- adult day services facility shall accept as this cause. I again thank Senator LIN- nished to an individual by an adult day serv- payment in full for substitute adult day COLN for working with me in this ef- ices facility as a part of a plan under sub- services (including those services described fort, and ask unanimous consent that section (m) that substitutes such services for in clauses (ii) through (iv) of section the text of the bill be printed in the some or all of the items and services de- 1861(ww)(1)(B)) furnished by the facility to an RECORD. scribed in subparagraph (B)(i) furnished by a individual entitled to benefits under this There being no objection, the bill was home health agency under the plan, as deter- title the amount of payment provided under this subsection for home health services con- ordered to be printed in the RECORD, as mined by the physician establishing the sisting of substitute adult day services. follows: plan. ‘‘(B) The items and services described in ‘‘(3) ADJUSTMENT IN CASE OF OVERUTILIZA- S. 1227 this subparagraph are the following items TION OF SUBSTITUTE ADULT DAY SERVICES.— Be it enacted by the Senate and House of Rep- and services: ‘‘(A) MONITORING EXPENDITURES.—Begin- resentatives of the United States of America in ‘‘(i) Items and services described in para- ning with fiscal year 2005, the Secretary Congress assembled, graphs (1) through (7) of subsection (m). shall monitor the expenditures made under SECTION 1. SHORT TITLE. ‘‘(ii) Meals. this title for home health services, including This Act may be cited as the ‘‘Medicare ‘‘(iii) A program of supervised activities such services consisting of substitute adult Adult Day Services Alternative Act of 2003’’. designed to promote physical and mental day services, for the fiscal year and shall SEC. 2. FINDINGS. health and furnished to the individual by the compare such expenditures to expenditures Congress finds that— adult day services facility in a group setting that the Secretary estimates would have (1) adult day services offers services, in- for a period of not fewer than 4 and not been made under this title for home health cluding medical care, rehabilitation thera- greater than 12 hours per day. services for the fiscal year if the Medicare pies, dignified assistance with activities of ‘‘(iv) A medication management program Adult Day Services Alternative Act of 2003 daily living, social interaction, and stimu- (as defined in subparagraph (C)). had not been enacted. lating activities, to seniors who are frail, ‘‘(C) For purposes of subparagraph (B)(iv), ‘‘(B) REQUIRED REDUCTION IN PAYMENT physically challenged, or cognitively im- the term ‘medication management program’ RATE.—If the Secretary determines, after paired; means a program of services, including medi- making the comparison under subparagraph (2) access to adult day services provides cine screening and patient and health care (A) and making such adjustments for seniors and their familial caregivers support provider education programs, that provides changes in demographics and age of the that is critical to keeping the senior in the services to minimize— medicare beneficiary population as the Sec- family home; ‘‘(i) unnecessary or inappropriate use of retary determines appropriate, that expendi- (3) more than 22,000,000 families in the prescription drugs; and tures for home health services under the this United States serve as caregivers for aging ‘‘(ii) adverse events due to unintended pre- title, including such services consisting of or ailing seniors, nearly 1 in 4 American fam- scription drug-to-drug interactions. substitute adult day services, for the fiscal ilies, providing close to 80 percent of the care ‘‘(2)(A) Except as provided in subpara- year exceed expenditures that would have to individuals requiring long-term care; graphs (B) and (C), the term ‘adult day serv- been made under this title for home health

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00074 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.088 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7635 services for the fiscal year if the Medicare lead abatement contractor. Owners ards from homes and thereby decrease the Adult Day Services Alternative Act of 2003 would receive a maximum tax credit of number of children who suffer reduced intel- not been enacted, then the Secretary shall 50 percent of the cost of the abatement, ligence, learning difficulties, behavioral adjust the rate of payment to adult day serv- not to exceed $1,500 per dwelling unit. problems, and other health consequences due ices facilities under paragraph (1)(B) for to lead-poisoning. In Massachusetts, a similar tax credit home health services consisting of substitute SEC. 2. LEAD ABATEMENT TAX CREDIT. helped reduce the number of new cases adult day services furnished in the fiscal (a) IN GENERAL.—Subpart B of part IV of year in order to eliminate such excess.’’. of childhood lead poisoning by almost subchapter A of chapter 1 (relating to foreign (c) EFFECTIVE DATE.—The amendments two-thirds in a decade. tax credit, etc.) is amended by adding at the made by this section shall apply to items The Home Lead Safety Tax Credit end the following new section: and services furnished on or after January 1, Act of 2003 would help homeowners ‘‘SEC. 30B. HOME LEAD ABATEMENT. 2004. make approximately 85,000 homes each ‘‘(a) ALLOWANCE OF CREDIT.—There shall be By Mrs. CLINTON (for herself year safe from lead, which is more than allowed as a credit against the tax imposed ten times the number of homes made by this chapter an amount equal to 50 per- and Mr. DEWINE): lead safe by current Federal programs. cent of the abatement cost paid or incurred S. 1228: A bill to amend the Internal by the taxpayer during the taxable year for Revenue Code of 1986 to provide a tax It would greatly accelerate our progress in ridding our nation of the each eligible dwelling unit of the taxpayer. credit for property owners who remove ‘‘(b) LIMITATION.—The amount of the credit lead-based paint hazards; to the Com- significant problem of childhood lead allowed under subsection (a) for any eligible mittee on Finance. poisoning. I ask my colleagues to join dwelling unit shall not exceed— Mrs. CLINTON. Mr. President, I rise me in supporting this legislation, ‘‘(1) $1,500, over today to discuss a persistent, serious, which will help us achieve our common ‘‘(2) the aggregate cost taken into account and entirely preventable threat to our goal of protecting children from under subsection (a) with respect to such children’s intelligence, behavior, and threats in our environment. unit for all preceding taxable years. ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For learning. I ask unanimous consent that the text of the bill be printed in the purposes of this section: Lead poisoning affects 300,000 chil- ‘‘(1) ABATEMENT COST.— RECORD. dren in our Nation between the ages of ‘‘(A) IN GENERAL.—The term ‘abatement one and five, and has been linked with There being no objection, the bill was cost’ means, with respect to any eligible developmental disabilities, behavioral ordered to be printed in the RECORD, as dwelling unit— problems, and anemia. One recent follows: ‘‘(i) the cost for a certified risk assessor to study from the New England Journal of S. 1228 conduct an assessment to determine the Medicine also found that children suf- Be it enacted by the Senate and House of Rep- presence of a lead-based paint hazard, fered up to a 7.4 percent decrease in IQ resentatives of the United States of America in ‘‘(ii) the cost for a certified lead abatement Congress assembled, supervisor to perform the removal of paint at lead levels that CDC considers safe. and dust, the permanent enclosure or encap- At very high levels, lead poisoning can SECTION 1. SHORT TITLE; FINDINGS; PURPOSE. (a) SHORT TITLE.—This Act may be cited as sulation of lead-based paint, the replacement cause seizures, coma, and even death. the ‘‘Home Lead Safety Tax Credit Act of of painted surfaces or fixtures, or the re- In New York State in 1999, over 2003’’. moval or permanent covering of soil when twelve thousand children suffered from (b) FINDINGS.—Congress finds that: lead-based paint hazards are present in such lead poisoning, 9,533 of those children (1) Of the 98,000,000 housing units in the paint, dust, or soil, in New York City alone. In fact, we United States, 38,000,000 have lead-based ‘‘(iii) the cost for a certified lead abate- may even be underestimating the sig- paint. ment supervisor to perform all preparation, cleanup, disposal, and postabatement clear- nificance of this important public (2) Of the 38,000,000 housing units with lead- based paint, 25,000,000 pose a hazard, as de- ance testing activities associated with the health problem. fined by Environmental Protection Agency activities described in clause (ii), and I am glad that the Secretary of and Department of Housing and Urban De- ‘‘(iv) costs incurred by or on behalf of any Health and Human Services considers velopment standards, due to conditions such occupant of such dwelling unit for any relo- lead poisoning to be a priority, and es- as peeling paint and settled dust on floors cation which is necessary to achieve occu- tablished a national goal of ending and windowsills that contain lead at levels pant protection (as defined under section childhood lead poisoning by 2010. How- above Federal safety standards. 1345 of title 24, Code of Federal Regulations). ever, federal programs only have re- (3) Though the number of children in the ‘‘(B) LIMITATION.—The term ‘abatement sources to remove lead-based paint haz- United States ages 1 through 5 with blood cost’ does not include any cost to the extent such cost is funded by any grant, contract, ards from less than 0.1 percent of the levels higher than the Centers for Disease Control action level of 10 micrograms per or otherwise by another person (or any gov- twenty-five million housing units that deciliter has declined to 300,000, lead poi- ernmental agency). have these hazards. At this pace, we soning remains a serious, entirely prevent- ‘‘(2) ELIGIBLE DWELLING UNIT.— will not be able to end childhood lead able threat to a child’s intelligence, behav- ‘‘(A) IN GENERAL.—The term ‘eligible dwell- poisoning by 3010, let alone 2010. ior, and learning. ing unit’ means any dwelling unit— We will never stop childhood lead (4) The Secretary of Health and Human ‘‘(i) placed in service before 1978, poisoning unless we get lead out of the Services has established a national goal of ‘‘(ii) located in the United States, and buildings in which children live, work, ending childhood lead poisoning by 2010. ‘‘(iii) determined by a certified risk asses- and play. In Brooklyn, more than a (5) Current Federal lead abatement pro- sor to have a lead-based paint hazard. ‘‘(B) DWELLING UNIT.—The term ‘dwelling third of the buildings in one commu- grams, such as the Lead Hazard Control Grant Program of the Department of Hous- unit’ has the meaning given such term by nity have a lead-based paint hazard. ing and Urban Development, only have re- section 280A(f)(1). Parents of children with lead poisoning sources sufficient to make approximately ‘‘(3) LEAD-BASED PAINT HAZARD.—The term are being told that nothing can be done 7,000 homes lead-safe each year. In many ‘lead-based paint hazard’ has the meaning until their children’s lead poisoning be- cases, when State and local public health de- given such term under part 745 of title 40, comes worse. How can we ask children partments identify a lead-poisoned child, re- Code of Federal Regulations. to watch and wait while their sons and sources are insufficient to reduce or elimi- ‘‘(4) CERTIFIED LEAD ABATEMENT SUPER- daughters suffer from lead poisoning nate the hazards. VISOR.—The term ‘certified lead abatement supervisor’ means an individual certified by before we remove the lead from their (6) Approximately 15 percent of children are lead-poisoned by home renovation the Environmental Protection Agency pursu- homes? projects performed by remodelers who fail to ant to section 745.226 of title 40, Code of Fed- That is why today, I am proud to in- follow basic safeguards to control lead dust. eral Regulations, or an appropriate State troduce the Home Lead Safety Tax (7) Old windows typically pose significant agency pursuant to section 745.325 of title 40, Credit Act of 2003 with my colleague, risks because wood trim is more likely to be Code of Federal Regulations. Senator MIKE DEWINE. This legislation painted with lead-based paint, moisture ‘‘(5) CERTIFIED INSPECTOR.—The term ‘cer- would provide a tax credit to aide and causes paint to deteriorate, and friction gen- tified inspector’ means an inspector certified encourage homeowners in removing erates lead dust. The replacement of old win- by the Environmental Protection Agency lead-based paint hazards in their dows that contain lead based paint signifi- pursuant to section 745.226 of title 40, Code of Federal Regulations, or an appropriate State homes. Specifically, it would provide a cantly reduces lead poisoning hazards in ad- dition to producing significant energy sav- agency pursuant to section 745.325 of title 40, tax credit for owners of residential ings. Code of Federal Regulations. properties built before 1978 that pay for (c) PURPOSE.—The purpose of this section ‘‘(6) CERTIFIED RISK ASSESSOR.—The term abatement performed by a certified is to encourage the safe removal of lead haz- ‘certified risk assessor’ means a risk assessor

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00075 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.077 S10PT1 S7636 CONGRESSIONAL RECORD — SENATE June 10, 2003 certified by the Environmental Protection S. 1229. A bill to amend chapter 23 of means impossible to refute. To address Agency pursuant to section 745.226 of title 40, title 5, United States Code, to clarify this unreasonable burden placed on Code of Federal Regulations, or an appro- the disclosures of information pro- whistleblowers, our bill would replace priate State agency pursuant to section tected from prohibited personnel prac- 745.325 of title 40, Code of Federal Regula- the ‘‘irrefragable proof’’ standard with tions. tices, require a statement in nondisclo- ‘‘substantial evidence.’’ ‘‘(7) DOCUMENTATION REQUIRED FOR CREDIT sure policies, forms, and agreements The bill would provide some method ALLOWANCE.—No credit shall be allowed that such policies, forms, and agree- of relief for those whistleblowers who under subsection (a) with respect to any eli- ments conform with certain disclosure face retaliation by having their secu- gible dwelling unit unless— protections, provide certain authority rity clearance removed. According to ‘‘(A) after lead abatement is complete, a for the Special Counsel, and for other former Special Counsel Elaine Kaplan, certified inspector or certified risk assessor purposes; to the Committee on Govern- removal of a security clearance in this provides written documentation to the tax- mental Affairs. payer that includes— manner is a way of camouflaging retal- ‘‘(i) a certification that the postabatement Mr. AKAKA. Mr. President. Today I iation. To address this issue, the bill procedures (as defined by section 745.227 of rise to introduce the Federal Employee would make it a prohibited personnel title 40, Code of Federal Regulations) have Protection of Disclosures Act with practice for a manager to suspend, re- been performed and that the unit does not Senators LEVIN, LEAHY, DURBIN, and voke or take other action with respect contain lead dust hazards (as defined by sec- DAYTON to amend the Whistleblower to an employee’s security clearance in tion 745.227(e)(8)(viii) of title 40, Code of Fed- Protection Act, WPA. These amend- retaliation for whistleblowing and eral Regulations), and ments are necessary to protect Federal allow the Merit Systems Protection ‘‘(ii) documentation showing that the lead employees from retaliation and protect abatement meets the requirements of this Board, MSPB, to review the action. section, and the American people from government Under an expedited review process, the ‘‘(B) the taxpayer files with the appro- waste, fraud, and abuse. The Federal MSPB may issue declaratory and other priate State agency— Employee Protection of Disclosures appropriate relief, but may not direct ‘‘(i) the documentation described in sub- Act builds on the foundation laid in the the President to restore a security paragraph (A), 107th Congress with S. 995 and S. 3070, clearance. MSPB and subsequent Con- ‘‘(ii) a receipt from the certified risk asses- the latter of which was favorably re- gressional review of the agency’s ac- sor documenting the costs of determining ported by the Governmental Affairs the presence of a lead-based paint hazard, tion provides sound oversight for this ‘‘(iii) a receipt from the certified lead Committee last year. The bill also in- process without encroaching upon the abatement supervisor documenting the corporates recommendations received President’s authority in the national abatement cost (other than the costs de- during a hearing I chaired on similar security arena. scribed in paragraph (1)(A)(i)), and legislation in 2001. The measure would also provide inde- ‘‘(iv) a statement indicating the age of the Last year, Time magazine honored pendent litigating authority to the Of- dwelling unit. Sherron Watkins, Colleen Rowley, and fice of Special Counsel, OSC. Under ‘‘(8) BASIS REDUCTION.—The basis of any Cynthia Cooper as its ‘‘persons of the current law, OSC has no authority to property for which a credit is allowable year.’’ These brave women are whistle- under subsection (a) shall be reduced by the request MSPB to reconsider its deci- amount of such credit (determined without blowers—Colleen Rowley is the Min- sion or to seek review of a MSPB deci- regard to subsection (d)). neapolis FBI agent who penned the sion by the Federal Circuit. The limita- ‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.— memo on the FBI headquarter’s han- tion undermines both OSC’s ability to The credit allowed under subsection (a) for dling of the Zacarias Mousssoui case. protect whistleblowers and the integ- the taxable year shall not exceed the excess In 2002, Ms. Rowley and the two other rity of the WPA. As such, our bill of— women went public with disclosures of ‘‘(1) the sum of the regular tax liability (as would provide OSC authority to appear defined in section 26(b)) plus the tax imposed mismanagement and wrongdoing with- in any civil action brought in connec- by section 55, over in their workplaces. They captured the tion with the WPA and obtain review ‘‘(2) the sum of the credits allowable under nation’s attention and earned our re- of any MSPB order where OSC deter- subpart A and sections 27, 29, 30, and 30A for spect in their roles as whistleblowers. mines MSPB erred and the case will the taxable year. Congress encourages Federal employ- impact the enforcement of the WPA. ‘‘(e) CARRYFORWARD ALLOWED.— ees like Ms. Rowley to come forward The bill would also help protect the in- ‘‘(1) IN GENERAL.—If the credit amount al- with information of threats to public lowable under subsection (a) for a taxable tegrity of the Act by removing sole ju- year exceeds the amount of the limitation safety and health through the WPA, risdiction of such cases from the Fed- under subsection (d) for such taxable year which has been amended twice in order eral Circuit and provide for review of (referred to as the ‘unused credit year’ in to shore up congressional intent. whistleblower cases in the same man- this subsection), such excess shall be allowed Once again, Congress must act to ner that is afforded in Equal Employ- as a credit carryforward for each of the 20 guarantee protections from retaliation ment Opportunity Commission cases. taxable years following the unused credit for Federal whistleblowers. First and This review system is designed to ad- year. foremost, our bill would codify the re- dress holdings by the Federal Circuit ‘‘(2) RULES.—Rules similar to the rules of peated and unequivocal statements of section 39 shall apply with respect to the which have repeatedly ignored congres- credit carryforward under paragraph (1).’’. congressional intent that Federal em- sional intent. (b) CONFORMING AMENDMENTS.— ployees are to be protected when mak- Enactment of the Federal Employee (1) Section 1016(a) is amended by striking ing ‘‘any disclosure’’ evidencing viola- Protection of Disclosures Act will ‘‘and’’ in paragraph (27), by striking the pe- tions of law, gross mismanagement, or strengthen the rights and protections riod and inserting ‘‘, and’’ in paragraph (28), a gross waste of funds. The bill would afforded to Federal whistleblowers and and by inserting at the end the following also clarify the test that must be met new paragraph: encourage the disclosure of informa- ‘‘(29) in the case of an eligible dwelling to prove that a Federal employee rea- tion vital to an effective government. unit with respect to which a credit for lead sonably believed that his or her disclo- Congress should act quickly to assure abatement was allowed under section 30B, to sure was evidence of wrongdoing. De- whistleblowers that disclosing illegal the extent provided in section 30B(c)(8).’’. spite the clear language of the WPA activities within their agencies will (2) The table of sections for subpart B of that an employee is protected from dis- not be met with retaliation. I urge my part IV of subchapter A of chapter 1 is closing information he or she reason- colleagues to join with me in pro- amended by inserting after the item relating ably believes evidences a violation, the tecting the dedicated Federal employ- to section 30A the following new item: Federal Circuit Court of Appeals, ees who come forward to disclose ‘‘Sec. 30B. Home lead abatement.’’. which has sole jurisdiction over whis- wrongdoing to help the American peo- (c) EFFECTIVE DATE.—The amendments tleblower cases, ruled in 1999 that the made by this section shall apply to abate- ple. ment costs incurred after December 31, 2003, reasonableness review must begin with I ask unanimous consent that the in taxable years ending after that date. the presumption that public officers text of the bill be printed in the perform their duties in good faith and RECORD. By Mr. AKAKA (for himself, Mr. that this presumption stands unless There being no objection, the bill was LEVIN, Mr. LEAHY, Mr. DURBIN, there is ‘‘irrefragable proof’’ to the ordered to be printed in the RECORD, as and Mr. DAYTON): contrary. By definition, irrefragable follows:

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00076 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.064 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7637 S. 1229 ‘‘For purposes of paragraph (8), any pre- ‘‘(b)(1) If, in any final judgment, the Board Be it enacted by the Senate and House of Rep- sumption relating to the performance of a or court declares that any suspension, rev- resentatives of the United States of America in duty by an employee who has authority to ocation, or other determination with regards Congress assembled, take, direct others to take, recommend, or to a security clearance was made in viola- SECTION 1. PROTECTION OF CERTAIN DISCLO- approve any personnel action may be rebut- tion of section 2302, the affected agency shall SURES OF INFORMATION BY FED- ted by substantial evidence.’’. conduct a review of that suspension, revoca- ERAL EMPLOYEES. (e) NONDISCLOSURE POLICIES, FORMS, AND tion, or other determination, giving great (a) SHORT TITLE.—This Act may be cited as AGREEMENTS; SECURITY CLEARANCES; AND RE- weight to the Board or court judgment. the ‘‘Federal Employee Protection of Disclo- TALIATORY INVESTIGATIONS.— ‘‘(2) Not later than 30 days after any Board sures Act’’. (1) PERSONNEL ACTION.—Section or court judgment declaring that a security (b) CLARIFICATION OF DISCLOSURES COV- 2302(a)(2)(A) of title 5, United States Code, is clearance suspension, revocation, or other ERED.—Section 2302(b)(8) of title 5, United amended— determination was made in violation of sec- States Code, is amended— (A) in clause (x), by striking ‘‘and’’ after tion 2302, the affected agency shall issue an (1) in subparagraph (A)— the semicolon; and unclassified report to the congressional com- (A) by striking ‘‘which the employee or ap- (B) by redesignating clause (xi) as clause mittees of jurisdiction (with a classified plicant reasonably believes evidences’’ and (xiv) and inserting after clause (x) the fol- annex if necessary), detailing the cir- inserting ‘‘, without restriction to time, lowing: cumstances of the agency’s security clear- place, form, motive, context, or prior disclo- ‘‘(xi) the implementation or enforcement ance suspension, revocation, or other deter- sure made to any person by an employee or of any nondisclosure policy, form, or agree- mination. A report under this paragraph applicant, including a disclosure made in the ment; shall include any proposed agency action ordinary course of an employee’s duties, that ‘‘(xii) a suspension, revocation, or other de- with regards to the security clearance. the employee or applicant reasonably be- termination relating to a security clearance; ‘‘(c) An allegation that a security clear- lieves is evidence of’’; and ‘‘(xiii) an investigation of an employee or ance was revoked or suspended in retaliation (B) in clause (i), by striking ‘‘a violation’’ applicant for employment because of any ac- for a protected disclosure shall receive expe- and inserting ‘‘any violation’’; tivity protected under this section; and’’. dited review by the Office of Special Counsel, the Merit Systems Protection Board, and (2) in subparagraph (B)— (2) PROHIBITED PERSONNEL PRACTICE.—Sec- (A) by striking ‘‘which the employee or ap- tion 2302(b) of title 5, United States Code, is any reviewing court.’’. plicant reasonably believes evidences’’ and amended— (B) TECHNICAL AND CONFORMING AMEND- inserting ‘‘, without restriction to time, (A) in paragraph (11), by striking ‘‘or’’ at MENT.—The table of sections for chapter 77 of place, form, motive, context, or prior disclo- the end; title 5, United States Code, is amended by in- sure made to any person by an employee or (B) in paragraph (12), by striking the pe- serting after the item relating to section 7702 applicant, including a disclosure made in the riod and inserting a semicolon; and the following: ordinary course of an employee’s duties, to (C) by inserting after paragraph (12) the ‘‘7702a. Actions relating to security clear- the Special Counsel, or to the Inspector Gen- following: ances.’’. eral of an agency or another employee des- ‘‘(13) implement or enforce any nondisclo- (f) EXCLUSION OF AGENCIES BY THE PRESI- ignated by the head of the agency to receive sure policy, form, or agreement, if such pol- DENT.—Section 2302(a)(2)(C) of title 5, United such disclosures, of information that the em- icy, form, or agreement does not contain the States Code, is amended by striking clause ployee or applicant reasonably believes is following statement: (ii) and inserting the following: evidence of’’; and ‘‘ ‘These provisions are consistent with and ‘‘(ii)(I) the Federal Bureau of Investiga- (B) in clause (i), by striking ‘‘a violation’’ do not supersede, conflict with, or otherwise tion, the Central Intelligence Agency, the and inserting ‘‘any violation (other than a alter the employee obligations, rights, or li- Defense Intelligence Agency, the National violation of this section)’’; and abilities created by Executive Order No. Imagery and Mapping Agency, the National (3) by adding at the end the following: 12958; section 7211 of title 5, United States Security Agency; and ‘‘(C) a disclosure that— Code (governing disclosures to Congress); ‘‘(II) as determined by the President, any ‘‘(i) is made by an employee or applicant of section 1034 of title 10, United States Code Executive agency or unit thereof the prin- information required by law or Executive (governing disclosure to Congress by mem- cipal function of which is the conduct of for- order to be kept secret in the interest of na- bers of the military); section 2302(b)(8) of eign intelligence or counterintelligence ac- tional defense or the conduct of foreign af- title 5, United States Code (governing disclo- tivities, if the determination (as that deter- fairs that the employee or applicant reason- sures of illegality, waste, fraud, abuse, or mination relates to a personnel action) is ably believes is direct and specific evidence public health or safety threats); the Intel- made before that personnel action; or’’. of— ligence Identities Protection Act of 1982 (50 (g) ATTORNEY FEES.—Section 1204(m)(1) of ‘‘(I) any violation of any law, rule, or regu- U.S.C. 421 et seq.) (governing disclosures that title 5, United States Code, is amended by lation; could expose confidential Government striking ‘‘agency involved’’ and inserting ‘‘(II) gross mismanagement, a gross waste agents); and the statutes which protect ‘‘agency where the prevailing party is em- of funds, an abuse of authority, or a substan- against disclosures that could compromise ployed or has applied for employment’’. tial and specific danger to public health or national security, including sections 641, 793, (h) COMPENSATORY DAMAGES.—Section safety; or 794, 798, and 952 of title 18, United States 1214(g)(2) of title 5, United States Code, is ‘‘(III) a false statement to Congress on an Code, and section 4(b) of the Subversive Ac- amended by inserting ‘‘compensatory or’’ after ‘‘forseeable’’. issue of material fact; and tivities Control Act of 1950 (50 U.S.C. 783(b)). (i) DISCIPLINARY ACTION.—Section 1215 of ‘‘(ii) is made to— The definitions, requirements, obligations, title 5, United States Code, is amended in ‘‘(I) a member of a committee of Congress rights, sanctions, and liabilities created by having a primary responsibility for oversight subsection (a), by striking paragraph (3) and such Executive order and such statutory pro- inserting the following: of a department, agency, or element of the visions are incorporated into this agreement Federal Government to which the disclosed ‘‘(3)(A) A final order of the Board may im- and are controlling.’; or pose— information relates and who is authorized to ‘‘(14) conduct, or cause to be conducted, an receive information of the type disclosed; ‘‘(i) disciplinary action consisting of re- investigation of an employee or applicant for moval, reduction in grade, debarment from ‘‘(II) any other Member of Congress who is employment because of any activity pro- authorized to receive information of the type Federal employment for a period not to ex- tected under this section.’’. ceed 5 years, suspension, or reprimand; disclosed; or OARD AND COURT REVIEW OF ACTIONS RE- (3) B ‘‘(ii) an assessment of a civil penalty not to ‘‘(III) an employee of Congress who has the LATING TO SECURITY CLEARANCES.— exceed $1,000; or appropriate security clearance and is author- (A) IN GENERAL.—Chapter 77 of title 5, ‘‘(iii) any combination of disciplinary ac- ized to receive information of the type dis- United States Code, is amended by inserting tions described under clause (i) and an as- closed.’’. after section 7702 the following: (c) COVERED DISCLOSURES.—Section 2302(b) sessment described under clause (ii). ‘‘§ 7702a. Actions relating to security clear- of title 5, United States Code, is amended— ‘‘(B) In any case in which the Board finds ances (1) in the matter following paragraph (12), that an employee has committed a prohib- by striking ‘‘This subsection’’ and inserting ‘‘(a) In any appeal relating to the suspen- ited personnel practice under section 2302(b) the following: sion, revocation, or other determination re- (1), (8), or (9), the Board may order discipli- ‘‘This subsection’’; and lating to a security clearance, the Merit Sys- nary action if the Board finds that the activ- (2) by adding at the end the following: tems Protection Board or any reviewing ity or status protected under section 2302(b) ‘‘In this subsection, the term ‘disclosure’ court— (1), (8), or (9) was a motivating factor for the means a formal or informal communication ‘‘(1) shall determine whether section 2302 employee’s decision to take, fail to take, or or transmission.’’. was violated; threaten to take or fail to take a personnel (d) REBUTTABLE PRESUMPTION.—Section ‘‘(2) may not order the President to restore action, even if other factors also motivated 2302(b) of title 5, United States Code, is a security clearance; and the decision.’’. amended by adding after the matter fol- ‘‘(3) subject to paragraph (2), may issue de- (j) DISCLOSURES TO CONGRESS.—Section 2302 lowing paragraph (12) (as amended by sub- claratory relief and any other appropriate of title 5, United States Code, is amended by section (c) of this section) the following: relief. adding at the end the following:

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‘‘(f) Each agency shall establish a process section, a petition to review a final order or (m) NONDISCLOSURE POLICIES, FORMS, AND that provides confidential advice to employ- final decision of the Board shall be filed in AGREEMENTS.— ees on making a lawful disclosure to Con- the United States Court of Appeals for the (1) IN GENERAL.— gress of information that is specifically re- Federal Circuit. Notwithstanding any other (A) REQUIREMENT.—Each agreement in quired by law or Executive order to be kept provision of law, any petition for review Standard Forms 312 and 4414 of the Govern- secret in the interest of national defense or must be filed within 60 days after the date ment and any other nondisclosure policy, the conduct of foreign affairs.’’. the petitioner received notice of the final form, or agreement of the Government shall (k) AUTHORITY OF SPECIAL COUNSEL RELAT- order or decision of the Board. contain the following statement: ‘‘These re- ING TO CIVIL ACTIONS.— ‘‘(B) During the 5-year period beginning on strictions are consistent with and do not su- (1) REPRESENTATION OF SPECIAL COUNSEL.— the effective date of the Federal Employee persede, conflict with, or otherwise alter the Section 1212 of title 5, United States Code, is Protection of Disclosures Act, a petition to employee obligations, rights, or liabilities amended by adding at the end the following: review a final order or final decision of the created by Executive Order No. 12958; section ‘‘(h) Except as provided in section 518 of Board shall be filed in the United States 7211 of title 5, United States Code (governing title 28, relating to litigation before the Su- Court of Appeals for the Federal Circuit or disclosures to Congress); section 1034 of title preme Court, attorneys designated by the any court of appeals of competent jurisdic- 10, United States Code (governing disclosure Special Counsel may appear for the Special tion as provided under subsection (b)(2). Not- to Congress by members of the military); Counsel and represent the Special Counsel in withstanding any other provision of law, any section 2302(b)(8) of title 5, United States any civil action brought in connection with petition for review must be filed within 60 Code (governing disclosures of illegality, section 2302(b)(8) or subchapter III of chapter days after the date the petitioner received waste, fraud, abuse or public health or safety 73, or as otherwise authorized by law.’’. notice of the final order or decision of the threats); the Intelligence Identities Protec- (2) JUDICIAL REVIEW OF MERIT SYSTEMS PRO- Board.’’. tion Act of 1982 (50 U.S.C. 421 et seq.) (gov- TECTION BOARD DECISIONS.—Section 7703 of (2) REVIEW OBTAINED BY OFFICE OF PER- erning disclosures that could expose con- title 5, United States Code, is amended by SONNEL MANAGEMENT.—Section 7703 of title 5, fidential Government agents); and the stat- adding at the end the following: United States Code, is amended by striking ‘‘(e)(1) Except as provided under paragraph subsection (d) and inserting the following: utes which protect against disclosure that (2), this paragraph shall apply to any review ‘‘(d)(1) Except as provided under paragraph may compromise the national security, in- obtained by the Special Counsel. The Special (2), this paragraph shall apply to any review cluding sections 641, 793, 794, 798, and 952 of Counsel may obtain review of any final order obtained by the Director of the Office of Per- title 18, United States Code, and section 4(b) or decision of the Board by filing a petition sonnel Management. The Director of the Of- of the Subversive Activities Act of 1950 (50 for judicial review in the United States fice of Personnel Management may obtain U.S.C. 783(b)). The definitions, requirements, Court of Appeals for the Federal Circuit if review of any final order or decision of the obligations, rights, sanctions, and liabilities the Special Counsel determines, in the dis- Board by filing, within 60 days after the date created by such Executive order and such cretion of the Special Counsel, that the the Director received notice of the final statutory provisions are incorporated into Board erred in deciding a case arising under order or decision of the Board, a petition for this agreement and are controlling.’’ section 2302(b)(8) or subchapter III of chapter judicial review in the United States Court of (B) ENFORCEABILITY.—Any nondisclosure 73 and that the Board’s decision will have a Appeals for the Federal Circuit if the Direc- policy, form, or agreement described under substantial impact on the enforcement of tor determines, in his discretion, that the subparagraph (A) that does not contain the section 2302(b)(8) or subchapter III of chapter Board erred in interpreting a civil service statement required under subparagraph (A) 73. If the Special Counsel was not a party or law, rule, or regulation affecting personnel may not be implemented or enforced to the did not intervene in a matter before the management and that the Board’s decision extent such policy, form, or agreement is in- Board, the Special Counsel may not petition will have a substantial impact on a civil consistent with that statement. for review of a Board decision under this sec- service law, rule, regulation, or policy direc- (2) PERSONS OTHER THAN GOVERNMENT EM- tion unless the Special Counsel first peti- tive. If the Director did not intervene in a PLOYEES.—Notwithstanding paragraph (1), a tions the Board for reconsideration of its de- matter before the Board, the Director may nondisclosure policy, form, or agreement cision, and such petition is denied. In addi- not petition for review of a Board decision that is to be executed by a person connected tion to the named respondent, the Board and under this section unless the Director first with the conduct of an intelligence or intel- all other parties to the proceedings before petitions the Board for a reconsideration of ligence-related activity, other than an em- the Board shall have the right to appear in its decision, and such petition is denied. In ployee or officer of the Federal Government the proceedings before the Court of Appeals. addition to the named respondent, the Board or a State or local government, may contain The granting of the petition for judicial re- and all other parties to the proceedings be- provisions appropriate to the particular ac- view shall be at the discretion of the Court fore the Board shall have the right to appear tivity for which such document is to be used. of Appeals. in the proceeding before the Court of Ap- Such form or agreement shall, at a min- ‘‘(2) During the 5-year period beginning on peals. The granting of the petition for judi- imum, require that the person will not dis- the effective date of the Federal Employee cial review shall be at the discretion of the close any classified information received in Protection of Disclosures Act, this para- Court of Appeals. the course of such activity unless specifi- graph shall apply to any review obtained by ‘‘(2) During the 5-year period beginning on cally authorized to do so by the United the Special Counsel. The Special Counsel the effective date of the Federal Employee States Government. Such nondisclosure may obtain review of any final order or deci- Protection of Disclosures Act, this para- forms shall also make it clear that such sion of the Board by filing a petition for judi- graph shall apply to any review obtained by forms do not bar disclosures to Congress or cial review in the United States Court of Ap- the Director of the Office of Personnel Man- to an authorized official of an executive peals for the Federal Circuit or any court of agement. The Director of the Office of Per- agency or the Department of Justice that appeals of competent jurisdiction as pro- sonnel Management may obtain review of are essential to reporting a substantial vio- vided under subsection (b)(2) if the Special any final order or decision of the Board by lation of law. filing, within 60 days after the date the Di- Counsel determines, in the discretion of the (n) CLARIFICATION OF WHISTLEBLOWER rector received notice of the final order or Special Counsel, that the Board erred in de- RIGHTS FOR CRITICAL INFRASTRUCTURE INFOR- decision of the Board, a petition for judicial ciding a case arising under section 2302(b)(8) MATION.—Section 214(c) of the Homeland Se- or subchapter III of chapter 73 and that the review in the United States Court of Appeals curity Act of 2002 (Public Law 107–296) is for the Federal Circuit or any court of ap- Board’s decision will have a substantial im- amended by adding at the end the following: peals of competent jurisdiction as provided pact on the enforcement of section 2302(b)(8) ‘‘For purposes of this section a permissible under subsection (b)(2) if the Director deter- or subchapter III of chapter 73. If the Special use of independently obtained information mines, in his discretion, that the Board erred Counsel was not a party or did not intervene includes the disclosure of such information in interpreting a civil service law, rule, or in a matter before the Board, the Special under section 2302(b)(8) of title 5, United regulation affecting personnel management Counsel may not petition for review of a States Code.’’. and that the Board’s decision will have a Board decision under this section unless the (o) EFFECTIVE DATE.—This Act shall take substantial impact on a civil service law, Special Counsel first petitions the Board for effect 30 days after the date of enactment of rule, regulation, or policy directive. If the reconsideration of its decision, and such pe- this Act. Director did not intervene in a matter before tition is denied. In addition to the named re- Mr. LEVIN. Mr. President, I am spondent, the Board and all other parties to the Board, the Director may not petition for the proceedings before the Board shall have review of a Board decision under this section pleased to join Senators AKAKA, LEAHY, the right to appear in the proceedings before unless the Director first petitions the Board DURBIN and DAYTON today in intro- the court of appeals. The granting of the pe- for a reconsideration of its decision, and ducing the Federal Employees Protec- tition for judicial review shall be at the dis- such petition is denied. In addition to the tion of Disclosures Act. Our bill cretion of the court of appeals.’’. named respondent, the Board and all other strengthens the law protecting employ- (l) JUDICIAL REVIEW.— parties to the proceedings before the Board ees who blow the whistle on fraud, shall have the right to appear in the pro- (1) IN GENERAL.—Section 7703(b) of title 5, waste, and abuse in Federal programs. United States Code, is amended by striking ceeding before the court of appeals. The paragraph (1) and inserting the following: granting of the petition for judicial review Whistleblowers play a crucial role in ‘‘(b)(1)(A) Except as provided in subpara- shall be at the discretion of the Court of Ap- ensuring that Congress and the public graph (B) and paragraph (2) of this sub- peals.’’. are aware of serious cases of waste,

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00078 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.081 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7639 fraud, and mismanagement in govern- ings by the United States Court of Ap- regulations. . . . And this presumption ment. Whistleblowing is never more peals for the Federal Circuit have cor- stands unless there is ‘‘irrefragable important than when our national se- rupted the intent of Congress, with the proof to the contrary’.’’ curity is at stake. Since the terrorist result that additional clarifying lan- It was appropriate for the Federal attacks of September 11, 2001, coura- guage is sorely needed. The case of Circuit to remand the case to the geous individuals have stepped forward LaChance versus White represents per- MSPB to have it reconsider whether it to blow the whistle on significant haps the most notable example of the was reasonable for White to believe lapses in our efforts to protect the Federal Circuit’s misinterpretation of that what the Air Force did in this United States against potential future the whistleblower law. case involved gross mismanagement. attacks. Most notably, FBI Agent In LaChance, decided on May 14, 1999, However, the Federal Circuit went on Coleen Rowley alerted Congress to seri- the court imposed an unfounded and to impose a clearly erroneous and ex- ous institutional problems at the FBI virtually unattainable standard on cessive standard for him to dem- and their impact on the agency’s abil- Federal employee whistleblowers in onstrate his ‘‘reasonable belief’’—re- ity to effectively investigate and pre- proving their cases. In that case, John quiring him to provide ‘‘irrefragable’’ vent terrorism. E. White was an education specialist proof that the Air Force had engaged In another example, two Border Pa- for the Air Force who spoke out in gross mismanagement. trol agents from my State of Michigan, against a new educational system that Irrefragable means ‘‘undeniable, in- Mark Hall and Bob Lindemann, risked purported to mandate quality stand- contestable, incontrovertible, incapa- their careers when they blew the whis- ards for schools contracting with the ble of being overthrown.’’ How can a tle on Border Patrol and INS policies Air Force bases. White criticized the Federal employee meet a standard of that were compromising security on new system as counterproductive be- ‘‘irrefragable’’ in proving gross mis- the Northern Border. Their disclosure cause it was too burdensome and seri- management? It is a virtually impos- led to my holding a hearing at the Per- ously reduced the education opportuni- sible standard of proof to meet. More- manent Subcommittee on Investiga- ties available on base. After making over, there is nothing in the law or leg- tions in November 2001, that exposed these criticisms, local agency officials islative history that even suggests serious deficiencies in the way Border reassigned White, relieving him of his such a standard applies to the Whistle- Patrol and INS were dealing with duties and allegedly isolating him. blower Protection Act. The intent of aliens who were arrested while trying However, after an independent manage- the law is not for a Federal employee to enter the country illegally. Since ment review supported White’s con- to act as an investigator and compile the hearing, some of the most trouble- cerns, the Air Force canceled the pro- ‘‘irrefragable’’ proof that the Federal some policies have been changed, im- gram White had criticized. White ap- Government, in fact, committed fraud, proving the security situation and vali- pealed the reassignment in 1992 and the waste or abuse. Rather, under the clear dating the two agents’ concerns. De- case has been in litigation ever since. language of the statute, the employee spite the fact that their concerns The administrative judge initially needs only to have ‘‘a reasonable be- proved to be dead on, shortly after they dismissed White’s case, finding that his lief’’ that there is fraud, waste or abuse blew the whistle, disciplinary action disclosures were not protected by the occurring in order to make a protected was proposed against the two agents. Whistleblower Protection Act. The disclosure. Fortunately in this case, whistleblower MSPB, however, reversed the adminis- LaChance is only one example of the protections worked. The Office of Spe- trative judge’s decision and remanded Federal Circuit misinterpreting the cial Counsel conducted an investiga- the case back to the administrative law. Our bill corrects LaChance and as tion and the decision to discipline the judge, holding that since White dis- well as several other Federal Circuit agents was reversed. However, that dis- closed information he reasonably be- holdings. In addition, the bill strength- ciplinary action was proposed in the lieved evidenced gross mismanage- ens the Office of Special Counsel and first place is a troubling reminder of ment, this disclosure was protected creates additional protections for fed- how important it is for us to both under the Act. On remand, the admin- eral employees who are retaliated strengthen protections for whistle- istrative judge found that the Air against for blowing the whistle. blowers and empower the Office of Spe- Force had violated the Whistleblower One of the most important issues ad- cial Counsel to discipline managers Protection Act and ordered the Air dressed in the bill is to clarify again who seek to muzzle employees. Force to return White to his prior sta- that the law is intended to protect a Agent Rowley, Mark Hall and Bob tus; the MSPB affirmed the decision of broad range of whistleblower disclo- Lindemann are simply the latest in a the administrative judge. OPM peti- sures. The legislative history sup- long line of Federal employees who tioned the Federal Circuit for a review porting the 1994 Whistleblower Protec- have taken great personal risks in of the board’s decision. The Federal tion Act amendments emphasized: ‘‘[I]t blowing the whistle on government Circuit subsequently reversed the also is not possible to further clarify waste, fraud, and mismanagement. MSPB’s decision, holding that there the clear language in section 2302(b)(8) Congress has long recognized the obli- was not adequate evidence to support a that protection for ‘‘any’’ whistle- gation we have to protect a Federal violation under the Whistleblower Pro- blowing disclosure truly means ‘‘any.’’ employee when he or she discloses evi- tection Act. The Federal Circuit held A protected disclosure may be made as dence of wrongdoing in a federal pro- that the evidence that White was a spe- part of an employee’s job duties, may gram. If an employee reasonably be- cialist on the subject at issue and concern policy or individual mis- lieves that a fraud or mismanagement aware of the alleged improper activi- conduct, and may be oral or written is occurring, and that employee has the ties and that his belief was shared by and to any audience inside or outside courage and the sense of responsibility other employees was not sufficient to the agency, without restriction to to make that fraud or mismanagement meet the ‘‘reasonable belief’’ test in time, place, motive or content.’’ known, it is our duty to protect the the law. The court held that ‘‘the board Despite this clear Congressional in- employee from any reprisal. We want must look for evidence that it was rea- tent that was clearly articulated in federal employees to identify problems sonable to believe that the disclosures 1994, the Federal Circuit has acted to so we can fix them, and if they fear re- revealed misbehavior’’ by the Air push a number of whistleblower disclo- prisal for doing so, then we are not Force. The court went on to say: ‘‘In sures outside the protections of the only failing to protect the whistle- this case, review of the Air Force’s pol- whistleblower law. For example, in blower, but we are also failing to pro- icy and implementation via the QES Horton versus the Department of the tect the taxpayer. standards might well show them to be Navy, the Federal Circuit ruled that a I sponsored the Whistleblower Pro- entirely appropriate, even if not the whistleblower’s disclosures to co-work- tection Act in 1989 which strengthened best option. Indeed, this review would ers, or to the wrong-doer, or to a super- and clarified whistleblower rights, as start out with a presumption that pub- visor were not protected by the WPA. well as the bill passed by Congress to lic officers perform their duties cor- In Willis versus the Department of Ag- strengthen the law further in 1994. Un- rectly, fairly, in good faith, and in ac- riculture, the court ruled that a whis- fortunately, however, repeated hold- cordance with the law and governing tleblower’s disclosures to officials in

