May 23, 1991 EXTENSIONS OF REMARKS 12593 EXTENSIONS OF REMARKS THE INTRODUCTION OF THE GE­ Fourth, the bill will require the mandatory Debarment may be terminated within 180 NERIC DRUG ENFORCEMENT ACT withdrawal of any generic drug approval illicitly days or at end of minimum period upon ap­ OF 1991 obtained and the permissive withdrawal of ap­ plication to Secretary if the Secretary finds: provals where the company has repeatedly (A) no basis for its continuation and there are reasonable assurances that actions will HON. JOHN D. DINGEil failed to live up to its commitments to FDA. not recur; and (B) sufficient audits dem­ OF MICHIGAN Fifth, it will establish a series of civil pen­ onstrate that pending applications are free IN THE HOUSE OF REPRESENTATIVES alties for action corrupting the approval proc­ of fraud or material false statements. Thursday, May 23, 1991 ess. [306( d)(3)] Finally, it provides standby investigational Debarment may be terminated at any time Mr. DINGELL. Mr. Speaker, I am proud to authority for the Health and Human Services if a company can prove that its conviction introduce with my distinguished colleagues, Inspector General concerning Food and Drug was based on conduct of an employee who the Honorable THOMAS J. BULEY, the ranking Administration matters, including drug diver­ was not a high managerial agent and who was acting without the knowledge of top of­ Republican member of the Subcommittee on sion and fraud on the agency. Oversight and Investigation, the Honorable ficials in the corporation. [306(d)(4)] Undoubtedly, some generic firms will op­ The Secretary shall make public a list of HENRY A. WAXMAN, the chairman of the Sub­ pose this legislation, particularly those which debarred individuals and companies. [306(e)] committee on Health and Environment, the are or will be the targets of Federal criminal Permits the Secretary to temporarily Honorable NORMAN F. LENT, the ranking Re­ investigations. However, we do expect support withhold a generic drug approval for up to 18 publican member of the Committee on Energy from a majority of the honest generic drug months if he determines that a firm or indi­ and Commerce and 37 other members of the firms that recognize the importance of cleans­ vidual that is under an active Federal crimi­ Committee on Energy and Commerce, the Ge­ ing the industry of those who would corrupt nal investigation, has engaged in (1) bribery or attempted bribery of an IIllS employee in neric Drug Enforcement Act of 1991. the generic drug approval process. This bill is designed to be remedial in na­ connection with a generic drug, or (2) a pat­ The rapidly rising cost of drugs is severely tern of false statements or representations ture. Its purpose is to protect the integrity of taxing the resources of individuals and govern­ relating to any generic drug and (3) a signifi­ the generic drug approval process, restore mental entities. The American consumer has a cant question has been raised regarding the consumer confidence in generic drugs and to right to safe, effective, and low-priced generic integrity of the approval process with re­ create a strong deterrent to future misconduct. drugs. Unscrupulous individuals and, in a few spect to such generic drug. This period of de­ As many of you know, the Subcommittee on cases, firms, should not be allowed to under­ nial can be extended for an additional 18 Oversight and Investigation discovered signifi­ mine the public confidence in the industry that months if the firm has been indicted. [306(f)] Creates suspension authority covering the cant corruption in the Food and Drug Adminis­ provides us with low-cost alternatives to pre­ tration's process for approving drugs under distribution of all generic drugs produced by scription medication. It is essential that we companies under active Federal criminal in­ abbreviated drug applications. As a result of enact legislation that would bar such individ­ vestigations for corrupting the approval subsequent probes by the U.S. attorney in uals and firms from further participation in this process after a determination that such com­ Baltimore, the FDA, and the subcommittee, important business. Therefore, I urge my col­ panies have committed such an offense or there have been 18 criminal guilty pleas and leagues to support the Generic Drug Enforce­ that they have repeatedly failed to live up to convictions, scores of products have been re­ ment Act of 1991. their commitments to the FDA if such ac­ called or withdrawn, and 5 of the top 1O ge­ tion influences the safety and efficacy of A section-by-section description of the bill such drugs. [406(g)(l)] neric drug firms have been implicated in cor­ follows: ruption, fraud, or false statements. This legis­ The Secretary can waive suspension on SECTION-BY-SECTION DESCRIPTION OF THE public health grounds. [306(g)(2)] lation is essential to restore the confidence of GENERIC DRUG LEGISLATION The suspension order can be withdrawn if the American people in generic drugs and to Section 1-The title is the "Generic Drug (1) the suspended drugs have been satisfac­ assure that the Food and Drug Administration Enforcement Act of 1991." torily audited to assure they meet FDA [FDA] has sufficient authority to act against Section 2-New Section 306 (Debarment) standards and the person presents evidence those individuals and companies who subvert gives the Secretary authority to refuse to of ownership, management, and operational the generic drug approval process. accept, review or approve generic drug appli­ reforms to satisfactorily remedy the pattern The provisions of the enforcement bill will, cations for companies under specified cir­ of practice of acts causing the suspension or among other things, establish new procedures cumstances. (2) the initial determination was in error. In­ Creates mandatory debarment for firms formation submitted to the Secretary shall designed to ensure the continued integrity of and/or individuals from involvement in the be made public. [306(h)] FDA's generic drug approval process. generic drug approval process for felony The Secretary may not take any action First, it will protect the future honesty of the criminal convictions in connection with the with respect to debarment, the period of de­ system by requiring or permitting the Sec­ development or approval of generic drugs. barment, the termination of debarment, sus­ retary of the Department of Health and Human [306(a)] pension or termination of suspension with­ Services [HHS] to debar from future generic Creates permissive debarment of firms and/ out providing a full Administration Proce­ drug approvals, for at least 1 year, those firms or individuals by the Secretary for (1) a dure Act hearing on disputed issues of mate­ and individuals convicted or materially impli­ criminal conviction in connection with an rial fact. The Secretary is provided addi­ activity relating to the development or ap­ tional authorities to conduct discovery dur­ cated in bribery, fraud, false statements, or proval of generic drugs, (2) a criminal con­ ing these hearings. [306(i)] other crimes which undermine FDA approval viction for bribery, fraud, or similar crimes, Any person that is subject to final decision process. (3) a criminal conviction related to obstruc­ under this section has a right of judicial re­ Second, it will permit the temporary denial tion of justice, (4) being a material partici­ view. [306(j)] of generic drug approvals for up to 18 months, pant in such crimes, or (5) knowing use of a Sets forth the definition of "conviction" with one possible 18-month extension, where debarred person. [306(b)] and applies this section to all acts or convic­ the Secretary determines bribery, fraud, or the Under mandatory debarment individuals tions which occurred within the 5 years be­ like has occurred. will be permanently debarred for federal fel­ fore the initiation of the actions proposed to ony convictions relating to the generic drug be taken under this section.· [306(k)] Third, it will grant the Secretary authority to review process, and the minimum period for Section 3-Amends Section 507(j) to add to suspend the distribution of drugs of certain debarment for convicted companies is 1 year. generic drug applications the requirement companies, unless those companies can The maximum period is 10 years. Under per­ that the applicant certify it did not and will prove that some or all of their drugs are un­ missive debarment the maximum period is 5 not use the services of a debarred person in tainted. years. [306(c)] connection with the application.

• This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 12594 EXTENSIONS OF REMARKS May 23, 1991 Section 4-New section 307 (Civil Money The record of our subcOmmittee's generic the emerging generic drug industry would be Penalties). Creates civil money penalties of drug hearings spans well over 1,000 pages of so tempted by the economic advantage up to $250,000 for individuals and $1,000,000 for sworn testimony. In it, we have documented gained by the first firm to obtain approval of a companies committing certain offenses in connection with generic drugs. payment of illegal gratuities and other forms of generic version of a given brand name drug Provides for a list of offenses in connection corruption involving personnel 'in the FDA's Di­ that they would engage in illegal and improper with generic drugs that trigger penalties: (1) vision of Generic Drugs and major segments activity to obtain such approvals. false statements; (2) bribery or gratuity; (3) of the generic drug industry who acted illegally Our consumers deserve the benefit of hon­ destruction of records; (4) failure to make to influence the review of pending generic est drug price competition, but in a regulatory obligated disclosure of a material fact; (5) drug applications. While this scandal was bad environment where the generic drug approval obstruction of an investigation; (6) use of a enough, our continuing probe uncovered a process is no longer tainted and the cloud debarred person; or (7) as a debarred person, shocking tale of deceit involving a host of ge­ subjecting another person to sanction. over the entire industry is lifted. Unfortunately, [307(a)] neric drug companies which obtained approval the scandal has affected not only the many Provisions for notice, and hearing and au­ for their products through fraudulent tests and firms and individuals who actually engaged in thority for the Secretary to conduct discov­ false statements. More recently, we have wrongdoing and reaped its rewards, but ge­ ery and hold hearings. [307(b)] learned that many generic drug companies neric drug firms which did not engage is such Sets forth various considerations the Sec­ have a deplorable record in terms of comply­ behavior. retary shall take into account in determin­ ing with FDA's good manufacturing practices. In conclusion, I am pleased that the ·dif­ ing the amount of a civil penalty. [307(b)] The U.S. attorney's office for Maryland, ferences which prevented passage of this leg­ Sets forth a maximum 10-year statute of where FDA's headquarters is located, has limitation for civil penalties. [307(b)] · islation in the last Congress have been re­ Judicial review provision. [307(c)] been vigorously prosecuting generic drug solved. This is a text book example of how Whistleblower bounty of $250,000 or one­ companies and individuals associated with Congress should function. On a bipartisan half of penalty imposed and collected, which­ these scandals. Just last week, a former direc­ basis, we conducted searching oversight of an ever is less. [307(d)] tor of research and development for one of the important agency, followed the investigative Section &-New Section 308 (Withdrawal) generic drug companies implicated in the leads thoroughly, developed an extensive fac­ Creates explicit authority to withdraw ap­ scandal pleaded guilty to submitting rigged proval of generic drug applications in cases tual record; and not only identified the nature test results to the FDA. The company's ge­ of the problems, but crafted legislation to help of bribery, fraud, or false statements or for neric version of a widely used antihyper- ten­ repeated failure to live up to its commit­ make certain that these problems do not occur ments to FDA. sion medication was not tested against the in the future. I look forward to enactment of Provisions for notice and hearings, and au­ brand name product as required by law. In­ this legislation without further delay. thority for the Secretary to conduct discov­ stead, a quantity of the brand name product ery and judicial review. [308 (b) and (d)] was disguised as the proposed generic and This section applies to improper acts re­ thus the brand name product was tested RULES OF THE JOINT COMMITTEE gardless of when they occurred. [308(c)] against itself. Unsuspecting consumers took ON PRINTING Section &-Gives the Inspector General over $11 million of the untested generic medi­ standby investigational authority concern­ cation. Similar examples abound. ing Food and Drug Administration matters, HON. CHARLIE ROSE including drug diversion and fraud on the The guilty pleas entered last week were not OF NORTH CAROLINA an isolated event. This case is part of a con­ agency. IN THE HOUSE OF REPRESENTATIVES Section 7-Sets forth limited sunshine pro­ tinuing investigation, which to date has re­ visions for generic drug applications. sulted in convictions of five former FDA em­ Thursday, May 23, 1991 Section 8-Defines the terms "abbreviated ployees, nine generic drug company execu­ Mr. ROSE. Mr. Speaker, on April 25, 1991, drug application," "knowingly" and "high tives, one industry consultant, and four generic the Joint Committee on Printing held its orga­ managerial agent." drug companies. Section 9-This Act does not preclude ex­ nizational meeting for the 102d Congress. At isting criminal or civil remedies. During the course of our investigation, we that meeting, I had the privilege to be elected Section 10-Repeals existing Section 305 learned, much to our dismay, that FDA lacks chairman, to serve for the next 2 years. The language requiring notice before the Sec­ sufficient legal authority and resolve to take Honorable WENDELL H. FORD of Kentucky, retary recommends criminal prosecution for adequate enforcement action to protect the was elected vice chairman. any violation of the Food, Drug and Cos­ public health against attack from those who Mr. Speaker, I look forward to my new du­ metic Act. would obtain approval for their products ties at the Joint Committee on Printing and through illegal payments and false statements. working with the other members of the com­ INTRODUCTION OF THE GENERIC Such illegal behavior must be deterred to keep mittee who include our colleagues, SAM GEJD­ DRUG ENFORCEMENT ACT OF 1991 dishonest companies and individuals out of ENSON, GERALD KLECZKA, PAT ROBERTS, and the industry. Thus, the bill we are introducing NEWT GINGRICH, and Senators DENNIS DECON­ today, which is based on a similar bill a num­ CINI, AL GORE, TED STEVENS, and MARK HAT­ HON. THOMAS J. BULEY, JR. ber of us introduced last year, explicitly pro­ FIELD. OF VIRGINIA vides the Secretary of Health and Human The Joint Committee has already held its IN THE HOUSE OF REPRESENTATIVES Services with authority to debar companies first hearing under my chairmanship, which Thursday, Ma_y 23, 1991 and individuals who engage in certain criminal was convened coincident with the organiza­ Mr. BULEY. Mr. Speaker, for almost 3 full activity, as well as temporarily deny new ge­ tional meeting. The hearing addressed the years the Subcommittee on Oversight and In­ neric drug approvals, impose civil money pen­ question of citizens' access to Government in­ vestigations of the Committee on Energy and alties, suspend distribution of products, and formation through the depository library sys­ Commerce, of which I am privileged to serve withdraw product approvals when there is evi­ tem. I anticipate holding another hearing within as the ranking Republican member, has un­ dence that the regulatory process has been the next few weeks concerning the effect of covered a series of scandals in the generic tainted. new technologies on the role and activities of drug industry and the Division of Generic As was the case with the predecessor bill, the Government Printing Office. It is my inten­ Drugs at the Food and Drug Administration H.R. 4810 from the last Congress, the bill we tion to have the committee actively pursue [FDA]. I worked hand in hand with Chairman are introducing today is based on the fact that many topics that I expect will bring about con­ DINGELL on this extensive inquiry, and it is in the generic drug industry, unique among the structive changes in the way the Government that spirit that today we introduce the Generic industries regulated by FDA, is a creature of produces and disseminates information prod­ Drug Enforcement Act of 1991. We are joined the Congress. The generic drug industry took ucts to its citizens. I urge all Members who by the chairman and ranking Republican off after Congress passed legislation in 1984 have thoughts, ideas, or suggestions for im­ member of the Subcommittee on Health and making it easier to obtain approval of pro­ provement in matters under the committee's the Environment, Mr. WAXMAN and Mr. DANNE­ posed generic versions of brand name drugs jurisdiction, to forward them for our consider­ MEYER, the ranking Republican member of the whose patent protection has expired. What ation. Energy and Commerce Committee, Mr. LENT, Congress did not envision when it passed that Finally, Mr. Speaker, at our meeting on April and 36 other members of the committee. law is that so many persons associated with 25, 1991, the Joint Committee adopted its May 23, 1991 EXTENSIONS OF REMARKS 12595 rules for the 102d Congress. In _compliance RULE &-ALTERNATING CHAIRMANSHIP AND VICE staff under the directi001 of the Chairman. A with those rules, I hereby offer them for publi­ CHAIRMANSHIP BY CONGRESSES list of proposed witnesses shall be submitted cation in the CONGRESSIONAL RECORD. (a) The chairmanship and vice chairman­ to the members of the Committee for review ship of the Committee shall alternate be­ sufficiently in advance of the hearings to JOINT COMMITTEE ON PRINTING tween the House and the Senate by Con­ permit suggestions by the Committee mem­ bers to receive appropriate consideration. RULE 1-COMMITTEE RULES gresses. The senior member of the minority party in the House of Congress opposite of (b) The Chairman shall provide adequate (a.) The rules of the Senate a.nd House inso­ that of the chairman shall be the ranking time for questioning of witnesses by all far a.s they a.re applicable, shall govern the minority member of the Committee. members, including minority members, and Committee. (b) In the event the House and Senate are the rule of germaneness shall be enforced in (b) The Committee's rules shall be pub­ under different party control, the chairman all hearings. lished in the Congressional Record a.s soon a.s and vice chairman shall represent the major­ (c) Whenever a hearing is conducted by the possible following the Committee's orga.niza.­ ity party in their respective Houses. When Committee upon any measure or matter, the tiona.l meeting in ea.ch odd-numbered year. the chairman and vice chairman represent minority on the Committee shall be entitled, (c) Where these rules require a. vote of the different parties, the vice chairman shall upon unanimous request to the Chairman be­ members of the Committee, polling of mem­ also fulfill the responsibilities of the ranking fore the completion of such hearings, to call bers either in writing or by telephone shall minority member as prescribed by these witnesses selected by the minority to testify not be permitted to substitute for a. vote rules. with respect to the measure or matter dur­ taken a.t a. Committee meeting, unless the RULE 7-PARLIAMENTARY QUESTIONS ing at least one day of hearing thereon. ranking minority member assents to waiver Questions as to the order of business and RULE 11-CONFIDENTIAL INFORMATION of this requirement. FURNISHED TO THE COMMITTEE (d) Proposals for a.mending Committee the procedures of the Committee shall in the rules shall be sent to a.ll members a.t lea.st first instance be decided by the chairman, The information contained in any books, one week before final action is taken there­ subject always to an appeal to the Commit­ papers or documents furnished to the Com­ on, unless the amendment is ma.de by unani­ tee. mittee by any individual, partnership, cor­ mous consent. RULE 8-HEARINGS: PUBLIC ANNOUNCEMENTS poration or other legal entity shall, upon the AND WITNESSES request of the individual, partnership, cor­ RULE 2-REGULAR COMMITTEE MEETINGS (a) The- chairman, in the case of hearings poration or entity furnishing the same, be (a.) The regular meeting date of the Com­ to be conducted by the Committee, shall maintained in strict confidence by the mem­ mittee ·shall be the second Wednesday of make public announcement of the date, bers and staff of the Committee, except that every month when the House a.nd Senate a.re place and subject matter of any hearing to any such information may be released out­ in session. A regularly scheduled meeting be conducted on a.ny measure or matter at side of executive session of the Committee if need not be held if there is no business to be least one week before the commencement of the release thereof is effected in a manner considered a.nd after appropriate notification that hearing unless the Committee deter­ which will not reveal the identity of such in­ is ma.de to the ranking minority member. mines that there is good cause to begin such dividual, partnership, corporation or entity Additional meetings ma.y be called by the hearing at an earlier date. In the latter in connection with any pending hearing or as chairman a.s he ma.y deem necessary or a.t event, the chairman shall make such public a part of a duly authorized report of the the request of the majority of the members announcement at the earliest possible date. Committee if such release is deemed essen­ of the Committee. The staff director of the Committee shall tial to the performance of the functions of (b) If the chairman of the Committee is not promptly notify the Daily Digest of the Con­ the Committee and is in the public interest. present a.t a.ny meeting of the Committee, gressional Record as soon as possible after RULE 12-BROADCASTING OF COMMITTEE the vice-cha.irina.n or ranking member of the such public announcement is made. HEARINGS majority party on the Committee who is (b) So far as practicable, all witnesses ap­ The rule for broadcasting of Committee present shall preside a.t the meeting. pearing before the Committee shall file ad­ hearings shall be the same as Rule XI, clause vance written statements of their proposed RULE 3--QUORUM 3, of the Rules of the House of Representa­ testimony at least 48 hours in advance of tives. (a.) Five members of the Committee shall their appearance and their oral testimony constitute a. quorum which is required for shall be limited to brief summaries. Limited RULE 13-COMMITTEE REPORTS the purpose of closing meetings, promulgat­ insertions or additional germane material (a) No Committee report shall be made ing Committee orders or changing the rules will be received for the record, subject to the public or transmitted to the Congress with­ of the Committee. approval of the chairman. out the approval of a majority of the Com­ (b) Three members shall constitute a RULE 9---0FFICIAL HEARING RECORD mittee except when Congress has adjourned: Provided, That any member of the Commit­ quorum for purposes of ta.king testimony and (a) An accurate stenographic record ·shall receiving evidence. tee may make a report supplementary to or be kept of all Committee proceedings and ac­ dissenting from the majority report. Such RULE 4-PROXIES tions. Brief supplemental materials when re­ supplementary or dissenting reports should (a.) Written or telegraphic proxies of Com­ quired to clarify the transcript may be in­ be as brief as possible. mittee members will be received a.nd re­ serted in the record subject to the approval (b) Factual reports by the Committee staff corded on a.ny vote taken by the Committee, of the chairman. may be printed for distribution to Commit­ except at the organization meeting at the be­ (b) Each member of the Committee shall be tee members and the public only upon au­ ginning of ea.ch Congress or for the purpose provided with a copy of the hearings tran­ thorization of the chairman either with the of creating a. quorum. script for the purpose of correcting errors of approval of a majority of the Committee or (b) Proxies will be allowed on a.ny such transcription and grammar, and clarifying with the consent of the ranking minority votes for the purpose of recording a. mem­ questions or remarks. If any other person is member. · authorized by a Committee member to make ber's position on a. question only when the RULE 14-CONFIDENTIALITY OF COMMITTEE absentee Committee member has been in­ his corrections, the staff director shall be so notified. REPORTS formed of the question a.nd ha.s affirmatively (c) Members who have received unanimous No summary of a Committee report, pre­ requested that he be recorded. consent to submit written questions to wit­ diction of the contents of a report, or state­ RULE 5--0PEN AND CLOSED MEETINGS nesses shall be allowed two days within ment of conclusions concerning any inves­ (a.) Ea.ch meeting for the transaction of which to submit these to the staff director tigation shall be made by a member of the business of the Committee shall be open to for transmission to the witnesses. The record Committee or by any staff member of the the public except when the Cammi ttee, in may be held open for a period not to exceed Committee prior to the issuance of a report open session a.nd with a. quorum present, de­ two weeks awaiting the responses by wit­ of the Committee. termines by roll call vote that a.ll or part of nesses. RULE 15-COMMITTEE STAFF the remainder of the meeting on that da.y (d) A witness may obtain a transcript copy (a) The Committee shall have a profes­ shall be closed to the public. No such vote of his testimony given at a public session or, sional and clerical staff under the super­ shall be required to close a meeting that re­ if given at an executive session, when au­ vision of a staff director. Staff operating pro­ lates solely to internal budget or personnel thorized by the Committee. Testimony re­ cedures shall be determined by the staff di­ matters. ceived in closed hearings shall not be re­ rector, with the approval of the chairman of (b) No person other than members of the leased or included in a.ny report without the the Committee, and after notification to the Committee, a.nd such Congressional staff and approval of the Committee. ranking minority member with respect to other representatives as they may authorize, RULE IO-WITNESSES FOR COMMITTEE HEARINGS basic revisions of existing procedures. The shall be present in any business session (a) Selection of witnesses for Committee staff director, under the general supervision which has been closed to the public. hearings shall be made by the Cammi ttee of the chairman, is authorized to deal di- 12596 EXTENSIONS OF REMARKS May 23, 1991 rectly with agencies of the Government and colleague followed that broadside by assert­ FREE TRADE WITH MEXICO: THE POTENTIAL with non-Government groups and individuals ing: ECONOMIC IMPACT on behalf of the Committee. BOTH COUNTRIES MUST BENEFIT (b) The chairman and vice chairman, on be­ Given such demeaning treatment of Amer­ ican ways, should the United States continue A new economic relationship between the half of their respective bodies of Congress, United States and Mexico is of critical im­ shall be entitled to designate two senior staff to subsidize Puerto Rico? For example, sec­ tion 836 of the Tax Code may provide jobs portance to both countries. This new rela­ members each. During any Congress in which tionship must put Mexico on a growth path both Houses are under the control of the and growth in Puerto Rico, but it also costs American taxpayers about S2 billion a year. that will foster rising income, democratiza­ same party, the ranking minority member, tion, and political stability. on behalf of his party, shall be entitled to If Gov. Hernandez Colon and Puerto Rico do not want any part of American culture and But, in view of America's stubborn SlOO bil­ designate two senior staff members. lion trade deficit, relatively low investment (c) All other staff members shall be se­ language, then they certainly do not want any part of American handouts. levels, and loss of position in major indus­ lected on the basis of their training, experi­ tries and technologies, a deal must also en­ ence and attainments, without regard to Mr. Speaker, I am appalled at such a gross­ hance overall United States competitive ca­ race, religion, sex, color, age, national origin ly distorted picture of Puerto Rico and the 3.6 pabilities and, at a minimum, not increase or political aff111ations, and shall serve all million United States citizens who live there, the U.S. trade deficit. members of the Committee in an objective, non-partisan manner. not to mention the 15,000 valiant men and A LOOK AT