S338 CONGRESSIONAL RECORD — SENATE January 13, 2009 S. Res. 13. A resolution congratulating the mand for oil. Indeed, at the very time if that were going to solve the problem University of Florida football team for win- of a 6-month period from the last quar- of the price of gasoline and the price of ning the 2008 Bowl Championship Series ter of last year until the first quarter oil. (BCS) national championship; to the Com- of 2008—that 6-month period when the But now we hear—and people are mittee on the Judiciary. demand for oil was going down and the starting to pay attention—we ought to f supply was going up, which would indi- reregulate this futures commodities ADDITIONAL COSPONSORS cate the price should be going down if trading. Now, what do we mean by reg- supply is greater than demand—exactly ulate? I am talking about simple little S. 64 the reverse was true. The price kept things, such as you would have to use At the request of Mr. INHOFE, the rocketing to the Moon. the oil that you are bidding on, such as names of the Senator from Kansas (Mr. It defied the laws of supply and de- an airline does. It locks in a future BROWNBACK) and the Senator from mand. Yet we had everybody running price for fuel by bidding on these fu- Oklahoma (Mr. COBURN) were added as out saying, ‘‘Oh, it is the tight world ture oil contracts. An airline, in fact, cosponsors of S. 64, a bill to amend the marketplace,’’ and it was difficult to does use oil. By taking away the regu- Emergency Economic Stabilization Act get people to listen to a group of Sen- lation, they have removed that ability. to require approval by the Congress for ators who said it was because the com- Or to give another example of regula- certain expenditures for the Troubled modities futures exchanges had been tion: A Commodities Futures Trading Asset Relief Program. deregulated and, therefore, unregulated Commission could say you have to put S. 85 oil futures contracts speculation was a certain amount of money down if you At the request of Mr. VITTER, the running wild. are going to buy a future oil contract. name of the Senator from Mississippi Then, once it got up to $147 a barrel, Instead of getting it with nothing (Mr. WICKER) was added as a cosponsor what happened? The liquidity crisis down, you have to put some skin in the of S. 85, a bill to amend title X of the hit, the economic crisis of confidence game. But if you completely deregulate Public Health Service Act to prohibit hit—not only in America but across it, what you leave it to is the specu- family planning grants from being the world. A lot of this was precip- lator to go in and bid that price up and awarded to any entity that performs itated by the faulty mortgages, the up and up. abortions. subprime mortgages we are now not Now, this is what we have been say- S. 96 paying off in the revenue stream be- ing on the floor of this Senate for the At the request of Mr. VITTER, the cause people weren’t paying their last 6 or 8 months, a number of us— name of the Senator from Mississippi mortgages. Those mortgages had been Senator DORGAN, Senator CANTWELL, (Mr. WICKER) was added as a cosponsor bundled into securities and then this Senator, and several other Sen- of S. 96, a bill to prohibit certain abor- bought and sold, and a lot of financial ators—but it has been hard to get an tion-related discrimination in govern- institutions, hedge funds, mutual funds audience that would listen. Well, no mental activities. and, indeed, big investments for pen- less a respected institution than CBS sion funds started dumping those be- S. 174 News ‘‘60 Minutes’’ last Sunday night cause they needed cash, and they start- broke it open and put it about as clear- At the request of Mr. INOUYE, the ed dumping their positions on oil fu- name of the Senator from Rhode Island ly as I have ever heard in posing this tures commodities that they had pur- question: Did speculation fuel oil price (Mr. REED) was added as a cosponsor of chased in this speculative frenzy that S. 174, a bill to establish a coordinated swings? ran the price up to $147 a barrel. What And what they concluded was that 6 and comprehensive Federal ocean and happened? The exact reverse. The price months ago, when oil hit its alltime coastal mapping program. of oil starts coming down. So what high of $147, and gas was up around $4 S. 211 should we do about this? Well, we a gallon, it created a frenzy that fed At the request of Mrs. CLINTON, the ought to do what a number of us have into irrational and false claims that name of the Senator from Connecticut been saying: We ought to go back and the problem was just supply and de- (Mr. LIEBERMAN) was added as a co- reregulate what we have jurisdiction mand and that the solution was to drill sponsor of S. 211, a bill to facilitate na- over, which is the Commodities Fu- for more oil. tionwide availability of 2-1-1 telephone tures Trading Commission. Well, it looks a lot different now. service for information and referral on Now, why was it deregulated? It was That frenzy that got mixed up in Presi- human services and volunteer services, deregulated in the dead of night before dential politics as well, with those sim- and for other purposes. Christmas in the year 2000, and it was plified mantras of ‘‘drill baby, drill,’’ f deregulated at the behest of the Enron fueled by a slick public relations cam- Corporation. And once they deregu- paign, that was funded by deep-pocket STATEMENTS ON INTRODUCED lated that commodities futures trading oil companies. Yet those same oil com- BILLS AND JOINT RESOLUTIONS market on energy, it allowed them to panies testified in the spring of 2008 By Mr. NELSON, of Florida: go out and speculate on energy con- that if supply and demand were the S. 221. A bill to amend the Com- tracts. What was the first result? In sole driver of oil prices, that oil should modity Exchange Act to require energy the early part of this decade we saw it cost no more than $55 a barrel. We had commodities to be traded only on regu- happen in California. We saw the elec- executives of two of the big major oil lated markets, and for other purposes; tricity contracts start a runup in spec- companies say the normal laws of sup- to the Committee on Agriculture, Nu- ulative bidding, to which it went up— ply and demand would say that oil trition, and Forestry. the cost of electricity—by as high as ought to be in the range of $55 to $65 a Mr. NELSON of Florida. Mr. Presi- 300 percent in California. Once that barrel, and they testified, this Senator dent, over the past half year, as the started to unravel, then we know what thinks, correctly. price of a barrel of oil has rocketed happened: Enron started to unravel So ask yourself: Could supply and de- into the sky—all the way to $147 a bar- with all the shenanigans that had gone mand justify the wild swings in prices? rel and in 1 day the price escalating on there. And in that one instance where oil $25—there have been a number of Sen- But here we are 7 and 8 years later, jumped $25 in 1 day for a barrel of oil, ators on this floor and in committee after the law was changed, and we ask yourself: Could the new oil de- meetings and in private discussions haven’t been able to get it changed mands by China and India, that have saying: Why won’t people wake up and back because people come out here and needs for new oil products, could that realize it is not the economic market- say: Oh, it is supply and demand in the have suddenly caused that price to place of supply and demand that is de- world market for oil, and they come up jump so much in a single day? And the termining the price of oil? Who wants with a simple slogan, as if that was answer, clearly, is: No. It was specula- us to believe that? The oil companies, going to handle the price of oil when it tion that caused that bubble to grow. of course. In fact, the price of oil has was hitting $147 and translated into Wall Street investors shifted billions of escalated not because there is a tight- about $4-gallon-gasoline. Their simple dollars out of the stock market and ness on the world marketplace of de- little slogan was ‘‘drill baby, drill,’’ as into the commodities futures market

VerDate Nov 24 2008 02:12 Jan 14, 2009 Jkt 079060 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\CR\FM\A13JA6.016 S13JAPT1 smartinez on PROD1PC64 with SENATE January 13, 2009 CONGRESSIONAL RECORD — SENATE S339 and ultimately into oil, and that is more, the investigative reporter, Steve ‘‘(C) an excluded commodity.’’. what was the biggest driver of running Kroft, quotes a fellow named Michael (b) CURRENT AGRICULTURAL COMMODITIES.— up the price of oil and gasoline. Masters, and he states: Section 5(e)(1) of the Commodity Exchange Act (7 U.S.C. 7(e)(1)) is amended by striking What is even more powerful in dem- In a five-year period, Masters said the ‘‘agricultural commodity enumerated in sec- onstrating the influence of speculators amount of money institutional investors, tion 1a(4)’’ and inserting ‘‘agricultural com- hedge funds and the big Wall Street banks on oil prices is examining what hap- modity or an energy commodity’’. had placed in the commodities markets went pened to those prices after we in the (c) CONFORMING AMENDMENTS.— Senate, and down at the other end of from $13 billion to $300 billion. Last year, 27 (1) Section 2(c)(2)(B)(i)(II)(cc) of the Com- the Capitol in the House, started barrels of crude were being traded every day modity Exchange Act (7 U.S.C. threatening regulation again. Well, on the New York Mercantile Exchange for 2(c)(2)(B)(i)(II)(cc)) is amended— guess what happened. The prices went every 1 barrel of oil that was actually being (A) in subitem (AA), by striking ‘‘section consumed in the United States. down. When Wall Street experienced a 1a(20)’’ and inserting ‘‘section 1a(21)’’; and financial meltdown with the collapse of That is Mr. Kroft’s analysis on ‘‘60 (B) in subitem (BB), by striking ‘‘section Lehman Brothers and the near collapse Minutes,’’ and he was referring to a 1a(20)’’ and inserting ‘‘section 1a(21)’’. of AIG, prices fell even more as the former Wall Street trader named Mi- (2) Section 13106(b)(1) of the Food, Con- chael Masters. servation, and Energy Act of 2008 is amended Wall Street speculators got out of the by striking ‘‘section 1a(32)’’ and inserting oil futures markets to the tune of $70 I wish to end by further quoting Mr. Kroft from 60 Minutes: ‘‘section 1a’’. billion. The speculative bubble in com- (3) Section 402 of the Legal Certainty for modities, which was not only energy A recent report out of MIT analyzing world Bank Products Act of 2000 (7 U.S.C. 27) is but agricultural commodities, all of a oil production and consumption also con- amended— sudden bubble popped. cluded that the basic fundamentals of supply (A) in subsection (a)(7), by striking ‘‘sec- Demand for oil in the United States and demand could not have been responsible tion 1a(20)’’ and inserting ‘‘section 1a’’; and for last year’s runup in oil prices. is down by 5 percent, but the price of (B) in subsection (d)— oil is down 75 percent. So we shouldn’t Another quote from an interviewee: (i) in paragraph (1)(B), by striking ‘‘section be fooled by the drop in prices. Some ‘‘From quarter four of ’07 until the sec- 1a(33)’’ and inserting ‘‘section 1a’’; and financial analysts, fortunately, are not ond quarter of ’08’’—that is a 6-month (ii) in paragraph (2)(D), by striking ‘‘sec- tion 1a(13)’’ and inserting ‘‘section 1a’’. fooled by the drop in prices. They are period—‘‘the Energy Information Ad- advising investors that low oil prices ministration said that supply went up, worldwide supply went up, and world- THE PRICE OF OIL—HISTORIC OIL PRICES WERE are a temporary phenomenon and that RESULT OF FINANCIAL SPECULATION FROM oil prices will average above $75 a bar- wide demand went down . . . This was WALL STREET AND NOT SUPPLY AND DE- rel over the next 5 years. the period of the spike’’ in oil prices MAND Well, a number of us, months ago, ‘‘so you had the largest price increase Steve Kroft: About the only economic filed a bill to stop the trading of oil in history during a time when actual break most Americans have gotten in the and other energy commodities on the demand was going down and actual last six months has been the drastic drop in unregulated exchanges, and what the supply was going up during that same the price of oil, which has fallen even more bill does is it turns the clock back to a period. The only thing that makes precipitously than it rose. In a year’s time, change in law that was pushed by the sense that lifted the price was investor a commodity that was theoretically priced Enron Corporation, known as the demand’’—in