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00079 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.082 S10PT1 S7640 CONGRESSIONAL RECORD — SENATE June 10, 2003 the agency chain of command or those gressional action. In response to the viewing court can order. The bill speci- made in the course of normal job duties court’s inexplicable and inappropriate fies that the MSPB or reviewing court were not protected. In Huffman versus rulings, our bill would suspend for five may issue declaratory and other appro- Office of Personnel Management, the years the Federal Circuit’s exclusive priate relief but may not direct a secu- Federal Circuit reaffirmed Horton and jurisdiction over whistleblower ap- rity clearance to be restored. Appro- Willis. And in Meuwissen versus De- peals. It would instead allow a whistle- priate relief may include back pay, an partment of Interior, the Federal Cir- blower to file a petition to review a order to reassign the employee, attor- cuit held that a whistleblower’s disclo- final order or final decision of the ney fees, or any other relief the Board sures of previously known information MSPB in the Federal Circuit or in any or court is authorized to provide for do not qualify as ‘‘disclosures’’ under other United States appellate court of other prohibited personnel practices. In the WPA. All of these rulings violate competent jurisdiction as defined addition, if the Board finds an action clear Congressional intent to afford under 5 U.S.C. 7703(b)(2). In most cases, on a security clearance to have been il- broad protection to whistleblower dis- using another court would mean going legal, it may bar the agency from di- closures. to the federal circuit where the con- rectly or indirectly taking any other In order to make it clear that any tested personnel action took place. personnel action based on that illegal lawful disclosure that an employee or This five year period would allow Con- security clearance action. Our legisla- job applicant reasonably believes is gress to evaluate whether other appel- tion would also require the agency to evidence of waste, fraud, abuse, or late courts would issue whistleblower review and provide a report to Congress gross mismanagement is covered by decisions which are consistent with the detailing the circumstances of the the WPA, the bill codifies previous Federal Circuit’s interpretation of agency’s security clearance decision, statements of Congressional intent. WPA protections and guide Congres- and authorizes expedited MSPB review Using the 1994 legislative history, it sional efforts to clarify the law if nec- of whistleblower cases where a security amends the whistleblower statute to essary. clearance was revoked or suspended. cover any disclosure of information In addition to addressing jurisdic- The latter is important because a per- without restriction to time, place, tional issues and troublesome Federal son whose clearance has been sus- form, motive or context, or prior dis- Circuit precedents, our bill would also pended or revoked and whose job re- closure made to any person by an em- make important additions to the list of sponsibilities require clearance may be ployee or applicant, including a disclo- protected disclosures. First, it would unable to work while their case is being considered. sure made in the ordinary course of an subject certain disclosures of classified information to whistleblower protec- Our bill would also add two prohib- employee’s duties that the employee or ited personnel practices to the whistle- tions. However, in order for a disclo- applicant reasonably believes is cred- blower law. First, it would codify the sure of classified information to be pro- ible evidence of any violation of any ‘‘anti-gag’’ provision that has been in tected, the employee would have to law, rule, or regulation, or other mis- force since 1988, by virtue of its inclu- possess a reasonable belief that the dis- conduct specified in the whistleblower sion in appropriations bills. Second, it closure was direct and specific evidence law. I want to emphasize here that, would prohibit a manager from initi- of a violation of law, rule or regula- other than the explicitly listed excep- ating an investigation of an employee tions identified in the statute, we in- tion, gross mismanagement, a gross or applicant for employment because tend for there to be no exceptions, in- waste of funds, an abuse of authority, a they engaged in a protected activity, ferred or otherwise, as to what is a pro- substantial and specific danger to pub- including whistleblowing. tected disclosure. And the prohibition lic health or safety, or a false state- Another issue addressed in the bill on inferred exceptions is intended to ment to Congress on an issue of mate- involves certain employees who are ex- apply to all protected speech cat- rial fact. A whistleblower must also cluded from the WPA. Among these are egories in section 2302(b)(8) of the law. limit the disclosure to a member of employees who hold ‘‘confidential pol- The intent here, again, is to make it Congress or staff of the executive or icy-making positions.’’ In 1994, Con- clear that when the WPA speaks of pro- legislative branch holding the appro- gress amended the WPA to keep agen- tecting disclosures by federal employ- priate security clearance and author- cies from designating employees con- ees ‘‘any’’ means ‘‘any.’’ ized to receive the information dis- fidential policymakers after the em- The bill also addresses the clearly er- closed. Federal agencies covered by the ployees filed whistleblower complaints. roneous standard established by the WPA would be required to establish a The WPA also allows the President to Federal Circuit’s LaChance decision I process to provide confidential advice exclude from WPA jurisdiction any mentioned earlier. Rather than needing to employees on how to lawfully make agency whose principal function is the ‘‘irrefragable proof’’ to overcome the a protected disclosure of classified in- conduct of foreign intelligence or coun- presumption that a public officer per- formation to Congress. terintelligence activities. Our legisla- formed his or her duties correctly, fair- Current law permits Federal employ- tion maintains this authority but ly, in good faith, and in accordance ees to file a case at the MSPB when makes it clear that a decision to ex- with the law and regulations, the bill they feel that a manager has taken a clude an agency from WPA protections makes it clear that the whistleblower personnel action against them in retal- must also be made prior to a personnel can rebut this presumption with ‘‘sub- iation for blowing the whistle. The leg- action being taken against a whistle- stantial evidence.’’ This burden of islation would add three new personnel blower from that agency. This provi- proof is a far more reasonable and ap- actions to the list of adverse actions sion is necessary to ensure that agen- propriate standard for whistleblowing that cannot be taken against whistle- cies cannot argue that employees are cases. blowers for engaging in protected ac- exempt from whistleblower protections In the 1994 WPA amendments, Con- tivity. These actions would include en- after an employee files a claim that gress attempted to expand relief for forcement of any nondisclosure policy, they were retaliated against. whistleblowers by replacing ‘‘compen- form or agreement against a whistle- Another key section of the bill would satory’’ damages with all direct or in- blower for making a protected disclo- strengthen the Office of Special Coun- direct ‘‘consequential’’ damages. sure; the suspension, revocation, or sel. OSC is the independent federal Again, despite clear Congressional in- other determination relating to a whis- agency responsible for investigating tent, the Federal Circuit has narrowed tleblower’s security clearance; and an and prosecuting federal employee com- the scope of relief available to whistle- investigation of an employee or appli- plaints of whistleblower retaliation. blowers who have been hurt by adverse cant for employment if taken due to Current law, however, limits OSC’s personnel actions. Our legislation their participation in whistleblowing ability to effectively enforce and de- would clarify the law to provide whis- activity. fend whistleblower laws. For example, tleblowers with relief for ‘‘compen- It is important to note that, if it is the law provides the OSC with no au- satory or consequential damages.’’ demonstrated that a security clearance thority to request the Merit Systems The Federal Circuit’s repeated mis- was suspended or revoked in retalia- Protection Board to reconsider one of interpretations of the whistleblower tion for whistleblowing, the legislation its decisions or to seek appellate re- law are unacceptable and demand Con- limits the relief that the MSPB and re- view of an MSPB decision. Even when

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00080 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.083 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7641 another party petitions for a review of independent litigating authority and the There are several other provisions of the a MSPB decision, OSC is typically de- right to request judicial review of decisions amendments that would strengthen the Act’s nied the right to participate in the pro- of the Merit Systems Protection Board coverage and remedies. The amendments, for (MSPB) in cases that will have a substantial example, would extend coverage of the WPA ceedings. impact upon the enforcement of the WPA. I to circumstances in which an agency initi- Our bill would provide explicit au- firmly believe that these changes are nec- ated an investigation of an employee or ap- thority for the Office of Special Coun- essary, not only to ensure OSC’s effective- plicant in reprisal for whistleblowing or sel to appear in any civil action ness, but to address continuing concerns where an agency implemented an illegal non- brought in connection with the whis- about the whittling away of the WPA’s pro- disclosure form or policy. The amendments tleblower law. In addition, it would au- tections by narrow judicial interpretations also would authorize an award of compen- thorize OSC to obtain circuit court re- of the law. The changes would ensure that, satory damages in federal employee whistle- view of any MSPB order in a whistle- OSC, the government agency charged with blower cases. Such awards are authorized for protecting whistleblowers, will have a mean- federal employees under the civil rights acts, blowing case if the OSC determines the ingful opportunity to participate in the and for environmental and nuclear whistle- Board erred and the case would have a shaping of the law. blowers, among others, under other federal substantial impact on the enforcement Further, Title VI would strengthen OSC’s statutes. Given the important public policies of the whistleblower statute. In a let- capacity to use its disciplinary action au- underlying the WPA, it seems appropriate ter to me addressing these provisions, thority to deter agency supervisors, man- that the same sort of make whole relief Special Counsel Elaine Kaplan said, ‘‘I agers, and other officials from engaging in should be available to federal employee whis- believe that these changes are nec- retaliation, and to punish those who do so. tleblowers. The amendment does this in two ways. First, Finally, Title VI contains a provision that essary, not only to ensure OSC’s effec- it clarifies the burden of proof in discipli- would provide relief to employees who allege tiveness, but to address continuing nary action cases that OSC brings by em- that their security clearances were denied or concerns about the whittling away of ploying the test first set forth by the Su- revoked because of protected whistleblowers, the WPA’s protections by narrow judi- preme Court in Mt. Healthy School District without interfering with the longstanding cial interpretations of the law.’’ I ask v. Board of Education. Under this test, in authority of the President to make security unanimous consent that the OSC letter order to secure discipline of an agency offi- clearance determinations. The amendment cial accused of engaging in whistleblower re- would allow employees to file OSC com- be printed in the RECORD. taliation, OSC would have to show that pro- There being no objection, the letter plaints alleging they suffered a retaliatory tected whistleblowing was a ‘‘significant, adverse security clearance determination. was ordered to be printed in the motivating factor’’ in the decision to take or OSC would be given the authority to inves- RECORD, as follows: threaten to take a personnel action. If OSC tigate such complaints and the MSPB would U.S. OFFICE OF SPECIAL COUNSEL, made such a showing, the MSPB would order have the authority to issue declaratory and Washington, DC, September 11, 2002. appropriate discipline unless the official appropriate relief other than ordering the Hon. CARL LEVIN, showed, by preponderant evidence, that he or restoration of the clearance. Further, where U.S. Senate, Russell Senate Office Building, she would have taken or threatened to take the Board found retaliation, the employing Washington, DC. the same action even had there been no pro- agency would be required to conduct its own tected activity. DEAR SENATOR LEVIN: Thank you for giv- investigation of the revocation and report ing me the opportunity to comment on the This change is necessary in order to ensure that the burden of proof in these cases is not back to Congress. proposed Title VI of H.R. 5005, concerning The amendment provides a balanced reso- so onerous as to make it virtually impossible the protection of federal employee whistle- lution of the tension between protecting na- to secure discipline against retaliators. blowers. tional security whistleblowers against retal- Under current law, OSC bears the unprece- As the head of the U.S. Office of Special dented burden of demonstrating that pro- iation and maintaining the President’s tradi- Counsel (OSC), the independent federal agen- tected activity was the but-for cause of an tional prerogative to decide who will have cy that is responsible for investigating and adverse personnel action against a whistle- access to classified information. Especially prosecuting federal employees’ complaints of blower. The amendment would correct the in light of the current heightened concerns whistleblower retaliation, I share your rec- imbalance by imposing the well-established about issues of national security, this ognition that it is crucial to ensure that the Mt. Healthy test in these cases. change in the law is clearly warranted. laws protecting whistleblowers are strong In addition, the bill would relieve OSC of Thank you again for providing me with an and effective. Federal employees are often in attorney fee liability in disciplinary action opportunity to comment on these amend- the best position to observe and identify offi- cases in which it ultimately does not prevail. ments, and for your continuing interest in cial misconduct or malfeasance as well as The amendment would shift liability for fees the work of the Office of Special Counsel. dangers to the public health and safety, and to the manager’s employing agency, where Sincerely, the national security. an award of fees would be in the interest of ELAINE KAPLAN. Now, perhaps more than ever before, our justice. The employing agency would indem- Mr. LEVIN. OSC currently has the national interest demands that federal work- nify the manager for these costs which would authority to pursue disciplinary action ers feel safe to come forward to bring appro- have been incurred by him in the course of priate attention to these conditions so that against managers who retaliate against performing his official duties. whistleblowers. However, Federal Cir- they may be corrected. Further, and again Under current law, if OSC ultimately does more than ever, the public now needs assur- not prevail in a case it brings against a man- cuit decisions, like LaChance, have un- ance that the workforce which is carrying ager whom our investigation shows has en- dermined the agency’s ability to suc- out crucial operations is alert, and that its gaged in retailiation, then we must pay at- cessfully pursue such cases. The Spe- leaders welcome and encourage their con- torney fees, even if our prosecution decision cial Counsel has said that ‘‘change is structive participation in making the gov- was an entirely reasonable one. For a small necessary in order to ensure that the ernment a highly efficient and effective agency like OSC, with a limited budget, the burden of proof in these cases is not so steward of the public interest. specter of having to pay large attorney fee onerous as to make it virtually impos- To these ends, Title VI contains a number awards simply because we do not ultimately of provisions that will strengthen the Whis- prevail in a case, is a significant obstacle to sible to secure disciplinary action tleblower Protection Act (WPA) and close our ability to use this important authority against retaliators.’’ In addition to it loopholes in the Act’s coverage. The amend- to hold managers accountable. It is, more- being difficult to win, if the OSC loses ment would reverse the effects of several ju- over, an unprecedented burden; virtually all a disciplinary case, it has to pay the dicial decisions that have imposed unduly fee shifting provisions which could result in legal fees of those against whom OSC narrow and restrictive tests for determining an award of fees against a government agen- initiates disciplinary action. In its let- whether employees qualify for the protection cy, depend upon a showing that the govern- ter, OSC said that ‘‘the specter of hav- of the WPA. These decisions, among other ment agency has acted unreasonably or in things, have held that employees are not bad faith. ing to pay large attorney fee awards protected against retaliation when they In addition to these provisions, the bill . . . is a significant obstacle to our make their disclosures in the line of duty or would also provide that for a period of five ability to use this important authority when they confront subject officials with years, beginning on February 1, 2003, there to hold managers accountable.’’ Our their suspicions of wrongdoing. They have would be multi-circuit review of decisions of bill addresses these problems by estab- also made it more difficult for whistle- the MSPB, just as there is now multi-circuit lishing a reasonable burden of proof for blowers to secure the Act’s protection by review of decisions of the MSPB’s sister disciplinary actions and requiring the agency, the Federal Labor Relations Author- interposing what the Court of Appeal for the employing agency, not the OSC, to re- Federal Circuit has called an ‘‘irrefragable’’ ity. This experiment will give Congress the presumption that government officials per- opportunity to judge whether providing imburse the prevailing party for attor- form their duties lawfully and in good faith. broader perspectives of all of the nation’s ney fees in a disciplinary proceeding. In addition to reversing these rulings, courts of appeals will enhance the develop- Finally, the bill addresses a new Title VI would grant the Special Counsel ment of the law under the WPA. issue that has arisen in connection