THE NUMBERS women of the military from Puerto Rico who RULE 16-COMMITTEE CHAIRMAN Analyses by the International Trade Com­ put their lives on the line in Operation Desert mission and others indicate that removing The chairman of the Committee may es­ Storm in the Persian Gulf. Surely, I would not all tariff and non-tariff barriers between the tablish such other procedures and take such two nations would increase U.S. exports to actions as may be necessary to carry out the make similar denigrating comments about the residents of Pennsylvania, and I am sure my Mexico by $2-9 billion while increasing Mexi­ foregoing rules or to facilitate the effective S2-3 colleagues from across the land would rise up can exports to the United States by bil­ operation of the Committee. Specifically, lion. These studies estimate that the overall the chairman is authorized, during the in­ in unison were such a gratuitous attack was impact on the global U.S. trade deficit would terim periods between meetings of the Com­ made. range from - S5 billion to +SS billion. mittee, to act on all requests submitted by That aside, Mr. Speaker, I once again want However, none of the various analyses have any executive department, independent to assure my colleagues, as I did on April 10, taken into account the long-run dynamic ef­ agency, temporary or permanent commis­ fects of substantially increased foreign in­ sions and committees of the Federal Govern­ 1991, that section 936 is not only working well in Puerto Rico but also throughout the Carib­ vestment in Mexico's leading export indus­ ment, the Government Printing Office and tries. Yet inducing such investment is the any other Federal entity, pursuant to the re­ bean Basin, with the use of 936 funds. My col­ central purpose of the proposed FTA. quirements of applicable Federal law and league from Pennsylvania [Mr. SCHULZE], has The good news: The right deal with Mexico regulations. introduced a bill which would phase out sec­ would improve the U.S. trade balance and tion 936. But the record clearly shows that it American competitiveness through a trade is in the best interests of both Puerto Rico and strategy aimed at encouraging Mexican ex­ REMARKS ON FLOOR ABOUT the United States for section 936 to continue. ports to third countries and using Mexican PUERTO RICO LANGUAGE LAW I went to great lengths on April 10 to explain exports to the United States to displace im­ ARE CRITICIZED · why this is so. In short, Mr. Speaker, section ports from "third countries," thus avoiding a structural trade deficit. Our analysis of 936, as is the case with other Federal assist­ this scenario indicates that: In 1999, a trade HON. JAIME B. RISTER ance received by Puerto Rico, represents not surplus with Mexico and a reduction in the OF PUERTO RICO so much the easy label of handouts as it rep­ overall U.S. trade deficit declines by ~9 bil­ IN THE HOUSE OF REPRESENTATIVES resents efforts that also serve vital United lion. In 1999 U.S. job gains range from 225,000-264,000. Thursday, May 23, 1991 States interests. Thus, Mr. Speaker, I exhort my colleagues The bad news: Analysis of the projected ef­ Mr. FUSTER. Mr. Speaker, I rise again to examine the record anew about section fects of export-oriented foreign investment in Mexico from 1992-1999 if the FTA fails to today in response to some unfortunate and 936. And I urge them to keep Puerto Rico's harsh remarks made on the floor yesterday by consider the potential for a structural trade new language law in perspective. Your fellow deficit indicate the following possible sce­ my colleague from Pennsylvania [Mr. American citizens in Puerto Rico deserve no narios. In 1999 the overall U.S. trade deficit SCHULZE], who again criticized the new lan­ less. rises by $15-31 billion. In 1999 job losses range guage law in Puerto Rico by linking it to sec­ from 400,000 to 900,000. tion 936 of the Internal Revenue Code. That These figures are in line with the experi­ section of the Tax Code has over the years ence of other countries such as Korea, Tai­ provided the major impetus for Puerto Rico's EXCERPT FROM ECONOMIC STRAT­ wan, and Thailand in their rapid develop­ rapid economic development. EGY INSTITUTE REPORT ON ment phases, and are based on Mexico's cur­ But the new language law, Mr. Speaker, is UNITED STATES-MEXICO FREE­ rent investment objectives. TRADE AGREEMENT A free trade arrangement with Mexico is nothing more than a reaffirmation of the exist­ imperative. But we must make the right ing realities in which Spanish is the vernacular deal! of Puerto Rico. As I explained to my col­ leagues here at some length on April 9, the HON. DONAID J. PEASE new law signed into effect by Gov. Rafael Her­ OF OHIO THE FAST-TRACK STAKES nandez Colon on April 5 has been incorrectly portrayed by some in the Congress and in the IN THE HOUSE OF REPRESENTATIVES HON. MICHAEL G. OXLEY national press as a potentially divisive one be­ Thursday, May 23, 1991 OF OHIO tween the United States and Puerto Rico. But IN THE HOUSE OF REPRESENTATIVES this new law does not prohibit the use of Eng­ Mr. PEASE. Mr. Speaker, I would like to lish in Puerto Rico. It is not an exclusionary submit for the RECORD this illustrative excerpt Thursday, May 23, 1991 law, nor does it purport to adopt impositions from a report produced by the Economic Strat­ Mr. OXLEY. Mr. Speaker, I recommend the and restrictions similar to those favored by egy Institute on the impact that the proposed following editorial from today's Wall Street groups supporting English only legislation in United States-Mexico Free-Trade Agreement Journal for the Members' attention regarding the United States. We, in Puerto Rico, have [FTA] will have on the United States trade bal­ the fast-track authority. It represents an en­ made this point clear many times. ance and on American employment. This re­ lightened view of the current debate on fast Thus, Mr. Speaker, for my colleague from port concludes that if the FTA is negotiated track. Pennsylvania to say, as he did yesterday, that according to the administration's current plan, The editorial follows: "While Puerto Rico gladly accepts all kinds of American investment will move to Mexico and THE FAST-TRACK STAKES subsidies from the United States Government, United States job losses will total between Today and perhaps tomorrow both Houses it harshly criticizes American culture, customs, 400,000 and 900,000, 1O years after the i~ of Congress are scheduled to take the key and language" is itself gratuitously harsh. My plementation of the agreement. vote on free-trade negotiations with Mexico. May 23, 1991 EXTENSIONS OF REMARKS 12597 There has been an extensive debate on the cans to poverty rather than concede the SAMUEL EISENBERG: A TRUE issue, but it has centered on the economic wealth-creating potential of private markets SERVANT OF HIS COMMUNITY interests involved. It has never really clari­ for their goods and services. The coalition's fied the enormous stakes involved for foreign position has been revealed as so economi­ policy and the North American destiny. cally and morally unattractive that it isn't HON. NITA M. LOWEY Technically, the House and Senate will be surprising that it could find support only in OF NEW YORK voting on the extension of the President's certain corners of Washington. IN THE HOUSE OF REPRESENTATIVES "fast-track" negotiating authority. Under A public issue does not often present itself Thursday, May 23, 1991 this procedure the President can submit a with such clarity: It would be a calamity if trade pa.ct for something close to an up-or­ the fast-track to these trade negotiations Mrs. LOWEY of New York. Mr. Speaker, I down congressional vote; he can promise his were rejected, but it would be an enormous rise today to pay tribute to my good friend partners that he has the power to negotiate; opportunity if it is approved. There are a · Samuel Eisenberg. His dedication to pursuing Congress will be consulted as negotiations the ideal of community service is truly worthy proceed, but individual points will not be great many intelligent, hard-working people subject to last-minute niggling at the Cap­ in the United States, Mexico and Canada of admiration and emulation. itol. This procedure has been used in typical who are prepared to take risks and make in­ Sam Eisenberg is a leading supporter of the GATT negotiations and in the landmark vestments so that the peoples of their na­ important endeavors of the Westchester Jew­ free-trade agreement with Canada. Today's tions have the means to share with each ish community. A partner in the law firm of vote also applies to the Uruguay round of other the benefits of economic progress Kurzman & Eisenberg, Sam served as city GATT, but anyone who's awake knows the through the next century. Rather than re­ court judge of Mount Vernon for several years. big issue is Mexico. That is why some 75 tard progress, the Members of Congress He is the immediate past president and honor­ Members of the House remain undeclared, should show by their votes today that they ary president of the Westchester Jewish Con­ and the issue remains in doubt. too wish to contribute to the vitality of the So perhaps it's appropriate to state a few American future. ference, and has served as president of the facts of simple geography: (1) We share a Mount Vernon Jewish Community Council, 2,000-mile border with Mexico. (2) Mexico is a president of the Emmanuel Jewish Center, nation of some 90 million people. (3) Mexico chairman of the Mount Vernon Holocaust has vast resources, particularly of oil and THE 50TH ANNIVERSARY OF Committee and president and honorary presi­ gas. (4) The relationship between the U.S. PARKVIEW PRESBYTERIAN dent of Westchester Day School. He has also and Mexico is a permanent one, for better or CHURCH served on the board of directors of the South­ for worse. ern Westchester YM-YWCA and has been in­ In that relationship, we are at a moment of unparalleled opportunity. Mexico has aban­ volved with UJA-Federation for more than two doned its traditional economic policy of HON. ROBERT T. MATSUI decades. prickly autarky, and also its traditional Sam's community involvement is not limited anti-gringo political rhetoric. President Car­ OF CALIFORNIA to the Jewish community. In addition to his po­ los Salinas stands solidly for a free-enter­ IN THE HOUSE OF REPRESENTATIVES sition on the Mount Vernon City Court, he is prise opening, and also for friendship and co­ vice chairman of the Mount Vernon High operation with the U.S. It is all the more im­ Thursday, May 23, 1991 School Scholarship Fund and former chairman pressive in terms of the old seesaw dynamics of Mexican politics, that in doing this he Mr. MATSUI. Mr. Speaker, I am honored to of the Mount Vernon Zoning Board of Appeals. builds on a foundation laid by his prede­ rise today to bring to my colleague's attention His service as city judge has been exemplary, cessor, Miguel de la Madrid. Polls in Mexico an important anniversary in the Sacramento and his wise counsel has been invaluable to show the prospect of free trade is overwhelm­ Japanese community. Today marks the 50th his community. ingly popular. year that the Parkview Presbyterian Church This week, Sam is being honored by the The Congress votes now on whether to re­ has been located at its current address. business division of the United Jewish Appeal. ward this new attitude, or whether to slap This is an award that is richly deserved, and our neighbor in the face. If the latter, Con­ Parkview is a small ethnic church which was established in 1912 by a small band of Japa­ one that has been earned through hard work gress would increase the chances of a rever­ in behalf of causes important to all of us. I am sion in Mexican politics. The "dinosaurs," as nese pioneers. The church, which was origi­ sure that all of my colleagues join me in giving they are called in Mexico, are quite happy nally called the Japanese Mission with its min­ Samuel Eisenberg our most heartfelt congratu­ with a system in which a proportionally ister, Rev. Yasukazu Koga, finished construc­ small, protected elite benefits from privilege lations. denied the majority. These include members tion of the existing building in 1941 . It was of the bureaucracy, the protected business dedicated May 25 of that year. However, the sector, the government-affiliated unions and, happiness of the church members was put on SOCIAL SECURITY EARNINGS of course, traditionalists within the PRI. hold later that year when President Roosevelt LIMIT The membership and politics of this group­ signed the fateful Executive Order 9066 which ing go a long way toward explaining the na­ resulted in the uprooting and scattering of ture of the U.S. coalitions opposing the HON. FRANK PAllONE, JR. agreement. Or why a Senator such as Chris most of the Japanese citizens located on the OF NEW JERSEY Dodd was reportedly preparing yesterday to west coast. IN THE HOUSE OF REPRESENTATIVES vote against. After World War II, the remaining evacuee Thursday, May 23, 1991 Failure to pass would also lose the real op­ families under the leadership of Rev. lsamu portuni ty of joint economic development. Nakamura returned to the church and began Mr. PALLONE. Mr. Speaker, I rise today to States in the American Southwest, such as speak about the Social Security earnings limit, Arizona, have already recognized the poten­ to rebuild the church and their lives with dig­ nity and through their faith. an archaic regulation which not only discour­ tial benefits of doing business with a large ages our Nation's seniors from being inde­ Since then, the church has done very well. and serious developing nation. It would be pendent, but is economically disadvantageous acutely unsettling for the U.S.'s own pros­ With a current membership of 190, and a new pects to discover that Congress cannot rec­ for our country. This year, seniors age 65-69 minister since 1984 Rev. Kazuo Masuno, the will be able to earn only $9,720 before they ognize the fundamental legitimacy of this church has become very active in the commu­ globalizing process. are penalized for working. Above and beyond The organized opposition to the agreement nity. The members participate in charity events this amount, they will lose $1 in benefits for in the U.S. is itself revealing on this point. such as the "Walk for Hunger," and currently every $3 earned. How can a nation built upon From the outset it has consisted of unions, are involved in the Heifer Project International. the American dream of rags to riches, bla­ "consumer" groups and environmentalists. Mr. Speaker, I know that my colleagues join tantly discourage diligence and hard work? Anything that can attract.the simultaneous me now in congratulating the Parkview Pres­ How can we continue to tell the elderly that opposition of the AFL-CIO, Ralph Nader's byterian Church leadership and members on Public Citizen and Greenpeace is almost by we no longer value their knowledge and pro­ definition an engine of progress. As in other their tremendous accomplishment and wish ductivity-their contributions to society? areas of public policy, the word "reaction­ them continued success in the future. In addition to the fact that the Social Secu­ ary" is being reclaimed by the American rity earnings limit is obviously unfair to seniors, left, which is fully prepared to consign Mexi- it is also a detriment to the economy. As our 12598 EXTENSIONS OF REMARKS May 23, 1991 seniors begin to leave the work force in large record next season-the Peoria Riverman as "I was only supposed to be in Peoria tem­ numbers, fewer and fewer workers are taking International Hockey League champions 2 porarily. I was gone," Plager said. "But then their place. By the end of the 1990's there will years in a row. the streak happened, and well, this team just be 1.5 million fewer workers entering the work Mr. Speaker, at this point in the RECORD, I wouldn't let me leave. And now this." "Just to be a part of this is humbling," force between the ages of 16 and 24. Gone wish to insert "Peoria Cheers IHL Champs," Saurs said. " It gets to you." will be the experience, the expertise, the de­ which appeared in the Journal Star on pendability of the older worker. The Govern­ Wednesday, May 22, 1991. ment will pay out more in Social Security and PEORIA CHEERS IllL CHAMPS CONGRATULATIONS KARI KOZUKI as the size of the labor force dwindles, busi­ (By Dave Eminian) nesses will spend increasing amounts of One of the greatest seasons in Peoria HON. ROBERT T. MATSUI money to train new and inexperienced em­ OF CALIFORNIA ployees. So you see, the Social Security earn­ sports history came to a parade rest Tuesday on downtown Peoria streets packed with IN THE HOUSE OF REPRESENTATIVES ings limit is a no win situation. rank-and-file hockey fans. Thursday, May 23, 1991 I would like to read you a letter from one of The Peoria Rivermen, champions of the my constituents in New Jersey. It highlights International Hockey League, said goodbye Mr. MATSUI. Mr. Speaker, it gives me great some of my concerns and those of my col­ to a community that had come out to see it pleasure to rise to congratulate Kari Kozuki, leagues: in record numbers during the season-more who has been awarded the Matsuye Okada * * * I am 66 years old, retired and on so­ than 300,000 in 1991-92-making it the most­ Memorial Scholarship offered by the Central cial security. I have just finished my 1990 tax watched team in Peoria sports history. California District Council of the Japanese "This is for you," said team captain Dave return which included $9,360 of consulting in­ American Citizens League Scholarship Pro­ come; the minimum allowed before losing Thomlinson, lifting the Turner Cup high over his head in a tribute to a crowd that gram. part of my tax-free Social Security payment. The Japanese-American Citizens League The fee was earned preparing a business had overflowed into Main Street in front of plan for a small business as part of a loan ap­ the Peoria County Courthouse between Jef­ has long rendered vital and viable public serv­ plication. Shortly after completing the ferson and Adams. ices to its membership and constituencies and project, I was approached by another small This had been a season of incredible to the public and Nation at large. As you business to do the same. After calculating deeds-an all-time league record-tying 58 know, the JACL was a leading force in provid­ the additional State, Federal, self-employ­ regular-season wins, an all-time pro hockey ing redress to Japanese-Americans interned record 18 consecutive victories, a West Divi­ ment Social Security taxes, and lost Social during World War II and it continues to be a Security payment, I declined. I later learned sion championship, a league point title and, finally, a postseason ride that finished with prominent player in the total and nonviolent that someone else prepared the plan at more victory over discrimination. It says a great deal than twice my fee. I also learned that this a Turner Cup celebration. plan was not as complete as mine and the Despite a weather forecast that included about Kari Kozuki that the JACL should select small business owner was unhappy. thunderstorms, the only reign over this pa­ her from among many deserving young people The point of this is not an endorsement of rade belonged to the Rivermen. for this prestigious scholarship. my skills. Rather another example of how "I've decided to extend our stay," said Kari is currently a senior at Reedley High tax and social legislation inhibits others like Rivermen owner Bruce Saurs, talking about School and plans to continue her studies in myself from contributing to the business his club's lease with the Peoria Civic Center. child psychology at the University of California health of our country* * * "We're going into the final year of our deal, but I am going to exercise an option for next year. She has a strong interest in the Older Americans deserve independence, three more years." special needs of our Nation's children and be­ dignity, and the opportunity to remain part of Saurs confessed that a local group pres­ lieves that, because of their position in society our work force. I support H.R. 967, Mr. sured him to sell the team a month ago, but and their inability to s-eek help for themselves, HASTERT's bill to repeal the Social Security he turned the offer down. children's needs are often overlooked. I have earnings test. Our Nation's seniors deserve it, Down on the street, the friendly mob no doubt that Kari Kozuki will be as effective and the economy demands it. called for Saurs to run for mayor. in addressing the problems facing our Nation's "I'm not running for mayor-I have a hockey team to run," Saurs laughed. "I'm children as she has been in her efforts to date. THE ICEMEN COMETH not selling. I'll never sell now. I'm 64, and this is the greatest thing that's ever hap­ Mr. Speaker, I ask that my colleagues join pened to me. me in saluting this truly exceptional individual HON. ROBERT H. MICHEL "Hockey in Peoria is going to go way be­ on what I am sure will be just one out of a life­ OF ILLINOIS yond my lifetime now." time of achievements. IN THE HOUSE OF REPRESENTATIVES Maybe forever? Rivermen coach Bob Plager, a man who Thursday, May 23, 1991 shaped this championship team in his own SAUL AND FRAN SINGER: PART­ Mr. MICHEL. Mr. Speaker, the Peoria image, stepped to a podium in front of the NERSHIP FOR THE COMMUNITY Rivermen hockey team has skated to victory, courthouse and nearly began to cry when he frozen opponents in their tracks, and iced the saw a sign in the crowd that read: "Memo­ ries are forever." HON. NITA M. WWEY Fort Wayne Komets. In other words, the Peo­ "It was a team of destiny," Plager said. "I OF NEW YORK ria Rivermen hockey team are the champions looked at that sign, and it just really got to IN THE HOUSE OF REPRESENTATIVES of the International Hockey League and recipi­ me, the streak, all the things we've gone ents of the esteemed Turner Cup. through this season." Thursday, May 23, 1991 And that's not all. The Riverman tied an all­ The crowd chanted as local dignitaries Mrs. LOWEY of New York. Mr. Speaker, time league record of 58 regular season wins, made presentations. One of my goals as a Member of this House a league point title, and the west division "We're here to stay," City Councilman has been to promote partnerships that bring championship. Leonard Unes said. "A lot of major-league all sectors of our society together to promote teams would kill to have us as a market These feats were accomplished with skill, now." the common good and to leave a better Amer­ agility, talent, and a whole lot of hometown Plager, traveling in a lead car with Saurs ica for our children. We all have a very fun­ support. In fact, more than 300,000 fans and Blues assistant coach Wayne Thomas, damental responsibility to the communities in cheered them on to victory, which, according special assistant Paul MacLean and which we live. That concept is well understood to the Journal Star, made it the most-watched Rivermen general manager Denis Cyr, pre­ in Westchester County, where it is exemplified team in Peoria sports history. ceded the players' firetruck. Mark and Cindy by the United Jewish Appeal's business lead­ My congratulations go out to all those on Hunt of Henry had the traditional Carver ership division and by the honorees at their the team, Riverman owner Bruce Saurs, Arena fog horn in tow as well. Construction workers across the street had annual luncheon, Saul and Fran Singer. Riverman coach Bob Plager, and the many stopped to watch, too. High up, one of them The Singers are business people whose others who made this victory possible. shouted "Why don't you stay, Bob?" definition of success includes service to their I count myself among the many Riverman Plager hasn't yet decided if he'll return community and vigorous support for the val­ fans who look forward to breaking another next season as coach. ues they cherish. Fran is the president of Rob- May 23, 1991 EXTENSIONS OF REMARKS 12599 inson Oil Corp., but she also finds time to goods. The attraction of Mexico for U.S. taxpayer) to bail out the- Mexican economy serve as president of the Greenburgh Hebrew business is not Mexico's small market, but in order to prevent a banking collapse in the Center Sisterhood, as well as vice chair of the its large labor force willing to work for low United States. wages in unregulated and unsafe work sites. 13. North American economic cooperation Westchester Conference on Soviet Jewry. She 3. The studies cited by President Bush in and integration is a worthy goal. But it is also an active and concerned member of his May 1, 1991 response to the Congress do needs a much broader and carefully thought Hadassah and of the Golda Meir B'nai B'rith not support his statement that "economic through framework. This should include: chapter. studies show that a free trade agreement Debt relief for Mexico; Saul's accomplishments in both business would create jobs and promote growth in the A plan to reverse capital flight from Mex­ and community service, are impressive as United States." The studies, which were pro­ ico; well. He is the chief executive officer of the duced by proponents of the FTA, show only Harmonization of labor and environmental Singer Corp. and the president of Original insignificant gains under unrealistically op­ protection practices; timistic assumptions. The most optimistic Political liberalization in Mexico; Consumer Oil & Heating. In addition, he report shows a gain of 64,000 jobs over 10 Policies to assure the successful adjust­ serves as co-chair of the UJA/Federation years under the assumption that there will ment of U.S. workers, industries and commu­ major gifts division and chairman of the be no shift in investment from the United nities. Greenburgh Hebrew Center's renovation cam­ States to Mexico. 