other words, the specu- according to supply and demand, doubled Enron loophole, which opened the way lators making an artificial demand. from $69 a barrel to nearly $150. And then, in a period of just three months, crashed along for a flood of speculative money in I think it is clear. That is why I am with the stock market. So what happened? these commodity markets. I am intro- introducing this legislation. I look for- It’s a complicated question, and there are ducing that bill again today, and I seek ward with great optimism to the pas- lots of theories. But many people believe it our colleagues’ support. sage of this kind of legislation. was a speculative bubble, not unlike the one We must be vigilant to ensure that Mr. President, I ask unanimous con- that caused the housing crisis, and that it Wall Street investors do not take ad- sent that the text of the bill and a ‘‘60 had more to do with traders and speculators vantage of the lax regulation to reap Minutes’’ transcript be printed in the on Wall Street than with oil company execu- profits by driving up the price of oil RECORD. tives or sheiks in Saudi Arabia. and making driving a lot more expen- There being no objection, the mate- (Oil refinery; workers at refinery; stock sive for the rest of us. Let us remember rial was ordered to be printed in the market traders on floor; New York Mer- that we saw what happened with an- cantile Exchange; trading screen; farmer RECORD, as follows: working field; corn; airplane; trading screen; other form of unregulated financial in- S. 221 oil refinery) struments. That was those insurance Be it enacted by the Senate and House of Rep- (Voiceover) To understand what happened policies that had a fancy name, called resentatives of the United States of America in to the price of oil, you first have to under- credit default swaps. They were un- Congress assembled, stand the way it’s traded. For years it’s been regulated. Look what happened: The SECTION 1. REGULATION OF ENERGY COMMOD- bought and sold on something called the collapse of AIG that had to come in to ITIES. commodities futures market. Here at the the tune of upward of a $100 billion res- (a) DEFINITIONS.—Section 1a of the Com- New York Mercantile Exchange, it’s traded cue from the Federal Government. I modity Exchange Act (7 U.S.C. 1a) is amend- alongside cotton and coffee, copper and steel don’t believe it is simple coincidence ed— by brokers who buy and sell contracts to de- that the same legislation that let those (1) by redesignating paragraphs (13) liver those goods at a certain price at some through (34) as paragraphs (14) through (35), date in the future. It was created so that credit default swaps escape regulation respectively; farmers could gauge what their unharvested also allowed energy traders to conduct (2) by inserting after paragraph (12) the fol- crops would be worth months in advance so their business in the shadows. We need lowing: that factories could lock in the best price for to bring that industry out of the dark- ‘‘(13) ENERGY COMMODITY.—The term ‘en- raw materials, and airlines could manage ness and into the full light of day. ergy commodity’ includes— their fuel costs. But more than a year ago, Mr. President, I wish to quote a cou- ‘‘(A) crude oil; that market started to behave erratically. ple lines from this Sunday’s interview ‘‘(B) natural gas; And when oil doubled to more than $147 a on CBS News ‘‘60 Minutes.’’ A rep- ‘‘(C) heating oil; barrel, no one was more suspicious than Dan resentative of the Petroleum Market- ‘‘(D) gasoline; Gilligan. ers Association is interviewed, a Mr. ‘‘(E) metals; Mr. Dan Gilligan: We have to make sure Gilligan, and he says: ‘‘(F) construction materials; that the futures market is an honest market. ‘‘(G) propane; and (Dan Gilligan speaking; men listening to Approximately 60 to 70 percent of the oil ‘‘(H) other fuel oils.’’; and Gilligan; oil tanker; Gilligan; crowd talking contracts in the futures markets are now (3) by striking paragraph (15) (as redesig- to Gilligan; stock market traders) held by speculative entities, not by the com- nated by paragraph (1)) and inserting the fol- Kroft: (Voiceover) As the president of the panies that need oil, not by the airlines, not lowing: Petroleum Marketers Association, he rep- by the oil companies, but by investors that ‘‘(15) EXEMPT COMMODITY.—The term ‘ex- resents more than 8,000 retail and wholesale are looking to make money from their spec- empt commodity’ means a commodity that suppliers, everyone from home heating oil ulative positions. is not— companies to gas station owners. When we Now, that is a representative of the ‘‘(A) an agricultural commodity; talked to him last summer, his members oil companies that said that. Further- ‘‘(B) an energy commodity; or were getting blamed for gouging the public,

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He told us the problem was began holding hearings last summer and troleum Marketers Association agreed. in the commodities markets, which had been asked Wall Street banker Lawrence Eagles Are you saying that companies like Gold- invaded by a new breed of investor. of JPMorgan what role excessive speculation man Sachs and Morgan Stanley and Barclays Mr. Gillian: Approximately 60 to 70 percent played in rising oil prices, the answer was have as much to do with the price of oil of the oil contracts in the futures markets little to none. going up as Exxon or Shell? are now held by speculative entities, not by Mr. Lawrence Eagles: We believe that high Mr. Gilligan: Oh, absolutely. Yes. I tease companies that need oil, not by the airlines, energy prices are fundamentally a result of people sometimes that, you know, people not by the oil companies, but by investors supply and demand. say, ‘‘Well, who’s the largest oil company in that are looking to make money from the (JPMorgan building; e-mail; oil refinery; American?’’ And they’ll always say ‘‘Well, speculative positions. oil tank; oil register) ExxonMobil or Chevron or BP.’’ But I’ll say, Kroft: They don’t actually take delivery of Kroft: (Voiceover) As it turns out, not even ‘‘no, Morgan Stanley.’’ the oil? JPMorgan’s chief global investment officer (Morgan Stanley building; flow chart of Mr. Gilligan: No, no. agreed with him. The same day that Eagles Morgan Stanley ownerships) Kroft: All they do is—— testified, this e-mail went out to clients, Kroft: (Voiceover) Morgan Stanley isn’t an Mr. Gilligan: All they do is buy the paper saying ‘‘an enormous amount of specula- oil company in the traditional sense of the and hope that they can sell it for more than tion’’ ran up the price, and ‘‘$140 in July was word. It doesn’t own or control oil wells or they paid for it before they have to take de- ridiculous.’’ If anyone had any doubts, they refineries or gas stations. But according to livery. were dispelled a few days after that hearing, documents filed with the Securities and Ex- Kroft: They’re trying to make money on when the price of oil jumped $25 in a single change Commission, Morgan Stanley is a sig- the market for oil? day. nificant player in the wholesale market Mr. Gilligan: Absolutely, on the volatility September 22nd. through various entities controlled by the that exists in the market. They make it Mr. Michael Greenberger: September 22nd. corporation. going up and down. (Michael Greenberger; CFTC building; oil It not only buys and sells the physical (Sean Cota unhooking hose from truck; pipelines) product through subsidiaries and companies Cota filling tank; calculator) Kroft: (Voiceover) Michael Greenberger, a that it controls, Morgan Stanley has the ca- Kroft: (Voiceover) He says his members in former director of trading for the Com- pacity to store and hold 20 million barrels. the home heating oil business, like Sean modity Futures Trading Commission, the These storage tanks behind me in New Cota of Bellows Falls, Vermont, were the federal agency that oversees oil futures, says Haven, Connecticut, hold Morgan Stanley first to notice the effects a few years ago, there were no supply disruptions that could heating oil bound for homes in New England, when prices seemed to disconnect from the have justified such a big increase. where it controls nearly 15 percent of the basic fundamentals of supply and demand. Mr. Greenberger: Did China and India sud- market. Cota says there was plenty of product at the denly have gigantic needs for new oil prod- (Building; oil refinery; pipeline; storage supply terminals, but the prices kept going ucts in a single day? No. Everybody agrees terminals; men walking; buildings; barge; oil up and up. supply-demand could not drive the price up storage tank) Mr. Sean Cota: We’ve had three price $25, which was a record increase in the price Kroft: (Voiceover) The Wall Street bank changes during the day where we pick up of oil. The price of oil went from somewhere Goldman Sachs also has huge stakes in com- products, actually don’t know what we paid in the 60s to $147 in a—less than a year. And panies that own a refinery in Coffeyville, for, and we’ll go out and we’ll sell that to the we were being told on that runup, it’s sup- Kansas, and control 43,000 miles of pipeline retail customer, guessing at what the price ply-demand, supply-demand, supply-demand. and more than 150 storage terminals. And was. The volatility is being driven by the (Oil refinery; Masters; woman talking; analysts at both investment banks contrib- huge amounts of money and the huge Masters) uted to the oil frenzy that drove prices to amounts of leverage that is going into these Kroft: (Voiceover) A recent report out of record highs. Goldman’s top oil analyst pre- markets. MIT analyzing world oil production and con- dicted last March that the price of a barrel (Michael Masters at desk; computer sumption also concluded that the basic fun- was going to $200. Morgan Stanley predicted screen) damentals of supply and demand could not $150 a barrel. Both companies declined our Kroft: (Voiceover) About the same time have been responsible for last year’s runup in requests for an interview, but maintain that hedge fund manager Michael Masters oil prices. And Michael Masters says the US their oil businesses are completely separate reached the same conclusion. Masters’ exper- Department of Energy’s own statistics from their trading activities, and that nei- tise is in tracking the flow of investments showed that if the markets had been working ther influence the independent opinions of into and out of financial markets, and he no- properly the price of oil should have been their analysts. There is no evidence that ei- ticed huge amounts of money leaving stocks going down, not up. ther company has done anything illegal. for commodities and oil futures, most of it Mr. Masters: From quarter four of ’07 until Is there price manipulation going on? going into index funds, betting that the price the second quarter of ’08, the EIA, the En- Mr. Gilligan: I can’t say. And the reason I of oil was going to go up. ergy Information Administration said that can’t say is because nobody knows. Our fed- Who was buying this paper oil, pension supply went up, worldwide supply went up, eral regulators don’t have access to the data. fund? and worldwide demand went down. So you They don’t know who holds what positions. Mr. Michael Masters: California pension have supply going up and demand going Kroft: Why don’t they know? fund, Harvard endowment, lots of large insti- down, which generally means that price is Mr. Gilligan: Why don’t they know? tutional investors. And by the way, other in- going down. Kroft: Yeah. vestors, hedge funds, Wall Street trading Kroft: And this was the period of the spike? Mr. Gilligan: Because federal law doesn’t desk, were following right behind them put- Mr. Masters: This was the period of the give them the jurisdiction to find out. ting money, sovereign wealth funds were spike. So you had the largest price increase (Oil storage; oil refinery; pipeline; Wall putting money in the futures markets, as in history during a time when actual demand Street sign; American flags; Capitol build- well. So you had all these investors putting was going down and actual supply was going ing; stock exchange) money in the futures markets, and that was up during the same period. However, the Kroft: (Voiceover) It’s impossible to tell driving the price up. only thing that makes sense that lifted the exactly who is buying and selling all those (New York Stock Exchange; stock traders; price was investor demand. oil contracts because most of the trading is oil refinery) (Oil refinery; buildings) now conducted in secret, with no public scru- Kroft: (Voiceover) In a five-year period, Kroft: (Voiceover) Masters believes the in- tiny or government oversight. Over time, the Masters said the amount of money institu- vestor demand for commodities and oil fu- big Wall Street banks were allowed to buy tional, investors, hedge funds and the big tures in particular, was created on Wall and sell as many oil contracts as they want- Wall Street banks had placed in the com- Street by hedge funds and the big Wall ed for their clients, circumventing regula- modities markets went from $13 billion to 300 Street investment banks like Morgan Stan- tions intended to limit speculation. And in billion. Last year, 27 barrels of crude were ley, Goldman Sachs, Barclays and 2000, Congress effectively deregulated the fu- being traded every day on the New York JPMorgan, who made billions investing hun- tures market, granting exemptions for com- Mercantile Exchange for every one barrel of dreds of billions of dollars of their clients’ plicated derivative investments called oil oil that was actually being consumed in the money. swaps, as well as electronic trading on pri- United States. Mr. Masters: The investment banks facili- vate exchanges. Mr. Masters: We talked to the largest tated it. You know, they found folks to write Who is responsible for deregulating the oil physical trader of crude oil, and they told us papers espousing the benefits of investing in future market? that, compared to the size of the investment commodities. And then they promoted com- Mr. Greenberger: You’d have to say Enron. inflows—and remember, this is the largest modities as a, quote-unquote, ‘‘asset class.’’ This was something they desperately wanted physical crude oil trader in the United Like, you could invest in commodities just and they got. States—they said that, ‘‘We are basically a like you could in stocks or bonds or any- (Greenberger; CFTC building; Enron; peo- flea on an elephant,’’ that that’s how big thing else, like they were suitable for long- ple at desks) these flows were. term investment. Kroft: (Voiceover) Michael Greenberger, (Senate hearings; Lawrence Eagles) (Gilligan) who wanted more regulation while he was at

VerDate Nov 24 2008 02:59 Jan 14, 2009 Jkt 079060 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 E:\CR\FM\A13JA6.021 S13JAPT1 smartinez on PROD1PC64 with SENATE January 13, 2009 CONGRESSIONAL RECORD — SENATE S341 the Commodity Futures Trading Commis- ments for the rehabilitation and revi- low maintenance or maintenance free sion, not less, says it all happened when talization of the fledgling green econ- once they have been installed. In terms Enron was the seventh largest corporation in omy, and also expand the types of eligi- of costs, implementing efficiency meas- the United States. ble projects to cover energy efficiency ures only costs about 3 cents per kWh Mr. Greenberger: (Voiceover) This was when Enron was riding high, and what Enron improvements to privately owned of energy saved while implementing wanted, Enron got. buildings. While our country is facing wind and solar projects can cost at Kroft: Why did they want a deregulated its greatest economic challenge since least two to three times more. market in oil futures? the Great Depression, we have a tre- Importantly, my bill will increase (Traders at desks; spreadsheet; man at mendous opportunity to create jobs the success of these energy efficiency computer) critical to addressing the energy chal- and conservation programs by ensuring Mr. Greenberger: Because they wanted to lenges we face. The CREC Act amends the Qualified Energy Conservation establish their own little energy futures ex- Bond program can be used to promote change through computerized trading. the recently authorized Qualified En- (Voiceover) They knew that if they could ergy Conservation Bond, QECB, pro- novel payment structures in order to get this trading engine established without gram to increase funding for important reduce the prohibitive upfront costs the controls that had been placed on specu- public-private partnerships to signifi- that homeowners and businesses must lators, they would have the ability to drive cantly invest in energy efficiency and pay for energy efficiency and conserva- the price of energy products in any way they conservation, a key national priority. tion upgrades. By eliminating expen- wanted to take it. It also offers States and local govern- sive up-front costs for homeowners and When Enron failed, we learned that Enron ments the opportunity to create jobs businesses, we can eliminate one of the and its conspirators who used their trading engine were able to drive the price of elec- and stimulate their local economies. main obstacles to making significant tricity up, some say by as much as 300 per- First, my bill will more than quad- energy efficiency gains. Furthermore, cent, on the West Coast. ruple the amount of bonds that can be we can virtually eliminate what home- Kroft: Is the same thing going on right now issued under the Qualified Energy Con- owners and businesses have to pay for in the oil business? servation Bond program—increasing the efficiency and conservation up- Mr. Greenberger: Every Enron trader who the program from $800 million to $3.6 grades by not increasing their out-of- knew how to do these manipulations became billion. This will provide the oppor- pocket expenses. For example, States the most valuable employee on Wall Street. tunity for private investors to partner (Oil rig; stock market ticker; oil rig in and local governments can work with ocean) with State and local governments to electric and water utilities to bill indi- Kroft: (Voiceover) But some of them may fund energy investments through State viduals or businesses monthly for the now be looking for work. The oil bubble and locally issued tax credit bonds. As cost of the efficiency improvements began to deflate early last fall when Con- we give private investors the oppor- based on the savings they receive. The gress threatened new regulations and federal tunity to participate in the green econ- payment for the efficiency improve- agencies announced they were beginning omy through Qualified Energy Con- ments each month will be no more major investigations. It finally popped with servation Bonds, we signal to the mar- the bankruptcy of Lehman Brothers and the than the monthly energy-savings real- near collapse of AIG, who were both heavily ket that the Federal Government will ized by the improvements, thereby invested in the oil markets. With hedge continue to affirm the importance of keeping their monthly payments the funds and investment houses facing margin investment in energy efficiency and same as before the energy improve- calls, the speculators headed for the exits. conservation, as well as the develop- ments. Mr. MASTERS: From July 15th until the ment of new energy technologies. Help- The Center on Wisconsin Strategy end of November, roughly $70 billion came ing these new energy technologies states that buildings account for 40 out of commodities futures from these index thrive is not only a promising way to percent of total U.S. energy consump- funds. In fact, gasoline demand went down develop the next generation of energy tion, 70 percent of U.S. electricity con- by roughly 5 percent over that same period of time. Yet the price of crude oil dropped technology to reduce our energy con- sumption, and 43 percent of U.S. carbon more than $100 a barrel. It dropped 75 per- sumption, it will also help to spur job emissions, a larger share than either cent. creation as State and local govern- transportation or industry. It is pos- Kroft: How do you explain it? ments embark on capital improve- sible that the U.S. could realize more Mr. Masters: By looking at investors. ments. than $200 billion in annual savings That’s the only way you can explain it. Increasing the size of the program from improved building efficiency Kroft: The regulatory lapses in the com- will support funding for eligible alone. However, one of the challenges modities market that many believe fo- projects including energy efficiency mented the rapid speculation in oil have still associated with implementing building not been addressed, although the incoming improvements of publicly owned build- efficiency measures is its prohibitive Obama administration has promised to do so. ings; rural development of electricity cost. Unfortunately, poor households from renewable sources; research fa- devote a disproportionate share of in- By Mr. FEINGOLD: cilities or grants for renewable tech- come to home energy costs, often up- S. 222. A bill to amend the Internal nologies such as advanced automobile wards of 10 percent, because they have Revenue Code of 1986 to increase the battery technology and nonfossil fuels; less income and tend to live in less effi- national limitation on qualified energy mass commuting facilities that reduce cient buildings and use less efficient conservation bonds and to clarify that energy consumption; or financing appliances. Through building retrofits certain programs constitute a qualified qualified energy production projects we have the potential to generate conservation purpose, and for other such as wind, biomass, geothermal, about 10 person years of employment in purposes; to the Committee on Fi- landfill gas, and solar. direct installation of efficiency meas- nance. Secondly, my bill expands the types ures and another 3–4 person years in Mr. FEINGOLD. Mr. President, over of eligible programs to ones that re- the production of relevant materials the past few days I have introduced a duce energy consumption in privately for every $1 million spent on retrofits series of bills that are part of my E4 owned buildings. It would allow States Large cities and counties with popu- Initiative, dubbed E4 because of its and local governments to help home- lations over 100,000 would be eligible focus on economy, employment, edu- owners and businesses make improve- for Wisconsin’s share, $65.7 million, cation, and energy. Today I am intro- ments such as heating-fuel saving that my bill would allow for. Eligible ducing two bills that are part of this measures; electricity-saving measures; local governments in Wisconsin in- effort: the Community Revitalization on-site renewable energy generating clude: Milwaukee, Madison, Green Bay, Energy Conservation, CREC, Act of devices; or water-saving measures that and the counties of Milwaukee, Dane, 2009 and the Energy and Technology reduce the energy use of the owner, Waukesha, Brown, Racine, Outagamie, Advancement, ETA, Act of 2009. renter or water provider. Gains in effi- Kenosha, Winnebago, Rock, Marathon, The newest among my E4 bills is the ciency savings between 20–30 percent Washington, Sheboygan, La Crosse, Community Revitalization Energy are easily achievable through improv- and Walworth. Conservation, CREC, Act of 2009. This ing lighting, insulation, HVAC equip- I commend the city of Milwaukee and bill will increase the amount of fund- ment and controls for these items. the Center on Wisconsin Strategy— ing available to State and local govern- These measures are often one-time and they have already begun to develop a