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00081 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.084 S10PT1 S7642 CONGRESSIONAL RECORD — SENATE June 10, 2003 with the recent enactment of the one of the most difficult of my career. I did their duties in accordance with law. Section Homeland Security Act or HSA. To not come to it quickly or lightly. I first at- (d) would replace this unreasonable standard evaluate the vulnerability to terrorist tempted to warn my superiors through reg- of proof by providing that a whistleblower attack of certain critical infrastruc- ular channels. Only after those warnings can rebut the presumption with ‘‘substantial failed to bring about the necessary response evidence.’’ ture such as chemical plants, computer and congressional inquiry was initiated, did Prohibited Personnel Actions. Section networks and other key facilities, the it go outside the agency with my concerns. I (e)(1) would add three actions to the list of HSA asks private companies that own had no intention or desire to be in the public prohibited personnel actions that may not be these facilities to submit unclassified spotlight, so I did not go to the news media. taken against whistleblowers for protected information about them to the govern- I provided the information to Members of disclosures: enforcement of a nondisclosure ment. In doing so, the law also created Congress with oversight responsibility. I felt policy, form or agreement; suspension, rev- some ambiguity on the question of compelled to do so because my responsibility ocation, or other determination relating to whether federal employee whistle- is to the American people, not to a govern- an employee’s security clearance; and inves- tigation of an employee or applicant for em- blowers would be protected by the WPA ment agency. Unfortunately, the cloak of secrecy which ployment due to protected whistleblowing if they should disclose information is necessary for the effective operation of activities. that has been independently obtained government agencies involved in national se- Nondisclosure Actions Against Whistle- by the whistleblower about such facili- curity and criminal investigations fosters an blowers. Section (e)(2) would bar agencies ties but which may also have been dis- environment where the incentives to avoid from implementing or enforcing against closed to the government as under the embarrassment and the disincentives to step whistleblowers any nondisclosure policy, critical infrastructure information pro- forward combine. When that happens, the form or agreement that fails to contain spec- gram. public loses. We need laws that strike a bet- ified language preserving the right of gov- While I believe it was Congress’ in- ter balance, that are able to protect effective ernment employees to disclose certain pro- government operation without sacrificing tected information. It would also prohibit a tent to extend whistleblower protec- manager from initiating an investigation of tions to federal employees who disclose accountability to the public. I was lucky enough to garner a good deal of support from an employee or applicant for employment such independently obtained informa- my colleagues in the Minneapolis office and because they engaged in protected activity. tion, the law’s ambiguities are trouble- Members of Congress. But for every one like Retaliations Involving Security Clear- some in the context of the tendency of me, there are many more who do not benefit ances. Section (e)(3) would make it a prohib- the Federal Circuit to narrowly con- from the relative safety of public notoriety. ited personnel practice for a manager to sus- strue the scope of protections afforded They need credible, functioning rights and pend, revoke or take other action with re- by the WPA. Our bill would thus clar- remedies to retain the freedom to warn. spect to an employee’s security clearance in I also need to state that I write this letter retaliation for whistleblowing. This section ify that whistleblower protections do would also authorize the Merit Systems Pro- extend to federal employees who dis- in my personal capacity, and that it reflects my personal views only, not those of the gov- tection Board (MSPB) to conduct an expe- close independently obtained informa- ernment agency for which I work. dited review of such matters and issue de- tion that may also have been disclosed Thank you for your consideration. claratory and other appropriate relief, but to the government as part of the crit- COLEEN ROWLEY. would not empower MSPB to restore a secu- rity clearance. If MSPB or a reviewing court ical infrastructure information pro- Mr. LEVIN. I ask unanimous consent gram. were to find that a security clearance deci- to print in the RECORD a section-by- We need to encourage federal em- sion was retaliatory, the agency involved section explanation of the bill. ployees to blow the whistle on waste, would be required to review its security There being no objection, the anal- clearance decision and issue a report to Con- fraud and abuse in federal government ysis was ordered to be printed in the gress explaining it. agencies and programs. These people RECORD, as follows: Exclusions from WPA. Current law allows take great risks and often face enor- the President to exclude certain employees SECTION-BY-SECTION ANALYSIS OF THE FEDERAL mous obstacles in doing what they be- and agencies from the WPA if they perform EMPLOYEE PROTECTION OF DISCLOSURES ACT lieve is right. The Congress and the certain intelligence related or policy making country owe a particular debt of grati- The Federal Employee Protection of Dis- functions. In 1994, Congress amended the closures Act would strengthen protections WPA to stop agencies from removing em- tude to those whistleblowers who put for federal employees who blow the whistle their careers on the line to protect na- ployees from WPA coverage after the em- on waste, fraud and abuse in the federal gov- ployees filed whistleblower complaints. Sec- tional security. Since September 11, ernment. tion (f) would also require that removal of an 2001, we have seen a number of exam- Protected Whistleblower Disclosures. To agency from the WPA be made prior to a per- ples of how crucial people like Coleen correct court decisions improperly limiting sonnel action being taken against a whistle- Rowley, Mark Hall and Bob Lindemann the disclosures protected by the Whistle- blower at that agency. are to keeping our country safe. I re- blower Protection Act (WPA), section (b) of Attorney Fees. The Office of Special Coun- quest unanimous consent to print a let- the bill would clarify Congressional intent sel (OSC) has authority to pursue discipli- that the law covers ‘any’ whistleblowing dis- ter from Agent Rowley in the RECORD. nary action against managers who retaliate closure, whether that disclosure is made as In the letter she says that when she against whistleblowers. Currently, if OSC part of an employee’s job duties, concerns loses a disciplinary case, it must pay the blew the whistle, she was lucky enough policy or individual misconduct, is oral or legal fees of those against whom it initiated to garner the support of many of her written, or is made to any audience inside or the action. Because the amounts involved colleagues and members of Congress. outside an agency, and without restriction could significantly deplete OSC’s limited re- However, her letter warns that for to time, place, motive or context. This sec- sources, section (g) would require the em- every Coleen Rowley, ‘‘there are many tion would also protect certain disclosures of ploying agency, rather than OSC, to reim- more who do not benefit from the rel- classified information to Congress when the burse the manager’s attorney fees. ative safety of public notoriety.’’ It is disclosure is to a Member or legislative staff Compensatory Damages. In the 1994 WPA to protect those responsible, coura- holding an appropriate security clearance amendments, Congress attempted to expand and authorized to receive the type of infor- relief for whistleblowers by replacing ‘‘com- geous many that we offer this legisla- mation disclosed. pensatory’’ damages with direct and indirect tion. We need more like them. Informal Disclosures. Section (c) would ‘‘consequential’’ damages. Despite Congres- There being no objection, the letter clarify the definition of ‘‘disclosure’’ to in- sional intent, the Federal Circuit narrowed was ordered to be printed in the clude a formal or informal communication the scope of relief available to whistle- RECORD, as follows: or transmission. blowers. To correct the court’s misinter- SEPTEMBER 2, 2002. Irrefragable Proof. In LaChance v. White, pretation of the law, section (h) would pro- DEAR SENATORS: I have proudly served in the U.S. Court of Appeals for the Federal vide whistleblowers with relief for compen- federal law enforcement for over 21 years. Circuit imposed an erroneous standard for satory or consequential damages. Prior to my personal involvement in a spe- determining when an employee makes a pro- Burden of Proof in Disciplinary Actions. cific matter, I did not fully appreciate the tected disclosure under the WPA. Under the Currently, when OSC pursues disciplinary strong disincentives that sometimes keep clear language of the statute, an employee action against managers who retaliate government employees from exposing waste, need only have a reasonable belief that he or against whistleblowers, OSC must dem- fraud, abuse, or other failures they witness she is providing evidence of fraud, waste or onstrate that an adverse personnel action on the job. Nor did I appreciate the strong abuse to make a protected disclosure. But would not have occurred ‘‘but for’’ the whis- incentives that do exist for agencies to avoid the court ruled that an employee had to have tleblower’s protected activity. Section (i) institutional embarrassment. ‘‘irrefragable proof’’ meaning undeniable and would establish a more reasonable burden of The decision to step forward with informa- incontestable proof to overcome the pre- proof by requiring OSC to demonstrate that tion that exposed my agency to scrutiny was sumption that a public officer is performing the whistleblower’s protected disclosure was

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00082 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.085 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7643 a ‘‘motivating factor’’ in the decision by the chestrated acts of genocide by approving the Whereas Bob Hope’s life long commitment manager to take the adverse action, even if Convention on the Prevention and Punish- to public service has made him one of the other factors also motivated the decision. ment of the Crime of Genocide, done at Paris most loved, honored, and esteemed per- This burden would be similar to the ap- on December 9, 1948; formers in history, and has brought him the proach taken in the 1991 Civil Rights Act. Whereas the Convention on the Prevention admiration and gratitude of millions and the Disclosures to Congress. Section (j) would and Punishment of the Crime of Genocide friendship of every President of the United require agencies to establish a process to confirms that genocide is a crime under States since Franklin D. Roosevelt; provide confidential advice to employees on international law, defines genocide as cer- Whereas Bob Hope, in a generous commit- how to lawfully make a protected disclosure tain acts committed with intent to destroy a ment to public service, has donated his per- of classified information to Congress. national, ethnical, racial, or religious group, sonal papers, radio and television programs, Authority of Special Counsel. Under cur- and provides that parties to the Convention scripts, his treasured Joke File and the live rent law, OSC has no authority to request undertake to enact domestic legislation pro- appearances he made around the world in MSPB to reconsider a decision or seek appel- viding effective penalties for persons who are support of American Armed Forces to the Li- late review of a MSPB decision. This limita- guilty of genocide; brary of Congress (the ‘‘Library’’) and the tion undermines OSC’s ability to protect Whereas the United States, under Presi- American people; Whereas Bob and Dolores Hope and their whistleblowers and integrity of the WPA. dent Harry Truman, was the first nation to family have established and endowed in the Section (k) would authorize OSC to appear in sign the Convention on the Prevention and Library a Bob Hope Gallery of American En- any civil action brought in connection with Punishment of the Crime of Genocide; tertainment—a permanent display of rotat- the WPA and request appellate review of any Whereas the United States Senate ap- proved the resolution of advice and consent ing items from the Hope Collection—and has MSPB order where OSC determines MSPB donated a generous gift of $3,500,000 for the erred and the case would have a substantial to the Convention on the Prevention and Punishment of the Crime of Genocide on preservation of the collection; and impact on WPA enforcement. Whereas all Americans have greatly bene- February 19, 1986; Judicial Review. In 1982, Congress replaced fitted from Bob Hope’s generosity, charitable Whereas the Genocide Convention Imple- normal Administrative Procedures Act ap- work, and extraordinary creativity: Now mentation Act of 1987 (the Proxmire Act) pellate review of MSPB decisions with exclu- therefore, be it sive jurisdiction in the U.S. Court of Appeals (Public Law 100–606), signed into law by Resolved, That the Senate— for the Federal Circuit. While the 1989 WPA President Ronald Reagan on November 4, (1) commends Bob Hope for his dedication and its 1994 amendments strengthened and 1988, enacted chapter 50A of title 18, United and commitment to the United States of clarified whistleblower protections, Federal States Code, to criminalize genocide; America; Circuit holdings have repeatedly misinter- Whereas the enactment of the Genocide (2) expresses its sincere gratitude and ap- preted key provisions of the law. Subject to Convention Implementation Act marked a preciation for his example of philanthropy a five year sunset, section (l) would suspend principled stand by the United States and public service to the American people; the Federal Circuit’s exclusive jurisdiction against the crime of genocide and an impor- and over whistleblower appeals and allow peti- tant step toward ensuring that the lessons of (3) directs the Secretary of the Senate to tions for review to be filed either in the Fed- the Holocaust, the Armenian Genocide, and transmit a copy of this resolution to Bob eral Circuit or any other federal circuit genocides in Cambodia, Rwanda and else- Hope. court of competent jurisdiction. where will be used to help prevent future Nondisclosure Restrictions on Whistle- genocides; SENATE CONCURRENT RESOLU- blowers. Section (m) would require all fed- Whereas a clear consensus exists within TION 52—EXPRESSING THE the international community against geno- eral nondisclosure policies, forms and agree- SENSE OF CONGRESS THAT THE ments to contain specified language pre- cide, as evidenced by the fact that 133 na- tions are party to the Convention on the Pre- UNITED STATES GOVERNMENT serving the right of government employees SHOULD SUPPORT THE HUMAN to disclose certain protected information. vention and Punishment of the Crime of Genocide; This section would codify the so-called anti- RIGHTS AND DIGNITY OF ALL Whereas, despite this consensus, many gag provision that has been included in fed- PERSONS WITH DISABILITIES BY thousands of innocent people continue to fall eral appropriations bills since 1988. PLEDGING SUPPORT FOR THE victim to genocide, and the denials of past Critical Infrastructure Information. Sec- DRAFTING AND WORKING TO- instances of genocide continue; and tion (n) would clarify that section 214(c) of Whereas November 4, 2003 is the 15th anni- WARD THE ADOPTION OF A THE- the Homeland Security Act (HSA) maintains versary of the enactment of the Genocide MATIC CONVENTION ON THE existing WPA rights for independently ob- Convention Implementation Act of 1987 (the HUMAN RIGHTS AND DIGNITY OF tained information that may also qualify as Proxmire Act): Now, therefore, be it PERSONS WITH DISABILITIES BY critical infrastructure information under the Resolved, That the Senate— HSA. THE UNITED NATIONS GENERAL (1) reaffirms its support for the Convention ASSEMBLY TO AUGMENT THE f on the Prevention and Punishment of the EXISTING UNITED NATIONS SUBMITTED RESOLUTIONS Crime of Genocide; (2) anticipates the commemoration of the HUMAN RIGHTS SYSTEM, AND 15th anniversary of the enactment of the FOR OTHER PURPOSES Genocide Convention Implementation Act of Mr. HARKIN (for himself, Mr. SENATE RESOLUTION 164—RE- 1987 (the Proxmire Act) on November 4, 2003; AFFIRMING SUPPORT OF THE CHAFEE, and Mr. KENNEDY) submitted and the following concurrent resolution; CONVENTION ON THE PREVEN- (3) encourages the people and the Govern- TION AND PUNISHMENT OF THE ment of the United States to rededicate which was referred to the Committee CRIME OF GENOCIDE AND AN- themselves to the cause of ending the crime on Foreign Relations: TICIPATING THE COMMEMORA- of genocide. S. CON. RES. 52 TION OF THE 15TH ANNIVER- Whereas all people are endowed with an in- SARY OF THE ENACTMENT OF SENATE RESOLUTION 165—COM- estimable dignity, which is based on auton- omy and self-determination, and which re- THE GENOCIDE CONVENTION IM- MENDING BOB HOPE FOR HIS DEDICATION AND COMMITMENT quires that every person be placed at the PLEMENTATION OF 1987 (THE center of all decisions affecting such person, PROXMIRE ACT) ON NOVEMBER TO THE NATION and the inherent equality of all people and 4, 2003 Mr. FRIST submitted the following the ethical requirement of every society to Mr. ENSIGN (for himself, Mr. resolution; which was considered and honor and sustain the freedom of any indi- vidual with appropriate communal support; CORZINE, Mr. EDWARDS, Mr. BAYH, Mr. agreed to: S. RES. 165 Whereas more than 600,000,000 people have SARBANES, Mr. CONRAD, Mr. REED, Ms. a disability; LANDRIEU, Mr. JEFFORDS, Mr. KOHL, Whereas Bob Hope is unique in the history of American entertainment and a legend in Whereas more than two-thirds of all per- Mr. LIEBERMAN, Mr. KENNEDY, Mr. vaudeville, radio, film, and television; sons with disabilities live in developing ALLEN, Mr. BIDEN, Mr. SANTORUM, Mrs. Whereas Bob Hope is a dedicated patriot countries, and only 2 percent of children DOLE, Mrs. BOXER, and Mr. DURBIN) whose unselfish and incomparable service to with disabilities in the developing world re- submitted the following resolution; his adopted country inspired him, for more ceive any education or rehabilitation; which was referred to the Committee than six decades, from World War II to the Whereas during the last 2 decades, a sub- on the Judiciary: Persian Gulf War, to travel around the world stantial shift has occurred globally in gov- to entertain and support American service ernmental and nongovernmental institutions S. RES. 164 men and women; from an approach of charity toward persons Whereas, in 1948, in the shadow of the Holo- Whereas Bob Hope has personally raised with disabilities to the recognition of the in- caust, the international community re- over $1,000,000,000 for United States war re- herent universal human rights of persons sponded to Nazi Germany’s methodically or- lief and over seventy United States charities; with disabilities;