14. A more comprehensive approach cannot paign. He is the president-elect of the West­ 4. Making the more realistic, but still con­ be accomplished on a fast track because the chester Jewish Conference, and serves on the servative, assumption of a slight shift in in­ administration is not interested in it. There­ board of governors of Ben Gurion University. vestment because of an FTA results in a pro­ fore, only a rejection of fast track will con­ Previously, Saul has served as campaign jection of a loss of 550,000 U.S. jobs. vince both Washington and Mexico City to 6. The administration's May 1 submission design an economic package that benefits chair for State of Israel bonds and as vice claims that U.S. exports to Mexico since 1986 both sides of the border. president of the greater New York Conference prove that the FTA will substantially in­ 15. Objections that the Mexican Govern­ on Soviet Jewry. crease U.S. jobs. The administration's own ment would refuse to negotiate without fast Saul and Fran have also been successful study [ITC] reports that this is unlikely be­ track are not credible, given the apparent partners in raising their family. The Singers' cause trade has already been liberalized with political benefits to the Salinas administra­ three sons-Michael, David, and Daniel-have the "U.S. will probably obtain most of these tion. all embarked on successful careers of their benefits without an FTA." (p. 2-3) ·own. All three studied in Israel and share their 6. The overwhelming majority of U.S. workers who lose their jobs to import com­ INTRODUCTION OF AMERICA 2000, parents' deep commitment to maintaining a petition are re-employed at much lower strong and vital Jewish community. They will THE EXCELLENCE IN EDUCATION wages-when they are re-employed at all. ACT OF 1991 share the honor which their parents are re­ 7. It is misleading to compare the United ceiving this week. States-Mexico Trade Agreement with the en­ I offer the Singer family my warmest con­ trance of Spain and Portugal into the Euro­ HON. WIWAM F. GOODLING gratulations, and I offer them to this House as pean Community, United States-Mexico OF PENNSYLVANIA models of successful partnership. wage gaps are much greater. Mexico has a IN THE HOUSE OF REPRESENTATIVES larger population, and the European Commu­ nity has retraining, safety net and subsidy Thursday, May 23, 1991 SUMMARY OF ECONOMIC POLICY programs unknown in the United States. Mr. GOODLING. Mr. Speaker, I am pleased INSTITUTE REPORT ON UNITED 8. The statement of the May 1 response to join several of my colleagues in introducing that "the administration is firmly commit­ STATES-MEXICO FREE-TRADE ted to a worker adjustment program that is the Presidenfs education initiative, America AGREEMENT adequately funded" cannot be taken seri­ 2000, today. I believe that the President has ously. The Reagan-Bush administrations correctly identified education as one of the HON. DONALD J. PEASE have cut trade adjustment assistance from most pressing problems facing our country OF OHIO $1.6 billion in 1980 to $270 million (budget au­ and shown great leadership with this legisla­ IN THE HOUSE OF REPRESENTATIVES thority) in 1991 and have consistently tried tion. to eliminate it. Moreover, the administra­ In 1990, the President and Governors Thursday, May 23, 1991 tion has no intention of putting any increase adopted six very ambitious national education Mr. PEASE. Mr. Speaker, I would like to outside the current budget agreement, which goals. After a great deal of discussion and submit for the RECORD this statement by the means that any expanded adjustment pro­ gram will have to come at the expense of scrutiny, I believe it is fair to say that America economist Jeff Faux summarizing the conclu­ other hard-hit domestic programs. has accepted these goals as its own. The sions reached by the Economic Policy Institute 9. The long-term impact of the U.S. econ­ question is, "How do we get from here to in its recent study on the United States-Mexico omy will be to encourage U.S. producers to there?" The Excellence in Education Act rep­ Free-Trade Agreement [FTA). This report em­ seek low-wage solutions to the problems of resents what the President and Secretary Al­ phasizes the potential for job losses in the international competition, rather than to in­ exander feel are important first steps on this United States totaling 550,000 during the 1O vest in productivity improvement and tech­ long, difficult journey to achieve the goals. years following implementation of the agree­ nological innovation. Let me briefly mention some of the high­ ment. 10. Promises that Mexico will strengthen environmental and worker protection are un­ lights of this legislation. It includes: The statement follows: reliable, such protections are made effective The creation of a new generation of schools STATEMENT OF JEFF FAUX by strong institutions-the judiciary, envi­ that would break the current mold and allow 1. The potential economic losses of the ad­ ronmental, and labor groups-independent of communities to create schools that meet their ministration's proposed United States-Mex­ Government. These do not exist in Mexico students' needs; ico trade agreement far outweigh the poten­ today. Federal support to local school districts to tial gains. Putting the agreement on fast­ 11. Mexico's primary economic problem is expand and initiate schools of choice, where track risks a major economic policy blunder, not trade, but debt. The administration's parents could select between public and pri­ possibly on the order of the savings and loan proposal is an effort to have United States disaster, the risks are: workers pay with their jobs and incomes for vate schools; Substantial job loss for U.S. workers: the bad loans made to Mexico by first world Governors' academies for teachers and ad­ Vulnerability of U.S. financial institutions banks and international lenders. ministrators in each State that would provide to a future economic crisis in Mexico that 12. Mexico's economic crisis will not be training to improve the skills of current school could well result in demands for a U.S. bail solved by the FTA. The country is vulner­ professionals; and out of the Mexican economy. able to small increases in interest rates and Merit School Awards to schools that have 2. The trade agreement proposed by the ad­ any decline in oil prices. An FTA will en­ shown substantial progress toward meeting ministration will result in a net loss of jobs courage United States financial institutions and incomes for U.S. workers. This is be­ to buy up Mexican assets, making their bal­ the national goals. cause the capacity of the Mexican economy ance sheets vulnerable to Mexican economic These initiatives are in the best tradition of to produce products now made in the United and political instability. Another crisis the Federal Government supporting research States and export them back here is far (E.G., a sharp devaluation of the peso) could and development of new educational ap­ greater than its capacity to import U.S. raise demands for the U.S. Treasury (i.e., the proaches. 12600 EXTENSIONS OF REMARKS May 23, 1991 Some of the provisions of America 2000 are that gives us something we do not deserve. tions about blacks. I know that you have sure to raise many questions and concerns. You think that our sons and daughters are given the so-called black speech at Urban The Committee on Education and Labor will taking the places in colleges that if the League dinners. But your time would be far be moving promptly to hold hearings on this world were only fair would go to your white better spent giving a speech on equal em­ children instead. And yes, if you see a black ployment opportunity to the Economic Club legislation and I expect a lively debate. I have man, you think that you had better cross the of Detroit or Dallas. spoken before about my concerns regarding street before something bad happens to you. Each of you should also look at your own school choice and the creation of national These are the ways you perceive us, and your personal staff. Are all of those who now hold education standards and national examina­ perceptions are negative. They are fed by positions of authority white men who look, tions. However, it is my hope that we can form motion pictures, ad agencies, newspeople, walk, and talk like you? Are you setting the a consensus about components of this legisla­ and television. If you want to show clean, proper example for the rest of America? Do tive package and move expeditiously to enact brave, and reverent-color it white. If it is you have minority men and women who them into law. shiftless, crime ridden, and over-crowded­ work on a variety of issues ranging from ag­ color that black. Creative white America has riculture to defense, or do they only plan There is no room for partisanship when it fed us those negative stereotypes since the your infrequent meetings with black leaders? comes to education. The stakes are too high days of the "Step'n Fetchit" movies, and Encourage black businesses. When I was and the need for improvement too great. Jesse Helm's political advertisements per­ Secretary of the Army, minority business There is room, however, for differences of petuate these insults today. with the Department of the Army increased opinion and I look forward to a frank, open de­ This is about what you think about us. over 4 years from 98 million to $1 billion. The bate on the merits of these proposals and When you were young, the racial stereotypes entire Government needs to make that kind other ideas Members of the House might have projected by ad agencies, decades of movies of advancement. The Department of Defense, that would complement America 2000. and television told you-and they still tell however, has ignored your own legislative your children today-that we are less than mandate regarding minority businesses. Do I hope every Member will join me in this im­ you. Because of the negative perceptions you accept this failure because it concerns portant dialog and become a cosponsor of the that you have accepted about black men, minority business? I certainly hope not. Excellence in Education Act. Thank you. when you decide where to live or whom to You should remember that we all need to hire, those black men become the people recognize the reasons that we have these whom you most want to avoid. problems before we can develop pro­ PROBLEMS FACED BY URBAN White men and women can develop the so­ grammatic solutions. When I was Chairman BLACK MEN lutions, therefore it is somewhat ironic that of the Equal Employment Opportunity Com­ I am speaking about this issue today in the mission more than 20 years ago, our studies HON. LOUIS STOKFS most prestigious segregated body in Amer­ determined that at least 75 percent of the ica-the United States Senate. time, plain old prejudice was the reasons OF OHIO Black men can only nibble at the edges of that black men and women received lesser IN THE HOUSE OF REPRESENTATIVES power in America. Yes, we are better off job opportunities and fewer promotions. To­ Thursday, May 23, 1991 than we were 30 years ago. But then so are day's studies show the same thing. You must you. The economic relationship between face your prejudices. White America must Mr. STOKES. Mr. Speaker, I commend to black and white is the same as it was in the reeducate itself-and then move on from my colleagues and to every corporate execu­ early 1960's. A black family still earns only there. You should spend days, weeks, even tive in the United States the forthright, elo­ $57 to every white family's $100-about the months of your time addressing those preju­ quent testimony delivered by former Secretary same as they did in 1961. We can eat in most dices and setting out ways to c·orrect both of the Army and EEOC Chair Clifford L. Alex­ restaurants, play golf at some private clubs, misperceptions and inequalities. White ander before the Senate Banking Committee . and attend the best schools-albeit in small America needs to turn sweet talk into fast on the problems faced by urban black men. numbers. Yes, we are only nibbling at the action. It is up to you. Secretary Alexander's remarks are clear edges-and you are the reason why. and direct. His admonitions and suggestions During my lifetime no black person will join your exclusive Senate club, run a For­ THE SOVIET THREAT TO ARME­ apply to every individual, institution, and indus­ tune 500 company, be president of NBC, CBS, NIA'S DEMOCRATIC FUTURE try responsible for the intolerable conditions CNN, or ABC. No black person will become faced by so many black men. Cleveland's president of an Ivy League school, or be head black jobless rate is the highest of any big city of the Kennedy Center. You are determined HON. TOM LANfOS so this testimony is particularly important to to reserve those powerful positions for your OF CALIFORNIA me and my constituents. Mr. Alexander's re­ own kind. Yes, we nibble at the edges while IN THE HOUSE OF REPRESENTATIVES marks offer both explanation and solutions to you enjoy hearty meals. Thursday, May 23, 1991 one of this Nation's most pressing problems. Now what can you as individuals or as a body do to make this country a piace of true Mr. LANTOS. Mr. Speaker, as the Republic The May 21, 1991, testimony follows: opportunity for black men-and women too? of Armenia makes strides toward democracy, TESTIMONY BY CLIFFORD L. ALEXANDER First, you can set a good example. When­ the Soviet Union places obstacles in its path. Your hearings earlier this year focused on ever you are invited to a meeting, inquire In recent weeks, Soviet tactics to hinder Arme­ the problems that black males face today in whether the luncheon club or country club ni.a's democratic movement have turned ugly. the United States of America. Since that where it is to be held discriminates against Since last August, when popular and demo­ time, a new urban institute report has un­ Jews, Latinos, Asians, blacks or women. It if derlined the magnitude of the problem. That does discriminate, do not attend the meet­ cratic forces in the republic emerged victorious report shows that equally qualified white ing, and tell the person who issued the invi­ in a referendum on independence, Armenia and black young men had totally unequal ex­ tation why you have declined. If we are good has been making great headway in the direc­ periences when they applied for jobs. In fact, enough to die for America in the Persian tion of democracy. In that time, a multiparty the white men received three times as many Gulf, you should be good enough to discour­ political system has been introduced; privatiza­ offers as fully-qualified black men. This ex­ age the bigots who keep us out of those clubs tion of industry and commerce is underway; poses the problems we must face today. where so many major decisions are made universal standards of human and civil rights, You asked that my testimony today focus right here at home. and freedom of expression, religion, and politi­ on solutions. In order to find these solutions Continue to examine legislation that is in­ you and all Americans who are interested in tended to promote fairness in the workplace. cal affiliation have been adopted. constructive change should look at the rea­ The laws now rely far too much on the Fed­ Importantly, Armenia is the only Soviet re­ sons that these problems exist for black eral courts and not nearly enough on speedy public whose drive for sovereignty proceeds males in America in 1991. administrative remedies to correct acts of within the framework for secession spelled out First and foremost, this statement is about employment discrimination. Remember that in the Soviet Constitution. It would seem, how­ what you as white people think about us. the answers to these problems lie within ever, that these remarkable developments are White America continues to paint pictures of white America. You are just as creative as too much for the Soviet hardliners to bear. black America that determine our opportu­ we are. Don't always look to your black ex­ On April 29, the Soviet Army, adroitly ma­ nities. You see us as less than you are. You perts, but give the issues some thought your­ think that we are not as smart, not as ener­ selves. Then devise an action plan. nipulating the ethnic tension between Arme­ getic, not as well-suited to supervise you as Remember, each of you has an excellent nians and Azerbaijanis, began its violent mili­ you are to supervise us, that we are looking public forum here in America from which tary campaign against the Armenians. Arme­ for something extra-a government program you can address the unfair negative percep- nian villages have been shelled and their in- May 23, 1991 EXTENSIONS OF REMARKS 12601 habitants deported. Brutal tactics, like sum­ tricate ourselves from an imperial context what this country stands for-family, hard mary execution and torture, have been em­ where neighbors are seen as enemies and work, and the fervent hope of parents to cre­ ployed. Moscow is represented as the only guarantee ate a better life for their children. of national survival. By resorting to military action, the Soviet With Azerbaijan, we have negotiated in Next Saturday afternoon will mark the es­ Union has dealt a serious blow to Armenia's good faith. We believe Armenian-Azerbaijan! tablishment of the Thornton Sisters Founda­ democratic movement. The stability of the en­ discussions could have led to some sort of tion, Inc., in a special ceremony at the Ocean tire region is threatened as well. understanding between the two republics, Place Hilton in Long Branch, NJ. The founda­ Mr. Speaker, an article by the President of had other considerations not postponed what tion will annually issue a scholarship award to the Republic of Armenia, Levon T er-Petrosian, is inevitably the only road to peace and secu­ a female minority student from a New Jersey appears in today's Washington Post. It is an rity. high school who is planning to enter a 4-year excellent chronicle of Armenia's democratic Armenia is the only republic whose strat­ college. The scholarship will be offered to all struggle and of the Soviet Union's deplorable egy for independence is based on the law on high schools in the State of New Jersey during the secession of republics in the Soviet con­ response. I ask that it be entered into today's stitution. The Armenian parliament's deci­ the 1991-92 academic year. RECORD and I urge my colleagues to give it sion on the republic's own referendum and Mr. Speaker, I would like to share with the serious and thoughtful attention: the setting of the date for that referendum, Members of this House an inspiring story ARMENIA EMERGING on Sept. 21, were based on that constitution. about a remarkable family from my congres­ (By Levon Ter-Petrosian) The government of Azerbaijan, still under sional district. In 1948, Donald Thornton and YEREVAN, ARMENIA.-On April 29 subdivi­ the control of the Communist Party, has be­ his wife Tass moved from New York City to sions of the Soviet army and Azerbaijani in­ come an ally of anti-reformist forces in Mos­ my hometown of Long Branch, NJ. They did terior ministries began shelling Armenian cow. The two share an interest in perpetuat­ not have much money: Mr. Thornton held villages in Azerbaijan and then gradually ex­ ing authoritarianism and dependency. Their down three jobs, one during the day, another panded their military operations to villages joint strategy penalizes Armenia for its deci­ sion to hold its own referendum on independ­ at night, and a third on weekends; Mrs. Thorn­ inside Armenia. These operations ended with ton worked as a domestic. Mr. and Mrs. the forced deportation of Armenians in ence and democracy while rewarding Azer­ Getashen and Martunashen, as well as vil­ baijan for supporting Moscow and facilitat­ Thornton somehow managed to get enough lages adjacent to and in Nagorno-Karabakh. ing the preservation of its empire. money together to buy a building lot and Mr. Since then there have been more than 50 The Soviet Union has tried to represent Thornton eventually became the first black deaths and thousands of people deported. the conflict as a continuation of the antag­ man to be granted a mortgage by an area Many villages have been evacuated. onism between Armenia and Azerbaijan. bank. The couple raised six daughters, deter­ Last January the world witnessed another Western governments and media have tended mined that they would all attain professional Soviet exercise in the use of military power, to accept that interpretation at face value. careers. when the people of Lithuania dared think of The two republics certainly face major dif­ themselves as an independent nation. At ficulties. Yet the past few weeks are evi­ The young Thornton sisters eventually put that time I was sent to Vilnius on behalf of dence of what I have always believed: The es­ together a musical ensemble-with instru­ the U.S.S.R. Federation Council to ascertain sence of the question is political rather than ments their father had bought them-and be­ the facts and find ways of ending the vio­ ethnic or national. came a big audience favorite at amateur night lence. Pointing out the illegality of the mili­ In the short run, the military operations at Harlem's Apollo Theatre. The band played tary operations and the reaction of the inter­ against Armenia constituted an attempt to engagements around New Jersey, with the national community helped bring that car­ draw Armenia into a war against Azerbaijan money they earned going toward funding their nage to an end. and to turn Armenians into martyrs in a fu­ college education. Meanwhile, all of the girls Moscow avoided its mistake in Lithuania tile struggle against the Soviet army. Any of by acting under the cover of a July 1990 pres­ these reactions would have then been used to earned straight A's in high school and at­ idential order to disarm civilians and by des­ justify a formal military intervention in Ar­ tended college. ignating Armenian militiamen as "armed menia itself. Donald Thornton had a dream that all six of bandits." The Soviet government has yet to The levers the central authorities have in his daughters would become doctors. Al­ present a convincing case for the use of its other republics-such as ethnic minorities, though that did not precisely come to pass, brutal force. Last August and September, an ideologically oriented Communist Party, the achievements of the Thornton sisters the newly elected democratic government a government lacking legitimacy and popu­ would make any parent proud: Yvonne and was able to disarm peacefully all self-pro­ lar support-are absent in Armenia. That is Jeannette became doctors, Linda became a claimed and unruly armed elements without why violence has become necessary and con­ dentist, Rita is chairman of the science depart­ the help of Moscow. It was able to confiscate venient. six times more weapons than the full force of Armenia remains determined to institute a ment at a private school and is working toward the Soviet army did recently. government of law and justice to give our her doctorate in child development, Betty is a Armenia has instituted self-defense units nation a sense of normality. It has not ruled geriatric nurse at a teaching hospital, and as part of the regular militia under the re­ out one or more agreements with a union of Donna, besides being a wife and mother, is a public's legal authorities. Their size and im­ Soviet republics, or bilateral agreements, as court reporter. The remarkable story of the portance have been exaggerated in Soviet long as Armenia participates with a demo­ Thornton family received national attention in and Azerbaijan! reports. Yet some expansion cratically elected government in negotia­ an article in Reader's Digest in 1987. of the militia was necessary to ensure the tions as a sovereign state. Mr. Speaker, this story has personal signifi­ defense of the population in border areas and I hope the United States will consider care­ to see that local incidents do not produce ftilly the implications of Soviet policies with cance for me. As I indicated earlier, the Thorn­ large-scale confrontations. regard to Armenia and other democratic re­ tons lived in my hometown of Long Branch. Soviet policy decisions and large military publics. I am confident that the inter­ Rita Thornton and I participated together in operations could not have been implemented national community will ensure that the high school speech and debate programs. without the knowledge and approval of Mi­ principles of collective security, peaceful Even back then, it was clear that this was a khail Gorbachev himself. conflict resolution and self-determination family that was held together by a very strong Since the victory of popular and demo­ are respected within the U.S.S.R. as much as work ethic. cratic forces last August, Armenia's par­ without. liament has introduced a multiparty politi­ Sadly, Donald and Tass Thornton are no cal system, distributed land to the peasants, longer with us to enjoy their daughters' suc­ initiated privatization of commerce and in­ ESTABLISHMENT OF THE THORN­ cess and happiness; Tass died in 19n and dustry, adopted international conventions on TON SISTERS FOUNDATION, INC. her husband passed away in 1983. The six human, civil and political rights, and accept­ daughters all served as pall bearers at both of ed universal standards of freedom of con­ HON. FRANK PAllONE, JR. their parents' funerals. Now, the Thornton sis­ science and religion. We are developing legis­ ters have put together their energies to allow OF NEW JERSEY lation to introduce judicial reform. deserving young women who might not other­ IN THE HOUSE OF REPRESENTATIVES In August the parliament adopted a Dec­ wise have the chance to attend college. I sa­ laration of Independence as only the begin­ Thursday, May 23, 1991 ning of the long road toward total sov­ lute the Thornton sisters, not only for their own ereignty. We view independence as a prac­ Mr. PALLONE. Mr. Speaker, on June 1, impressive accomplishments, but also for their tical necessity for the establishment of 1991, I will have the honor and privilege of at­ generosity in giving other young people a democratic institutions. It is a means to ex- tending an event that I believe epitomizes chance. 12602 EXTENSIONS OF REMARKS May 23, 1991 ST. CATHERINE'S CHURCH 150 THE FINDINGS OF THE SELECT Childers had to forego many of the physical YEARS OF GROWTH AND SERVICE COMMITTEE ON AGING, SUB­ therapy treatments he needed to aid in his COMMITTEE ON HEALTH AND recovery. LONG-TERM CARE'S FIELD The savings that she and her husband had accumulated for glasses, hearing aids, and HON. NITA M. LOWEY HEARING IN ST. PAUL ON APRIL getting · teeth fixed were exhausted when 4, 1991 OF NEW YORK their furnace, an essential item in Northern Minnesota, went out. In addition, her hus­ IN THE HOUSE OF REPRESENTATIVES HON. BRUCE F. VENTO band had to take 182 pills per week for his OF MINNESOTA condition, none of which are covered by Med­ Thursday, May 23, 1991 icare or their HMO. She still has a bill of $721 IN THE HOUSE OF REPRESENTATIVES for his medication. Mrs. LOWEY of New York. Mr. Speaker, Thursday, May 23, 1991 Since her husband's death, Mrs. Childers today, I would like to share with my colleagues Mr. VENTO. Mr. Speaker, the cost of health has been inundated with paperwork from the the story of a remarkable church in New Ro­ hospitals and insurance agents. She has re­ care in the United States is spiraling out of ceived over 95 different slips of paper, many chelle, NY. For 150 years, St. Catherine Afri­ control, having outpaced inflation for over a can Methodist Episcopal Zion Church has of which say "This is not a bill" and does not decade. We are all aware of this. But what ef­ need to be paid. Others say they are bills and grown in numbers and in service. fect does this have upon our Nation and its must be paid, and others still say that they Named in honor of Catherine landers, one citizens? It is a well known fact that 37 million are past due and have been turned over to of the church's original members who gave Americans lack health insurance, 17 million collection agencies. On top of the loss of her generously to ensure that St. Catherine's more have insufficient coverage and another husband, Mrs. Childers has had to endure began on a sound footing, the church has had 200 million remain unprotected against pro­ harassing phone calls from the collection agencies. many homes. From the original meetings in a longed illnesses requiring long-term care. Yet, small house on Harrison Street, it moved to its many people are unaware of the overall im­ DAVID GREEN first church building on Anderson Street in pact that our health care system has on the Mr. Green is 32 years old and works as a writer for the Minnesota State House of Rep­ 1890. Soon after, a new church was con­ majority of Americans. resentatives Democratic Caucus. He has a structed on Lincoln Avenue. This church stood In order to assess the severity of these con­ history of rheumatic heart disease and endo­ until the 1970's when its current home was cerns and to examine the health care system carditis which have left him with an en­ constructed. in my home State of Minnesota, the Sub­ larged heart and malfunctioning heart The church has had many missions as well. committee on Health and Long-Term Care re­ valves. Recently he was diagnosed as having congestive heart failure. While doctors have A small Christian mission that grew into a cently held a field hearing in St. Paul. During the hearing, "National Health Care: The Min­ told him that he needs a heart transplant, major center of its community, St. Catherine's his health insurance with Blue Cross Blue is a home to community groups, a center for nesota Perspective," the subcommittee heard Shield (BCBS) will not cover such an oper­ the life of its parishioners, a place for edu­ from nine witnesses representing the views of ation. Therefore, Mr. Green has had to raise cation and music, a partner in the war on pov­ labor, business, insurers, health care workers, $65,000 on his own before he could even be erty, a builder of affordable housing, and a and consumers. These individuals have expe­ placed on a transplant waiting list. He must rienced firsthand some of the problems with now raise the rest of the money to pay for caretaker of New Rochelle's elderly. St. Cath­ our current system of health care delivery and the total cost of a heart transplant oper­ erine's is all of these things and more. were able to provide some very valuable in­ ation, which will be between $75,000 and Under the leadership of Rev. Vernon A. sights. $125,000, more if there are complications. Shannon, who has pastored the church since Despite his situation, however, Mr. Green Although my State is known for having considers himself fortunate because he has 1972, the church and its service to the com­ some of the best and most comprehensive munity have grown. Lincoln Towers, an impor­ friends who have been able to help him raise health care programs in the Nation, Mr. the money. As staff for the Minnesota House tant senior citizens' apartment building was Speaker, it was evident that even Minnesota is of Representatives, he is also in a position to constructed under church auspices. That not immune to the serious problems that afflict get his questions answered and to fight deci­ building's 89 units make urgently needed the rest of the country. For instance, a recent sions he feels are wrong. Mr. Green knows housing available in the community. At the study revealed that nearly 370,000 State resi­ that this is not the case for most people. same time, St. Catherine's has retired its dents lack basic health care over the course Already Mr. Green is experiencing prob­ lems with reimbursement by BCBS. He has church mortgage and purchased a magnificent of a year. Even more outrageous, at least been told he must pay a $300 deductible and new pipe organ. Having removed the burden 11,000 Minnesotans were denied health care 30% co-payment on $10,000 worth of bills for of its mortgage, St. Catherine's now has in­ last year because of the fact they lacked in­ care and testing he received when he first creased its ability to meet the needs of both surance. was rushed to the hospital for congestive members of its congregation and the commu­ Mr. Speaker, the subcommittee hearing pro­ heart failure. A BCBS representative told nity at large. vided an excellent body of testimony which him that according to their records the two doctors that cared for him were not eligible Reverend Shannon and the congregation of can lend considerable insight to the national debate on health care reform. Learning about providers. Apparently, Mr. Green was sup­ St. Catherine's have also been at the forefront posed to have been responsible for confirm­ of the important work of the Westchester Coa­ the concerns and problems