VerDate Nov 24 2008 02:12 Jan 14, 2009 Jkt 079060 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\CR\FM\A13JA6.023 S13JAPT1 smartinez on PROD1PC64 with SENATE S342 CONGRESSIONAL RECORD — SENATE January 13, 2009 program to address retrofitting resi- includes the Forest Service, to work rill Lundman Department of Veterans dential buildings with energy effi- with businesses and provide access to Affairs Outpatient Clinic; to the Com- ciency measures through Me2—Mil- resources to assist with getting tech- mittee on Veterans’ Affairs. waukee Energy Efficiency. COWS’ ini- nologies to market. Mr. TESTER. Mr. President, I rise tial estimates suggest if you could ret- By encouraging the USDA to act as a today with my colleague Senator BAU- rofit nearly all of the existing housing ‘‘business incubator,’’ we can increase CUS to introduce legislation honoring a stock in Milwaukee, an initial invest- the rate of success and reduce the Montana veteran named Merrill ment of just under $250 million could length of time for bringing tech- Lundman. result in annual energy savings of over nologies to the market. By providing a Merrill was not a general officer. He $80 million. Examples of other cities bridge to move new technologies be- did not become famous in battle, or that are tackling the issue of energy yond the research and development wealthy in his civilian life. After serv- efficiency in residential buildings in- phase to commercialization, the Fed- ing in the Army, he came home to clude Berkeley, CA; Babylon, NY; and eral Government will accelerate the north-central Montana to work on the Brookhaven, NY. development of new technologies and family farm and, later, for 20 years for All of these efforts to conserve en- create increased opportunities for the BNSF railroad. Some people might ergy require investments in time and small businesses, local and State gov- say he was just an ordinary man who money. By combining efforts on two of ernment, and others. served his country in the Army for the challenges that we currently face— All energy, forestry, and other tech- three years, and then came home to energy and employment—we can create nologies will benefit from my ETA Act work to live most of his days on the Hi- great opportunities. Energy efficiency because it will help new technologies Line, a strip of U.S. Highway 2 in Mon- and conservation are in our national come to the market. It does so by pro- tana that cuts across the prairie near interest for our long term economic moting the Federal Government as a the northern border. well-being, for the health and safety of better business incubator, encouraging But because of Merrill Lundman, our citizens and the world as we miti- the USDA to provide business support thousands of veterans in and around gate the effects of climate change, and services, and authorizing USDA em- Havre, Montana, can expect to get for our independence and security. ployees and private-sector employees their VA medical care a little bit clos- I have urged the Treasury Depart- to work together in Federal or private er to home. You see, for the last sev- ment to quickly issue regulations for experimental or product facilities. My eral years of his life, Merrill devoted the Qualified Energy Conservation bill will also increase cooperation be- his time and his energy to pushing the Bonds so the initial program can get up tween the Federal Government and in- VA to open a new community based and running. Once regulations are fi- novative businesses by encouraging the outpatient clinic in Havre. And today, nalized, States and local governments USDA to allow rental of Federal equip- his dream has become a reality. can begin applying to receive an allot- ment and property for the development I am sorry that Merrill Lundman is ment of the bonds to pursue projects of new technology. not with us today to celebrate this day. that may have been shelved in our Lastly, a specific partnership encour- He died just over one year ago, on De- struggling economy. aged by my Energy and Technology cember 22, 2007. Less than a month The second energy bill I am intro- Advancement Act will spur the com- later, the VA announced its intention ducing as part of my E4 Initiative is mercialization of biofuels. My bill re- to establish a clinic in Havre. the Energy and Technology Advance- quires the USDA to pursue a bio- The data says that veterans who live ment Act. This bill will increase part- refinery pilot plant that will allow in rural areas don’t live as long—or as nerships between the Federal Govern- businesses to partner with the Federal well—as their urban peers. That’s be- ment and businesses to help spur the Government to test various biofuels cause it’s harder to get to the VA facil- commercialization of energy, forestry, technologies derived from a variety of ity that may be hundreds of miles and other technologies—in other feedstocks, including woody and agri- away—especially this time of year words, to increase the ETA, or esti- culture waste. when snow and ice can make travel in mated time of arrival, for bringing new Certainly one of today’s greatest Montana treacherous. I don’t know if technologies to market. challenges—energy—is also one of to- Merrill knew this, but he sensed that Particularly in the area of energy, we morrow’s greatest opportunities. his fellow veterans were getting a raw must do more to make new energy so- Today, the transportation sector ac- deal, and he didn’t hesitate to tell the lutions, like next generation biofuels, a counts for 70% of our oil consumption. VA and his congressional delegation. reality. My bill will help make the However, there are promising efforts to The story of this clinic is a grass- Federal Government a better business significantly lessen our dependence on roots effort led by one man who stood partner for the many businesses that oil by reducing fuel consumption up for his fellow band of brothers to are researching and developing innova- through increased efficiency and by ag- make sure that they can get the care tive technology solutions our country gressively pursuing renewable fuels, or that they have earned. And to honor needs. We are squandering the Federal biofuels. The commercialization of that effort, Senator BAUCUS and I are investment of billions into research biofuels will also create job opportuni- proud to introduce this legislation, and and development by not doing enough ties, support rural development and in- I look forward to working with Chair- to prevent new technologies from sit- dustries such as forestry, and develop man AKAKA to move this bill quickly ting on the shelf or being shipped to the next generation of fuels that are through the Veterans’ Affairs Com- another country. Helping these new en- sustainable and from diverse sources. mittee. ergy technologies get off the ground is Given our current dire fiscal situa- not only a promising way to develop tion, it is more important then ever By Mr. CARDIN (for himself, Mrs. the next generation of energy tech- that we are careful stewards of tax- CLINTON, Ms. MIKULSKI, and Mr. nology that will help break our addi- payer dollars. Not only are both of SCHUMER): tion to oil, it will also help to spur job these new bills fully offset, so as not to S. 227. A bill to establish the Harriet creation and enhance rural develop- worsen our current Federal deficit; Tubman National Historical Park in ment. they actually provide over a billion Auburn, New York, and the Harriet One obstacle identified by the Forest dollars in deficit reduction. That’s yet Tubman Underground Railroad Na- Service’s Wisconsin-based Forest Prod- another reason to pass them, and I tional Historical Park in Caroline, Dor- ucts Lab which conducts forestry and look forward to working with my col- chester, and Talbot Counties, Mary- energy technology research with busi- leagues to do just that. land, and for other purposes; to the nesses and others, is lack of Federal Committee on Energy and Natural Re- support for moving technologies from By Mr TESTER (for himself and sources. the research and development phase to Mr. BAUCUS): Mr. CARDIN. Mr. President, today I commercialization. My bill will bridge S. 226. A bill to designate the Depart- am proud to introduce The Harriet this gap by authorizing the U.S. De- ment of Veterans Affairs outpatient Tubman National Historical Park and partment of Agriculture, USDA, which clinic in Havre, Montana, as the Mer- The Harriet Tubman Underground

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The properties in Talbot Coun- ice would not own any of these lands. nearly identical legislation last sum- ty, immediately across the Choptank The bill authorizes $11 million in mer, but the press of legislative busi- River from the plantation, are today grants for the New York properties for ness did not allow for consideration of protected by various conservation ease- their preservation, rehabilitation, and this important legislation. This year ments. Were she alive today, Tubman restoration of those resources. we will work for its prompt consider- would recognize much of the landscape The bill authorizes an additional $11 ation and enactment. that she knew intimately as she se- million in grants for the Maryland sec- The woman, who is known to us as cretly led black men, women and chil- tion. Funds can be used for the con- Harriet Tubman, was born Araminta dren to their freedom. struction of the State Harriet Tubman ‘‘Minty’’ Ross approximately 1822 in In New York, on the other hand, Park Visitors Center and/or for ease- Dorchester County, Maryland. She many of the buildings associated with ments or acquisition of properties in- spent nearly 30 years of her life as a Tubman’s life remain intact. Her per- side or adjacent to the Historical Park slave on Maryland’s Eastern Shore. As sonal home, as well as the Tubman boundaries. an adult she took the first name Har- Home for the Aged, the church and rec- Finally, the bill also authorizes a riet, and when she was 25 she married tory of the Thompson Memorial AME new grants program. Under the pro- John Tubman. Zion Episcopal Church, and the Fort gram, the National Park Service would Harriet Tubman escaped from slavery Hill Cemetery are all extant. award competitive grants to histori- in 1849. She did so in the dead of night, In 1999, the Congress approved legis- cally Black colleges and universities, navigating the maze of tidal streams lation authorizing a Special Resource predominately Black institutions, and and wetlands that are a hallmark of Study to determine the appropriate- minority serving institutions for re- Maryland’s Eastern Shore. She did so ness of establishing a unit of the Na- search into the life of Harriet Tubman alone, demonstrating courage, strength tional Park Service to honor Harriet and the African-American experience and fortitude that became her hall- Tubman. The Study has taken an ex- during the years that coincide with the marks. Not satisfied with attaining her ceptionally long time to complete, in life of Harriet Tubman. The legislation own freedom, she returned repeatedly part because of the lack of remaining authorizes $200,000 annually for this for more than 10 years to the places of structures on Maryland’s Eastern scholarship program. her enslavement in Dorchester and Shore. There has never been any doubt Harriet Tubman was a true American Caroline counties where, under the that Tubman led an extraordinary life. patriot. She was someone for whom lib- most adverse conditions, she led away Her contributions to American history erty and freedom were not just con- many family members and other slaves are surpassed by few. Determining the cepts. She lived those principles and to their freedom. Tubman became most appropriate way to recognize that shared that freedom with hundreds of known as ‘‘Moses’’ by African-Ameri- life and her contributions, however, as others. In doing so, she has earned a cans and white abolitionists. She was been more difficult. Eventually, the nation’s respect and honor. That is why perhaps the most famous and most im- Park Service came to realize that de- I am so proud to introduce this legisla- portant conductor in the network of re- termined that a Park that would in- tion, establishing the Harriet Tubman sistance known as the Underground clude two geographically separate National Historical Park and the Har- Railroad. units would be appropriate. The New riet Tubman Underground Railroad Na- During the Civil War, Tubman served York unit would include the tightly tional Historical Park. the Union forces as a spy, a scout and clustered Tubman buildings in Auburn. Mr. President, I ask unanimous con- a nurse. She served in Virginia, Flor- The Maryland portion would include sent that the text of the bill be printed ida, and South Carolina. She is cred- large sections of landscapes that are in the RECORD. ited with leading hundreds of slaves evocative of Tubman’s time and are There being no objection, the text of from those slave States to freedom dur- historically relevant. The Harriet Tub- the bill was ordered to be printed in ing those years. man National Historical Park and The the RECORD, as follows: Following the Civil War, Tubman set- Harriet Tubman Underground Railroad S. 227 tled in Auburn, NY. There she was ac- National Historical Park Act, S. 3383, Be it enacted by the Senate and House of Rep- tive in the women’s suffrage move- was first introduced on July 31, 2008. resentatives of the United States of America in ment, and she also established the one The Special Resource Study will be fi- Congress assembled, of the first incorporated homes for nalized and released in the near future. SECTION 1. SHORT TITLE. aged African-Americans. In 1903 she be- The legislation I am introducing This Act may be cited as the ‘‘Harriet Tub- queathed the home to the African today establishes two parks. The Har- man National Historical Park and Harriet Methodist Episcopal Zion Church in riet Tubman National Historical Park Tubman Underground Railroad National His- Auburn. Harriet Tubman died in Au- includes important historical struc- torical Park Act’’. burn in 1913 and she is buried there in tures in Auburn, New York. They in- SEC. 2. FINDINGS; PURPOSES. (a) FINDINGS.