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00083 Fmt 0624 Sfmt 0634 E:\CR\FM\G10JN6.086 S10PT1 S7644 CONGRESSIONAL RECORD — SENATE June 10, 2003 Whereas the United Nations has authori- hearings, I heard over and over again America’s leadership in this process tatively endorsed and helped to advance stories of people with disabilities suf- will help create a treaty that is both progress toward realizing the human rights fering from discrimination—not get- well intentioned and relevant, one that of persons with disabilities, as exemplified ting a job because of a disability; being by the United Nations Standard Rules on the may fulfill its potential and vastly im- Equalization of Opportunities for Persons locked up in a nursing home or institu- prove the perceptions, treatment and with Disabilities (adopted by the United Na- tion because of a disability; not being conditions of people with disabilities tions General Assembly in Resolution 48/96 of able to get into schools, restaurants, throughout the world. The United December 20, 1993), which are monitored by a stores, banks and other places of busi- States must continue to lead the way United Nations Special Rapporteur; ness because of a disability. This kind in this important international effort. Whereas because of the slow and uneven of discrimination is wrong. It is wrong f progress of ensuring that persons with dis- in the United States and it is wrong abilities enjoy their universal human rights throughout the world. AMENDMENTS SUBMITTED & in law and in practice, every society and the In 1990, then President Bush signed international community remain challenged PROPOSED to identify and implement the processes the ADA into law. He said, ‘‘This his- SA 871. Ms. LANDRIEU (for herself, Mr. which best protect the dignity of persons toric Act is the world’s first com- SPECTER, Mr. BINGAMAN, Ms. COLLINS, Mr. with disabilities and which fully implement prehensive declaration of equality for ALEXANDER, and Mr. BUNNING) proposed an their inherent human rights; people with disabilities. Its passage has amendment to the bill S. 14, to enhance the Whereas greater and more rapid progress made the United States the inter- energy security of the United States, and for must be achieved toward overcoming the rel- national leader on this human rights other purposes. ative invisibility of persons with disabilities issue.’’ The United States did lead the SA 872. Mr. JEFFORDS submitted an in many societies, national laws, and exist- way in 1990, and it has another historic amendment intended to be proposed by him ing international human rights instruments; to the bill S. 14, supra; which was ordered to and opportunity to lead the way today. lie on the table. Whereas, accordingly, the United Nations The issue of disability rights is very SA 873. Mr. JEFFORDS submitted an General Assembly in November 2001, adopted personal to me. As many of my col- amendment intended to be proposed by him an historic resolution to establish an ad hoc leagues know, my brother Frank was to the bill S. 14, supra; which was ordered to committee open to all United Nations mem- deaf. Because of his disability, he was lie on the table. ber nations to consider proposals for a com- sent to a school for the ‘‘deaf and SA 874. Mr. JEFFORDS submitted an prehensive and integral treaty to protect and dumb’’ across the State. Frank said to amendment intended to be proposed by him promote the rights and dignity of persons me, ‘‘I may be deaf but I am not to the bill S. 14, supra; which was ordered to with disabilities: Now, therefore, be it dumb.’’ I think of how many children, lie on the table. Resolved by the Senate (the House of Rep- SA 875. Mr. WYDEN (for himself, Mr. like Frank, in the world are suffering resentatives concurring), That it is the sense SUNUNU, Mr. BINGAMAN, Mr. ENSIGN, Mr. of Congress that— the effects of this sort of discrimina- REID, Mr. FEINGOLD, Mr. JEFFORDS, and Ms. (1) the United States should play a leading tion. How many children are not going SNOWE) proposed an amendment to the bill S. role in the drafting of a thematic United Na- to school because they are deaf, or use 14, supra. tions convention that affirms the human a wheelchair, or are blind? How many SA 876. Mrs. FEINSTEIN (for herself, Mr. rights and dignity of persons with disabil- adults with these same disabilities are FITZGERALD, Mr. HARKIN, Mr. LUGAR, Ms. ities, and that— not working, not earning a living, not CANTWELL, Mr. WYDEN, Mrs. BOXER, and Mr. (A) is consistent with the spirit of the LEAHY) proposed an amendment to the bill S. American with Disabilities Act of 1990, the participating in civil society? In recent months, we have all wit- 14, supra. United States Constitution, and other rights SA 877. Mr. REID proposed an amendment nessed the situation people with dis- enjoyed by United States citizens with dis- to amendment SA 876 proposed by Mrs. FEIN- abilities; abilities face in Iraq and in Afghani- STEIN (for herself, Mr. FITZGERALD, Mr. HAR- (B) promotes inclusion, independence, po- stan. We have seen footage of the re- KIN, Mr. LUGAR, Ms. CANTWELL, Mr. WYDEN, litical enfranchisement, and economic self- sults of the tyranny of Saddam Hus- Mrs. BOXER, and Mr. LEAHY) to the bill S. 14, sufficiency of persons with disabilities as sein. We have seen many individuals supra. foundational requirements for any free and who have life-long disabilities as a re- just society; and f sult of his cruelty. Many more are vic- (C) provides protections that are at least TEXT OF AMENDMENTS as strong as the rights that are now recog- tims of terrorism and cruelty who now nized under international human rights law suffer the added injury of discrimina- SA 871. Ms. LANDRIEU (for herself, for other vulnerable populations; and tion. Mr. SPECTER, Mr. BINGAMAN, Ms. COL- (2) the President should instruct the Sec- America has an historic opportunity LINS, Mr. ALEXANDER, and Mr. retary of State to send to the United Nations to help change the lives of these chil- BUNNING) proposed an amendment to Ad Hoc Committee meetings a United States dren and adults from around the world the bill S. 14, to enhance the energy se- delegation that includes individuals with and open the doors of opportunity to curity of the United States, and for disabilities who are recognized leaders in the them. It is time for the world commu- United States disability rights movement. other purposes; as follows: nity to come together and write an im- On page 238, between lines 2 and 3, insert Mr. HARKIN. Mr. President, I rise to portant new chapter and break down submit a concurrent resolution on be- the following: the barriers that prevent people with half of myself, Senator CHAFEE and Subtitle E—Measures to Conserve Petroleum disabilities from participating in their Senator KENNEDY. This resolution SEC. ll. REDUCTION OF DEPENDENCE ON IM- communities and play an active role in deals with an issue that I have been PORTED PETROLEUM. civil society. It is time to say to all of working on for many years in a bipar- (a) REPORT.— tisan manner. It simply calls on the the world that disability rights are (1) IN GENERAL.—Not later than February 1, United States to take a leading role in human rights, not just in the United 2004, and annually thereafter, the President shall submit to Congress a report, based on the drafting of an international con- States, but everywhere in the world. I strongly urge the Bush Administration the most recent edition of the Annual En- vention on the human rights of individ- ergy Outlook published by the Energy Infor- uals with disabilities. Such a treaty to take a lead and work with other member Nations in the drafting of this mation Administration, assessing the could improve the lives of over 600 mil- progress made by the United States toward lion individuals with disabilities resolution. Under the auspices of the the goal of reducing dependence on imported throughout the world. United Nations, member states are petroleum sources by 2013. For the past twenty years, the scheduled to meet next week in New (2) CONTENTS.—The report under subsection United States has put politics aside York to consider proposals for a com- (a) shall— and has taken a lead role in the world prehensive treaty to protect and pro- (A) include a description of the implemen- toward the understanding that dis- mote the rights and dignity of persons tation, during the previous fiscal year, of ability rights are human rights. I with disabilities. I cannot think of a provisions under this Act relating to domes- more worthwhile role the Administra- tic crude petroleum production; chaired the Senate’s Subcommittee on (B) assess the effectiveness of those provi- the Handicapped at the time that the tion could play than to be a leader on sions in meeting the goal described in para- Americans With Disabilities Act was this issue and to fully support a con- graph (1); and being considered by Congress and was a vention on the rights of individuals (C) describe the progress in developing and leading author of the ADA. During with disabilities. implementing measures under subsection (b).

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00084 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.099 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7645

(b) MEASURES TO REDUCE IMPORT DEPEND- U.S.C. 7401 et seq.); the Federal Water Pollu- ‘‘(c) TAKING OF EVIDENCE.— ENCE THROUGH INCREASED DOMESTIC PETRO- tion Control Act (33 U.S.C. 1251 et seq.); the ‘‘(1) IN GENERAL.—For the purpose of’’; LEUM CONSERVATION.— Solid Waste Disposal Act (42 U.S.C. 6901 et (2) by striking ‘‘Such attendance’’ and in- (1) IN GENERAL.—Not later than 1 year after seq.); the Endangered Species Act (16 U.S.C. serting the following: the date of enactment of this Act, the Presi- 1531 et seq.); or any other Federal law for the ‘‘(2) NO GEOGRAPHIC LIMITATION.—The at- dent shall develop and implement measures protection of the environment or environ- tendance’’; to conserve petroleum in end-uses through- mental quality. (3) by striking ‘‘Witnesses summoned’’ and out the economy of the United States suffi- ‘‘(2) Nothing in this section affects the ap- inserting the following: cient to reduce total demand for petroleum plication of — ‘‘(3) EXPENSES.—Any witness summoned’’; in the United States by 1,000,000 barrels per ‘‘(A) the Surface Mining Control and Rec- and day from the amount projected for calendar lamation Act of 1977 (30 U.S.C. 1201 et seq.); (4) by adding at the end the following: year 2013 in the reference case contained in ‘‘(B) the Atomic Energy Act of 1954 (42 ‘‘(4) AUTHORITIES.—The exercise of the au- the report of the Energy Information Admin- U.S.C. 2011) or any Federal law respecting thorities of the Commission under this sub- istration entitled ‘‘Annual Energy Outlook nuclear or radioactive waste or mining of ra- section shall not be subject to the consent of 2003’’. dioactive materials; or the Office of Management and Budget.’’. (2) CONTENTS.—The measures under para- ‘‘(C) except as otherwise provided in this (b) INVESTIGATIONS UNDER THE FEDERAL graph (1) shall be designed to ensure contin- title, the Indian Mineral Development Act of POWER ACT.—Section 307(b) of the Federal ued reliable and affordable energy for con- 1982 (25 U.S.C. 2101 et seq.).’’ Power Act (16 U.S.C. 825f(b)) is amended— sumers. (1) by striking ‘‘(b) For the purpose of’’ and (3) IMPLEMENTATION.—The measures under SA 875. Mr. WYDEN (for himself, Mr. inserting the following: paragraph (1) shall be implemented under ex- SUNUNU, Mr. BINGAMAN, Mr. ENSIGN, ‘‘(b) TAKING OF EVIDENCE.— isting authorities of appropriate Federal ex- Mr. REID, Mr. FEINGOLD, Mr. JEFFORDS, ‘‘(1) IN GENERAL.—For the purpose of’’; ecutive agencies identified by the President. and Ms. SNOWE) proposed an amend- (2) by striking ‘‘Such attendance’’ and in- ment to the bill S. 14, to enhance the serting the following: SA 872. Mr. JEFFORDS submitted an ‘‘(2) NO GEOGRAPHIC LIMITATION.—The at- amendment intended to be proposed by energy security of the United States, tendance’’; him to the bill S. 14, to enhance the en- and for other purposes; as follows: (3) by striking ‘‘Witnesses summoned’’ and ergy security of the United States, and Strike subtitle B of title IV. inserting the following: for other purposes; which was ordered ‘‘(3) EXPENSES.—Any witness summoned’’; SA 876. Mrs. FEINSTEIN (for herself, and to lie on the table; as follows: Mr. FITZGERALD, Mr. HARKIN, Mr. (4) by adding at the end the following: On page 165 after line 14 insert: LUGAR, Ms. CANTWELL, Mr. WYDEN, ‘‘(4) AUTHORITIES.—The exercise of the au- (d) LICENSE TERMS.—Section 6 and section thorities of the Commission under this sub- 101(i) of the Federal Power Act (16 U.S.C. 799 Mrs. BOXER, and Mr. LEAHY) proposed an amendment to the bill S. 14, to en- section shall not be subject to the consent of and 803(i) are each amended by striking the Office of Management and Budget.’’. hance the energy security of the ‘‘fifty’’ and inserting ‘‘thirty’’ and section SEC. ll03. CONSULTING SERVICES. 15(e) of such Act is amended by striking ‘‘not United States, and for other purposes; Title IV of the Department of Energy Or- less than 30 years, nor more than 50’’ and in- as follows: ganization Act (42 U.S.C. 7171 et seq.) is serting ‘‘not more than 15.’’ At the end, add the following: amended by adding at the end the following: SA 873. Mr. JEFFORDS submitted an TITLE ll—ENERGY MARKET OVERSIGHT ‘‘SEC. 408. CONSULTING SERVICES. ‘‘(a) IN GENERAL.—The Chairman may con- amendment intended to be proposed by SEC. ll01. JURISDICTION OF THE FEDERAL EN- ERGY REGULATORY COMMISSION tract for the services of consultants to assist him to the bill S. 14, to enhance the en- OVER ENERGY TRADING MARKETS. the Commission in carrying out any respon- ergy security of the United States, and Section 402 of the Department of Energy sibilities of the Commission under this Act, for other purposes; which was ordered Organization Act (42 U.S.C. 7172) is amended the Federal Power Act (16 U.S.C. 791a et to lie on the table; as follows: by adding at the end the following: seq.), or the Natural Gas Act (15 U.S.C. 717 et On page 165 after line 14 insert: ‘‘(i) JURISDICTION.— seq.). (d) ANNUAL LICENSES.—Section 15(a)(1) of ‘‘(1) REFERRAL.— ‘‘(b) APPLICABLE LAW.—In contracting for the Federal Power Act (16 U.S.C. 808(a)(1) is ‘‘(A) IN GENERAL.—To the extent that the consultant services under subsection (a), if amended by adding the following at the end Commission determines that any contract the Chairman determines that the contract thereof: ‘‘Annual licenses shall contain such that comes before the Commission is not is in the public interest, the Chairman, in terms and conditions appropriate for the du- under the jurisdiction of the Commission, entering into a contract, shall not be subject ration of the annual license which are identi- the Commission shall refer the contract to to— fied by the Secretary of the Interior and the the appropriate Federal agency. ‘‘(1) section 5, 253, 253a, or 253b of title 41, Secretary of Agriculture as necessary for the ‘‘(B) NO EFFECT ON AUTHORITY.—The au- United States Code; or protection and utilization of the reservation thority of the Commission or any Federal ‘‘(2) any law (including a regulation) relat- within which the project is located; by the agency shall not be limited or otherwise af- ing to conflicts of interest.’’. Secretary of the Interior and the Secretary fected based on whether the Commission has SEC. ll04. LEGAL CERTAINTY FOR TRANS- of Commerce for the protection and enhance- or has not referred a contract described in ACTIONS IN EXEMPT COMMODITIES. ment of fish and wildlife, including related subparagraph (A). Section 2 of the Commodity Exchange Act spawning grounds and habitat; and by the ‘‘(2) MEETINGS.—A designee of the Commis- (7 U.S.C. 2) is amended by striking sub- Governor of the State in which the project is sion shall meet quarterly with a designee of sections (g) and (h) and inserting the fol- located for compliance with water quality the Commodity Futures Trading Commis- lowing: standards and other legal requirements for sion, the Securities Exchange Commission, ‘‘(g) OFF-EXCHANGE TRANSACTIONS IN EX- beneficial uses of affected waters. The terms the Federal Trade Commission, the Depart- EMPT COMMODITIES.— of any new license for a project shall be re- ment of Justice, the Department of the ‘‘(1) DEFINITIONS.—In this subsection: duced by one year for each annual license Treasury, and the Federal Reserve Board to ‘‘(A) COVERED ENTITY.—The term ‘covered issued for such project.’’ discuss— entity’ means— ‘‘(A) conditions and events in energy trad- ‘‘(i) an electronic trading facility; and SA 874. Mr. JEFFORDS submitted an ing markets; and ‘‘(ii) a dealer market. amendment intended to be proposed by ‘‘(B) any changes in Federal law (including ‘‘(B) DEALER MARKET.— him to the bill S. 14, to enhance the en- regulations) that may be appropriate to reg- ‘‘(i) IN GENERAL.—The term ‘dealer market’ has the meaning given the term by the Com- ergy security of the United States, and ulate energy trading markets. ‘‘(3) LIAISON.—The Commission shall, in co- mission. for other purposes; which was ordered operation with the Commodity Futures ‘‘(ii) INCLUSIONS.—The term ‘dealer mar- to lie on the table; as follows: Trading Commission, maintain a liaison be- ket’ includes each bilateral or multilateral On page 17, strike line 11 and all that fol- tween the Commission and the Commodity agreement, contract, or transaction deter- lows through line 17 and insert: Futures Trading Commission.’’. mined by the Commission, regardless of the ‘‘(f) EFFECT ON EXISTING LAW.— SEC. ll02. INVESTIGATIONS BY THE FEDERAL means of execution of the agreement, con- ‘‘(1) Nothing in this section shall relieve ENERGY REGULATORY COMMISSION tract, or transaction. the Secretary of any obligation to conduct UNDER THE NATURAL GAS ACT AND ‘‘(2) EXEMPTION FOR TRANSACTIONS NOT ON environmental or other reviews or take any FEDERAL POWER ACT. TRADING FACILITIES.—Except as provided in other actions required of the Secretary as of (a) INVESTIGATIONS UNDER THE NATURAL paragraph (4), nothing in this Act shall apply the date of enactment of this section for ac- GAS ACT.—Section 14(c) of the Natural Gas to an agreement, contract, or transaction in tivities on tribal lands pursuant to the Na- Act (15 U.S.C. 717m(c)) is amended— an exempt commodity that— tional Environmental Policy Act of 1969 (42 (1) by striking ‘‘(c) For the purpose of’’ and ‘‘(A) is entered into solely between persons U.S.C. 2901 et seq.); the Clean Air Act (42 inserting the following: that are eligible contract participants at the