of individual ing whether his doctors were eligible or not lition for Mutual Respect. In that capacity, States like Minnesota will enable Congress to sometime between his admittance at 9:30 Revereend Shannon and his congregation tailor a better system capable of addressing p.m., when he was near death, and the next have worked to bring harmony and build the Nation's overall health care needs. There­ morning when he was transferred to undergo fore, I am pleased to provide the following catherization. He believes this is unreason­ bridges between all the people of our commu­ summary of the witnesses' statements from able. In addition, the doctors who cared for nity. As the church celebrates its 150th anni­ the first field hearing on national health care him believe that they were eligible at the versary, Rev. Shannon is ready to lead it into reform, along with my concluding remarks: time; this point is now being contested. the next phase of its growth and the next According to Mr. Green, "equal access and HIGHLIGHTS OF INDIVIDUAL STATEMENTS chapter of its remarkable history. There is no standardization are needed to make the sys­ MONTA CHILDERS question that the next 150 years will be ones tem more responsive" to consumers, whom Mrs. Childers, who is 76 years old, lives in he believes are very confused. Having had of continued dedication, caring, service, and northern Minnesota. Her husband died in heart problems, he is willing to admit he was commitment for this outstanding church. February. He had been recovering from the probably a poor consumer for not having I am proud to represent the good people of effects of a heart attack, which required a checked whether his new policy covered St. Chatherine A.M.E., Mr. Speaker, and I quadruple by-pass operation, and a stroke. transplants or not. However, Mr. Green had congratulate them and wish them well on this On an annual income of $10,620, their medical had no reason at the time he registered for bills totalled $16,300. Even belonging to an his insurance plan to believe he would need auspicious occasion. HMO/Medicare plan that covered 80% of this a transplant. He also stated that it would be bill, the cost was too high and they could not impossible for anyone to read all the pages of afford supplemental insurance to cover all every book available for every plan that he the gaps in their coverage. As a result, Mr. had to choose from. May 23, 1991 EXTENSIONS OF REMARKS 12603 GENE ROSENBLUM cient care. They both work and pay taxes, zation must justify the existence of those Mr. Rosenblum is president of a policy yet the Everetts can not get the assistance machines," whether the procedure is medi­ holders' rights group representing over 24,000 they need and deserve. Health care should be cally necessary or not. people in the state's pool for the uninsur­ a right, Mrs. Everett added, not a privilege Another significant problem is the great able. The policyholders he represents are people can not afford. numbers of disparities that exist in reim­ simply unable to find anyone that will agree DR. THERESE ZINK bursement between urban and rural areas­ to cover them or the coverage is so expensive Dr. Zink is the medical director of the disparities that do not accurately reflect the as to be prohibitive. The Minnesota program, cost in the deliverying of care. There are Family Tree Clinic, one of 16 community also "profound inequities" in reimbursement the nation's first and most comprehensive based clinics within Minneapolis/St. Paul risk pool, provides a safety-net for people between regions of the country. He high­ that serve the uninsured. From her vantage lighted the problems of inequity created who are considered too high a risk to be able point, she has seen the consequences of to obtain insurance through private compa­ when self-insured companies are allowed to unaffordable health care and she believes ignore state mandates and laws because of nies. that Minnesota is paying an enormous price Mr. Rosenblum believes that it should be a the ERISA pre-emption, as well. both in human suffering and dollars. Finally, Mr. Erickson added that there has model for a national program. It would help Dr. Zink explained how she had been seeing millions of uninsured Americans without never been a better or more appropriate time one woman for pre-cancer changes on her for the Federal government to lay the foun­ costing the Federal government any money. cervix. The woman had no insurance, but Minnesota and the 24 other states with simi­ dation for improvements within the health needed to be referred to a specialist. At that care delivery system in this country. lar programs have a problem, however. While time the woman was able to obtain insur­ they are able to fund the programs through ance through a new job. However, the pre­ DR. MARK BANKS premiums charged private insurance compa­ cancer condition would have been considered Dr. Banks is the Vice-President and Medi­ nies and HMOs, the funding is substantially a pre-existing condition and excluded her cal Director of Blue Plus, Blue Cross Blue impaired because of a Federal Employee Re­ from needed coverage. Dr. Zink told several Shield's HMO. Blue Cross Blue Shield (BCBS) tirement Income Security Act of 1974 other stories, as well, that highlighted some is the largest writer of helath care coverage (ERISA) provision that prevents states from in Minnesota, serving about one quarter of assessing self-insured plans. In Minnesota, of the other difficulties people face under the current system. She stressed that these were the states population-over 1,100,000 Min­ companies with self-insured plans account nesotans. for 40% of all employers. This exemption by no means unusual cases. Millions of Americans fight these same battles every BCBS believes that much of what has been forces private insurers and HMOs to pay for referred to as the "sickness" of our health a disproportionate share of the burden in a day. "We can buy people insurance, but what good does it do to cover only the cata­ care system is mostly the result of insurers' state risk pool. As a result, this translates difficulty in "offering programs suitable in into higher premiums and deductibles for the strophic or the emergency events when we know that preventive visits save money and both benefits and price for small employers." policy holders in the private plans, HMOs This condition is magnified by what is and the risk pool. · also human disability and suffering?" She supports a single payer system because known as the "adverse selection spiral", NATALIE EVERETT it is the only way to streamline quality and whereby small groups migrate away from Mrs. Everett, a Home Daycare provider, to guarantee continued cost control. She pools with some high risk enrollees towards was unable to appear in person, but her less expensive plans. This, in turn, forces up added that such a system does not have to be the cost for the groups remaining in the pool statement highlights some significant issues. socialized medicine. A national program Both Mrs. Everett and her husband are em­ with higher risk participants. could work well without health care profes­ It is possible, however, to require carriers ployed, yet they have never been able to af­ sionals and hospitals being owned or em­ ford health insurance. The cheapest policy to insure all small groups as long as their is ployed by the government. an adequate reinsurance mechanism to redis­ they have been able to find to cover their Dr. Zink encouraged Congress to think family costs about $350 a month, or about tribute the cost of high risk individuals. into the future and to make comprehensive BCBS has developed such a proposal that what they pay in rent. When the second of choices. their two children was born, the Everett's would increase small group participation by doctor determined that it was necessary to KIRBY ERICKSON removing the barriers that these groups face. perform a C-section. This cost them $3,000. Mr. Erickson is the Executive Director of This includes such things as eliminating Without insurance they were forced to pay MedCenters, a Minneapolis based HMO. Man­ mandates which drive plan costs up signifi­ the entire bill out of their own pockets. It aged care principles, he said, have been de­ cantly. took over a year to pay the debt off, during veloped thoroughly in Minnesota. They are BCBS is also worried about the ERISA pre­ which time they could -not take themselves the heart of an HMO plan. The recent Health emption, since the insurer administers the or their children to a doctor for anything Care Access Commission Report, in fact, rec­ Minnesota Comprehensive Heal th Associa­ else. They simply could not afford it. ognized the benefits of delivering care in a tion (MCHA), the state's risk pool. BCBS is Her husband has not been to a dentist in managed system and recommended that concerned because 50% of the health care ten years, she has not been in five years. Nei­ HMOs play a major role under the universal market in Minnesota does not contribute to ther of them can afford any basic preventive access plan developed by the Commission. the losses of the MCHA program. The loss of care measures for themselves. She can not He stressed that Medicare and Medicaid al­ this funding must be passed on to consumer even afford to get Pap smears done. Their ready represent about 42% of the cost of care groups that are already struggling to main­ general rule has had to be, if they get sick, nationally. When you add in other programs, tain policies. As more companies opt for self­ "suffer it out-wait a week or two and see if the Federal government finances almost 50% insurance, the funding of the risk pool will it goes away." Unfortunately, this practice of all health care in this country. The role of continue to shrink. In addition, when compa­ too frequently ends up costing them even the Federal government has changed from nies operating self-insured plans declare more. Her husband, for instance, had a blad­ "Regulator" to "Purchaser". Yet the only bankruptcy, even more burden is placed on der infection for which he had to put off thing the government has done so far to con­ those providers and carriers who must oper­ treatment. It got so bad, finally, that he trol costs is to target third party payors and ate under state laws since the newly unem­ missed work and had to take medication for providers. HMOs and other third party car­ ployed workers must be provided for in some five months; the pills cost them $85 every riers, however, must be viewed as partners in way. The ERISA preemption must be elimi­ two weeks. financing and providing care. They should nated so that states can require all health The Everetts live in fear every day that not continue to serve only as entities that care coverage to incorporate certain mini­ their two children (both of whom are young, the government can leverage coverage out mum standards. active boys) will have a serious injury; Mrs. of. It is important that the Federal govern­ Finally, the Federal government must de­ Everett and her husband know they could ment work with HMOs and private insurance fine a "core" group of benefits available to never afford treatment. Since Mrs. Everett carriers in framing any reform of the sys­ every insured individual. While the availabil­ runs a day care service in their home, how­ tem. ity of different types of coverage meets mar­ ever, a greater day-to-day concern is that Little has been done, for instance, to deter­ ket demands, it also fragments the market one of her two boys will come down with one mine the "appropriateness of the pricing of and makes it almost impossible to apply the of the infections or viruses that they are ex­ technology by manufacturers". Mr. Erickson "law of large numbers and spreading of risk" posed to by the other children. emphasized that we must develop a more ra­ within their participant groups. The Everetts are upset. Although they tional approach to purchasing technology. BILL PETERSON would not begrudge quality health care to "In Minnesota the growth of the number of Bill Peterson is the Secretary and Treas­ any of the children Mrs. Everett watches, it CAT scanners, MRI machines and PET scan­ urer of the Minnesota AFL-CIO and former bothers them that state provides medical as­ ners exceeds the capability of the entire na­ chair of the union's state task force which sistance for the parents on welfare when tion of Canada. Unfortunately, to meet the was established to look at health care re­ their own children must do without suffi- cost of attaining this new technology, utili- form.

49-059 0-95 Vol. 137 !Pt. 9) 26 12604 EXTENSIONS OF REMARKS May 23, 1991 While trying to determine what the con­ of health care delivery and to shape a better tions beyond their control. As started by Jim sumers' role should be in reshaping health one if necessary. The Commission decided Koppel: What we have is not risk-sharing in care policy, it became clear to the task force that serious problems did exist and devel­ private insurance; we have risk-aversion. that critical problems exist in our present oped a plan for universal coverage of all health care delivery system. Problems that state residents. Women pay more than men; young, newly Mr. Peterson stressed include: health care is The Commission determined that while married couples cannot find insurance that in­ not "cost accountable"; it is not accessible; Minnesota has a health care system that is cludes childbirth coverage; and seniors learn and there is no coordination-which pro­ better than almost any other state's, it still that growing older automatically means grow­ duces waste and duplication-and too little suffers from rapidly escalating costs, benefit ing rates and premiums. Insurance companies attention is paid to preventive care. erosion and decreasing flexability in ratings are sometimes guilty of cutting out anything, While Minnesota had made progress in and underwriting. In the most extensive sur­ or anyone, from policies which might one day meeting its heal th care needs, and is far vey conducted by any state to date, the Com­ ahead of other states, there is a limit to mission found that about 57% of Minnesota result in a benefit payment. Individuals with a what a single state can accomplish. Unfortu­ residents have health insurance coverage preexisting condition are frequently denied nately, the ERISA provision mentioned by through their employers. However, 8.5% of health insurance coverage for that condition, other witnesses is one of the barriers. Al­ Minnesotans have individual policies marred even if they have been medically determined though, Mr. Peterson admitted he was uncer­ by high deductibles and copayments. An­ free and clear of it for years. tain whether removing the ERISA preemp­ other 8.5% of Minnesotans, roughly 370,000 These are not problems that affect only the tion would make a significant difference, it residents, lack any type of health insurance homeless or low-income in America. These was clear that he believed its removal is im­ for all or part of a year. portant since the provision prevents states Mr. Koppel stressed that high deductibles are problems that average working Americans from mandating minimum benefits in self-in­ and copayments are a barrier to better face everyday. As their access to care de­ sured plans. health care. In many cases, the Commis­ clines-support for national health care in­ Mr. Peterson also stressed that the Min­ sion's survey determined that people with creases. America needs a system where deci­ nesota AFL-CIO supports a national health high copayments and deductibles act like sions regarding the use and cost of new tech­ program through a single-source payor. He people without insurance, delaying treat­ nologies and techniques are justified by their emphasized that this issue has been before ment for everything from runny noses to effectiveness. Despite the inherent sense of Congress for twenty years and we can no chest pains and infections. longer afford to procrastinate. Mr. Koppel was also insistent that in the this statement, there is considerable appre­ hension that this approach necessarily means JIM RING development of any national approach, care must be taken to avoid shifting costs be­ a reduction in the quality of our health care. Mr. Ring is the Vice-President for Cor­ Instead, a pervasive sentiment exists in this porate Resources at Control Data Corpora­ tween private and public health care cov­ tion. He was also on the Executive Board of erage. The public can pay, but the private country to allow the free market to work its the Minnesota Health Care Access Commis­ sector must be made accountable to the magic. It is clear, however, that the private sion. long-term needs of the public. In this coun­ sector has proven less than effective in deal­ try, we have always found ways to shift pub­ ing with this crisis. Since 1980, health care costs have nearly lic costs to the private sector and vice-versa. doubled and have become one of the leading That does not solve the problem. Any new In fact, competition is not merely insufficient causes of personal and small business bank­ program must not establish a two-tier sys­ as a means of cost controHt is often the im­ ruptcy. Control Data's health care costs for petus behind spiraling health care costs. Kirby its employees have also risen significantly, tem. demanding a greater share of available com­ CONCLUDING STATEMENT Erickson stated, for example, that "in Min­ pensation dollars. This has forced the com­ Systemic problems have brought home to nesota the growth of the number of CAT scan­ pany to pass on more and more of its costs to consumers, to business and labor leaders, ners, MRI machines and PET scanners ex­ its employees and retirees. The company has and to front-line health care professionals, the ceeds the capability of the entire nation of not wanted to do this, but has had no choice. overwhelming need for reform. The problems Canada." This fact is often sited as good On our present course this situation will the witnesses discussed were not just the dis­ news concerning accessibility to quality health only become exacerbated. According to a re­ care in our county. While this is certainly true cently released study by A. Foster Higgins, if tress individuals feel because of the avalanche present trends in health insurance are al­ of paperwork which must always be sorted in that there is a greater capacity to treat indi­ lowed to continue unchecked, we will see and filled out, filed or paid. Nor the myriad viduals, the proliferation of this technology or current employer contributions of $3,000 or problems faced by the millions of Americans equipment frequently outpaces justifiable com­ so jump to roughly $22,000 by the year 2000. whom we have all heard lack any health insur­ munity need. As Mr. Erickson added, presently Clearly no one can sustain this kind of an in­ ance at all. "utilization must justify the existence of [new, crease in expenses. What we are observing is millions of Ameri­ technologically advanced] machines* * *,"so Like other companies, Control Data has cans who routinely put off needed examina­ they are often put to use whether or not their taken steps to contain costs. Yet all they use is fully supported by medical necessity. can do is temporarily slow the upward spiral. tions and treatments because they simply can Certain priorities have to be set at the na­ not afford to visit a doctor everytime they feel This adds significantly to spiraling costs, which tional level in order to have a lasting effect. ill. When adequate and timely medical assist­ in turn diminish accessibility. These priorities include: substantially great­ ance could mean the difference between early Perhaps the main factor preventing ade­ er use of managed care; greater emphasis on detection and simple treatment of an illness or quate cost-control provisions from being pur­ preventive care; closure of underused hos­ more complex, costly treatment at a later point sued, however, is the overriding policy that pitals and control on the purchase of major individuals forgo a trip to their physician. dominates our health care system. This is the capital equipment according to the needs of The cost of health care under our current policy of cost-shifting. The Government entire communities; and revision of under­ writing practicies to establish community system has become the overriding concern for passes costs on by mandating benefits; pro­ ratings and discount preexisting conditions citizens. For too many Americans, even those viders and insurers pass on costs to individ­ and age ratings. with insurance coverage, health care has uals through higher premiums, deductibles, At present, there is simply no incentive in come to be viewed as a privilege they can not and copayments; the government, in turn, is the fee-for-service system to find and use the afford. It should be a basic right. Yet, forced to provide for the sickest and poorest cheapest, yet effective medical care avail­ deductibles and copayments are often too by assessing the public higher taxes and re­ able. This is a growing problem with the pro­ high for most working families and serve as a quiring insurers to fund risk pools. liferation of technology. Currently there is disincentive to seek proper care. In addition, Another major method of cost-shifting that is no effective method which exists to evaluate the usefulness of new technology. Clearly, underwriting standards are so stringent that in­ often overlooked is the use of emergency most patients are not in a position to make dividuals often fear that they may be dropped rooms by the uninsured and underinsured. By this determination for themselves. from an insurance plan if they make use of it financial necessity, people within these groups JIM KOPPEL too frequently. And some even worry that the usually put off seeking health care until it is Jim Koppel is the Executive Director of doctor may discover a problem which is not too late and then have to seek emergency the Minnesota Health Care Access Commis­ covered by their health insurance. These are medical attention. But it is well known that sion. The Minnesota Health Care Access legitimate concerns. emergency care is absolutely the most expen­ Commission was established by the state leg­ Within our present system, individuals are sive type of care--far more expensive than islature to study Minnesota's present system penalized by insurance companies for condi- preventive care--and that the costs of operat- May 23, 1991 EXTENSIONS OF REMARKS 12605 ing in this manner are passed on to paying WALTER McCLAIN: A GREAT FREEDOM AS DEFINED BY 10- hospital patients and to taxpayers. LEADER LEAVES WESTCHESTER YEAR-OLD MILLORAD DEVIAK Finally, the issue of self-insured health plans established under ERISA must be addressed. HON. PHILIP M. CRANE Several of the witnesses stated that the cur­ HON. NITA M. LOWEY OF ILLINOIS rent ERISA preemption is hindering States IN THE HOUSE OF REPRESENTATIVES from being able to secure better health care OF NEW YORK Thursday, May 23, 1991 for their residents. According to section 514 of IN THE HOUSE OF REPRESENTATIVES the law, States cannot mandate that self-in­ Mr. CRANE. Mr. Speaker, In 1864, one of sured plans provide minimum benefits, nor Thursday, May 23, 1991 the greatest Presidents, Abraham Lincoln, can States assess premiums against these Mrs. LOWEY of New York. Mr. Speaker, I stated, The world has never had a good defi­ plans to help finance risk pools. Beyond the rise today with a great deal of disappointment nition of the word liberty. However, a 10-year­ obvious financial advantages these exclusions to pay tribute to an amazing man, Walter old emigrant from Yugoslavia has come pretty close to one. I hope my colleagues will take provide to those companies with self-insured McClain. The occasion which prompts this the time to read the following article which ap­ plans, there are additional inequities. statement is an unfortunate one for West­ peared in the April issue of Reader's Digest In Minnesota, for instance, almost two-thirds chester County. Walter McClain has chosen to of the States's largest businesses have self-in­ using two separate points of view. The first leave his home in Port Chester, NY, to retire. sured plans, representing a significant number view being with a sense of thankfulness for Our community will suffer because of his deci­ of Minnesota residents who have health insur­ the freedom bestowed upon parts of Eastern ance. Yet, the self-insured plans do not con­ sion, though of course we wish him well. Europe; and the second with a sense of con­ tribute at all to help finance the cost of the Walter was the first African-American to cern for the plight of the Salties, Albania, State's 24,0CQ-plus member risk pool for the ever serve as a police officer in Port Chester, Yugoslavia and all other nations oppressed by uninsurable. Because the funding base for the the town where he grew up. His early years the sickle and hammer of Communism. risk pool is artificially low, private insurance on the force were difficult, but his persever­ WHAT FREEDOM MEANS TO ME companies and HMO's are forced to pay a ance and dedication won out, and his con­ (By Millorad Deviak) higher, disproportionate share of the cost. Ulti­ tributions to public safety and to mutual under­ The TV images will never leave me: thou­ mately this higher cost is passed on to their standing in his community have been numer­ sands of Czechoslovak youths massed in policyholders, even though all residents, in­ ous in his years as a police officer. To support Prague's Wenceslas Square chanting cluding those in self-insured plans, can benefit his seven children he had to work two, even "Svobada! Svobada!" ("Freedom! Freedom!"); laughing and weeping Germans chipping from the risk pool. three jobs at a time, but his commitment to im­ In conclusion, while the problem remains in away at the Berlin Wall; excited crowds proving his community have never dimmed. clamoring for the overthrow of Romania's need of better definition, it is clear that the Even at the busiest and most hectic moments communist dictator. current health care system is already in the of his life, the people of southern Westchester Soon after I arrived in America in 1984, an midst of a major crisis-one which will not could count on Walter McClain to speak out emigre from Eastern Europe, I went to work lend itself to quick fixes and patchwork ap­ when he saw something that was wrong and for Voice of America radio, beaming free­ dom's message behind the Iron Curtain. proaches. to fight for justice and better future. During the hearing of the subcommittee it What was in it that gave such hope and cour­ After retiring from the police force at age 63, was clear that a consensus has already begun age to the sad victims of communism? Walter's community involvement shifted into to form in support of a national health care Scores of experts have offered sophisticated high gear. He was elected president of the answers. But mine is far simpler. The truest program. This is not because of anything we message of freedom I know was given me have done in Congress. Systemic problems Port Chester-Rye branch of the NAACP, a po­ sition in which he served with distinction for many years ago-by a ten-year-old named have adversely affected so many individuals Milan. within our society that the groundWork has al­ three 2-year terms. In that capacity, he worked When the phone rang that afternoon in ready been laid in support of reform. As one hard to make sure that a downtown redevelop­ April 1955, I was surprised to hear the voice witness, David Green, testified: "A lot of peo­ ment plan would benefit all of Port Chester's of my adopted son's teacher. "Mr. Deviak, ple say the Federal Government can't orga­ citizens. it's about your boy." nize anything efficiently, but I can't imagine His continuing crusade however, has been "Milan didn't break another window, did he?" anything organized less efficiently than the to encourage all of the people in his commu­ "Oh, no. It's about homework. I've asked system we have now." nity to get involved. He boosted membership his class to write something on the theme At present, we are overly concerned with in his chapter of the NAACP from only 30 'What freedom means to me.' Given Milan's who is paying and not what is being paid. As when he took office to over 250 at the end of background, we thought he might have trou­ long as we continue to approach the issue his first term. He has continually prodded and ble with it. Could you give him a hand-you from this perspective we will never control challenged people to stand up for what was know, help him understand what freedom costs and we will have no trouble reaching the stands for?" needed and to take the cause of their commu­ Miss Brown was right to call me, I $22,000 per year health plans alluded to by nity into their own hands. This is a message thought. It wouldn't be fair to expect the boy Mr. King. to which we should all listen, because it is the to grasp such a concept. Milan's early years The costs of health care must be ad­ heart of democracy and the key to advance­ had been spent in communist Yugoslavia, dressed. Individuals should not be penalized ment for all of us. the country I'd left a decade before. There he for conditions like gender or aging