—Congress finds that— the Fort Hill Cemetery. clude Tubman’s home, the Home for (1) Harriet Tubman (born Araminta Slaves were forced to live in primi- the Aged that she established, the Afri- ‘‘Minty’’ Ross)— tive buildings even though many were can Methodist Episcopal AME Zion (A) was born into slavery in Maryland skilled tradesmen who constructed the Church, and the Fort Hill Cemetery around 1822; substantial homes of their owners. Not where she is buried. (B) married John Tubman at age 25; surprisingly, few of the structures as- The Harriet Tubman Underground (C) endured through her youth and young sociated with the early years of Tub- Railroad National Historical Park in- adulthood the hardships of enslaved African- man’s life still stand. The landscapes of cludes historically important land- Americans; and the Eastern Shore of Maryland, how- scapes in Dorchester, Caroline, and (D) boldly emancipated herself from bond- age in 1849; ever, remain evocative of the time that Talbot counties, Maryland, that are (2) not satisfied with attaining her own Tubman lived there. Farm fields and evocative of the life of Harriet Tub- freedom, Harriet Tubman— forests dot the landscape, which is also man. The Maryland properties include (A) returned repeatedly for more than 10 notable for its extensive network of about 2,200 acres in Caroline County years to the places of her enslavement in tidal rivers and wetlands. In particular, that comprise the Poplar Neck planta- Dorchester and Caroline Counties, Maryland; a number of properties including the tion that Tubman escaped from in 1849. and homestead of Ben Ross, her father, The 725 acres of viewshed across the (B) under the most adverse circumstances Stewart’s Canal, where he worked, the Choptank River in Talbot County led away many family members and ac- quaintances to freedom in the northern re- Brodess Farm, where she worked as a would also be included in the Park. In gion of the United States and Canada; slave, and others are within the bound- Dorchester County, the parcels would (3) Harriet Tubman was— aries of the Blackwater National Wild- not be contiguous, but would include (A) called ‘‘Moses’’ by African-Americans life Refuge. about 2,775 acres. All of them are in- and white abolitionists; and

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(B) acknowledged as 1 of the most promi- (1) CHURCH.—The term ‘‘Church’’ means (f) GENERAL MANAGEMENT PLAN.— nent ‘‘conductors’’ of the resistance that the Harriet Tubman Home, Inc., of the AME (1) IN GENERAL.—Not later than 3 years came to be known as the ‘‘Underground Rail- Zion Church located in Auburn, New York, after the date on which funds are made avail- road’’; which owns and manages— able to carry out this subsection, the Sec- (4) in 1868, Frederick Douglass wrote that, (A) the Thompson Memorial AME Zion retary, in cooperation with the Church, shall with the exception of John Brown, Douglass Church; complete a general management plan for the knew of ‘‘no one who has willingly encoun- (B) the Harriet Tubman home; Historical Park in accordance with section tered more perils and hardships to serve our (C) the Tubman Home for the Aged; and 12(b) of Public Law 91–383 (16 U.S.C. 1a–7(b)). enslaved people’’ than Harriet Tubman; (D) the land on which those facilities are (2) COORDINATION.—The Secretary shall co- (5) during the Civil War, Harriet Tubman— located. ordinate the preparation and implementa- (A) was recruited to assist Union troops as (2) HISTORICALLY BLACK COLLEGE OR UNI- tion of the general management plan for the a nurse, a scout, and a spy; and VERSITY.—The term ‘‘historically Black col- Harriet Tubman National Historical Park (B) served in Virginia, Florida, and South lege or university’’ has the meaning given with— Carolina, where she is credited with facili- the term ‘‘part B institution’’ in section 322 (A) the Harriet Tubman Underground Rail- tating the rescue of hundreds of enslaved of the Higher Education Act of 1965 (20 U.S.C. road National Historical Park in Maryland; people; 1061)). and (6) Harriet Tubman established in Auburn, (3) PREDOMINANTLY BLACK INSTITUTION.— (B) the National Underground Railroad: New York, 1 of the first incorporated homes The term ‘‘Predominantly Black Institu- Network to Freedom. for aged African-Americans in the United tion’’ has the meaning given the term in sec- SEC. 5. ESTABLISHMENT OF THE HARRIET TUB- States, which, 10 years before her death, she tion 499A(c) of the Higher Education Act of MAN UNDERGROUND RAILROAD NA- bequeathed to the African Methodist Epis- 1965 (20 U.S.C. 1099e(c)). TIONAL HISTORICAL PARK. (a) ESTABLISHMENT.—There is established copal Zion Church; (4) SECRETARY.—The term ‘‘Secretary’’ as a unit of the National Park System the (7) there are nationally significant re- means the Secretary of the Interior. Harriet Tubman Underground Railroad Na- sources comprised of relatively unchanged (5) VISITOR CENTER.—The term ‘‘Visitor tional Historical Park (referred to in this landscapes associated with the early life of Center’’ means the Harriet Tubman Under- Harriet Tubman in Caroline, Dorchester, and section as the ‘‘Historical Park’’) in Caro- ground Railroad State Park Visitor Center line, Dorchester, and Talbot Counties, Mary- Talbot Counties, Maryland; to be constructed under section 5(d). (8) there are nationally significant re- land. SEC. 4. ESTABLISHMENT OF HARRIET TUBMAN (b) BOUNDARY.— sources relating to Harriet Tubman in Au- NATIONAL HISTORICAL PARK. (1) IN GENERAL.—The boundary of the His- burn, New York, including— (a) ESTABLISHMENT.—On the execution of (A) the residence of Harriet Tubman; torical Park shall consist of certain land- easements with the Church, the Secretary scapes and associated resources relating to (B) the Tubman Home for the Aged; shall— (C) the Thompson Memorial AME Zion the early life and enslavement of Harriet (1) establish the Harriet Tubman National Tubman and the Underground Railroad, as Church; and Historical Park (referred to in this section as (D) the final resting place of Harriet Tub- generally depicted on the map entitled ‘‘Har- the ‘‘Historical Park’’) in the City of Au- riet Tubman Underground Railroad National man in Fort Hill Cemetery; burn, New York, as a unit of the National (9) in developing interpretive programs, Historical Park—Proposed Boundary’’, num- Park System; and bered øllll¿, and dated ølllll¿. the National Park Service would benefit (2) publish notice of the establishment of from increased scholarship of the African- (2) ADDITIONAL SITES.—The Secretary, after the Historical Park in the Federal Register. consultation with landowners, the State of American experience during the decades pre- (b) BOUNDARY.— ceding the Civil War and throughout the re- Maryland, and units of local government, (1) IN GENERAL.—The Historical Park shall may modify the boundary of the Historical mainder of the 19th century; be comprised of structures and properties as- (10) it is fitting and proper that the nation- Park to include additional resources relating sociated with the Harriet Tubman home, the to Harriet Tubman that— ally significant resources relating to Harriet Tubman Home for the Aged, the Church, and Tubman be preserved for future generations (A) are located within the vicinity of the the Rectory, as generally depicted on the Historical Park; and as units of the National Park System so that map entitled ‘‘Harriet Tubman National His- people may understand and appreciate the (B) are identified in the general manage- torical Park—Proposed Boundary’’, num- ment plan prepared under subsection (g) as contributions of Harriet Tubman to the his- bered øllll¿, and dated ølll¿. tory and culture of the United States; and appropriate for interpreting the life of Har- (2) AVAILABILITY OF MAP.—The map de- (11) in addition to the properties and re- riet Tubman. scribed in paragraph (1) shall be available for (3) AVAILABILITY OF MAP.—On modification sources within the boundary of the Harriet public inspection in the appropriate offices Tubman Underground Railroad National His- of the boundary of the Historical Park under of the National Park Service. paragraph (2), the Secretary shall make torical Park, other associated land within (c) ACQUISITION OF LAND.—The Secretary the Blackwater National Wildlife Refuge and available for public inspection in the appro- may acquire from willing sellers, by dona- priate offices of the National Park Service a proposed additions to the Refuge are— tion, purchase with donated or appropriated (A) components of the nationally signifi- revised map of the Historical Park. funds, or exchange, land or interests in land (c) ACQUISITION OF LAND.—The Secretary cant Harriet Tubman landscape; and within the boundary of the Historical Park. may acquire from willing sellers, by dona- (B) essential to the visual, historical, and (d) FINANCIAL ASSISTANCE AND COOPERA- tion, purchase with donated or appropriated cultural experiences of the Historical Park. TIVE AGREEMENTS.—The Secretary may pro- funds, or exchange, land or an interest in (b) PURPOSES.—The purposes of this Act vide grants to, and enter into cooperative are— land within the boundaries of the Historical agreements with— Park. (1) to preserve and promote stewardship of (1) the Church for— (d) GRANTS.—In accordance with section the resources in Auburn, New York, and (A) historic preservation of, rehabilitation 7(b)(2), the Secretary may provide grants— Caroline, Dorchester, and Talbot Counties, of, research on, and maintenance of prop- (1) to the State of Maryland, political sub- Maryland, relating to the life and contribu- erties within the boundary of the Historical divisions of the State, and nonprofit organi- tions of Harriet Tubman; Park; and zations for the acquisition of less than fee (2) to provide for partnerships with the Af- (B) interpretation of the Historical Park; title (including easements) or fee title to rican Methodist Episcopal Zion Church, the (2) the Fort Hill Cemetery Association for land in Caroline, Dorchester, and Talbot States of New York and Maryland, political maintenance and interpretation of the Counties, Maryland, within the boundary of subdivisions of the States, the Federal Gov- gravesite of Harriet Tubman; and the Historical Park; and ernment, local governments, nonprofit orga- (3) the State of New York, any political (2) on execution of a memorandum of un- nizations, and private property owners for subdivisions of the State, the City of Au- derstanding between the State of Maryland resource protection, research, interpreta- burn, the Church, colleges and universities, and the Director of the National Park Serv- tion, education, and public understanding and nonprofit organizations for— ice, to the State of Maryland for the con- and appreciation of the life and contribu- (A) preservation and interpretation of re- struction of the Harriet Tubman Under- tions of Harriet Tubman; sources relating to Harriet Tubman in the ground Railroad State Park Visitor Center (3) to sustain agricultural and forestry City of Auburn, New York; on land owned by the State of Maryland in land uses in Caroline, Dorchester, and Talbot (B) conducting research, including archae- Dorchester County, Maryland, subject to the Counties, Maryland, that remain evocative ological research; and condition that the State of Maryland provide of the landscape during the life of Harriet (C) providing for stewardship programs, the Director of the National Park Service, at Tubman; and education, public access, signage, and other no additional cost, sufficient office space and (4) to establish a competitive grants pro- interpretive devices at the Historical Park exhibition areas in the Visitor Center to gram for scholars of African-American his- for interpretive purposes. carry out the purposes of the Historical tory relating to Harriet Tubman, the Harriet (e) INTERPRETATION.—The Secretary may Park. Tubman historic landscape, and the Under- provide interpretive tours to sites located (e) FINANCIAL ASSISTANCE AND COOPERATIVE ground Railroad. outside the boundaries of the Historical Park AGREEMENTS.—The Secretary may provide SEC. 3. DEFINITIONS. in Auburn, New York, that include resources grants to, and enter into cooperative agree- In this Act: relating to Harriet Tubman. ments with, the State of Maryland, political