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00085 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.102 S10PT1 S7646 CONGRESSIONAL RECORD — SENATE June 10, 2003 time the persons enter into the agreement, ‘‘(B) prohibit the commercial sale or li- tity relying on the exemption under para- contract, or transaction; and censing of real-time proprietary informa- graph (3) deny or limit further transactions ‘‘(B) is not entered into on a trading facil- tion; and by the person, deny that person further trad- ity. ‘‘(C) publicly disclose information regard- ing access to the covered entity or, as appli- ‘‘(3) EXEMPTION FOR TRANSACTIONS ON COV- ing market positions, business transactions, cable, limit that access of the person to the ERED ENTITIES.—Except as provided in para- trade secrets, or names of customers, except covered entity for liquidation trading only; graphs (4), (5), and (7), nothing in this Act as provided in section 8. ‘‘(D) comply with the requirements of this shall apply to an agreement, contract, or ‘‘(7) NOTIFICATION, DISCLOSURES, AND OTHER subsection applicable to the covered entity transaction in an exempt commodity that REQUIREMENTS FOR COVERED ENTITIES.—A and require that each participant, as a condi- is— covered entity subject to the exemption tion of trading on the covered entity in reli- ‘‘(A) entered into on a principal-to-prin- under paragraph (3) shall (to the extent the ance on the exemption under paragraph (3), cipal basis solely between persons that are Commission determines appropriate)— agree to comply with all applicable law; eligible contract participants at the time at ‘‘(A) notify the Commission of the inten- ‘‘(E) certify to the Commission that the which the persons enter into the agreement, tion of the covered entity to operate as a covered entity has a reasonable basis for be- contract, or transaction; and covered entity subject to the exemption lieving that participants authorized to con- ‘‘(B) executed or traded on a covered enti- under paragraph (3), which notice shall in- duct transactions on the covered entity in ty. clude— reliance on the exemption under paragraph ‘‘(4) REGULATORY AND OVERSIGHT REQUIRE- ‘‘(i) the name and address of the covered (3) are eligible contract participants; MENTS.— entity and a person designated to receive ‘‘(F) maintain sufficient capital, commen- ‘‘(A) IN GENERAL.—An agreement, contract, communications from the Commission; surate with the risk associated with trans- or transaction described in paragraph (2) or ‘‘(ii) the commodity categories that the actions conducted on the covered entity; and (3) (and the covered entity on which the covered entity intends to list or otherwise ‘‘(G) not represent to any person that the agreement, contract, or transaction is exe- make available for trading on the covered covered entity is registered with, or des- cuted) shall be subject to— entity in reliance on the exemption under ignated, recognized, licensed, or approved by ‘‘(i) sections 5b, 12(e)(2)(B), and 22(a)(4); paragraph (3); the Commission. ‘‘(ii) the provisions relating to manipula- ‘‘(iii) certifications that— ‘‘(8) HEARING.—A person named in a sub- tion and misleading transactions under sec- ‘‘(I) no executive officer or member of the poena referred to in paragraph (7)(C) that be- tions 4b, 4c(a), 4c(b), 4o, 6(c), 6(d), 6c, 6d, 8a, governing board of, or any holder of a 10 per- lieves the person is or may be adversely af- and 9(a)(2); and cent or greater equity interest in, the cov- fected or aggrieved by action taken by the ‘‘(iii) the provisions relating to fraud and ered entity is a person described in any of Commission under this subsection, shall misleading transactions under sections 4b, subparagraphs (A) through (H) of section have the opportunity for a prompt hearing 4c(a), 4c(b), 4o, and 8a. 8a(2); after the Commission acts under procedures ‘‘(B) TRANSACTIONS EXEMPTED BY COMMIS- ‘‘(II) the covered entity will comply with that the Commission shall establish by rule, SION ACTION.—Notwithstanding any exemp- the conditions for exemption under this sub- regulation, or order. tion by the Commission under section 4(c), section; and ‘‘(9) PRIVATE REGULATORY ORGANIZATIONS.— an agreement, contract, or transaction de- ‘‘(III) the covered entity will notify the ‘‘(A) DELEGATION OF FUNCTIONS UNDER CORE scribed in paragraph (2) or (3) shall be sub- Commission of any material change in the PRINCIPLES.—A covered entity may comply ject to the authorities in clauses (i), (ii), and information previously provided by the cov- with any core principle under subparagraph (iii) of subparagraph (A). ered entity to the Commission under this (B) that is applicable to the covered entity ‘‘(5) COVERED ENTITIES.—An agreement, paragraph; and through delegation of any relevant function contract, or transaction described in para- ‘‘(iv) the identity of any derivatives clear- to— graph (3) and the covered entity on which ing organization to which the covered entity ‘‘(i) a registered futures association under the agreement, contract, or transaction is transmits or intends to transmit transaction section 17; or executed, shall be subject to (to the extent data for the purpose of facilitating the clear- ‘‘(ii) another registered entity. the Commission determines appropriate)— ance and settlement of transactions con- ‘‘(B) CORE PRINCIPLES.—The Commission ‘‘(A) section 5a, to the extent provided in ducted on the covered entity subject to the may establish core principles requiring a section 5a(g)) and 5d; exemption under paragraph (3); covered entity to monitor trading to— ‘‘(B) consistent with section 4i, a require- ‘‘(B)(i) provide the Commission with access ‘‘(i) prevent fraud and manipulation; ment that books and records relating to the to the trading protocols of the covered enti- ‘‘(ii) prevent price distortion and disrup- business of the covered entity on which the ty and electronic access to the covered enti- tions of the delivery or cash settlement proc- agreement, contract, or transaction is exe- ty with respect to transactions conducted in ess; cuted be made available to representatives of reliance on the exemption under paragraph ‘‘(iii) ensure that the covered entity has the Commission and the Department of Jus- (3); and adequate financial, operational, and manage- tice for inspection for a period of at least 5 ‘‘(ii) on special call by the Commission, rial resources to discharge the responsibil- years after the date of each transaction, in- provide to the Commission, in a form and ities of the covered entity; and cluding— manner and within the period specified in ‘‘(iv) ensure that all reporting, record- ‘‘(i) information relating to data entry and the special call, such information relating to keeping, notice, and registration require- transaction details sufficient to enable the the business of the covered entity as a cov- ments under this subsection are discharged Commission to reconstruct trading activity ered entity exempt under paragraph (3), in- in a timely manner. on the covered entity; and cluding information relating to data entry ‘‘(C) RESPONSIBILITY.—A covered entity ‘‘(ii) the name and address of each partici- and transaction details with respect to that delegates a function under subpara- pant on the covered entity authorized to transactions entered into in reliance on the graph (A) shall remain responsible for car- enter into transactions; and exemption under paragraph (3), as the Com- rying out the function. ‘‘(C) in the case of a transaction or covered mission may determine appropriate— ‘‘(D) NONCOMPLIANCE.—If a covered entity entity performing a significant price dis- ‘‘(I) to enforce the provisions specified in that delegates a function under subpara- covery function for transactions in the cash paragraph (4); graph (A) becomes aware that a delegated market for the underlying commodity, sub- ‘‘(II) to evaluate a systemic market event; function is not being performed as required ject to paragraph (6), the requirements (to or under this Act, the covered entity shall the extent the Commission determines ap- ‘‘(III) to obtain information requested by a promptly take action to address the non- propriate by regulation) that— Federal financial regulatory authority to en- compliance. ‘‘(i) information on trading volume, settle- able the authority to fulfill the regulatory or ‘‘(E) VIOLATION OF CORE PRINCIPLES.— ment price, open interest, and opening and supervisory responsibilities of the authority; ‘‘(i) IN GENERAL.—If the Commission deter- closing ranges be made available to the pub- ‘‘(C)(i) on receipt of any subpoena issued by mines, on the basis of substantial evidence, lic on a daily basis; or on behalf of the Commission to any for- that a covered entity is violating any appli- ‘‘(ii) notice be provided to the Commission eign person that the Commission believes is cable core principle specified in subpara- in such form as the Commission may require; conducting or has conducted transactions in graph (B), the Commission shall— ‘‘(iii) reports be filed with the Commission reliance on the exemption under paragraph ‘‘(I) notify the covered entity in writing of (such as large trader position reports); and (3) on or through the covered entity relating the determination; and ‘‘(iv) consistent with section 4i, books and to the transactions, promptly notify the for- ‘‘(II) afford the covered entity an oppor- records be maintained relating to each trans- eign person of, and transmit to the foreign tunity to make appropriate changes to bring action in such form as the Commission may person, the subpoena in a manner that is rea- the covered entity into compliance with the require for a period of at least 5 years after sonable under the circumstances, or as speci- core principles. the date of the transaction. fied by the Commission; and ‘‘(ii) FAILURE TO MAKE CHANGES.—If, not ‘‘(6) PROPRIETARY INFORMATION.—In car- ‘‘(ii) if the Commission has reason to be- later than 30 days after receiving a notifica- rying out paragraph (5)(C), the Commission lieve that a person has not timely complied tion under clause (i)(I), a covered entity fails shall not— with a subpoena issued by or on behalf of the to make changes that, as determined by the ‘‘(A) require the real-time publication of Commission under clause (i), and the Com- Commission, are necessary to comply with proprietary information; mission in writing directs that a covered en- the core principles, the Commission may

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00086 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.111 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7647 take further action in accordance with this ulation of, or attempt to manipulate, the SEC. ll08. CONFORMING AMENDMENTS. Act. price of any commodity, a civil penalty of (a) Section 2 of the Commodity Exchange ‘‘(F) RESERVATION OF EMERGENCY AUTHOR- not more than the greater of $1,000,000 or tri- Act (7 U.S.C. 2) is amended— ITY.—Nothing in this paragraph limits or af- ple the monetary gain to such person for (1) in subsection (d)(1), by striking ‘‘section fects the emergency powers of the Commis- each such violation,’’. 5b’’ and inserting ‘‘section 5a(g), 5b,’’; sion provided under section 8a(9). (b) MANIPULATIONS AND OTHER VIOLA- (2) in subsection (e)— ‘‘(10) NO EFFECT ON OTHER AUTHORITY.—This TIONS.—Section 6(d) of the Commodity Ex- (A) in paragraph (1), by striking ‘‘, 2(g), or subsection shall not affect the authority of change Act (7 U.S.C. 13b) is amended in the 2(h)(3)’’; and the Federal Energy Regulatory Commission first sentence— (B) in paragraph (3), by striking ‘‘2(h)(5)’’ under the Federal Power Act (16 U.S.C. 791a (1) by striking ‘‘paragraph (a) or (b) of sec- and inserting ‘‘2(g)(7)’’; et seq.) or the Natural Gas Act (15 U.S.C 717 tion 9 of this Act’’ and inserting ‘‘subsection (3) by redesignating subsection (i) as sub- et seq.).’’. (a), (b), or (f) of section 9’’; and section (h); and SEC. ll05. PROHIBITION OF FRAUDULENT (2) by striking ‘‘said paragraph 9(a) or 9(b)’’ (4) in subsection (h) (as redesignated by TRANSACTIONS. and inserting ‘‘subsection (a), (b), or (f) of subparagraph (C))— Section 4b of the Commodity Exchange Act section 9’’. (A) in paragraph (1)— (7 U.S.C. 6b) is amended by striking sub- (c) NONENFORCEMENT OF RULES OF GOVERN- (i) by striking ‘‘No provision’’ and insert- section (a) and inserting the following: MENT OR OTHER VIOLATIONS.—Section 6b of ing ‘‘IN GENERAL.—Subject to subsection (g), ‘‘(a) PROHIBITION.—It shall be unlawful for the Commodity Exchange Act (7 U.S.C. 13a) no provision’’; and any person, directly or indirectly, in or in is amended— (ii) in subparagraph (A)— connection with any account, or any offer to (1) in the first sentence— (I) by striking ‘‘section 2(c), 2(d), 2(e), 2(f), enter into, the entry into, or the confirma- (A) by inserting ‘‘section 2(g)(9),’’ after or 2(g) of this Act’’ and inserting ‘‘subsection tion of the execution of, any agreement, con- ‘‘sections 5 through 5c,’’; and (c), (d), (e), or (f)’’; and tract, or transaction subject to this Act— (B) by inserting before the period at the (II) by striking ‘‘section 2(h)’’ and insert- ‘‘(1) to cheat or defraud or attempt to end the following: ‘‘, or, in any case of ma- ing ‘‘subsection (g)’’; and cheat or defraud any person (but this para- nipulation of, or an attempt to manipulate, (B) in paragraph (2), by striking ‘‘No provi- graph does not impose on parties to trans- the price of any commodity, a civil penalty sion’’ and inserting ‘‘IN GENERAL.—Subject to actions executed on or subject to the rules of of not more than $1,000,000 for each such vio- subsection (g), no provision’’. designated contract markets or registered lation’’; and (b) Section 4i of the Commodity Exchange derivative transaction execution facilities a (2) in the second sentence, by inserting be- Act (7 U.S.C. 6i) is amended in the first sen- legal duty to provide counterparties or any fore the period at the end the following: ‘‘, tence by inserting ‘‘, or pursuant to an ex- other market participants with any material except that if the failure or refusal to obey emption under section 4(c)’’ after ‘‘trans- market information); or comply with the order involved any of- action execution facility’’. ‘‘(2) willfully to make or cause to be made fense under section 9(f), the registered enti- (c) Section 8a(9) of the Commodity Ex- to any person any false report or statement, ty, director, officer, agent, or employee shall change Act (7 U.S.C. 12a(9)) is amended— or willfully to enter or cause to be entered be guilty of a felony and, on conviction, shall (1) by inserting ‘‘or covered entity under for any person any false record (but this be subject to penalties under section 9(f)’’. section 2(g)’’ after ‘‘direct the contract mar- paragraph does not impose on parties to (d) ACTION TO ENJOIN OR RESTRAIN VIOLA- ket’’; transactions executed on or subject to the TIONS.—Section 6c(d) of the Commodity Ex- (2) by striking ‘‘on any futures contract’’; rules of designated contract markets or reg- change Act (7 U.S.C. 13a–1(d)) is amended by and istered derivative transaction execution fa- striking ‘‘(d)’’ and all that follows through (3) by inserting ‘‘or covered entity under cilities a legal duty to provide the end of paragraph (1) and inserting the counterparties or any other market partici- section 2(g)’’ after ‘‘given by a contract mar- following: ket’’. pants with any material market informa- ‘‘(d) CIVIL PENALTIES.—In any action tion); brought under this section, the Commission Mr. REID proposed an amend- ‘‘(3) willfully to deceive or attempt to de- SA 877. may seek and the court shall have jurisdic- ment to amendment SA 876 proposed ceive any person by any means whatsoever tion to impose, on a proper showing, on any (but this paragraph does not impose on par- person found in the action to have com- by Mrs. FEINSTEIN (for herself, Mr. ties to transactions executed on or subject to mitted any violation— FITZGERALD, Mr. HARKIN, Mr. LUGAR, the rules of designated contract markets or ‘‘(1) a civil penalty in the amount of not Ms. CANTWELL, Mr. WYDEN, Mrs. registered derivative transaction execution more than the greater of $100,000 or triple the BOXER, and Mr. LEAHY) to the bill S. 14, facilities a legal duty to provide monetary gain to the person for each viola- to enhance the energy security of the counterparties or any other market partici- tion; or United States, and for other purposes; pants with any material market informa- ‘‘(2) in any case of manipulation of, or an as follows: tion); or attempt to manipulate, the price of any com- On page 17 after line 25. ‘‘(4) except as permitted in written rules of modity, a civil penalty in the amount of not ‘‘(10) APPLICABILITY.—This subsection does a board of trade designated as a contract more than the greater of $1,000,000 or triple not apply to any agreement, contract, or market or derivatives transaction execution the monetary gain to the person for each transaction in metals.’’ facility on which the agreement, contract, or violation.’’. transaction is traded and executed— (e) VIOLATIONS GENERALLY.—Section 9 of f ‘‘(A) to bucket an order; the Commodity Exchange Act (7 U.S.C. 13) is AUTHORITY FOR COMMITTEES TO ‘‘(B) to fill an order by offset against 1 or amended— more orders of another person; or (1) by redesignating subsection (f) as sub- MEET ‘‘(C) willfully and knowingly, for or on be- section (e); and COMMITTEE ON ARMED SERVICES half of any other person and without the (2) by adding at the end the following: Mr. FITZGERALD. Mr. President, I prior consent of the person, to become— ‘‘(f) PRICE MANIPULATION.—It shall be a fel- ask unanimous consent that the Com- ‘‘(i) the buyer with respect to any selling ony punishable by a fine of not more than order of the person; or $1,000,000 for each violation or imprisonment mittee on Armed Services be author- ‘‘(ii) the seller with respect to any buying for not more than 10 years, or both, together ized to meet during the session of the order of the person.’’. with the costs of prosecution, for any per- Senate on Tuesday, June 10, 2003, at SEC. ll06. FERC LIAISON. son— 9:30 a.m., in closed session to receive Section 2(a)(9) of the Commodity Exchange ‘‘(1) to manipulate or attempt to manipu- testimony on certain intelligence pro- Act (7 U.S.C. 2(a)(9)) is amended by adding at late the price of any commodity in inter- grams. the end the following: state commerce, or for future delivery on or The PRESIDING OFFICER. Without ‘‘(C) LIAISON WITH FEDERAL ENERGY REGU- subject to the rules of any registered entity; objection, it is so ordered. LATORY COMMISSION.—The Commission shall, ‘‘(2) to corner or attempt to corner any in cooperation with the Federal Energy Reg- such commodity; COMMITTEE ON BANKING, HOUSING, AND URBAN ulatory Commission, maintain a liaison be- ‘‘(3) knowingly to deliver or cause to be de- AFFAIRS tween the Commission and the Federal En- livered (for transmission through the mails Mr. FITZGERALD. Mr. President, I ergy Regulatory Commission.’’. or interstate commerce by telegraph, tele- ask unanimous consent that the Com- SEC. ll07. CRIMINAL AND CIVIL PENALTIES. phone, wireless, or other means of commu- mittee on Banking, Housing, and (a) ENFORCEMENT POWERS OF COMMISSION.— nication) false or misleading or knowingly Urban Affairs be authorized to meet Section 6(c) of the Commodity Exchange Act inaccurate reports concerning market infor- during the session of the Senate on (7 U.S.C. 9, 15) is amended in paragraph (3) of mation or conditions that affect or tend to June 10, 2003, at 10:00 a.m. to conduct the tenth sentence— affect the price of any commodity in inter- (1) by inserting ‘‘(A)’’ after ‘‘assess such state commerce; or an oversight hearing on ‘‘The Adminis- person’’; and ‘‘(4) knowingly to violate section 4 or 4b, tration’s Proposal for Re-authorization (2) by inserting after ‘‘each such violation’’ any of subsections (a) through (e) of sub- of The Federal Public Transportation the following: ‘‘, or (B) in any case of manip- section 4c, or section 4h, 4o(1), or 19.’’. Program.’’