which are Walter McClain has retired from the leader­ had grown up never knowing what he could beyond their control. A way must be found to say or whom to trust. In elementary school ship of the NAACP and he is now moving to adequately share the risks of insuring pre-ex­ in Belgrade, he and his classmates were Georgia for retirement. I wish that I could com­ isting conditions. The shifting of costs back herded together for "self-criticism" ses­ mend him for this, Mr. Speaker. But I am too sions-tattling on friends who said anything and forth between payors and providers must "anti-communist." Those who spouted the be stopped, since it ultimately does nothing to deeply disappointed that my district will be los­ ing one of its brightest lights and one of its party line received a red carnation. Milan promote cost containment. The purchase of never got one. new medical machines must be determined wisest leaders. Our loss is truly Georgia's Far worse, when Milan was only two according to community needs. The use of gain, for I am sure that Walter will continue to months old, the authorities had thrown his new technology and techniques has to have a be a fighter for what he knows-what we all father into jail for protesting against the re­ solid medical justification. And until health care know-is right. I wish him a happy and healthy gime. As the boy grew up, children mocked reform occurs at the national level, States retirement, and urge him to return to West-. him, calling him the son of an "enemy of the chester often. people." Milan's father was never heard from should not be prevented from doing everything again. they can to provide better access and cost­ When his mother remarried and moved sharing for their residents. The time has come away, Milan was left to live with his 111 and to stop admiring the problem. The time has impoverished grandmother. That was when come to act. my wife-Milan's aunt-and I managed to 12606 EXTENSIONS OF REMARKS May 23, 1991 adopt the boy and bring him to our new spirit can find liberty and peace. For us, and Whereas William Paca, an Italian-Amer­ home in the United States. for so many others, that home is America. ican, was one of the signers of the Declara­ At first, Milan seldom spoke for fear of "I love it, Milan," I managed to say at tion of Independence; and getting into trouble. Several times he woke last. "It's wonderful. How did you think of Whereas during October 1991 special atten­ up in the night shouting, "Help! Someone's this?" tion will be directed at National, State, and trying to strangle me!" "Easy," he said with a smile. "Miss Brown local programs that promote Italian Herit­ Months passed before the fear began to dis­ told us, 'Don't go fishing for big words. Just age and Culture: Now, therefore, be it solve, but once it did, Milan blossomed into put down what you feel.' " Resolved by the Senate and House of Rep­ a happy, enthusiastic child. He made friends resentatives of the United States of America in at school and came to discover the things Congress assembled, That October 1991 is des­ most American .boys love: baseball, Disney ITALIAN-AMERICAN HERITAGE ignated as "Italian-American Heritage and cartoons, popcorn. Now, thanks to Miss Culture Month", and the President is au­ Brown, I would have the chance to introduce AND CULTURE MONTH thorized and requested to issue a proclama­ him to the word Americans cherish most. tion calling upon the people of the United I wanted to make the concept of freedom States to observe such month with appro­ as simple as possible for him. After all, how HON. ELIOT L ENGEL priate ceremonies and activities. difficult could it be to explain something OF NEW YORK that is as natural to Americans as breath­ IN THE HOUSE OF REPRESENTATIVES ing? I would just tell him . . . well, what? EESA WILL SAVE $40 BILLION IN That freedom is the basic ingredient of de­ Thursday, May 23, 1991 ENERGY COSTS mocracy? But since Milan had lived in a so­ Mr. ENGEL Mr. Speaker, I rise today to in­ called "people's democracy," that might troduce, for the third year in a row, a joint res­ only confuse him. HON. J~ H. SCHEUER Realizing I needed help, I marched off to olution requesting the President to designate OF NEW YORK the reference room of the New York Public October, 1991 as "Italian-American Heritage IN THE HOUSE OF REPRESENTATIVES Library. "Personal liberty," the encyclo­ and Culture Month." Thursday, May 23, 1991 pedia told me, "exists as a recognition of the Throughout our Nation's history, men and right of each individual, within limits, to do women of Italian descent have made out­ Mr. SCHEUER. Mr. Speaker, today I am what he pleases and go where he pleases." standing contributions in all aspects of life in­ proud to introduce, along with my fellow En­ Hold on. When you're dealing with a ten­ cluding art, science, civil service, military serv­ ergy and Commerce Colleagues, Mr. MARKEY, year-old, that sort of phrasing makes you ice, athletics, education, law, and politics. Vir­ Mr. STUDDS, and Mr. BILIRAKIS, the Energy Ef­ think twice. Forget the encyclopedia. tually every aspect of our life as a nation has ficiency Standards Act of 1991. This bill will I looked up the thoughts of famous people. save energy by promoting the use of more ef­ Seneca, the Roman philospher, wrote: "And been enriched by their unique talents and hard what is freedom, you ask? It means not being work. ficient products. a slave to any circumstance, to any con­ Some 20 million citizens make up the Ital­ Last February the President released his straint, to any chance; it means compelling ian-American community, representing one of National Energy Strategy with much to-do, but Fortune to enter the lists on equal terms." the largest ethnic groups in the United States. if the truth be told it was really nothing to Stirring, to be sure, but far too lyrical for a There are thousands of Italian-American orga­ cheer about. The strategy was totally deficient fifth-grader. nizations and clubs throughout the United in the efficiency area. I looked up many others, from Socrates to States who greatly contribute to the prosperity The best way, not the only way, but the best Shakespeare to Emerson. But nowhere in way to solve our energy supply problems is to that wealth of knowledge could I find a defi­ and progress of our Nation on a yearly basis. nition of freedom that I thought would make Italian-American Heritage and Culture Month reduce energy demand. The President's plan, sense to Milan. will focus attention on the great contributions however, does not make use of the tax sys­ I was about to admit defeat when I picked and accomplishments that Italians and Italian­ tem to encourage efficiency and does not set up a book on Abraham Lincoln. And there it Americans have made in all aspects of life in even the most minimal efficiency standards. was. In a speech in Baltimore on April 18, the United States. Recent innovations in technology now give 1864, our 16th President said, "The world has Following is the text of the resolution. us the abilit}t to achieve the same level of pro­ never had a good definition of the word lib­ duction and standard of living, while using less H.J. RES. 260 erty." If Lincoln could say that, why energy. Over the past 15 years the country couldn't I? Whereas Italians and Italian-Americans has reduced its real energy consumption by It was nearly eight o'clock when I arrived have contributed to the United States in all home. Milan was up in his room, my wife aspects of life, including art, science, civil over 20 percent. But there is so much more told me. Climbing the stairs, I felt empty. service, military service, athletics, edu­ we can do. Estimates are that our present Had I let him down? Somehow I managed to cation, law, and politics; technology, not what is in the labs and in the muster the self-assurance of a father as I Whereas, in recognition of the accomplish­ minds of our scientists, but what exists today, opened his door. Milan was sitting on his ments of Christopher Columbus, recognized can save us the equivalent of 11h billion bar­ bed, cleaning his baseball glove. "Hi, Milan!" as one of the greatest explorers in world his­ rels of oil each year. This is what the adminis­ I announced. tory and the first to record the discovery of tration's plan failed to realize. "Hi, Dad!" he said cheerfully. the Americas, a national observance day was "Did you get any special homework established in October of every year; Fortunately, others have stepped in to pro­ today?" I asked with careful nonchalance. Whereas the phrase in the Declaration of vide the leadership in the efficiency area that "Yeah, Dad, one assignment." Independence "All men are created equal'', the NES lacks. States and utilities have made "Did you do it?" was suggested by the Italian patriot and im­ great strides in promoting efficiency and re­ "Sure." migrant Philip Mazzei; ducing energy consumption. "May I see it?" Whereas the people of the United States Now it's time for the Congress to step in. I was incredibly curious. take great pride in the accomplishments of The Energy Efficiency Standards Act of 1991 "Here!" he said, passing it to me, as he many outstanding men and women of Italian will set new minimum efficiency standards for continued cleaning his glove. descent who have enriched our Nation's his­ four separate crucial products: lighting, electric There on the top of the sheet, printed in tory such as Fiorello La Guardia, the be­ his hand, was the title: "What freedom loved Mayor of New York City, and Enrico motors, commercial and industrial heating and means to me." Below this, covering most of Fermi, who won the 1938 Nobel Prize in air-conditioning equipment, and faucets and the page, Milan had meticulously drawn the Physics; showerheads. Virtually every manufacturer al­ Stars and Stripes, complete with flagpole. Whereas Italy enjoys a rich cultural herit­ ready produces affordable products that easily And underneath, in large letters, were two age and has given the world the great works comply with these standards. These standards simple words: My Home. of Dante, the breathtaking art of Giotti and are accepted by industry and do not require "Like it?" he asked. Michelangelo, and the inspirational music of any new innovations in technology. A lump grew in my throat as I wrapped my Antonio Vivaldi and Domenico Scarlatti; arms around him. In his own way, Milan had Whereas the Americas were named after The energy-efficient products called for by opened my eyes to a profound truth. Free­ the Italian explorer Amerigo Vespucci; this bill all have short payback periods. Their dom is not some abstract principle. More Whereas Giuseppe Verdi, one of the world's benefits far outweigh their costs. It seems odd than anything, it means simply coming most renowned opera composers, was born that we should needlessly waste energy when home-home to a world where the human October 10, 1813; there are more efficient products out there- May 23, 1991 EXTENSIONS OF REMARKS 12607 products that are accepted by the industry, af­ THE BENEFITS OF ENERGY billion savings in energy costs and dramati­ fordable, and available to the general public. EFFICIENCY cally reduced energy consumption. Simply by setting standards on these four This is a goal all American_s should support, products we can save nearly $40 billion in en­ HON. MICHAEL BIURAKIS Mr. Speaker, one that is achievable, afford­ ergy costs by 2010, reducing energy con­ OF FLORIDA able, and, especially, effective. A more en­ sumption by almost 10 quads. IN THE HOUSE OF REPRESENTATIVES ergy-efficient America will be a more energy­ The bill also has tremendous environmental Thursday, May 23, 1991 independent America, and this legislation is the first step toward that brighter future. benefits. The standards set by this bill will re­ Mr. Bilirakis. Mr. Speaker, it is plain that we duce peak demand by as much as 30,000 as a nation must secure a greater degree of megawatts. That is the equivalent of 60 500 energy independence if we are to remain eco­ ALEC RESOLUTION ENDORSES megawatt coal plants. nomically stable and competitive both at home REMOVAL OF MFJ RESTRICTIONS EESA also directs the Secretary of Energy and abroad. to conduct efficiency studies for several other This will take a comprehensive effort at all items like transformers, luminaires, and office levels of our society: Individual citizens, gov­ HON.J. DENNIS HASTERT OF ILLINOIS equipment. There are tremendous potential ernments, business and industry both small energy savings to be gained from increased and large. Fortunately, we have it within our IN THE HOUSE OF REPRESENTATIVES efficiency in these products, however, there power to make a considerable contribution in Thursday, May 23, 1991 are not universally accepted standards and this regard simply by making the most efficient Mr. HASTERT. Mr. Speaker, on May 18, the energy efficient technology may not be use possible of our energy resources. 1991, the American Legislative Exchange ready for full market penetration. After study­ That is why I am proud to join my col­ Council [ALEC] Task Force on Telecommuni­ ing these issues the DOE will be able to deter­ leagues on the Energy and Commerce Com­ cations unanimously adopted a resolution re­ mine exactly what rules and regulations are mittee, Mr. MARKEY, Mr. SCHEUER, and Mr. lating to the lifting of manufacturing and appropriate. Sruoos, in introducing legislation that will help intra LAT A information services MFJ restric­ The bill lists several exemptions for applica­ achieve this goal through the promotion of en­ tions on the seven regional Bell telephone tions where energy efficient technology either ergy efficient products from lamps to companies. As a member of ALEC during my does not exists or would not be appropriate, showerheads. years in the Illinois General Assembly, I com­ I am particularly pleased with the conserva­ such as auto headlights, lights used by medi­ mend this resolution for your consideration. tion and energy provisions in this bill relating cal personnel, and mortors with less than one At this time, I would like to insert the resolu­ to the efficient use of water. In my home State tion in the RECORD for your reading: horsepower. The Secretary of Energy can also of Florida, water conservation has come to be exempt certain types of lighting if he feels that RESOLUTION RELATING TO THE LIFTING OF a way of life. Residents in many parts of the MANUFACTURING AND INTRALATA INFORMA­ the standards would not result in substantial State, in what are known as water use caution TION SERVICES MFJ RESTRICTIONS ON THE energy savings. areas, routinely experience drought conditions. REGIONAL BELL OPERATING COMPANIES One may ask why this legislation is need­ Water audits, state-of-the-art leak detection Whereas advances in technology have ed? Why regulate? Why not just let the market methods, lawn sprinkling bans and other brought our society into the information take care of it? The answer is very simple. measures are frequent reminders of the sever­ age; and The market is not working. Energy efficient ity of the State's water crisis. Whereas the national welfare will be great­ products have been available for several years The Florida Water Conservation Act of 1983 ly enhanced by bringing about the universal availability of the information age to the yet people continue to buy the wasteful mod­ required the implementation of water efficient American people through the development els. For instance, in the electric motor area, fixtures, such as showerheads and faucet and deployment of innovative technologies; the market penetration of efficient motors has aerators that reduced water flow rates to a and remained constant at 20 percent. It is absurd maximum of 3 gallons per minute. Yet, even Whereas the provision of IntraLATA infor­ that only 20 percent of all motors sold are high these economies have begun to lag behind mation services, and the removal of judi­ efficiency models. current technological capability. Accordingly, cially imposed restrictions on the develop­ the Southwest Florida Water Management ment and availability of such services, will The fact remains that the people who have stimulate and encourage use of information to pay for engery efficient equipment often do District now recommends water fixtures with a age technology by the American people, and not have to pay for the power, and they can maximum flow rate of 2.5 gallons/minute. That the extension of advanced network capabil­ not pass the costs along. As such there really is the standard in the legislation that we intro­ ity throughout the nation; and is not incentive to purchase more efficient duce today. Whereas it is the responsibility of Con­ products since somebody else gets the energy A 10-minute shower then would consume gress, rather than the courts, to determine only 25 gallons of water, down significantly communications public policy including its savings. The manufacturer has to pay for the from the 80 gallons the same 10-minute show­ effect on economic competitiveness, national electric motor, but the consumer gets the en­ er would have wasted before 1983. security, and foreign trade which are essen­ ergy savings. The landlord buys the low flow tial elements of a sound national tele­ Hand-in-hand with such conservation meas­ communications policy; and showerhead, but the tenant gets the lower ures goes energy efficiency because reduced electric and water bills. This bill recognizes Whereas the continued economic growth flow rates mean that less energy is used to and international competitiveness of Amer­ this and corrects this market imperfection. heat the water. Water heating accounts for ican industry are dependent upon permitting The potential energy savings from this bill nearly 17 percent of residential energy use all American companies to provide are enormous. The technology for more effi­ and some 40 percent of residential hot water IntraLATA information services, to conduct cient lamps, motors, heating and cooling use flows through showerheads. Obviously, research and to design, develop, manufac­ equipment, and faucets and showerheads is substantial energy savings could be made ture, and market software, firmware, tele­ available, affordable, and on the shelf. By communications equipment and customer through this simple conservation method, and premises equipment for all American resi­ passing this bill the Congress can fill a major over a 15-year period it could save consumers dential, business and governmental tele­ gap in , the national energy strategy and really approximately $8 billion. communications users; and add some substance to the efficiency area. However, the legislation that we introduce Whereas it is imperative that American in­ While running for President, George Bush today is much more than a water conservation dustry provide new and innovative tele­ spoke eloquently of his hope for a thousand bill. It extends these energy savings through communications services and an efficient, points of light. Well Mr. President, if you used similar standards for lamps, electric motors, reliable, state-of-the-art, and internationally commercial and industrial heating, ventilation competitive public telecommunications net­ more efficient bulbs you would be able to turn work to serve the growing needs of the peo­ off some of those lights and save electricity. and air conditioning equipment. In most in­ ple of the United States in both rural and stances, these standards already are widely urban communities; and observed voluntarily by manufacturers and in­ Whereas Congress should ensure that ade­ dustry throughout the Nation. Making them a quate accounting and structural safeguards National benchmark will result in nearly $50 exist to prevent cross subsidization and 12608 EXTENSIONS OF Rl AARK.S May 23, 1991 other anti-competitive behavior, including every member of the Congress of the United maintenance [RAM] team in the Far East. Mr. but not limited to: States. Wharry has often stated that working on air­ Federal and state Open Network Architec­ craft in that area and seeing what the RAM ture (ONA) requirements that will ensure in­ team was able to accomplish under those con­ formation service providers equal access to TRIBUTE TO JAMES L. WHARRY local telephone networks; ditions was one of his greatest experiences. Fully allocated cost accounting rules and a Approaching his retirement, James Wharry revised uniform system of accounts to pre­ HON. VIC FAZIO continues to take pride in his job which is so vent cross-subsidization by regulated car­ OF CALIFORNIA crucial to the performance and safety of oth­ riers; IN THE HOUSE OF REPRESENTATIVES ers, commenting, "I have enjoyed my work Implementation of price cap regulation at Thursday, May 23, 1991 and I can go out saying I gave it my all while the federal level and other forms of incentive working at McClellan knowing that the work I regulation in many states that eliminate or Mr. FAZIO. Mr. Speaker, I would like to take did was a quality job which I felt was safe for reduce incentives to cross subsidize and in­ this opportunity to pay tribute to a man who clude extensive service quality and network the flight crew flying the aircraft." has served his country with distinction and Mr. Speaker, we all appreciate and recog­ investment monitoring; and, dedication. James L. Wharry, a journeyman Equal network access requirements that nize the important contributions that James prevent the RBOCs from discriminating machinist in the manufacturing branch of the Wharry has made to our country and national against MCI and other interexchange car­ technology and industrial support directorate security. His exemplary service should serve riers in favor of AT&T. at McClellan Air Force Base in Sacramento, as a shining example to all of what has always Whereas the Federal Communications CA, will retire this June after completing 50 been our Nation's greatest resource-the Commission is the appropriate federal agen­ years of Federal service. American people. I congratulate Mr. Wharry cy, in conjunction with appropriate state Mr. Wharry was born on June 4, 1916, in regulatory agencies and the Courts, to en­ on his lifetime of achievement and know that Jefferson, OK. He grew up on a homestead all of my colleagues join me in wishing him sure fair competition in the telecommuni­ farm during the great depression and during cations industry, while protecting the inter­ well in his retirement. ests of customers; and these difficult times graduated from high Whereas the court order, referred to as the school and attended Northern Oklahoma Jun­ "Modification of Final Judgment" (MFJ) ior College in Tonkawa, OK. INTRODUCTION OF A BILL TO PRO­ that broke up the former Bell system, pro­ Moving to Santa Monica, CA, in 1938, Mr. VIDE FEDERAL JURISDICTION hibits the divested regional Bell companies Wharry worked as a journeyman electrician for OVER CERTAIN MULTIPARTY, from participating in certain telecommuni­ the Douglas Aircraft Co. In October 1941 , he MULTIFORUM CIVIL ACTIONS cations markets, namely, manufacturing and began a 22-year military career by joining the information services and interLATA long Army Air Corps. During his career he saw the distance services; and HON. WIWAM J. HUGHFS Whereas the MFJ has prevented some two­ transition from the Army Air Corps to the U.S. OF NEW JERSEY thirds of America's domestically owned tele­ Air Corps to the present U.S. Air Force. IN THE HOUSE OF REPRESENTATIVES communications industry from competing During Mr. Wharry's distinguished military with foreign telecommunications firms in career he was an aircraft mechanic and com­ Thursday, May 23, 1991 the United States; and pleted training at Chanute Field, IL and at the Mr. HUGHES. Mr. Speaker, today I am Whereas, removal of MFJ restrictions on factory school at North America Corp., in pleased to introduce legislation, for myself, the provision of IntraLATA information Inglewood, CA. After working and supervising and Mr. MOORHEAD, that will improve the fair­ services and on the manufacturing of tele- · communications equipment and customer in aircraft maintenance, he completed cadet ness and efficiency with which the Federal ju­ premises equipment, would foster American training in aviation obtaining a commission as diciary resolves lawsuits arising out of acci­ competitiveness because: a 2d lieutenant, flight engineer on B--29 air­ dents that involve numerous parties and mul­ (a) Removal would facilitate competitive­ craft. After a short break in service following tiple States. Often--far too often-we open ness with foreign telecommunications com­ World War II he returned to the service as a the newspaper to learn that a plane has panies which are free to compete in markets master sergeant working as a flight engineer crashed at a Colorado airport, a hotel has in the United States; on B--29 and B--50 aircraft in the Strategic Air burned in a Las Vegas fire, or two trains have (b) Removal would help bring needed tele­ Command [SAC]. collided in Maryland. Whenever tragedies such communications technologies that are al­ ready in existence, but which the regional From the enlisted ranks he was recalled to as these occur, tens, hundreds and some­ Bell companies are prohibited from provid­ officer status and assigned to the B--36 pro­ times thousands of suits may be filed by the ing by the MFJ, all consumers including gram in SAC. He remained with this program victims or their families in a multitude of State hearing impaired persons, rural schools and until SAC began phasing out the B--36 in favor and Federal courts, seeking compensation for hospitals and others who might benefit from of the B--52. In September 1957 he graduated their losses. Notwithstanding that these suits improved and affordable telecommuni­ from navigation school at Ellington AFB, TX. present identical issues of fact and law, there cations; His military career took him to Officer Supply is often no way to consolidate them in a single (c) Removal would help stimulate the in­ School at Francis E. Warren AFB, Cheyenne, forum for a single trial under our current sys­ vention of new innovative telecommuni­ tem. Complete consolidation may not be pos­ cations technologies and facilitate access of WY and later to Kadena AFB, Okinawa and said innovations to rural Americans and; Clark Field in the Philippine Islands. Later he sible in a single State court, be~use no one (d) Removal would encourage investment was reassigned to Schilling AFB, Kansas, State may have constitutionally sufficient con­ in research, development, design and manu­ where in 1960 he became chief of aircraft sup­ tact with all the parties to exercise personal ju­ facture of telecommunications and customer port for the 310th Bomb Wing. He also served risdiction over them. The result is duplicative premises equipment: Now, therefore be it as supply squadron commander at Schilling. litigation in multiple State and Federal courts. Resolved, That the American Legislative Mr. Wharry held these two positions until his At the same time, complete consolidation may Exchange Council calls upon the United retirement from military service in June 1962. not be possible in a single Federal court, be­ States Congress to vigorously support legis­ cause the statute authorizing Federal jurisdic­ lation which would, with appropriate During his career, Mr. Wharry traveled consumer and industry safeguards, allow all throughout the world and served under Gen­ tion over suits between citizens of different local telephone companies, including the Re­ erals Hap Arnold, Curtis LeMay, and Powers. States, requires complete diversity of citizen­ gional Bell Companies, to engage in the pro­ In 1961 Captain Wharry was honored with the ship-meaning that no plaintiff can be a citi­ vision of IntraLATA information services Strategic Air Command's Educational Achieve­ zen of the same State as any defendant. and the research, design, development and ment Award. Where, as in the average mass-accident case, manufacture of software and telecommuni­ In December 1962, Mr. Wharry entered the the number of plaintiffs is high, it will often be cations equipment; and civil service at McClellan AFB in the aircraft the case that one or more of them will be from Be it further resolved, That the staff of the the same State as a defendant, thus destroy­ American Legislative Exchange Council machine shop where he has contributed his transmit copies of this resolution to the vast knowledge, skills, and experience, includ­ ing complete diversity of citizenship, and mak­ President and Vice President of the United ing the prototyping of many aircraft compo­ ing separate, duplicative trials unavoidable. States, the Speaker of the House of Rep­ nents. While at McClellan during the Vietnam The consequences of duplicative mass-acci­ resentatives, the President of the Senate and war, he was selected to serve on the rapid air dent litigation are several. For plaintiffs, dupli- May 23, 1991 EXTENSIONS OF REMARKS 12609 cative litigation can result in some accident The Multiparty, Multiforum Jurisdiction Act of employers who may elect not to self-insure victims recovering fully while other victims in 1991 represents a collaborative, Bipartisan ef­ still enjoy, by virtue of their size, the ability to the same accident recover nothing, for no bet­ fort that has included all three branches of negotiate