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(3) providing stewardship programs, edu- termines would not have an adverse effect on Mr. BINGAMAN. Mr. President I rise cation, signage, and other interpretive de- the Harriet Tubman Historic Area. today with my colleague Senator vices at the sites and resources for interpre- SEC. 6. ADMINISTRATION. AKAKA to introduce legislation today tive purposes; and (a) IN GENERAL.—The Secretary shall ad- designed to make several very impor- (4)(A) the design and construction of the minister the Harriet Tubman National His- tant changes to current law to ensure Visitor Center; and torical Park and the Harriet Tubman Under- (B) the operation and maintenance of the ground Railroad National Historical Park in that U.S. citizens receive the Medicaid Visitor Center. accordance with this Act and the laws gen- to which they are entitled. (f) INTERPRETATION.—The Secretary may erally applicable to units of the National Since July 1, 2006, most U.S. citizens provide interpretive tours to sites and re- Park System including— and nationals applying for or renewing sources located outside the boundary of the (1) the National Park Service Organic Act their Medicaid coverage face a new Historical Park in Caroline, Dorchester, and (16 U.S.C. 1 et seq.); and Federal requirement to provide docu- Talbot Counties, Maryland, relating to the (2) the Act of August 21, 1935 (16 U.S.C. 461 mentation of their citizenship status. life of Harriet Tubman and the Underground et seq.). Railroad. (b) PARK REGULATIONS.—Notwithstanding Recent reports indicate that tens-of- (g) GENERAL MANAGEMENT PLAN.— subsection (a), regulations and policies appli- thousands of U.S. citizens, and in par- (1) IN GENERAL.—Not later than 3 years cable to units of the National Park System ticular children, inappropriately are after the date on which funds are made avail- shall apply only to Federal land adminis- being denied Medicaid benefits simply able to carry out this subsection, the Sec- tered by the National Park Service that is because they don’t have access to retary, in coordination with the State of located within the boundary of the Harriet newly required documentation. The ar- Tubman Underground Railroad National His- Maryland, political subdivisions of the ticles below and report by the Center State, and the United States Fish and Wild- torical Park. life Service, shall complete a general man- SEC. 7. AUTHORIZATION OF APPROPRIATIONS. on Budget and Policy Priorities high- agement plan for the Historical Park in ac- (a) IN GENERAL.—There are authorized to light this very serious problem. Hos- cordance with section 12(b) of Public Law 91– be appropriated such sums as are necessary pitals, physicians, and pharmacies may 383 (16 U.S.C. 1a–7(b)). to carry out this Act (other than subsection not be willing to treat these individ- (2) COORDINATION.—The Secretary shall co- (b)), including the provision of National Park uals until they have a source of pay- ordinate the preparation and implementa- Service personnel and National Park Service ment, but they cannot qualify for Med- tion of the general management plan for the management funds for the Harriet Tubman icaid until they produce a birth certifi- Historical Park with— National Historical Park and the Harriet Tubman Underground Railroad National His- cate and ID. (A) the Harriet Tubman National Histor- This new Federal requirement was ical Park in Auburn, New York; torical Park. (B) the National Underground Railroad: (b) GRANTS.—There are authorized to be added to Medicaid by the Deficit Re- Network to Freedom; appropriated not more than— duction Act of 2005, DRA, enacted Feb- (C) the Maryland Harriet Tubman Under- (1) $11,000,000 to provide grants to the ruary 8, 2006. The Tax Relief and Church for— ground Railroad State Park; and Health Care Act of 2006, TRHCA, signed (A) historic preservation, rehabilitation, (D) the Harriet Tubman Underground Rail- and restoration of resources within the into law December 20, 2006, included road Byway in Dorchester and Caroline boundary of the Harriet Tubman National some amendments to the DRA citizen- Counties, Maryland. Historical Park; and ship documentation requirement, pri- (3) PRIORITY TREATMENT.—The general (B) the costs of design, construction, in- marily to exempt certain groups. Prior management plan for the Historical Park stallation, and maintenance of exhibits and shall give priority to, with the concurrence to enactment of the DRA, states were other interpretive devices authorized under of the owner of the property, the adequate permitted to use their discretion in re- section 4(d)(1)(B); protection of, interpretation of, public ap- quiring such citizenship documenta- (2) $11,000,000 for grants to the State of preciation for, archaeological investigation tion. Maryland, political subdivisions of the State of, and research on Stewart’s Canal, the Under Section 6036 of the DRA, citi- of Maryland, and nonprofit organizations for Jacob Jackson home site, the Brodess Farm, activities authorized under subsections (d)(1) zens applying for or renewing their the Ben Ross and Anthony Thompson prop- and (e)(4)(A) of section 5; and Medicaid coverage must provide ‘‘satis- erties on Harrisville Road, and the James (3) $200,000 for fiscal year 2010 and each fis- factory documentary evidence of citi- Cook site, all of which are privately owned cal year thereafter for competitive grants to zenship or nationality.’’ The DRA and located in the area identified as the historically Black colleges and universities, ‘‘Harriet Tubman Historic Area’’ on the map specifies documents that are accept- Predominately Black Institutions, and mi- described in subsection (b)(1). able for this purpose and authorizes the (h) BLACKWATER NATIONAL WILDLIFE REF- nority serving institutions for research into HHS Secretary to designate additional the life of Harriet Tubman and the African- UGE.— acceptable documents. No Federal American experience during the years that (1) INTERAGENCY AGREEMENT.—The Sec- matching funds are available for serv- retary shall ensure that, not later than 1 coincide with the life of Harriet Tubman. (c) COST-SHARING REQUIREMENT.— ices provided to individuals who de- year after the date of enactment of this Act, clare they are citizens or nationals un- the National Park Service and the United (1) CHURCH AND VISITOR CENTER GRANTS.— States Fish and Wildlife Service enter into The Federal share of the cost of activities less the state obtains satisfactory evi- an interagency agreement that— provided grants under paragraph (1) or (2) of dence of their citizenship or deter- (A) promotes and mutually supports the subsection (b) and any maintenance, con- mines that they are subject to a statu- compatible stewardship and interpretation of struction, or utility costs incurred pursuant tory exemption. Harriet Tubman resources at the Blackwater to a cooperative agreement entered into According to a CRS Report for Con- under section 4(d)(1)(A) or section 5(e) shall National Wildlife Refuge; and gress updated April 15, 2008, ‘‘Based on (B) provides for the maximum level of co- not be more than 50 percent. (2) HISTORICALLY BLACK COLLEGES AND UNI- a recent survey by the Government Ac- operation between those Federal agencies to countability Office, GAO, 22 of 44 states further the purposes of this Act. VERSITIES.—The Federal share of the cost of activities provided assistance under sub- report declines in enrollment due to (2) EFFECT OF ACT.—Nothing in this Act modifies, alters, or amends the authorities of section (b)(3) shall be not more than 75 per- the new citizenship documentation re- the United States Fish and Wildlife Service cent. quirement. Based on another survey by in the administration and management of (3) FORM OF NON-FEDERAL SHARE.—The non- the Kaiser Commission on Medicaid the Blackwater National Wildlife Refuge. Federal share required under this subsection and the Uninsured, 13 states report a (i) DUTIES OF OTHER FEDERAL ENTITIES.— may be in the form of in-kind contributions of goods or services fairly valued. significant negative impact on enroll- Any Federal entity conducting, supporting, ment and another 24 states report a permitting, or licensing activities directly affecting nationally significant land within By Mr. BINGAMAN (for himself modest impact. Among seven states de- the area identified as the ‘‘Harriet Tubman and Mr. AKAKA): tailed in an earlier report from the Historic Area’’ on the map described in sub- S. 228. A bill to amend title XIX of Center on Budget and Policy Priorities, section (b)(1) shall— the Social Security Act to permit only Wisconsin has a data system that

VerDate Nov 24 2008 02:12 Jan 14, 2009 Jkt 079060 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\CR\FM\A13JA6.024 S13JAPT1 smartinez on PROD1PC64 with SENATE S346 CONGRESSIONAL RECORD — SENATE January 13, 2009 can identify denials and terminations Fourth, the legislation also clarifies 1115 of the Social Security Act (42 U.S.C. due to a lack of citizenship documenta- ambiguities in Federal law to ensure 1315), or any other provision of law, the Sec- tion, and it reports that about 19,000 that these citizen children, regardless retary of Health and Human Services may not waive the requirements of section people had their Medicaid eligibility of the immigration status of their par- 1902(a)(46)(B) of such Act (42 U.S.C. denied or terminated for this reason ents, are treated like all other low-in- 1396a(a)(46)(B)) with respect to a State. between July 31, 2006, and March 1, come children born in the United (c) CONFORMING AMENDMENTS.—Section 2007.’’ States and are deemed eligible to re- 1903 of such Act (42 U.S.C. 1396b) is amend- A second wave study conducted from ceive Medicaid services for one year. ed— September 2007–March 2008 by the De- Finally, the legislation also ensures (1) in subsection (i)— partment of Health Policy at the that the thousands of citizen children (A) in paragraph (20), by adding ‘‘or’’ after the semicolon; George Washington University School and adults, who were erroneously de- (B) in paragraph (21), by striking ‘‘; or’’ and of Public Health published October nied Medicaid coverage, may receive inserting a period; and 2008, ‘‘Another distressing finding is retroactive Medicaid eligibility for (C) by striking paragraph (22); and the impact the citizenship documenta- coverage they were inappropriately de- (2) in subsection (x)— tion requirements appear to be having nied because of citizenship verification (A) by striking paragraphs (1) and (3); on SCHIP. Many states, for important requirements. (B) by redesignating paragraph (2) as para- reasons, use joint applications for both I urge my colleagues in the Senate to graph (1); Medicaid and separate SCHIP pro- support this critical legislation, which (C) in paragraph (1), as so redesignated, by striking ‘‘paragraph (1)’’ and inserting ‘‘sec- grams. The effect, however, is to apply protects low-income U.S. citizens from tion 1902(a)(46)(B)’’; and the citizenship documentation require- being inappropriately denied Medicaid (D) by adding at the end the following new ments to both programs, thereby de- coverage because of lack of documenta- paragraph: laying coverage for both groups of chil- tion. ‘‘(2) In the case of an individual declaring dren.’’ Mr. President, I ask unanimous con- to be a citizen or national of the United ‘‘Even if most or all of the reported sent that the text of the bill and let- States with respect to whom a State requires Medicaid enrollment declines are due ters of support be printed in the the presentation of satisfactory documen- tary evidence of citizenship or nationality to the citizenship documentation re- RECORD. under section 1902(a)(46)(B), the individual quirement, a key question is whether There being no objection, the mate- shall be provided at least the reasonable op- the people who are being denied, termi- rial was ordered to be printed in the portunity to present satisfactory documen- nated, or deterred from applying are RECORD, as follows: tary evidence of citizenship or nationality U.S. citizens, rather than unauthorized S. 228 under this subsection as is provided under aliens or other ineligible noncitizens. Be it enacted by the Senate and House of Rep- clauses (i) and (ii) of section 1137(d)(4)(A) to an individual for the submittal to the State resentatives of the United States of America in Of the 22 states reporting enrollment of evidence indicating a satisfactory immi- Congress assembled, declines to GAO, a majority (16 states) gration status.’’. SECTION 1. STATE OPTION TO REQUIRE CERTAIN attribute them to Medicaid coverage SEC. 2. CLARIFICATION OF RULES FOR CHIL- INDIVIDUALS TO PRESENT SATIS- delays or losses for people who appear DREN BORN IN THE UNITED STATES FACTORY DOCUMENTARY EVIDENCE TO MOTHERS ELIGIBLE FOR MED- to be U.S. citizens.’’ OF PROOF OF CITIZENSHIP OR NA- ICAID. It is important to note that citizen- TIONALITY FOR PURPOSES OF ELI- GIBILITY FOR MEDICAID. Section 1903(x) of such Act (42 U.S.C. ship documentation requirements do 1396b(x)), as amended by section 1(c)(2), is (a) IN GENERAL.