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00087 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.111 S10PT1 S7648 CONGRESSIONAL RECORD — SENATE June 10, 2003 The PRESIDING OFFICER. Without son and Neil Naraine of my staff be consent that at 11 o’clock a.m., on objection, it is so ordered. granted floor privileges. Wednesday, June 11, the Senate pro- COMMITTEE ON COMMERCE, SCIENCE, AND The PRESIDING OFFICER. Without ceed to executive session for the con- TRANSPORTATION objection, it is so ordered. sideration of Calendar No. 220, the Mr. FITZGERALD. Mr. President, I f nomination of Richard Wesley, to be ask unanimous consent that the Com- UNANIMOUS CONSENT REQUEST— United States Circuit Judge for the mittee on Commerce, Science, and S. 1215 Second Circuit; provided further that Transportation be authorized to meet there then be 15 minutes for debate on Tuesday, June 10, 2003, at 9:30 a.m., Mr. MCCONNELL. Mr. President, we equally divided between the chairman on Reauthorization of the Federal have been negotiating all day with and ranking member prior to a vote on Motor Carrier Administration. Senator BAUCUS, the ranking member the confirmation of the nomination, The PRESIDING OFFICER. Without of the Finance Committee, in the hopes with no intervening action or debate. I objection, it is so ordered. of getting the Burma bill cleared, but, further ask consent that following the regretfully, that has not occurred yet. SUBCOMMITTEE ON FISHERIES, WILDLIFE, AND vote, the President be immediately no- Time is passing. I was at a meeting WATER tified of the Senate’s action, and the Mr. FITZGERALD. Mr. President, I with the President just an hour ago. He brought up the issue. Both the Repub- Senate then resume legislative session. ask unanimous consent that the Sub- The PRESIDING OFFICER. Is there lican and Democratic leaders of the committee on Fisheries, Wildlife, and objection? Senate are in favor of this bill. Both Water be authorized to meet on Tues- Mr. REID. Mr. President, I ask the the chairman and the ranking member day, June 10 at 10 a.m., to conduct a Senator to modify his request to allow of the Foreign Relations Committee hearing to receive testimony regarding the chairman and ranking member, or are in favor of this bill. My good friend, the current regulatory and legal status their designees, to control the time. I of federal jurisdiction of navigable wa- the assistant Democratic leader, is in favor of this bill. It is time to pass it. also say this: If he accepts that modi- ters under the Clean Water Act, in fication, this will be the 129th judge we light of the issues raised by the Su- We have been protecting, under a rule XIV procedure, the possibility of will have approved during the tenure of preme Court in Solid Waste Agency of President Bush, and this will be the Northern Cook County v. U.S. Army going to this bill tomorrow. But I must say, I think it would be a lot better to 36th circuit judge. Corps of Engineers No. 99–1178. Mr. MCCONNELL. Mr. President, I so The hearing will take place in Senate go to it tonight. So I have notified the Senator from Nevada that I am going modify my unanimous consent request. Dirksen 406. The PRESIDING OFFICER. Is there The PRESIDING OFFICER. Without to make the following unanimous con- sent request, and I will do that at this objection to the modified request? objection, it is so ordered. Without objection, it is so ordered. SUBCOMMITTEE ON NATIONAL PARKS point. f Mr. FITZGERALD. Mr. President, I Mr. President, I ask unanimous con- ask unanimous consent that the Sub- sent that tomorrow, at a time to be de- ROBERT P. HAMMER POST OFFICE committee on National Parks of the termined by the majority leader, in BUILDING consultation with the Democratic lead- Committee on Energy and Natural Re- Mr. MCCONNELL. Mr. President, I er, the Senate proceed to the imme- sources be authorized to meet during diate consideration of S. 1215, the ask unanimous consent that the Gov- the session of the Senate on Tuesday, Burma sanctions bill, under the fol- ernmental Affairs Committee be dis- June 10, 2003, at 2:30 p.m., in room SD– lowing conditions: 1 hour of debate charged from further consideration of 366 to receive testimony on the fol- equally divided in the usual form; that H.R. 1625, and that the Senate then lowing bills: S. 499, to authorize the upon the use or yielding back of time, proceed to its immediate consider- American Battle Monuments Commis- the Senate proceed to a vote in rela- ation. sion to establish in the State of Lou- tion to the measure, with no inter- The PRESIDING OFFICER. Without isiana a Memorial to honor the Buffalo vening action or debate. objection, it is so ordered. The clerk Soldiers; S. 546, to provide for the pro- The PRESIDING OFFICER. Is there will report the bill by title. tection of paleontological resources on objection? The assistant legislative clerk read Federal lands, and for other purposes; Mr. REID. Reserving the right to ob- as follows: S. 643, to authorize the Secretary of ject. A bill (H.R. 1625) to designate the facility the Interior, in cooperation with the The PRESIDING OFFICER. The Sen- of the United States Postal Service located University of New Mexico, to construct ator from Nevada. at 1114 Main Avenue in Clifton, New Jersey, and occupy a portion of the Hibben Mr. REID. Mr. President, I have been as the ‘‘Robert P. Hammer Post Office Build- ing.’’ Center for Archaeological Research at told by Senator BAUCUS and Senator the University of New Mexico, and for GRASSLEY that they object to this. I There being no objection, the Senate other purposes; S. 677, to revise the would say this, however; that people in proceeded to consider the bill. boundary of the Black Canyon of the Burma, toward whom this is directed, Mr. LAUTENBERG. Mr. President, I Gunnison National Park and Gunnison should not rest easy. We are going to am delighted that the Senate is poised Gorge National Conservation Area in figure out a way to have this matter to pass H.R. 1625, a bill to designate the the State of Colorado, and for other brought before the Senate. United States Post Office located at purposes; S. 1060 and H.R. 1577, to des- I object. 1114 Main Avenue in Clifton, NJ, as the ignate the visitors’ center at Organ The PRESIDING OFFICER. Objec- ‘‘Robert P. Hammer Post Office Build- Pipe Cactus National Monument, Ari- tion is heard. ing.’’ zona, as the ‘‘Kris Eggle Visitors’ Cen- Mr. MCCONNELL. Mr. President, let Robert Hammer was a dedicated pub- ter’’; H.R. 255, to authorize the Sec- me say to my good friend from Nevada, lic official, working as City Manager of retary of the Interior to grant an ease- I have not heard from Senator GRASS- Clifton, NJ, for 7 years before his death ment to facilitate access to the Lewis LEY. I keep hearing from the other side last December at the age of 54. Among and Clark Interpretive Center in Ne- that Senator GRASSLEY objects, but I the many accomplishments during his braska City, Nebraska, and H.R. 1012, have not heard that, nor have floor tenure, Bob Hammer oversaw a nation- to establish the Carter G. Woodson staff been informed that he does. But ally recognized recycling program and Home National Historic Site in the either way, it is time to move forward, helped improve town parks and play- District of Columbia, and for other pur- and it needs to be done this week, and grounds. poses. should be done with a tight time agree- It is particularly gratifying that the The PRESIDING OFFICER. Without ment and a rollcall vote. Senate will pass this measure in time objection, it is so ordered. f for the facility’s dedication ceremony f this Saturday, June 14. It will mean so UNANIMOUS CONSENT AGREE- much to Bob’s family to have this bill PRIVILEGE OF THE FLOOR MENT—EXECUTIVE CALENDAR passed in time for the dedication. Ms. LANDRIEU. Mr. President, I ask Mr. MCCONNELL. Mr. President, as I also thank Senator COLLINS and unanimous consent that Tanner John- in executive session, I ask unanimous Senator LIEBERMAN for their help in

VerDate Jan 31 2003 05:11 Jun 11, 2003 Jkt 019060 PO 00000 Frm 00088 Fmt 0624 Sfmt 0634 E:\CR\FM\A10JN6.112 S10PT1 June 10, 2003 CONGRESSIONAL RECORD — SENATE S7649 getting this measure passed so expedi- friendship of every President of the United 10 a.m., the Senate resume consider- tiously. States since Franklin D. Roosevelt; ation of S. 14, the Energy Bill. Mr. MCCONNELL. Mr. President, I Whereas Bob Hope, in a generous commit- The PRESIDING OFFICER. Without ask unanimous consent that the bill be ment to public service, has donated his per- objection, it is so ordered. sonal papers, radio and television programs, read three times, passed, and the mo- scripts, his treasured Joke File and the live f tion to reconsider be laid upon the appearances he made around the world in table; that any statements relating support of American Armed Forces to the Li- PROGRAM thereto be printed in the RECORD, with- brary of Congress (the ‘‘Library’’) and the Mr. MCCONNELL. For the informa- out intervening action or debate. American people; tion of all Senators, tomorrow morn- The PRESIDING OFFICER. Without Whereas Bob and Dolores Hope and their family have established and endowed in the ing, following a period of morning busi- objection, it is so ordered. ness, the Senate will resume consider- The bill (H.R. 1625) was read the third Library a Bob Hope Gallery of American En- tertainment—a permanent display of rotat- ation of S. 14, the Energy Bill. Under a time and passed. ing items from the Hope Collection—and has previous consent, at 11 the Senate will f donated a generous gift of $3,500,000 for the proceed to executive session and debate preservation of the collection; and the nomination of Richard C. Wesley to COMMENDING BOB HOPE Whereas all Americans have greatly bene- be a U.S. circuit judge. The Senate will Mr. MCCONNELL. Mr. President, I fitted from Bob Hope’s generosity, charitable vote on the Wesley nomination at 11:15 ask unanimous consent that the Sen- work and extraordinary creativity: Now, therefore be it tomorrow morning. Following that ate proceed to the immediate consider- Resolved, That the Senate— vote, the Senate will return to the En- ation of S. Res. 165 which was sub- (1) commends Bob Hope for his dedication ergy Bill. mitted earlier today. and commitment to the United States of There are currently two amendments The PRESIDING OFFICER (Mr. America; relating to derivatives pending to that TALENT). The clerk will report the res- (2) expresses its sincere gratitude and ap- bill. It is my hope that if we cannot olution by title. preciation for his example of philanthropy work out an agreement with respect to The assistant legislative clerk read and public service to the American people; these amendments, we will be able to as follows: and (3) directs the Secretary of the Senate to set the amendments aside and proceed A resolution (S. Res. 165) commending Bob transmit a copy of this resolution to Bob with other energy-related amendments. Hope for his dedication and commitment to Hope. We have made pretty good progress on the Nation. the Energy Bill over the past week. We f There being no objection, the Senate should continue to address and dispose proceeded to consider the resolution. APPOINTMENTS of as many amendments as possible. Mr. MCCONNELL. Mr. President, I The PRESIDING OFFICER. The Therefore, Senators should expect roll- ask unanimous consent that the reso- Chair, on behalf of the Vice President, call votes throughout the day tomor- lution be agreed to, the preamble be pursuant to 22 U.S.C. 276h–276k, as row in relation to amendments to that agreed to, the motion to reconsider be amended, appoints the following Sen- bill. laid upon the table, and any state- ators as members of the Senate Delega- I also inform all of my colleagues ments relating to this matter be print- tion to the Mexico-U.S. Inter- that we anticipate locking in a final ed in the RECORD. parliamentary Group during the First list of amendments to the Energy Bill The PRESIDING OFFICER. Without Session of the 108th Congress: The Sen- during tomorrow’s session. objection, it is so ordered. ator from Tennessee, Mr. FRIST; the In addition to considering amend- The resolution (S. Res. 165) was Senator from Tennessee, Mr. ALEX- ments to the Energy Bill, it remains agreed to. ANDER; and the Senator from Texas, my hope that we will be able to take up The preamble was agreed to. Mr. CORNYN. and pass the Burma sanctions bill to- The resolution, with its preamble, morrow. We should have done it today. reads as follows: f Hopefully we can do it tomorrow. S. RES. 165 ORDERS FOR WEDNESDAY, JUNE There is currently, as the Senator from Whereas Bob Hope is unique in the history 11, 2003 Nevada and I have discussed, difficulty of American entertainment and a legend in Mr. MCCONNELL. Mr. President, I in clearing that with Senator BAUCUS, vaudeville, radio, film, and television; ask unanimous consent that when the and hopefully that will be cleared up Whereas Bob Hope is a dedicated patriot Senate completes its business today, it by tomorrow. whose unselfish and incomparable service to his adopted country inspired him, for more stand in adjournment until 9:30 a.m., f Wednesday, June 11. I further ask than six decades, from World War II to the ADJOURNMENT UNTIL 9:30 A.M. Persian Gulf War, to travel around the world unanimous consent that following the to entertain and support American service prayer and the pledge, the morning TOMORROW men and women; hour be deemed expired, the Journal of Mr. MCCONNELL. If there is no fur- Whereas Bob Hope has personally raised proceedings be approved to date, the ther business to come before the Sen- over $1,000,000,000 for United States war re- time for the two leaders be reserved for ate, I ask unanimous consent the Sen- lief and over 70 United States charities; their use later in the day, and the Sen- ate stand in adjournment under the Whereas Bob Hope’s life-long commitment to public service has made him one of the ate then begin a period of morning previous order. most loved, honored, and esteemed per- business until 10 a.m., with the time There being no objection, the Senate, formers in history, and has brought him the equally divided between the two lead- at 7:08 p.m., adjourned until Wednes- admiration and gratitude of millions and the ers or their designees; provided that at day, June 11, 2003, at 9:30 a.m.

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