aggressively on behalf of their em­ ter reason than that the judges, juries and law­ Government, and is therefore in keeping with ployees to secure the lowest health insurance yers were different. For defendants, duplica­ the finest traditions of court reform legislation. rates available. tive litigation can result in the imposition of I urge you to give this bill the same support The simple idea behind the Small Employer multiple punitive damage awards, notwith­ you have given it in the past. Health Insurance Incentive Act is to enable standing that it is no more appropriate to pun­ Questions about the bill may be addressed small employers, including the self-employed, ish a civil defendant more than once for the to the Subcommittee on Intellectual Property to become part of a large employer group for same conduct, than it is to punish a criminal and Judicial Administration, 207 Cannon the purpose of purchasing health insurance. defendant more than once for the same crime. House Office Building, Washington, DC, (202) The model for the bill is the Council of And for the courts, duplicative litigation results 225-3926. in the squandering of scarce judicial resources Smaller Enterprises [COSE] in Cleveland, OH. on multiple trials of the same case. COSE is an employer purchasing group that The bill that I am introducing today would INTRODUCTION OF THE SMALL makes affordable health insurance available to provide a vehicle for consolidation of related EMPLOYER HEALTH INSURANCE its 10,000 member employers. This translates mass-accident litigation in a single Federal INCENTIVE ACT OF 1991 into health coverage for more than 120,000 forum. It would do so by creating a special workers and their dependents-120,000 Amer­ Federal court jurisdiction over cases involving HON. ROD CHANDLER icans who, if not for the leverage provided by the injury or death of 25 or more people alleg­ OF WASHINGTON COSE's size, would have no health insurance ing damages of over $50,000 each, arising out IN THE HOUSE OF REPRESENTATIVES of any kind. of a single accident, which could be invoked Thursday, May 23, 1991 To encourage the formation of employer by plaintiffs or defendants. In such cases, purchasing groups, similar to that of the COSE minimal diversity of citizenship jurisdiction Mr. CHANDLER. Mr. Speaker, there is a group, the bill would eliminate various factors would be sufficient to sustain an action-­ growing consensus among the Members of that contribute to the high cost of health insur­ meaning that as long as any one plaintiff and Congress that the United States is in the midst ance. Specifically, the bill would exempt these any one defendant were citizens of different of a crisis, that crisis being inadequate health groups from State-mandated health benefits, coverage for American citizens. And as that States, the requisite diversity would be estab­ State taxes on health insurance premiums, consensus grows, the Members of Congress, lished, notwithstanding that the complete di­ and State restrictions on managed care activi­ versity ordinarily required for Federal diversity as well as the American public, become in­ jurisdiction might not be present. All mass-ac­ creasingly familiar with the statistics associ­ ties. cident cases with significant multi-State impli­ ated with that crisis: 34 million Americans with Each of the State-imposed mandates ad­ cations could thus be filed in or removed to no health insurance and health care costs dressed by the bill have been shown to con­ Federal court. Once in the Federal court sys­ which now exceed 11 percent of our gross na­ tribute to the high cost of health care, particu­ tem, the bill would authorize the multidistrict tional product [GNP]. larly for smaller employers. For instance, State litigation panel to transfer all related litigation Those statistics have appropriately gen­ governments across the country have man­ to a single Federal court, which in turn would erated much concern, to which Congress has dated over 800 different health benefits. A be authorized to designate the source of appli­ responded with any number of proposals to study by the National Center for Policy Analy­ cable law pursuant to a 10-factor analysis, to cure the country's health care ills. Many of sis estimates that as many as 25 percent of try all liability issues, and to assess punitive these proposals would dismantle our entire the uninsured lack health insurance because damages when appropriate. If liability for com­ health care system and replace it with a na­ of State-mandated benefits. pensatory damages is found, the transferee tional, single payor system. Similarly, State insurance premium taxes court would be directed-ordinarily-to return Unfortunately, most of these proposals ig­ can run as high as 4 percent of premiums. the cases to the courts where they were origi­ nore the fact that our current system of em­ These costs are immediately passed on to nally filed or removed, for separate compen­ ployer-provided health insurance has been employers in the form of higher premiums. satory damages assessments-the point being very effective. Their proponents would dismiss Finally, managed care activities, such as uti­ that such assessments are not usually dupli­ the fact that most Americans who have health lization review and selective contracting, have cative, and that no real efficiencies would be insurance obtain it through their employers. I been shown to be an effective means of con­ gained through consolidated resolution. submit that instead of tossing aside a system trolling health care costs. And yet, many Legislation nearly identical to the bill I am with proven success, Congress should be tak­ States impose restrictions on these activities, introducing today, has been introduced in the ing steps to expand that system to those greatly diminishing their effectiveness. last two Congresses by my predecessor as working Americans who are currently unable Our bill seeks to help small employers over­ chair of the Subcommittee on Intellectual to gain access to it, most notably employees come some of the obstacles to obtaining af­ Property and Judicial Administration, former of smaller businesses. Representative Bob Kastenmeier. Since that Mr. Speaker, it is with that goal in mind that fordable health insurance, but it does so in a time, the proposal has garnered the support of I am pleased to introduce today, along with a prudent and responsible fashion. For instance, the U.S. Department of Justice, the Judicial number of my colleagues, the Small Employer the bill establishes specific requirements that a Conference of the United States, the Federal Health Insurance Act of 1991. group must meet in order to qualify as a pur­ Courts Study Committee, representatives of Under our current health insurance system, chasing group. Furthermore, employer pur­ the American Law Institute, Public Citizen, the it is exceedingly difficult for smaller employers chasing groups must be certified by the Sec­ American Insurance Association, Boeing to obtain an adequate level of group health in­ retary of the Department of Health and Human Corp., and the American Bar Association's surance at a reasonable cost. This fact is Services before they can purchase health in­ Mass-Tort Commission. It is not surprising, borne out in another of those telling statis­ surance; and such insurance must be pur­ then, that the bill passed the House in the tics-of the 34 million Americans without chased from a licensed insurance carrier. 100th and 101 st Congresses under suspen­ health insurance, more than 18 million work in Mr. Speaker, the Small Employer Health In­ sion of the rules by voice vote. small businesses or are dependents of work­ surance Incentive Act is not the answer to all The problem that the bill has confronted in ers in small businesses. Due largely to econo­ of our health care problems. Clearly, much the past has been the press of other business, mies of scale, small employers have limited more needs to be done. But this bill rep­ rather than opposition, in the Senate. In that access, if even that, to affordable group health resents another important step that Congress regard, I am pleased to note that Senator products. can take now to address those problems in a HOWELL HEFLIN, whose subcommittee on By contrast, large employers enjoy the eco­ meaningful way and do so within the context Courts and Administrative Practice has nomic means to self-insure under the Em­ of our current health care system. jurisdiciton over the bill, has committed to ployee Retirement Income Security Act I urge my colleagues to join me in this effort holding hearings on it early in the 102d Con­ [ERISA] and, as such, are exempt from State to address our country's health care crisis. gress. regulation of health insurance. Those large 12610 EXTENSIONS OF REMARKS May 23, 1991 TO THE PROMISE OF ECONOMIC jobs if we implement both the NAFTA and the miss this chance with little foresight and even GROWTH: IN SUPPORT OF FAST Uruguay round agreement. But far more will less forethough. The reasons to support fast­ TRACK be created. track extension are overwhelming. Let us see Labor knows that it has no better friend that it done. HON. GLENN M. ANDERSON GLENN ANDERSON. And the same reasons why OF CALIFORNIA labor has supported me in the past hold on IN THE HOUSE OF REPRESENTATIVES this issue. I stand for providing good, high­ SALUTE TO DAVID J. FERRUOLO Thursday, May 23, 1991 skill, well-paying jobs for today's working men and women and, as importantly, to our chil­ HON. JACK REED Mr. ANDERSON. Mr. Speaker, I rise today dren as well. As a supporter of the working OF RHODE ISLAND in support of fast-track extension, a mecha­ person, I cannot lend my name to an effort IN THE HOUSE OF REPRESENTATIVES nism which this Congress must reauthorize if that on the basis of unfounded fears opposes we are to move forward with the trade issues the mere possibility of something that does not Thursday, May 23, 1991 vital to this country's future. This issue may even yet exist. Opposing job creation is as Mr. REED. Mr. Speaker, I rise today to sa­ seem small, but the stakes are high; for we wrong as allowing job destruction. lute a distinguished young man from Rhode hold in our hands the future of both the North In one sense, what we debate here today is Island who has attained the rank of Eagle American Free-Trade Agreement [NAFT A] and a very· small issue. Fast track is a simple pro­ Scout in the Boy Scouts of America. He is the Uruguay round of the GATT talks. Let us cedural mechanism that means a trade agree­ David J. Ferruolo of Troop 117 in Warwick, be honest here; the issue of fast track intrinsi­ ment negotiated by the executive branch with and he is honored this week for his note­ cally revolves around the proposed United another nation or nations will receive a fair up worthy achievement. States-Mexico Free-Trade Agreement. There or down vote in the Congress. Fast track en­ Not every young American who joins the are few if any complaints with the completion sures that a trade agreement will not be sub­ Boy Scouts earns the prestigious Eagle Scout of the Uruguay round of the GA TT talks. jected to the process of amendment by either Award. In fact, ony 2.5 percent of all Boy As a Representative from the great State of the House or the Senate, not an unusual proc­ Scouts do. To earn the award, a Boy Scout California, upon which the consequences of ess by any means in this chamber. Barring must fulfill requirements in the areas of leader­ any NAFTA agreement will fall heavily, I have amendments, we ensure that any agreement ship, service, and outdoor skills. He must earn given long and deep thought to my vote on will not be so loaded down with special inter­ 21 Merit Badges, 11 of which are required fast track. Afer studying the evidence, I have est exceptions that it will be unpassable or un­ from areas such as citizenship in the commu­ concluded that to vote "no" on fast track workable. Mexico, like the rest of our trading nity, citizenship in the Nation, citizenship in the would be wrong. Every qualitative study I have partners, has announced that it will not even world, safety, environmental science, and first seen has shown the promise of job growth in sit down with us if the negotiations are not aid. California. Every study I have seen shows the within the fast-track process. Yet this small As he progresses through the Boy Scout tremendous export growth California has al­ issue today, as realized by those both for and ranks, a Scout must demonstrate participation ready experienced with Mexico, 106.9 percent against NAFTA, is the key to even the possi­ in increasingly more responsible service in the last 4 years alone, reaching $4 billion in bility of free trade negotiations with Mexico projects. He must also demonstrate leadership exports last year. With Mexican tariff levels at and the rest of the world's trading nations. So skills by holding one or more specific youth least as twice as high as United States levels, today, we vote on a procedural mechanism leadership positions in his patrol and/or troop. the only place export growth can go is up. which, formally embodied in law in 197 4, has These young men have distinguished them­ Trade with Mexico has created a net gain of been reauthorized twice, both in 1979 and selves in accordance with these criteria. 264,000 jobs for Americans. I would also note 1988. For his Eagle Scout project, David Ferruolo that Mexico is California's second largest ex­ When the President first announced that he led a group of Scouts in renovating the War­ port market after Japan. would seek fast-track extension, the leader­ wick Museum in the Apponaug section of War­ Despite these statistics I certainly heed the ship of the Democratic Party went to him with wick. concerns of labor groups who warn of massive a number of environmental and labor concerns Mr. Speaker, I ask you and my colleagues job losses and the worries of environmental that it felt had to be addressed if the support to join me in saluting Eagle Scout David groups who predict environmental damage on of our party was to be forthcoming. As a re­ Ferruolo. In turn, we must duly recognize the both sides of the border if NAFT A is con­ sult, the President has promised significant Boy Scouts of America for establishing the cluded. Let me assure you that my support for environmental and job-security provisions will Eagle Scout Award and the strenuous criteria fast track does not mean in any way that I will accompany any trade pact with Mexico. The its aspirants must meet. This program has, automatically support a United States-Mexico President has promised that there will be no through its 8 years, honed and enhanced the Free-Trade Agreement. That vote, yea or nay, weakening of American environmental laws leadership skills and commitment to public will be decided when we actually have an whatsoever, that there will be substantial service of many outstanding Americans, two agreement to vote on and after I have given phase-in periods for threatened industries, and dozen of whom now serve in the House. that agreement careful thought. But to vote there will even be "snap-back" provisions for It is my sincere belief that David Ferruolo against fast track is simply obstructionist unduly affected areas. will continue his public service and in so doing wtihout any redeeming feature. A "no" vote is Both labor and environmental groups will will further distinguish himself and con­ based only on fear of what the future might have oversight positions during negotiations. sequently better his community. I am proud hold instead of on a vision of what the future Assurances have been to such an extent that that David Ferruolo undertook his Scout activ­ can bring. one of the most prestigious environmental ity in my representative district, and I join The choice before us is clear: we can either groups in the country, the National Audubon friends, colleagues, and family who this week vote for the promise of progress and economic Society, stated, "From our preliminary review salute him. opportunity or we can vote for the certain path of the action plan, it appears to cover of protectionism and economic stagnation. I Audubon's major concerns * * * If the details will always stand in the camp of providing of the agreement and the administration's INTRODUCTION OF THE FORESTS more jobs and a better standard of living for commitment confirm our initial review, then we AND FAMILIES PROTECTION ACT Americans. As the world economy booms, as would see no objections to 'fast tracking' this OF 1991 we are faced with the competitive threats of agreement." As with any trade negotiations, Japan and a uniting Europe, we simply cannot there will be plenty of congressional oversight. HON. JERRY HUCKABY afford to reject the opportunity of trade with I would note that those Members of Congress OF LOUISIANA our neighbors. The course of protectionism is immediately responsible for this issue, those IN THE HOUSE OF REPRESENTATIVES the course of economic defeatism. As politi­ on the Ways and Means Committee were con­ cians, we loudly decry the loss of jobs to Pa­ fident enough to pass a resolution of support Thursday, May 23, 1991 cific rim nations. Voting "yea" on fast track is for fast track by 23 to 9. Mr. HUCKABY. Mr. Speaker, the manage­ a sign that we intend to do something to stop Mr. Speaker, we stand at the cusp of a ment of our Nation's public lands, particularly that loss. Yes, some workers will lose their great opportunity. Let us not summarily dis- our national forests, has been a matter of in- May 23, 1991 EXTENSIONS OF REMARKS 12611 tense controversy recently. It has occupied Second, the proposal calls for the creation nities in the region and contributing to considerable attention from Members from not of an old-growth reserve on our public lands in housing construction and other sectors of only the West but other parts of the country as the Pacific Northwest to assure the protection the national economy. They also note that well. The inability to implement the planning and management of old-growth ecosystems the intense, competing pressures to preserve or make economic use of those lands have se­ required by the public land management stat­ and values. verely disrupted the ability of the Forest utes and the unnecessary focus on individual Third, the measure provides several mecha­ Service and BLM to plan and manage them, species inhabiting the public lands have been nisms for returning predictability to the man­ that additional Congressional direction is in the forefront of this controversy. The agement of our public lands both in the North­ requried to ensure protection of ecologically­ present conflict over the northern spotted owl west and nationwide. This is particularly im­ significant old growth and old growth-associ­ is only the most visible of a series of con­ portant to my State where the Kisatchic Na­ ated species on those lands, and that an eco­ tional Forest is presently encumbered by ad­ nomic adjustment program is needed to min­ troversies which seem to be emerging with in­ imize social and economic disruption from creasing frequency. ministrative appeals and controversies over such old growth and species protection ef­ This is a nationwide problem-not a prob­ wildlife habitat. It is also a principal reason for forts. The findings conclude that additional lem limited to any region. In my State, we are my cosponsorship of the measure. Congressional guidance, missing from the currently seeing land management conflicts Finally, the proposal provides for a program agencies' planning statutes (National Forest with the real or alleged needs of the red of economic assistance and worker retraining Management Act ("NFMA") and Federal cockaded woodpecker and the Louisiana black and adjustment to deal with those job losses Land Policy and Management Act that will be inevitable as a consequence of the ("FLPMA")), is needed to ensure that the bear. Both species are becoming as well old growth and species protection efforts spe­ known in my State as the northern spotted owl need to devote greater attention to the protec­ cifically, and Forest Service and BLM land is in the Pacific Northwest. tion of endangered species and old-growth management plans generally, are imple­ In the face of this confict, it is time for Con­ values. mented. gress to intervene to bring some predictability The bill's supporters include not only the Sec. 3. Definitions: This section contains 9 back to the programs of our public land man­ unions active in the forest products industry­ definitions. Three of those terms are used in this summary: agement agencies. We must act to assure that the United Brotherhood of Carpenters and Joiners, the Western Council of Industrial "National Forest and Public Lands" is de­ the needs of both endangered species and fined to include the 17 named national for­ threatened communities dependent on our Workers, and the International Woodworkers ests and 8 BLM administrative districts in forestlands are met in a balanced fashion. of America-but also the national AFL-CIO. A Oregon, Washington, and California which Therefore, I am happy to introduce House recent letter from the AFL-CIO supporting the include northern spotted owl habitat and sig­ Resolution 2463, the Forests and Families measure is included for the record. nificant old growth. Protection Act of 1991. In addition to this strong level of labor sup­ "Secretary" is defined to mean the Sec­ port, the measure is supported by the forest retary of Agriculture if Forest Service lands This measure is the consequence of a his­ are concerned and the Secretary of the Inte­ toric compromise, unprecedented in the an­ products industry and a variety of other groups nationwide. To date, 48 groups from 18 States rior if BLM lands are concerned. nals of public land or natural resources policy. "Congressional Committees" is defined to The proposal is a joint product of a long and have committed to us support of the measure. mean the Committee on Agriculture and arduous negotiation between the labor unions I introduce this measure today in anticipa­ Committee on Interior and Insular Affairs of representing workers in the forest products in­ tion of upcoming hearings in the House Agri­ the House of Representatives, and the Com­ dustry and management in that industry. This culture Committee on this and other meas­ mittee on Agriculture, Nutrition, and For­ ures. I believe that, as this measure becomes estry and Committee on Energy and Natural labor management proposal is the first of its Resources of the United States Senate. kind and speaks well of Congress' attempt to better known, it will attract several cosponsors TITLE I-ESTABLISHING LONG TERM PROGRAM encourage labor and management to work co­ from many regions inasmuch as it is the only measure that deals with public land conflicts This title establishes the long term Forest operatively together through programs insti­ Service and BLM program to protect old tuted under the Taft-Hartley Act. nationwide. The Forests and Families Protec­ tion Act will clearly be an important step for­ growth forest, the northern spotted owl, and The cooperative nature behind this com­ old growth-associated species on National promise also bears strong witness to serious ward in bringing these conflicts to a solution. Forest and Public Lands by: (i) requiring concerns about the loss of Pacific Northwest Mr. Speaker, Congress has delayed too identification and protection of areas of eco­ jobs presently occurring as a consequence of long in bringing some reconciliation to this logically-significant old growth forest in an these conflicts. Economists employed by both conflict. Public confidence in the affected re­ Old Growth Reserve ("Reserve") through re­ the public and private sector in the Pacific gions, and the morale of the employees of our visions in the applicable Forest Service and BLM land management plans; (ii) by apply­ Northwest estimate as many as 100,000 peo­ resource management agencies are at an all time low. We must move forward from here in ing procedures and requirements of the En­ ple may ultimately lose their jobs if Congress a positive fashion to restore confidence in the dangered Species Act ("ESA") to the plan re­ does not intercede and resolve the conflict application of professional judgment in natural vision process; and (111) providing a measure over public land management and endangered of stability and predictability to commodity resources decisionmaking. The Forests and species conservation. production from the National Forest and Families Act offers the best mechanism cur­ In addition to the · unique participants in this Public Lands once the old growth and species rently before Congress to achieve that end. I compromise, the substance of the Forests and protection is accomplished and the plan revi­ commend it strongly to my colleagues. sion process is completed. Families Protection Act also represents con­ I would like to revise and extend my re- · Sec. 101. Purposes: This section sets forth siderable compromise with environmental in­ marks by providing a section-by-section analy­ the purposes of Title I, which are presented terests. In the proposal, both labor and man­ sis of the proposal as well as the bill lan­ in the above description of this Title. agement recognize the need for endangered guage. Sec. 102. Plan Revisions: This section re­ species protection and the value of managing quires that the long term program, in the old-growth ecosystems as an integral part of SECTION-BY-SECTION SUMMARY AND ANALYSIS form of revisions to the Forest Service and OF THE FORESTS AND FAMILIES PROTECTION the multiple use framework for our national BLM land mangement plans applicable to ACT OF 1991 the National Forest and Public Lands, be forests and other public lands. Sec. 2. Findings: This section contains 16 completed and effective by the end of 3 full The Forest and Families Protection Act is findings concerning Forest Service and Bu­ fiscal years after enactment. It also has a the only measure presently before Congress reau of Land Management ("BLM") lands technical provision discussed in the sum­ which deals comprehensively with all four of generally and specifically those two agen­ mary of section 'llJ7. the elements necessary to achieve a balanced cies' lands in Northern California, Oregon, By establishing the Reserve through plan and lasting solution to the present conflict over and Washington that include areas of old revisions (rather than permanent Congres­ public land management in the Pacific North­ growth forest and habitat for the northern sional designations to a new system similar west and nationwide. spotted owl. The findings state the old to the National Park and Wilderness Preser­ growth forest and owl habitat lands contain vation Systems) and by providing 3 years to First, the bill provides an orderly mans for both rare and irreplaceable ecological and accomplish the task, the legislation will: (i) assuring the recovery of the northern spotted species values warranting protection and ex­ ensure that the long term program is not owl in a fashion consistent with present statu­ traordinary economic values sustaining em­ simply an overlay on existing land manage­ tory requirements ployment, families and dependent commu- ment plans and that, instead, existing plan 12612 EXTENSIONS OF REMARKS May 23, 1991 decisions which may be superseded by the owl recovery plan now being prepared by the Sec. 110. Management of Old Growth Reserve: long term program's new protections are U.S. Fish and Wildlife Service as required by To a large extent the manner in which each fully reconsidered; (ii) allow the opportunity section 4(f) of the ESA and incorporate rel­ area designated to the Reserve will be man­ to finish work required by the Endangered evant parts of that plan in the long term aged will be determined during the plan revi­ Species Act on critical habitat designation program's land management plan revisions. sion process and in the decision documents and the recovery plan for the northern spot­ Third, it requires the Forest Service and on the revision. This section constrains ted owl and have that work incorporated in BLM to consider any other old growth-asso­ those decisions by establishing certain "bot­ the long term program's plan revisions; and ciated species which may need special pro­ tom-line" uniform requirements of Congress (iii) permit periodic consideration in subse­ tection and incorporate the necessary pro­ for management of all Reserve areas. Sub­ quent plan revisions (normally every 10 to 15 tective measures for those species in the ject to valid existing rights, further acquisi­ years) whether the ecosystem-based bound­ plan revisions as well. tion of mineral and mining rights in Reserve aries of the Reserve are still correct or Sec. 106. Reviews of Administrative Set-Asides: area is barred. Roads, structures, motorized should be altered due to fire, disease, or new The long term program will result in the and nonmotorized recreation and access, and information. elimination or reduction of timber harvest­ hunting may be permitted in the Reserve Sec. 103. Regulations; Establishment of the ing from significant old growth areas of the areas. Old-Growth Reserve: This section requires National Forest and Public Lands. This sec­ Timber harvesting, too, may