—Section 1902(a)(46) of the not affect Medicaid rules relating to amended— immigrants—they apply to individuals Social Security Act (42 U.S.C. 1396a(a)(46)) is amended— (1) in paragraph (1)— claiming to be citizens. Most new legal (1) by inserting ‘‘(A)’’ after ‘‘(46)’’; (A) in subparagraph (C), by striking ‘‘or’’ immigrants are excluded from Med- (2) by adding ‘‘and’’ after the semicolon; at the end; icaid during their first five years in the and (B) by redesignating subparagraph (D) as U.S. and undocumented immigrants re- (3) by adding at the end the following new subparagraph (E); and main eligible for Medicaid emergency subparagraph: (C) by inserting after subparagraph (C) the ‘‘(B) at the option of the State and subject following new subparagraph: services only. ‘‘(D) pursuant to the application of section The legislation I am introducing to section 1903(x), require that, with respect to an individual (other than an individual de- 1902(e)(4) (and, in the case of an individual would make several very important who is eligible for medical assistance on changes to current law to ensure that scribed in section 1903(x)(1)) who declares to be a citizen or national of the United States such basis, the individual shall be deemed to U.S. citizens receive the Medicaid to for purposes of establishing initial eligibility have provided satisfactory documentary evi- which they are entitled. for medical assistance under this title (or, at dence of citizenship or nationality and shall First, the legislation would restore State option, for purposes of renewing or re- not be required to provide further documen- citizenship verification to a state op- determining such eligibility to the extent tary evidence on any date that occurs during tion. Specifically, states would be per- that such satisfactory documentary evidence or after the period in which the individual is eligible for medical assistance on such mitted to determine when and to what of citizenship or nationality has not yet been presented), there is presented satisfactory basis); or’’; and extent citizenship verification is re- (2) by adding at the end the following new quired of U.S. Citizens. States would documentary evidence of citizenship or na- tionality of the individual (using criteria de- paragraph: ‘‘(3) Nothing in subparagraph (A) or (B) of also be permitted to utilize the stand- termined by the State, which shall be no section 1902(a)(46), the preceding paragraphs ards most appropriate to the their pop- more restrictive than the criteria used by ulation as long as such standards were of this subsection, or the Deficit Reduction the Social Security Administration to deter- Act of 2005, including section 6036 of such no more stringent than those currently mine citizenship, and which shall accept as Act, shall be construed as changing the re- used by the Social Security Adminis- such evidence a document issued by a feder- quirement of section 1902(e)(4) that a child tration and includes native American ally-recognized Indian tribe evidencing mem- born in the United States to an alien mother tribal documents when appropriate. bership or enrollment in, or affiliation with, for whom medical assistance for the delivery Second, the legislation would ensure such tribe (such as a tribal enrollment card of such child is available as treatment of an that individuals are afforded a reason- or certificate of degree of Indian blood, and, emergency medical condition pursuant to with respect to those federally-recognized able time period to provide citizenship subsection (v) shall be deemed eligible for Indian tribes located within States having medical assistance during the first year of documentation utilizing the same rea- an international border whose membership such child’s life.’’. sonable time period standard that is includes individuals who are not citizens of SEC. 3. EFFECTIVE DATE. available to legal immigrants to pro- the United States, such other forms of docu- (a) RETROACTIVE APPLICATION.—The vide satisfactory evidence of their im- mentation (including tribal documentation, amendments made by this Act shall take ef- migration status. if appropriate) that the Secretary, after con- fect as if included in the enactment of the Third, the legislation protects chil- sulting with such tribes, determines to be Deficit Reduction Act of 2005 (Public Law dren who are U.S. citizens by virtue of satisfactory documentary evidence of citi- 109–171; 120 Stat. 4). zenship or nationality for purposes of satis- (b) RESTORATION OF ELIGIBILITY.—In the being born in the United States from fying the requirement of this subpara- case of an individual who, during the period being denied coverage after birth be- graph));’’. that began on July 1, 2006, and ends on the cause of citizenship verification re- (b) LIMITATION ON WAIVER AUTHORITY.— date of enactment of this Act, was deter- quirements. Notwithstanding any provision of section mined to be ineligible for medical assistance

VerDate Nov 24 2008 02:12 Jan 14, 2009 Jkt 079060 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\CR\FM\A13JA6.025 S13JAPT1 smartinez on PROD1PC64 with SENATE January 13, 2009 CONGRESSIONAL RECORD — SENATE S347 under a State Medicaid program solely as a is for people to claim benefits or sign affida- The children did not get their shots. result of the application of subsections (i)(22) vits swearing they are citizens without any During September and October, 1,600 low- and (x) of section 1903 of the Social Security verification.’’ income people, many of them children, were Act (as in effect during such period), but who In an interview Sunday, Dr. Mark B. rejected by Alabama’s Medicaid program be- would have been determined eligible for such McClellan, administrator of the Centers for cause of tougher federal rules. They require assistance if such subsections, as amended Medicare and Medicaid Services, said, ‘‘We applicants to show an original birth certifi- by sections 1 and 2, had applied to the indi- want to provide an effective way to docu- cate or a copy purchased from the state vidual, a State may deem the individual to ment citizenship without placing excessive Health Department with a raised seal, plus a be eligible for such assistance as of the date burdens on states or beneficiaries.’’ driver’s license or other proof of citizenship that the individual was determined to be in- In the letter to state Medicaid directors, and identity when signing up for Medicaid eligible for such medical assistance on such the administration says, ‘‘An applicant or benefits. basis. recipient who fails to cooperate with the Many more people eventually could lose state in presenting documentary evidence of benefits if they can’t produce the necessary [From the New York Times, June 5, 2006] citizenship may be denied or terminated’’ documents. from the program. The new rules took effect July 1 and are MEDICAID RULES TOUGHENED ON PROOF OF The requirements will be enforced when a part of the 2005 Deficit Reduction Act. Con- CITIZENSHIP person applies for Medicaid or when eligi- gress approved the law because of concern (By Robert Pear) bility is first recertified on or after July 1. In that illegal immigrants were signing up for WASHINGTON, June 4.—The Bush adminis- general, applicants and recipients will have Medicaid en masse. Instead of curbing wide- tration plans this week to issue strict stand- 45 days to provide documents. People with spread fraud, advocates argue, the new rules ards requiring more than 50 million low-in- disabilities will have 90 days. deter poor U.S. citizens from getting health come people on Medicaid to prove they are States typically redetermine eligibility coverage. United States citizens by showing passports every 3 to 12 months. ‘‘Once citizenship has ‘‘Under the best of circumstances, many or birth certificates and a limited number of been proved, it need not be documented people would be surprised to have to produce other documents. again’’ because it does not normally change, documentation of their citizenship,’’ said The new standards follow a tussle with the administration said. Jim Carnes of Alabama Arise, an advocacy Congress. Federal health officials had con- But the guidelines include a significant group for the poor. sidered giving states broad discretion to ac- ambiguity: ‘‘An individual who is already en- Alabama Medicaid Commissioner Carol cept affidavits in place of official documents. rolled in Medicaid will remain eligible if he Herrmann-Steckel said the state is working But House Republicans complained, and the or she showed a good-faith effort to present hard to keep people on the Medicaid rolls. administration backed off, allowing affida- satisfactory evidence of citizenship and iden- Unlike some other states, Alabama is not vits ‘‘only in rare circumstances.’’ tity, even if this effort takes longer than 45 kicking current Medicaid recipients off the The requirements, which take effect July days.’’ The administration says that ‘‘bene- program if they do not possess the necessary 1, carry out a law signed by President Bush ficiaries will not lose benefits as long as they documents. Under a provision called ‘‘rea- on Feb. 8. are undertaking a good-faith effort to pro- sonable assurance,’’ current Medicaid recipi- They vividly illustrate how concern about vide documentation.’’ ents are allowed to temporarily re-enroll. illegal immigration is affecting domestic so- States have a strong incentive to enforce Medicaid beneficiaries must re-enroll every cial welfare policy. The purpose of the law the requirements. If they fail to do so, they year. ‘‘We are doing everything we can to verify was to conserve federal money for citizens, can lose federal Medicaid money. citizenship. We want to be fair to the Ala- reducing the need for states to cut Medicaid The guidelines say states should help peo- bamians who are on Medicaid,’’ Herrmann- benefits or limit eligibility. ple document citizenship, especially if they Gov. Rick Perry of Texas won enthusiastic are homeless, mentally impaired or phys- Steckel said. However, federal government applause at a state Republican convention ically incapacitated and have no one to act officials have not said how long the ‘‘reason- on Friday when he vowed to increase border on their behalf. able assurance’’ period could last. The num- security and said, ‘‘Texas will start requiring The guidelines list four categories of docu- ber of people who could lose Medicaid bene- every Medicaid applicant to verify that they ments that can be used as evidence of citi- fits would be ‘‘significant.’’ Herrmann- are in the country legally in order to receive zenship, from the most reliable to the least Steckel said. Medicaid is a joint federal-state health benefits.’’ trustworthy. The best evidence, they say, is care program for the poor and disabled, and But officials in some other states and ad- a United States passport or a certificate of it is a major provider of medical care in Ala- vocates for the poor said the new require- naturalization. The next category includes bama. Medicaid pays for the health care of ments could cause hardship for children, state and local birth certificates and State nearly 1 million Alabamians, about 20 per- older Americans and poor people born at Department documents issued to children cent of the state’s population, Herrmann- home in rural areas who never received birth born abroad to United States citizens. The third category consists of nongovern- Steckel said. certificates. Children account for about half Advocates fear many poor people can no of Medicaid recipients. People 65 and older ment documents showing place of birth. These include medical records from doctors, longer enroll in Medicaid because they can- account for about 10 percent. not locate their birth certificate, or afford to Jennifer M. Ng’andu, a health policy spe- hospitals and clinics; nursing home admis- buy a copy, and do not have the required cialist at the National Council of La Raza, a sion papers; and records from life and health insurance companies. proof of citizenship such as a photo ID. Hispanic rights group, said, ‘‘The docu- The cost of obtaining a birth certificate is mentation requirements will cause confusion The fourth category includes affidavits, which can be used ‘‘only in rare cir- a challenge for many low-income people, about eligibility and will put up barriers to Carnes said, as is transportation to present enrollment.’’ cumstances when the state is unable to se- cure evidence of citizenship’’ from other the documents. The state Department of In general, Medicaid is available only to Public Health charges $12 to search for a United States citizens and to certain ‘‘quali- sources. ‘‘An affidavit must be supplied by at least birth certificate. fied aliens.’’ Before the new standards, in There is currently no way to tell if the many states, people who declared they were two individuals, one of whom is not related to the applicant or recipient,’’ the guidelines 1,600 who were denied coverage were illegal citizens did not have to support the claim. immigrants or U.S. citizens without the But in a letter being sent this week to say. ‘‘Each must attest to having personal knowledge of the events establishing the ap- proper documents. But anecdotal evidence state officials, the Bush administration says, from Medicaid workers suggests some were ‘‘Self-attestation of citizenship and identity plicant’s or recipient’s claim of citizenship. The individuals making the affidavit must just poor American parents. Medicaid work- is no longer an acceptable practice.’’ ers asked people who had been denied cov- In the law, Congress listed examples of be able to provide proof of their own citizen- ship and identity.’’ erage why they didn’t have the proper paper- documents that could be used to show citi- work. zenship, and it said the secretary of health People signing affidavits may also be asked ‘‘why documentary evidence of citi- ‘‘By and large the reason was, ‘I can’t af- and human services could ‘‘by regulation’’ ford to buy four birth certificates,’ ’’ said Lee specify other acceptable documents. zenship does not exist or cannot be readily obtained.’’ Rawlinson, deputy Medicaid commissioner The main proponents of the new require- for beneficiary services. ments were two Republican House members [From the Birmingham News, Dec. 4, 2006] Herrmann-Steckel said the state is doing from Georgia, Representatives Charlie Nor- everything possible to help Medicaid-eligible MEDICAID RULES PUT PINCH ON POOR, LACK wood and Nathan Deal. people obtain the documents. John E. Stone, a spokesman for Mr. Nor- OF PROOF NEEDED FOR PLAN KEEPS MANY The Department of Public Health has wood, said Sunday: ‘‘Charlie provided feed- FROM HELP agreed to begin faxing Medicaid officials cop- back to the administration in the last two (By Kim Chandler) ies of birth certificates as a last resort for weeks to make sure the regulations would The four children in her office needed im- applicants who can’t obtain their own. The not undermine the intent of the law. Obvi- munizations. But because their mother did two agencies will split the cost. ously you need some flexibility so that a 92– not have their original birth certificates, and Transportation also is a problem for some year-old woman with Alzheimer’s does not couldn’t buy a copy, the family could not en- families, Carnes said. While people pre- get kicked off Medicaid. What’s unacceptable roll in Medicaid, Dr. Marsha Raulerson said. viously could renew their Medicaid status by

VerDate Nov 24 2008 02:52 Jan 14, 2009 Jkt 079060 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\CR\FM\A13JA6.026 S13JAPT1 smartinez on PROD1PC64 with SENATE S348 CONGRESSIONAL RECORD — SENATE January 13, 2009 mail, the new rules require a trip to see a to the 2007 Legislature, which convenes Jan. portion of the Kansas City area, said federal Medicaid eligibility worker in person. 8. officials were aware of states’ problems with ‘‘There are all sorts of barriers, particu- ‘‘We’re certainly going to put some of the new rules and probably would work on it larly for people without transportation and them in place,’’ she said. ‘‘We’re trying to when the new Congress takes office in Janu- who may not have had a documented birth to make a careful analysis of how many we ary. begin with,’’ Carnes said. need.’’ f Raulerson said she cares for a family in She said that if the state refuses to comply Monroe County that once had Medicaid bene- with the law, it could face the loss of all fed- SUBMITTED RESOLUTIONS fits but, without a car, has not been able to eral health care dollars. renew their coverage. ‘‘We don’t have a lot of latitude to say Medicaid officials say they don’t know how we’re not going to do this,’’ she said. ‘‘There SENATE RESOLUTION 13—CON- many Alabamians have lost their Medicaid are literally hundreds of millions of dollars GRATULATING THE UNIVERSITY benefits because they couldn’t, or didn’t, at stake.’’ visit an eligibility worker. Meanwhile, Sebelius expressed concern OF FLORIDA FOOTBALL TEAM The Alabama Medicaid Agency is also about a federal law on driver’s licenses FOR WINNING THE 2008 BOWL working with other state agencies, such as passed last year. CHAMPIONSHIP SERIES (BCS) NA- the Department of Mental Health and Men- Starting in 2008, federal agencies won’t TIONAL CHAMPIONSHIP tal Retardation, to see if they’ve already treat a state’s licenses as valid ID unless a Mr. NELSON of Florida (for himself verified a person’s citizenship, she said. state requires license applicants to docu- People who also receive Medicare, the ment that they’re living in the United States and Mr. MARTINEZ) submitted the fol- health care program for seniors, or Supple- legally. Lack of ID could prevent someone lowing resolution; which was referred mental Security Income for a disability were from entering a federal building or boarding to the Committee on the Judiciary: exempted from the requirements after state a plane. S. RES. 13 Medicaid officials from across the country Sebelius said the law will require local Whereas on January 8, 2009, before a crowd complained that would be too burdensome. driver’s licenses offices to certify that some- of more than 78,000 fans in Miami, Florida, Other states are struggling to comply as one has the proper documentation and to the University of Florida Gators won the 2008 well. store the information. Bowl Championship Series (BCS) national California has yet to implement the new ‘‘Exactly how that’s going to happen, we’re title with a stunning 24–14 triumph over the federal rules. Vermont and other states are not quite sure,’’ Sebelius said. ‘‘We don’t ba- University of Oklahoma Sooners; phasing in the regulations. While the law sically have any of the equipment that’s re- Whereas the University of Florida is one of was designed to cut down on Medicaid fraud quired to do that in any of the rural areas.’’ the premier academic institutions in the by illegal immigrants, Herrmann-Steckel State of Florida; said she does not believe Alabama has a THOUSANDS IN KANSAS OFF MEDICAID Whereas the University of Florida Gators widespread problem of illegal aliens receiv- FOLLOWING CITIZENSHIP RULES captured the Southeastern Conference cham- ing Medicaid. Thousands of low-income Kansans have pionship title on December 6, 2008; lost or been denied state health care cov- Whereas University of Florida football NEW MEDICAID RULES COULD COST STATE erage because of new rules requiring them to Head Coach Urban Meyer has won 2 BCS na- MILLIONS prove they are American citizens, state offi- tional championship games in the past 3 (By John Hanna) cials say. years; The state could face millions of dollars in Since the federally mandated rules took ef- Whereas University of Florida quarterback additional costs because of federal rules re- fect July 1, the number of Medicaid recipi- Tim Tebow was named the Most Outstanding quiring Medicaid recipients to verify their ents in Kansas has decreased by about 18,000, Player of the BCS national title; citizenship, Gov. Kathleen Sebelius said to 253,000. While officials can’t determine ex- Whereas Tim Tebow won the Maxwell Wednesday. actly how much of the 7 percent drop can be Award for the second time in 2 years; Sebelius said she’s worried the state will attributed to the new rules, they believe Whereas the University of Florida defense have to pick up the full cost of caring for much of it can. held the University of Oklahoma to only 363 some poor, frail and elderly Kansans who are ‘‘The impact to the consumer has been se- yards of offense in the BCS championship living in nursing homes, instead of sharing vere,’’ said John Anzivino, a vice president game; the cost with the federal government. Also, for MAXIMUS, a Reston, Va., company that Whereas the Gators finished 2008 ranked she said, she will propose adding state em- helps administer the joint federal-state Med- first in the Associated Press Poll and first in ployees to verify the citizenship status of icaid program in Kansas. ‘‘From our perspec- the Coaches Poll; Medicaid recipients and applicants. tive, this has possibly been the most dra- Whereas the Gators finished the 2008 sea- The governor told reporters she hopes Con- matic change and challenge to the Medicaid son with a record of 13–1; gress reviews the issue and other attempts to program since its inception.’’ Whereas the University of Florida student prevent illegal immigrants from obtaining The new rules were included in last year’s athletes are among the most talented in the social services or using driver’s licenses as federal deficit reduction law and were de- Nation; identification. signed to prevent illegal immigrants from Whereas University of Florida fans world- ‘‘There was no input from the states on enrolling in the state programs providing wide supported and encouraged the Gators how realistic these were or what the cost health coverage. throughout the football season; was,’’ Sebelius said during a brief news con- But consumer advocates said many vulner- Whereas University of Florida President J. ference following an unrelated meeting. able people who legitimately were eligible Bernard Machen and Athletic Director Jer- Under Medicaid requirements that took ef- for assistance would lose coverage because emy N. Foley have shown great leadership in fect July 1, recipients must provide either a they couldn’t produce the necessary docu- bringing success and glory to the University passport or two other documents, such as a mentation. of Florida; and birth certificate and a driver’s license, to ‘‘We expect that many of these that have Whereas the University of Florida stu- verify citizenship. lost coverage will regain coverage once they dents, faculty, alumni, and all Gator fans are While the measure is targeted at illegal have gathered and provided the necessary deeply committed to bringing pride to the immigrants, some advocates for the needy documentation,’’ Marcia Nielsen, executive University of Florida and the entire State of have worried that citizens will either lose or director of the Kansas Health Policy Author- Florida: Now, therefore, be it be denied services because they have trouble ity, told the Lawrence Journal-World. ‘‘They Resolved, That the Senate— finding the necessary documents. will, however, experience a gap in coverage (1) congratulates the University of Florida State officials say the number of Kansans that could prove to be significant for some.’’ Gators for winning the 2008 Bowl Champion- covered by Medicaid dropped almost 7 per- Medicaid applicants can prove their citi- ship Series (BCS) national championship; cent since July 1, down to 253,000 from zenship by providing a passport. Or they can (2) recognizes the achievements of the 271,000. They believe much of the decline can provide other documents that verify both players, coaches, students, and staff whose be attributed to the new requirements. their citizenship, such as a birth certificate, hard work and dedication helped the Univer- Typically, every $1 the state spends on and their identities, such as a driver’s li- sity of Florida Gators win the championship; Medicaid is matched by about $1.50 from the cense. and federal government. If someone loses their Anzivino said most people seeking benefits (3) respectfully requests the Secretary of coverage, then the state faces paying the en- don’t have a passport and are left scrambling the Senate to transmit an enrolled copy of tire bill for their services, Sebelius said. to find birth certificates and other docu- this resolution to— ‘‘You’re at 100 percent state dollars or push ments: (A) the University of Florida for appro- them out the door,’’ she said. The number of calls each month to a Kan- priate display; Also, Sebelius said, the state needs to sas Medicaid clearinghouse has more than (B) President of the University of Florida, ‘‘ramp up’’ its staffing to handle the addi- doubled to 49,000 from 23,000, official said. J. Bernard Machen; tional verification work. The governor is Meanwhile, Rep. Dennis Moore, a Demo- (C) Athletic Director of the University of working on the budget proposal she’ll submit crat whose district is centered on the state’s Florida, Jeremy N. Foley; and

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