be allowed the publication of Forest Service and BLM tion encourages the search for alternative but only in two limited circumstances. First, regulations to guide establishment of the old sources of fiber elsewhere on those Lands. It it can occur if it is necessary to protect the growth program. Of particular importance requires that, in conducting the long term Reserve area or adjacent lands from insects are uniform regulations: (i) defining "eco­ program's revisions of land management or disease or to protect life or property from logically significant old growth forest" for plans, the Forest Service and BLM must re­ imminent fire damage. Second, it can be per­ purposes of identifying each area for the Re­ consider administrative constraints on re­ mitted if it can be conducted to maintain or serve (and avoiding any confusion which source uses imposed by previous planning de­ enhance the ecosystem values for which the might result from the various definitions cisions. The purpose of these reviews is to particular Reserve area was designated and presently used by the two agencies, knowl­ minimize the impact of establishment of the in accordance with standards and guidelines edgeable academics, and concerned environ­ Reserve and other protections in the long for New Forestry established by the two mental organizations); (ii) officially estab­ term program on pre-existing uses and levels agencies' Old Growth Research Program es­ lishing the Reserve; and (111) providing proce­ of use in each unit of the National Forest tablished under section 308(b). In either case, dures and criteria for identification and se­ and Public Lands. harvesting will not occur in any Reserve lection of the Reserve areas. The regulations Sec. 107. Endangered Species Act Compliance: area unless the applicable plan revision de­ must be promulgated within 15 months after As noted in the discussion of section 105, es­ termines it to be appropriate and allows it in enactment. tablishment of the long term program and that area. Even then, the revision can set sil­ Sec. 104. Designation of Areas to the Old its protection of ecologically-significant old vicultural and environmental conditions Growth Reserve: This section provides Con­ growth forest and old growth-associated spe­ that are more stringent than the Research gressional criteria which the Forest Service cies should not excuse the Forest Service or Program's standards and guidelines. and BLM must apply, during the land BLM from compliance with the Endangered Sec. 111. Sufficiency: This section addresses Species Act. This section is intended to pro­ mangement plan revision process, in select­ vide for such compliance. It requires that the the need for stability and predictability in ing ecologically-significant old growth forest implementing plan revisions. It provides two agencies submit their plan revisions for areas for inclusion in the Reserve. Not all consultation with the Fish and Wildlife Serv­ that stability and predictability only after ecologically-significant old growth forest ice under section 7(a)(2) of the ESA and that the ecologically-significant old growth for­ must be placed in the Reserve. Instead, this the consultation cover each plan revision est, the northern spotted owl, and other old section provides that the number, size and and all actions, including timber sales, growth-associated species have been ac­ type of areas selected for the Reserve must which may be undertaken under and consist­ corded protection in the plan revisions, and be those necessary to meet the purposes of ent with the plan revision. Once this con­ after those revisions have undergone, pursu­ Title I set out in section 101. sultation is completed, no further consulta­ ant to section 107, all the procedures re­ This section provides a list of priorities tion would occur on the plan revision or ac­ quired by the ESA. Once the revisions are and preferences for selecting Reserve areas. tions pursuant to the revision unless and complete and the ESA requirements have The list of priorities is based on management until the plan is revised again or is signifi­ been satisfied, this section discharges the considerations; it ensures that the areas cantly amended. Consultation would proceed agency (Forest Service or BLM) responsible which already have a degree protection-by as required by the ESA with: the Fish and for the land to which the revision applies and statute or by administrative discretion-are Wildlife Service issuing a "no jeopardy" bio­ any person authorized by that agency to con­ selected before areas which are managed for logical opinion; or, the agency issuing a duct activities on that land from any addi­ multiple-use and contain and contribute im­ "jeopardy" opinion and offering a "reason­ tional responsibilities for management or portant commodity and non-commodity re­ able and prudent alternative" to the revision protection of the owl or other species under sources other than old growth forest and old with which the Forest Service or BLM con­ four specific statutes. Those statutes are the growth-associated species. The list of pref­ curs; or, if no concurrence is possible, the ESA, the Migratory Bird Treaty Act, the erences is based on scientific considerations; Forest Service or BLM seeking an exemption Forest and Rangeland Renewable Resources it ensures that those areas which are richest with "reasonable mitigation and enhance­ Planning Act of 1974 (as amended by the in mulitple ecosystem values and which do ment measures" under section 7(e}-(l) of the NFMA), and the FLPMA. not duplicate other potential Reserve areas ESA. This declaration of sufficiency lasts only are selected over areas with fewer, lesser, or Sec. 108. Maps and Legal Descriptions: This as long as the revision is good-that is, until redundant values. The final two preferences section directs that, once the plan revisions the revised plan is significantly amended or are for areas that have the least impact on are complete, the Forest Service and BLM revised again. Then that amendment or revi­ the historic balance and mix of uses of, and prepare maps and legal descriptions of the sion, and each amendment or revision there­ the communities economically dependent on, areas of ecologically-significant old growth after, would have to proceed again through the National Forest and Public Lands. forest which the plan revisions have des­ the ESA procedures as required in section 107 Sec. 105. Protection of the Northern Spotted ignated to the Reserve, and make those maps before this section's sufficiency declaration Owl and Other Species: The selection of the and descriptions available to the public. would apply again. The sufficiency provided richest and best old growth areas for the Re­ Sec. 109. Release: This section borrows vir­ by this section is only temporary because serve improves the likelihood, but does not tually verbatim the so-called "soft release" significant amendments could occur at any necessarily ensure, that the northern spotted boiler-plate language included in virtually time and plan revisions normally occur owl and other old growth-associated species all wilderness bills enacted by Congress. It every ten years, but earlier if the agency de­ are adequately protected. Creation of the Re­ provides that the decisions on whether to in­ termines changed conditions warrant an ear­ serve should not excuse the long term pro­ clude specific areas in the Reserve are made lier revision. Finally, to ensure prompt gram from the procedures and requirements in the plan revisions and will not be recon­ amendments or revisions can be obtained of the Endangered Species Act. This section sidered until the next round of plan revi­ from a possibly recalcitrant agency, section requires that both the proper protection for sions, which ordinarily occurs ten years 209 of this legislation creates a wholly new those species is provided and compliance later. Further, this section provides that procedure (analogous to citizen suit provi­ with the ESA occurs. First, it establishes a areas not designated to the Reserve in the sions in several environmental laws) for indi­ statutory requirement in this legislation for plan revisions are to be managed for mul­ vidual citizens to petition the Secretary of the protection of the northern spotted owl tiple use and need not be managed to protect Agriculture or the Interior at any time for a and old growth-associated species. Second, it their suitability to be considered for des­ plan revision and, if the affected Secretary requires the Forest Service and BLM plan­ ignation to the Reserve in later plan revi­ denies the petition, to challenge that deci­ ners to fully consider the northern spotted sions. sion in court. May 23, 1991 EXTENSIONS OF REMARKS 12613 Sec. 112. Additions to the Old Growth Reserve: management plans, plan amendments, and would preclude achievement of the MMR for With provisions similar to those in the Wild plan revisions. It requires that the effects on that area over ten years (the normal life and Scenic Rivers Act, this section broadens employment, revenues, and public services in span of a plan). Finally, this section requires the Reserve beyond National Forest and those communities and economic enterprises that the full MMR for timber sales be offered Public Lands to include other Federal and be considered by each agency in the various on a decadal basis and, to ensure a relatively State lands. The Secretary of the Interior is plan, amendment, or revision alternatives. stable and predictable timber sale program directed to designate to the Reserve all eco­ Economically dependent communities and and avoid a demonstrated tendency by the logically-significant old growth forest areas enterprises are to be defined by regulation agencies to frequently postpone sales to the in National Parks and National Wildlife Ref­ by the Secretaries of Agriculture and the In­ end of the ten year period, directs that at uges in Oregon, Washington, and Northern terior, in consultation with the Secretaries least 25% of the decadal MMR be awarded California. Additionally, the Governors of of Commerce and Labor. every three consecutive years. those three States can nominate qualifying Sec. 203. Consideration of Commodity Re­ Sec. 207. Phase-In of Output Changes: One land areas to the Reserve. sources: Similarly, this section directs the of the cardinal principles of proper planning Sec. 113. Access to Non-Federal Land: This two agencies to consider in developing, is that it should not impose swift, disruptive section ensures that the granting, construc­ amending, or revising plans the global de­ change. Yet that can happen whenever a new tion or maintenance of access across federal mand for the commodity resources of their Forest Service or BLM land management lands to non-federal lands will not subject ei­ lands and the environmental impacts of ob­ plan is prepared or an existing plan is ther the granting agency or the grantee to taining such resources from other domestic amended or revised if significantly different the conservation and consultation require­ or foreign sources (e.g., Canadian or Brazil­ output levels are adopted and fully applied ments and "takings" prohibitions of sections ian fiber) or using substitute resources (e.g., on the first day of the new plan, amendment 7 and 9 of the Endangered Species Act for plastics). or revision. This section strives to avoid the any old growth-associated species. Sec. 204. Plan Balance and Other Require­ disclocation (particularly to communities TITLE II-ENSURING THE EFFECTIVENESS OF ments: To avoid too narrowly focused plan economically dependent on resources of the FEDERAL LAND PLANNING amendments or revisions, this section di­ Forest Service and BLM lands), resulting rects the Forest Service and BLM in prepar­ from abrupt changes in land management The long term program of Title I promises ing any amendment or revision, to consider during the transl tion to a new plan, amend­ protection for the Old Growth Reserve, the all changes in the plan beyond the specific northern spotted owl, and other old growth­ ment, or revision. It provides for the phase­ associated species in the revisions of the change sought or intended which are needed in over a 4-year period of any significant in­ Forest Service and BLM land management to retain continued overall plan balance and crease or decrease in annual outputs (10% plans. This can be achieved only if those plan meet other plan goals and outputs. This sec­ over or under the average annual output for revisions are implemented, which is far from tion also directs that any changes in land the previous 5 years) dictated by the plan, guaranteed. Indeed, Forest Service and BLM management that are required by court amendment, or revision. Section 102 has a land management plans outside of Oregon, order, a species' listing or other action under special provision for phasing in output Washington, and Northern California have the ESA, or new information, must be ac­ changes for the plan revisions required by suffered implementation problems for a vari­ complished only through amendment or revi­ the long term program. As output levels on ety of reasons, including lengthy appeals and sion of the applicable plans. This is to ensure lands subject to the long term program have litigation, failure to monitor plan implemen­ that all available alternatives to implement dropped dramatically since the listing of the tation and amend plans as required, adoption the requirements of the ESA or court order northern spotted owl under the ESA-to the of policies separate from and in conflict with or to respond to the new information, and point that there may be no meaningful tim­ plans, etc. Contributing to the failure of plan the environmental impacts associated with ber sale program in fiscal year 1991-section implementation is the absence of any Con­ each alternative, are considered as required 102 sets the 5-year base for determining the gressional guidance to the agencies on how by the NFMA, FLPMA, and NEPA when phase-in to straddle the listing date in order to implement plans. Both planning stat­ plans are amended or revised. An exception to average together pre- and post-listing utes-NFMA and the FLMPA (as supple­ to this plan amendment or revision require­ sales volumes. mented by contemporaneous and subsequent ment is provided when the Forest Service or Sec. 208. Plan Monitoring and Mainte­ enactments, including the Coal Leasing BLM determines that the court order or nance: Plan monitoring may be the single Amendments Act of 1976, the Surface Mining statute requires immediate action. most important action to ensure plan imple­ Act of 1977, and Public Rangelands Improve­ Sec. 205. Fully Allocated Costs Analysis: mentation, but only if it prompts corrective ment Act of 1978}-focus on the procedures To ensure that the costs of all activities on action. This section mandates regular mon­ for preparing, and the contents to be in­ Forest Service lands are given due consider­ itoring of the Forest Service and BLM plans cluded in, the plans and are virtually silent ation in the preparation of plans, amend­ to ensure that each plan has not been con­ on implementing, amending or revising ments or revisions, this section directs the structively amended or rendered obsolete by them. This Title amends the two statutes to Forest Service to analyze the full cost, ex­ a pattern of implementing actions or inac­ provide missing Congressional guidance. pressed as user fees or cost-per-beneficiary, tion that is inconsistent with the plan. If the Sec. 201. Purposes: This section states the of all non-commodity outputs, as well as monitoring discloses that the plan is no purposes of Title II, including: (i) providing commodity outputs, in each plan alternative longer being followed, the agency is required Congressional guidance on plan implementa­ considered. either to take corrective implementing ac­ tion, amendment, and revision to ensure Sec. 206. Minimum Management Require­ tions or to initiate plan amendments. This that the long term program's revised plans ments: The Forest Service relies heavily on section also requires the Forest Service and and the protection they accord to the Re­ minimum management requirements BLM to certify in the decision on each ac­ serve, the northern spotted owl, and other ("MMRs"}-established not only in land tion implementing a plan that the decision old growth-associated species are imple­ management plans but also in Regional does not preclude achievement of the plan's mented effectively; (ii) achieving stability Guides and other documents-to govern goals and outputs. and predictability in the management of management activities. Yet, the agency has Sec. 209. Citizen Petitions For Amendment other Forest Service and BLM lands; and (iii) applied these MMRs only to non-commodity or Revision: In the NFMA and FLPMA, the avoiding the environmental, social and eco­ resources and not provided any assurance by agencies are required to revise any land nomic injuries which result from unstable regulation or otherwise of public participa­ management plan if conditions on the lands and uncertain federal land management. tion, environmental analysis, and other pre­ to which the plan applies have changed sig­ requisites of a proper administrative record nificantly. Certainly, this same precept Part A-Amending, Revision, and Monitoring will be followed in adopting the MMRs. This should hold for plan amendments. Yet, for Plans section requires that, in preparing the docu­ whatever reason--0ost in dollars and man­ The objects of Part A are to establish ments which set MMRs, the Forest Service power, bureaucratic inertia, etc.-the agency standards and procedures for amending and must provide public participation (notice officials seem reluctant to undertake either revising land management plans; assure and hearing) opportunities that are com­ plan amendments or revisions. This section timely, responsive, and balanced plan parable to the opportunities already required would remedy this problem by establishing a amendments and revision; and encourage by the NFMA and Forest Service regulations process for citizens to petition for plan better plan implementation by requiring reg­ during preparation of plans, plan amend­ amendments or revisions (analogous to the ular monitoring and accountability. ments, and plan revisions. It also mandates citizen suit provisions in several environ­ Sec. 202. Economic Stability: This section that an MMR similar to the MMRs estab­ mental laws). directs the Forest Service and BLM to main­ lished for other resources be set for timber This section authorizes any person to peti­ tain to the maximum extent feasible the sta­ sale levels in each Forest Service and BLM tion the Forest Service or BLM to amend or bility of communities and economic enter­ plan. Further, this section prohibits actions revise any plan or other document establish­ prises economically dependent upon Forest in particular land areas identified as contrib­ ing MMRs on the basis of new information. Service and BLM lands when developing land uting to the MMR for timber sales that laws, or regulations. To avoid repetitious 12614 EXTENSIONS OF REMARKS May 23, 1991 challenges to plan implementing actions on ditional written information the court per­ enactment, and thereaner in any particular the basis of new information, laws or regula­ mits; area of the National Forest and Public Lands tions, anyone who wishes to challenge such Establish the same standing requirement for which the plan revision required by the an action on that basis must file a petition for litigation contained in section 210 for ad­ long-term program is either not completed on the plan in lieu of an administrative ap­ ministrative appeals and for the same rea­ or is being challenged in administrative ap­ peal on the action. The agency must accept sons; and peal or litigation. or deny the petition in 60 days (with the ad­ Provide that the grounds for challenging Sec. 303. Suspension of Certain Plan Ele­ vise of the Fish and Wildlife Service if the an implementing action are inconsistency ments: To ensure that the effectiveness of petition concerns a species listed under the with the plan which the action is intended to the Congressionally-mandated interim pro­ ESA). If the petition is denied, the petitioner implement or violation of a nondiscretionary gram is not compromised by existing Forest may seek immediate judicial review. provision of any law other than the NFMA Service and BLM plans containing adminis­ (§213). This last requirement reflects a posi­ trative decisions that were made potentially Part B-lmplementing Plans tion taken by the Western Governors' Asso­ obsolete by the listing of the northern spot­ The object of Part B is to ensure better im­ ciation (Resolution 86--021) in 1986 and again ted owl under the ESA, this section suspends plementation of Forest Service land manage­ in 1989. elements of the plans proscribing timber har­ ment plans by expediting administrative and Sec. 214. Deadlines and Procedures: This vesting outside, and permitting timber har­ judicial review procedures. section provides that lawsuits over Forest vesting, road construction, or mineral leas­ Sec. 210. Administrative Appeals and Peti­ Service plans, documents establishing ing, inside areas of old growth forest pro­ tions: This section governs administrative MMRs, and implementing actions are to be tected by section 305. appeals of Forest Service plans and plan im­ scheduled promptly and provided precedence Sec. 304. Interim Timber Sales Program: plementing actions. It sets a standing re­ over other docket matters, except criminal This section directs the preparation and of­ quirement for appeal: the appellant must cases. Further, it establishes time-frames for fering of annual timber sales programs by have participated, and raised the issue or is­ the courts to render final decisions, and for the Forest Service and BLM on National sues to be appealed, during the preparation the lifting of any preliminary injunctions, in Forest and Public Lands not identified and of the plan or action. This requirement is lawsuits over plans (180 days), documents es­ protected by section 305. These annual tim­ consonant with general case law under the tablishing MMRs (120 days), and implement­ ber sale programs would operate during the Administrative Procedure Act and a recent ing actions (60 days; 30 days for salvage sales interim period and be subject only to the federal court decision directly on point in or emergency actions), unless the time is ex­ provisions of Title m. For now, the actual the Idaho Panhandle Forests Plan litigation. tended in order to satisfy requirements of volumes of the two agencies' annual timber It ensures that appellants cannot gain stand­ the Constitution. sales programs are not assigned so that the ing simply by submitting a non-substantive, Sec. 215. Status of Plans: This section pro­ agencies can be consulted on realistic num­ cursory, proforma letter or testimony during vides that, in the event a Forest Service plan bers to include in the legislation based on preparation of the plan or action, which is enjoined, its predecessor plan automati­ the amount of old growth forest accorded in­ gives the Forest Service no notice of, or op­ cally takes effect until the enjoined plan is terim protection under section 305. The sec­ portunity to correct, the infirmity perceived reinstated. tion provides for the allocation of the num­ by the appellant in a timely manner. Sec. 216. Tiering of Environmental Docu­ bers ultimately assigned to the programs This section also requires that the appeal mentation: This section requires the Forest among the various national forests and BLM of any Forest Service plan, document setting Service to tier documents under the Na­ administrative districts. It also makes clear MMRs, or plan implementing action that is tional Environmental Policy Act so that that the assigned numbers do not apply if an based on new information developed since each NEPA document on a plan implement­ exemption is sought for a Forest Service or ing action references applicable analysis in BLM annual interim timber sales program the preparation of the plan may not be taken under section 7(e)-(l) of the ESA and section until the prospective appellant has peti­ the environmental impact statement ("EIS") prepared for the plan and focuses on 306 of this legislation. tioned the Forest Service for a plan amend­ Sec. 305. Interim Old Growth Forest Pro­ ment or revision pursuant to section 209 and issues not previously analyzed in that plan­ level EIS. This requirement is fully con­ tection: This section provides protection for the agency had had an opportunity to accept ecologically-significant old growth forest for or deny the petition. To prevent the Forest sonant with guidance from the Council on Environmental Quality and judicial prece­ the life of the interim program. The protec­ Service from sitting on administrative ap­ tion includes a prohibition against timber peals or petitions, this section deems appeals dent. Congress has already directed the For­ est Service in the NFMA to develop rules on sales, road construction, and mineral leas­ and petitions denied if they are not decided ing. The lands to be protected include by the regulatory deadline. The appellants how it will apply NEPA to the land manage­ ment planning process. This section would unfragmented areas of old growth forest of a can then proceed to court without delay. Fi­ certain size in habitat conservation areas nally, the section bars administrative stays provide further, more explicit Congressional direction to ensure timely decisionmaking identified by the Scientific Committee to beyond the deadlines for filing litigation pro­ Address the Conservation of the Owl (the vided in sections 211 through 213. without unnecessarily costly, time-consum­ ing, and duplicative analysis. "Thomas Committee") and lands within a Sec. 211. Judicial Review of Plans certain radius of active northern spotted owl Sec. 212. Judicial Review of Minimum Man­ Sec. 217. Budget Disclosures: This section requires that the President's budget submis­ nest sites. The sizes of the unfragmented agement Requirements areas and nest site radii are left blank for Sec. 213. Judicial Review of Plan Imple­ sion include a statement of the funding to­ tals necessary to achieve 100% of all outputs the same reason the volumes of timber sales menting Actions: To ensure expeditious judi­ are left blank in section 304: the sizes should cial review and avoid lengthy plan imple­ specified in, or otherwise implement fully, each Forest Service plan. be set only after soliciting expert agencies' mentation paralysis during the course of liti_. advice. gation, these three sections establish the fol­ Sec. 218. Regulations: This section directs the Forest Service and BLM to promulgate Sec. 306. Endangered Species Act and Na­ lowing deadlines for filing suit after a final tional Environmental Policy Act Compli­ Forest Service administrative appeal deci­ regulations to implement Title Il within one year of enactment. ance: This section ensures that the require­ sion: ments of the ESA and NEPA are adhered to 90 days for litigation over plans (including TITLE III-PROVIDING AN INTERIM PROGRAM in the interim program and sets deadlines for plan amendments or revisions) (§ 211); This title establishes a 3-year interim pro­ preparation of environmental impact state­ 60 days for litigation over documents gram to protect ecologically-significant old ments and conducting ESA consultation on which set MMRs (§ 212); growth forest and the northern spotted owl, each of the Forest Service and BLM annual 30 days for litigation over plans imple­ and to ensure maintenance of a timber sale interim timber sales programs. It ensures menting actions. (§213); program, on National Forest and Public that the northern spotted owl will receive Further, these sections: Lands while the long-term program provided full protection through the ESA consulta­ Provide that judicial challenges to plans by Title I is being prepared. tion process while the recovery plan and and documents establishing MMRs will be Sec. 301. Purposes: This section states the critical habitat designation processes unfold. heard in the federal court of appeals for the purposes of the interim program as expressed This section provides that, if a jeopardy circuit where the national forest to which directly above, and also includes the estab­ opinion is rendered in consultation on a par­ the plan or document applies is located lishment of an Old Growth Research Pro­ ticular program, the Fish and Wildlife Serv­ (§§ 211 and 212) and judicial challenges to plan gram to better understand old growth eco­ ice suggests reasonable and prudent alter­ implementing actions will be heard in the system processes and values and to permit natives involving the sales volume assigned federal district court for the district in active management to maintain and enhance to that program in section 304. If, however, which the implementing action will occur those processes and values. an exemption is sought for the program (§213); Sec. 302. Duration of the Interim Program: under the ESA, section 304 makes clear that Limit the record on review to the Forest This section directs that the interim pro­ the exemption may be considered and grant­ Service's administrative record, plus any ad- gram will last for three full fiscal years after ed unencumbered by the assigned volume. May 23, 1991 EXTENSIONS OF REMARKS 12615 Sec. 307. Judicial Review: The interim pro­ cific to rural areas in a discrete region in­ and requires a report from the Commission gram cannot provide as much certainty for volving portions of 3 states-this section es­ on the economic conditions of communities the annual interim timber sales programs as tablishes a 3-member Timber Economic Ad­ and employment in the region that includes it does for protection of old growth forest justment Commission that is also regionally the National Forest and Public Lands. and the northern spotted owl unless it pro­ based. The section requires that each gov­ TITLE V-MISCELLANEOUS scribes litigation challenges of those pro­ ernor in the 3 States-California, Oregon, grams and of individual sales. No attempt is Sec. 501. O&C Lands: This section ensures and Washington-appoint a commissioner. that this legislation will not amend by im­ made, however, in this legislation to bar ju­ The chair is to be elected annually by the 3 dicial access. plication the O&C Lands Act. commissioners. Sec. 502. Authorization of Appropriations: To the contrary, this section encourages Sec. 404. Administrative Authority. This expedited judicial review during the interim This section authorizes appropriations to im­ section provides certain administrative au­ plement this legislation. program. It provides that agency decisions thority to the Commission concerning con­ on the annual interim timber sales programs tracting for services, adoption of internal and individual timber sales are final agency rules (including open meetings and meeting actions, not subject to further administra­ notices), and provision of federal agency DEATH OF GERALD ALBERT tive review or administrative stays. This technical assistance, equipment, and serv­ means opponents do not have to file adminis­ ices. HON. G.V. ~NNY) MONTGOMERY trative appeals, but, instead, can seek imme­ Sec. 405. Timber Economic Adjustment Ad­ diate judicial relief. To ensure that litiga­ OF MISSISSIPPI visory Panel: To ensure that regional exper­ IN THE HOUSE OF REPRESENTATIVES tion is expedited, this section also provides tise is available, this section establishes a 9- that any lawsuit must be filed within 30 days member advisory panel-the Timber Eco­ Thursday, May 23, 1991 of the challenged decision, that the U.S. nomic Adjustment Advisory panel-to coun­ Mr. MONTGOMERY. Mr. Speaker, on Fri­ Court of Appeals will hear the case, and that sel the Commission. Each governor is di­ any preliminary injunction issued shall have rected to appoint 3 members to the Advisory day, May 10, 1991, Mr. Gerald Albert died a maximum term of 60 days. Panel: one from the forest products industry, after a long illness. Mr. Albert was VA's voca­ Sec. 308. Old Growth Forest Research Pro­ one from organized labor, and one from the tional rehabilitation and counseling officer in gram: This section requires the Secretaries general public. San Francisco and served in that capacity of Agriculture and the Interior to establish a Sec. 406. Compensation and Expenses: This from 1964 until the fall of 1989. He was re­ five-year Old Growth Research Program section provides for salaries for Commis­ sponsible for obtaining employment for dis­ within six months of enactment. The Pro­ sioners and travel expenses for both Commis­ abled veterans. VR&C divisions throughout the gram is to include basic research on eco­ sioners and Advisory Panel members. system values and processes and applied re­ country assist eligible veterans in overcoming Sec. 407. Purpose of Economic Adjustment service-connected disabilities through voca­ search on methods of timber harvesting to Grants and Benefit Payments: This section maintain or enhance those ecosystem values directs the Commission to make grants to tional training, independent living services, and and processes. This section also requires communities which, and benefit payments to other rehabilitation counseling, plus employ­ that, within 21h years of enactment, the two workers who, meet the eligibility require­ ment assistance. Secretaries study the work of the Research ments of section 408. It states the following Mr. Albert received VA's prestigious Olin Program and prepare prescriptions and purposes for the grants and benefit pay­ guidelines to govern timber harvesting in Teague Award in 1986. The Teague Award, ments: named for the late distinguished Congressman ecologically-significant old growth forest Assist eligible communities to achieve eco­ areas to be designated to the Reserve, if har­ from Texas, recognizes a VA employee or nomic diversity and diminish dependency on group of employees whose achievements vesting is authorized in the applicable plan forest products from old growth forest on revisions under the long term program. National Forest Lands and Public Lands; have been extraordinarily beneficial to the re­ These prescriptions and guidelines, which Provide short term and longer term re­ habilitation of war injured veterans. Mr. Albert may include techniques associated with New training and adjustment assistance to eligi­ obviously did his job very well. Forestry, are to ensure that any harvesting ble workers; Mr. Speaker, we have lost a fine gentleman permitted in such areas will maintain or en­ Supplement unemployment insurance ben­ and an outstanding leader. I know my col­ hance the areas' ecosystem values. efits and extend income maintenance pay­ leagues and the disabled veterans he helped TITLE IV-ECONOMIC ADJUSTMENT ments for eligible workers whose eligibility join me in mourning his loss. The long term and interim programs and for unemployment insurance benefits is ex­ the old growth forest and species protection hausted and who are enrolled in Commission­ they provide will result in significant ad­ certified training or education programs; verse economic and social effects among em­ Provide base level heal th care insurance NOT SO TAX SMART LOANS ployees, families, and communities economi­ coverage for the families of eligible workers cally dependent on the National Forest and who are enrolled in those training or edu­ HON. FRANK J. GUARINI Public Lands. The objective of this Title is cation programs; and OF NEW JERSEY to develop a 6-year program to provide Defray job search expenses and relocation IN THE HOUSE OF REPRESENTATIVES health, retraining, and other benefits pay­ expenses for eligible workers who have ex­ ments to dislocated workers and grants to hausted employment opportunities in their Thursday, May 23, 1991 promote economic diversification and stabil­ communities. Mr. GUARINI. Mr. Speaker, you may have ity for dependent communities. Sec. 408. Eligibility for Economic Adjust­ heard or read recently advertisements on the Sec. 401. Purposes: This section states the ment Grants or Benefits Payments: This sec­ purposes of Title IV, which are discussed tion provides the requirements for dependent radio or in the papers regarding "TaxSmart" above in the description of the Title. communities and dislocated workers to be auto loans. Here's what they say: Sec. 402. Special Economic Adjustment eligible for the economic adjustment grants Get a TaxSmart au to loan now and the Fund: This section provides for the funding and benefit payments. The community's eli­ Government could cover at least one of your of the economic adjustment program. lt re­ gibility is based on a percentage reduction in payments this year. quires that, for the 6 ·full fiscal years after work force in an associated mill or other The ads go on to say: enactment, a certain percentage of the fed­ wood products facility, and the worker's eli­ Has the Government gone soft? The IRS try­ eral portions of all revenues received under gibility is based on loss of employment for a ing to improve its image? Not exactly. The various statutes from timber sales on Forest minimum period and unlikely return to his TaxSmart Auto Loan is something we came Service and BLM lands must be deposited or her former job. up with all by ourselves. into a special fund in the Treasury to be used Sec. 409. Notice of Secretaries: So as to to implement Title IV. The percentage is left ,give the Commission early warning, this sec­ During the debate on the 1986 Tax Reform blank and will be filled in at a later time in tion requires the Secretaries of the Interior Act there was much discussion regarding the the legislative process when the effects of and Agriculture to inform the Commission of appropriateness of allowing deductions for the long term and interim programs, and the the likely impacts on the local or regional personal interest. A decision was made to dis­ attendant funding needs they will produce, economy of land management actions they allow deductions for personal interest. Among can be determined. intend to take on the National Forest and Sec. 403. Timber Economic Adjustment Public Lands. the most popular items affected were car Commission: This section provides the deci­ Sec. 410. Termination of Commission and loans. sionmaking body for the economic adjust­ Panel; Commission Report: This section sun­ Although personal interest is no longer de­ ment program. To best respond to regional sets the economic adjustment program at ductible, interest on home equity indebtedness concerns-involving problems that are spe- the end of 6 full fiscal years from enactment remains deductible. Home equity indebtedness 12616 EXTENSIONS OF REMARKS May 23, 1991 is any loan other than one used to acquire a Federal energy efficiency efforts. Whether the ego. "George Washington." As trustee and residence that is secured by a qualified resi­ witnesses were from GAO, private industry, or vice president of the Washington Crossing dence, but only up to $100,000. even Federal agencies, the story was the Foundation, Jim portrays George Washington The code also permits deductions of home same. The Federal Government's system of every Christmas in the reenactment of Gen. mortgage interest. To qualify, the debt on procurement for both energy goods and serv­ George Washington's historic journey during which the interest is paid must be secured by ices didn't provide ways for agencies to seek the Revolutionary War. Jim has visited many the taxpayer's principal or second residence at out energy efficiencies or to be rewarded community organizations promoting the legacy the time the interest is paid or accrued. Unse­ when they installed them. of George Washington. Many Members of the cured debt and debt secured by property other The Federal Energy Savings Incentives Act U.S. House of Representatives remember Jim being introduced today corrects the flaws un­ than the residence, even if used to acquire a appearing in our Nation's Capitol in his personal residence, generates personal, that covered by our hearing and provides the in­ George Washington costume, and have seen is, nondeductible, interest. centives we agreed were necessary to him in local parades. Most home equity loans are also exclusively achieve significant energy savings. It allows We will always remember Jim for his out­ secured by the borrower's residence. How­ an agency to keep one-third of the savings ever, the marketers of the tax smart auto loan generated by installation of energy-saving standing characterizations of General Wash­ have found a loophole. These loans are se­ equipment and products and to use it for ington. But we should not forget the many cured primarily by the car, which is the true agency morale or welfare programs such as other contributions he has made to the Nation collateral. The home is tagged on as an after­ recreation, child-care, or continuing education. and his community. I have been honored to thought. As one advertisement states, apprais­ Another third would be reinvested in further work with Jim, and I am pleased to call him a als and title exams are not even required to energy conservation measures to generate friend. He deserves our recognition and sup­ qualify for the loan. This practice perverts the further savings in energy and tax dollars, while port. I ask the Members of the House to join underlying purpose of home equity loans. the final third goes to the Treasury for deficit his family and friends in honoring this out­ The legislation which I am introducing will reduction. This system has already been tried standing American. close this loophole by excluding any indebted­ at the Defense Department, the Federal Gov­ ness secured by property other than a quali­ ernment's chief energy-using branch, where it fied residence from the definition of "home eq­ was a big success. uity indebtedness." The home equity loan The bill also deals with other problems un­ TRIBUTE TO MRS. MARTHA market is a huge one, with about 100 billion covered at our hearing. The most important EASTERLING ON THE OCCASION dollars' worth of credit outstanding. About 12 are obstacles to Federal participation in utility OF HER RETffiEMENT FROM percent of home equity loans are used to fi­ shared savings plans, under which utilities pay JEMISON ffiGH SCHOOL nance auto purchases. If Congress allows this the initial cost of installing energy saving abuse to continue, the drain on the Federal equipment in return for receiving a portion of Treasury will be very substantial. And it is not the agency's fuel savings. The bill would HON. CLAUDE HARRIS just automobiles. Virtually any other type of streamline the procedures for agencies which OF ALABAMA purchase could be financed through this take part in shared savings plans, making the mechanism. programs more attractive to both the Federal IN THE HOUSE OF REPRESENTATIVES If Congress believes that the personal inter­ Government and utility systems. Thursday, May 23, 1991 est deduction should be restored, it should do I urge my colleagues to cosponsor and sup­ so directly-not sanction such an obvious port the Federal Energy Savings Incentives Mr. HARRIS. Mr. Speaker, I rise today to abuse of the home equity loan concept. Act of 1991. pay tribute to the outstanding efforts of Mrs. Martha Easterling in the field of education, demonstrated over the past 37 years as an INTRODUCTION OF THE FEDERAL RETffiEMENT TRIBUTE TO JAMES English teacher at Jemison High School in ENERGY SAVINGS INCENTIVES GALLAGHER Jemison, AL. Providing the motivation and en­ ACT OF 1991 couragement for her students to finish high HON. CURT WELDON school, Mrs. Easterling has been a role model HON. MIKE SYNAR OF PENNSYLVANIA for the youths of Jemison High School. It is OF OKLAHOMA IN THE HOUSE OF REPRESENTATIVES because of people like Mrs. Easterling, who IN THE HOUSE OF REPRESENTATIVES Thursday, May 23, 1991 are truly committed to the educational ad­ vancement of our Nation's youth, that students Thursday, May 23, 1991 Mr. WELDON. Mr. Speaker, I rise today to in the United States continue to excel on na­ Mr. SYNAR. Mr. Speaker, today I am pay tribute to Mr. James W. Gallagher of New­ tional scholastic examinations and become pleased to join with my colleague, Eo MARKEY, town Square, PA. I would like to express my in introducing the Federal Energy Savings In­ personal gratitude to Mr. Gallagher, a 20-year productive members of our American work centives Act of 1991, which deals with a sub­ resident of Delaware County, for his service to force. ject that should have been addressed force­ the Nation and the local community. I consider Martha Easterling to be a true fully in the national energy strategy but instead After serving his tour of duty as a U.S. Ma­ friend and a great patriot. In addition to involv­ was treated timidly and incompletely. rine in World War II, Jim returned to the Unit­ ing herself to a great degree with her stu­ The Federal Government is the Nation's ed States and worked for Westinghouse Elec­ dents, Martha has also worked with the local largest energy user and unfortunately, the Na­ tric. During his private career, he remained Music Appreciation Club, First United Meth­ tion's biggest energy waster. The reason for dedicated to his country as an active member odist Church of Clanton, and has been very this is simple: Federal agencies and Federal of the American Legion. Having served over active with the Chilton County Democratic employees have no incentives to save energy, 22 years in various leadership posts, Jim Party. Even now, as Mrs. Easterling is retiring, since they don't get to keep the savings. Yet reached his current post as eastern vice com­ she will continue to make great contributions decreasing Federal energy use not only saves mander of the Pennsylvania American Legion. of her time to work with the Adult Basic Edu­ hundreds of millions of taxpayers dollars and Ever loyal to the Marine Corps, Jim led a cation Program of Chilton County. reduces U.S. dependence on foreign oil, it local "Toys for Tots" program for 24 years. He Mr. Speaker, I salute Martha Easterling and also lessens air pollutants such as sulfur and was commended by Westinghouse and re­ her wonderful family today, recognizing all the nitrogen oxides and the gases which cause ceived a citation from the Pennsylvania State contributions Martha has made to the public global warming. Senate and House of Representatives for his education system. For her undying service to Last summer the Environment, Energy, and outstanding efforts. the school, the community, and her State and Natural Resources Subcommittee, which I Jim is well-known and highly regarded by country, we say thank you. chair, and the Energy and Power Subcommit­ many people in our community for these chari­ tee, chaired by our distinguished friend and table activities. But there are many more peo­ colleague, PHIL SHARP, held joint hearings on ple who are more familiar with him as his alter May 23, 1991 EXTENSIONS OF REMARKS 12617 1991 CONGRESSIONAL CALL TO students he touched during his venerable ca­ and coached baseball, track and basketball at CONSCIENCE-ANATOLY AND reer. Those who participate in vocational edu­ Mi~mi Trace High School. His students and ANN BRENNER cation on St. Thomas in years to come will their parents appreciated Frank Creamer's learn of him as they work in the skill center dedication, and both the Christian Athletic As­ HON. ANTIIONY C. BEILENSON that bears his name. sociation and the Miami Trace Board of Edu­ OF CALIFORNIA We are saddened indeed by the passing of cation have awarded him plaques in honor of IN THE HOUSE OF REPRESENTATIVES Raphael 0. Wheatley, but we are proud to his excellent service to the youth of Miami. have known this great human being and we As a 50 year member of the South Side Thursday, May 23, 1991 are grateful for all that he did for the Virgin Is­ Church of Christ, Frank Creamer has served Mr. BEILENSON. Mr. Speaker, thank you lands and her people. as an elder, song leader, and a bible school for this opportunity to join my colleagues in Mr. Speaker, on behalf of a grateful people, teacher. He visits the sick and minsters to the supporting the 1991 Congressional Call to I wish to extend sincerest condolences to his elderly. He is member of the Christian Men's Conscience Vigil for Soviet Jews. family in their time of grief. Evangelizing Association and has help build Today, I would like to direct my colleagues' four new church buildings. attention to the plight of Anatoly and Ann Frank is also an active member of the Sen­ Brenner and their son Leonid. Anatoly was SAFE BOATING WEEK ior Citizens of Fayette County, and is a mem­ employed as an electrical engineer at the Min­ ber of the board of trustees of the Fayette istry of Energy until 1979, when the family first HON. JIM RAMSTAD County Commission on Aging. applied to emigrate. Since that date, the Bren­ OF MINNESOTA Mr. Speaker, Frank Creamer is an example ners have been repeatedly denied exit permis­ IN THE HOUSE OF REPRESENTATIVES for us all. I congratulate him on being inducted sion on secrecy grounds despite the fact that Thursday, May 23, 1991 into the Central Ohio Senior Citizens Hall of Anatoly never dealt with security matters on Fame, and I want to make it known that I am his former job. The Brenners have become Mr. RAMSTAD. Mr. Speaker, I rise roday to proud he is a resident of the Sixth District of completely demoralized as more and more of commend the Minnetonka Power Squadron of Ohio. their friends have been allowed to leave the Minnetonka, MN, in association with the Na­ Soviet Union, while Anatoly's former depart­ tional Safe Boating Council, for sponsoring ment head, the Minister of Energy, is still re­ "Safe Boating Week" during the week of June GREAT SELECTION BY NASA OF fusing to give his permission for the family to 2 through 10, 1991. GRAND VALLEY STATE UNIVER­ leave. Boat safety through education has been the SITY I would like to take this opportunity to urge Minnetonka Power Squadron's motto for sev­ the Soviet Union to honor its commitments as eral decades. During this week, the HON. GUY VANDER JAGT expressed in the Helsinki Final Act and allow Minnetonka Power Squadron will conduct OF MICHIGAN the Brenners to be reunited with their family many classes, activities, events, and public IN THE HOUSE OF REPRESENTATIVES outside the Soviet Union. Such action would awareness activities to encourage and pro­ Thursday, May 23, 1991 be a positive example of the continued viability mote boating safety. of the glasnost campaign and would help to Minnesota is known for its thousands of Mr.VANDERJAGT. Mr. Speaker, I am de­ further amicable relations between our two lakes. These lakes are a boater's paradise. lighted today to recognize the announcement great nations. But boating can also be dangerous. Each that Grand Valley State University at year, boat accidents cause many needless in­ Allendale, Ml, in the Ninth Congressional Dis­ juries and deaths. Each year, many boaters trict is being honored by selection to partici­ IN MEMORY OF RAPHAEL 0. needlessly pay thousands of dollars in dam­ pate in the Joint Venture [JOVE] institution WHEATLEY ages because someone has been careless or program of the National Aeronautics and reckless. Space Administration. Grand Valley is one of HON. RON de LUGO As we begin the summer months of enjoy­ only 16 institutions across the country being OF THE VIRGIN ISLANDS ing the outdoors and the lakes, it is appro­ honored during this third year of NASA's IN THE HOUSE OF REPRESENTATIVES priate to remind every one to know the rules JOVE pilot program. of the lakes and to practice safe boating. The goal of the JOVE Program is to make Thursday, May 23, 1991 I encourage all boaters-in the entire United the excitement, challenges and the research Mr. DE LUGO. Mr. Speaker, I rise to speak States, not just Minnesota-to participate in opportunities of NASA's planned space with sadness in my heart upon the passing Safe Boating Week by exercising safe boating science missions available to a broader spec­ yesterday of a great Virgin Islander and friend, skills throughout the boating season. trum of colleges and universities while at the Raphael 0. Wheatley. same time providing opportunities for outreach Raffie, as he was known to the many who programs to grade schools and high schools loved and admired him, seryed his community TRIBUTE TO FRANK CREAMER in local communites. as an educator for 35 years. He recognized clearly the importance of vocational education HON. BOB McEWEN to our youngsters and to the Virgin Islands so OF OHIO A TRIBUTE TO THE MILITARY that we could fill the need for technical and IN THE HOUSE OF REPRESENTATIVES VETERANS OF FOWLER FOR THE trade skills. DEDICATION OF THE SERVICE­ Raffie joined the Department of Education in Thursday, May 23, 1991 MEN'S MEMORIAL 1941 in the maintenance department and soon Mr. McEWEN. Mr. Speaker, it is with great began his career as an education instructor, respect and admiration that I stand to recog­ HON. DAVE CAMP eventually teaching hundreds of young people nize Frank E. Creamer of Washington Court­ OF MICHIGAN the skills that would serve them for a lifetime. house, OH, who was inducted today into the IN THE HOUSE OF REPRESENTATIVES By 1958, Raffia was promoted to the position Central Ohio Senior Citizens Hall of Fame. of coordinator of vocational education for the Frank Creamer, a father of four and grand­ Thursday, May 23, 1991 entire territory. father of nine, is a man who puts service Mr. CAMP. Mr. Speaker, it is with a deep In 1964 Raffie became deputy commis­ above self. As a young man he answered the sense of respect and pride that I rise before sioner for vocational education programs and call and defended his country. He earned five the U.S. House of Representatives to recog­ directed manpower development and training. battle stars and a Presidential citation with oak nize the men and women of Fowler, Ml, who By the time of his retirement in 1976, Raphael leaf for his service in World War II. He is life­ so unselfishly have contributed to the defense had become director of school plant facilities. time member and commander of VFW Post of our Nation and its shining beacon of de­ Raffie will always be remembered with af­ 4964. mocracy to peoples throughout the world. fection by his friends and loved ones. And he After the war, Frank Creamer became a Over 600 men and women from the Fowler will live on in the memories of the many, many teacher. For 36 years, he taught social studies community have served this country in the 12618 EXTENSIONS OF REMARKS May 23, 1991 U.S. Armed Forces from the time of the Civil tended Landon School, in suburban Maryland. think of nothing more tragic or heartbreaking War to Operation Desert Storm. Their commit­ My son, Arthur, is now in the fifth grade at than for a parent to have to bury a child. The ment and sacrifice in fighting for the freedoms Landon. The school is well known in the area Landon family can do nothing to make your we enjoy today must never be forgotten. From for excellence in all aspects of the education burden any lighter or your sorrow any less the battle of Bull Run to the liberation of Ku­ of young men. deep, but we share it with you, and you have wait, the United States of America has de­ Another well-known school, appreciated for our love. pended upon these men and women's cour­ its excellence, is St. Albans, in the District. age and sense of duty to protect our way of For more than 50 years a fierce but friendly life. rivalry between Landon and St. Albans has SUPPORT FOR FEDERAL ENERGY It is only fitting that on this Memorial Day, been a central feature of life at both schools. SAVINGS May 27, 1991, a day when the Nation honors This rivalry is of Army-Navy proportions, and all of the veterans who have sacrificed their annual sporting events between the schools HON. RONAID K. MACHTI.EY lives for their country, we dedicate the service­ are highlights of the season, and victory marks OF RHODE ISLAND men's memorial at the Most Holy Trinity Cem­ the success or failure of the teams involved, IN THE HOUSE OF REPRESENTATIVES regardless of sport, and regardless of record. etery in the community of Fowler. Thursday, May 23, 1991 Mr. Speaker, I know that you and the Mem­ Last Friday, the Landon and St. Albans la­ bers of this body will join me in saluting these crosse teams were locked in titanic struggle, Mr. MACHTLEY. Mr. Speaker, today I join military veterans for their service and valor in not just for bragging rights between the two Congressman Markey in introducing legislation preserving the ideals we hold so near and schools, but also for the championship of the which will put a stop to the Federal energy dear to our hearts. We will always remember Interstate Athletic Conference. More than boondoggle that is unnecessarily robbing tax­ them and their sacrifices. 1,000 people were in attendance, including payers of as much as $864 million a year, ac­ several members of my Landon class of 1961 , cording to the Alliance to Save Energy. who now have sons enrolled at the school, Our legislation, the Federal Energy Savings ZOEY RAPPOPORT PLACES TI:llRD and including many who do not have students Incentives Act, will stamp into law the ambi­ IN NATIONAL RIDING EVENT currently enrolled, but for whom the draw of tious new 20 percent savings in Federal en­ another Landon-St. Albans contest simply ergy use recently proposed by the President. HON. BOB STUMP could not be ignored. More importantly, our bill will put some kick In the midst of festivities, tragedy struck-lit­ behind the Federal Government's plan for sav­ OF ARIZONA erally. A typical Washington summer thunder­ ing energy by providing key incentives to IN THE HOUSE OF REPRESENTATIVES storm suddenly came up, and officials called a make these conservation goals stick. Thursday, May 23, 1991 halt to the game, and the field was cleared. The Federal Government is the Nation's Mr. STUMP. Mr. Speaker, I rise today to The teams sought safety in their busses and largest energy consumer, and biggest energy pay tribute to Miss Zoey Rappoport, who won the gym, and the spectators scattered. A small waster, spending almost $3.5 billion in 1989 to a third place in the individual riding category at knot of students and parents huddled under heat, cool and power its buildings. The money the U.S. Inter-Collegiate Equestrian Competi­ one of the huge, old trees that fringe the edge the Federal Government could save by simply tion May 4 and 5 in Roanoke, VA. Miss of the St. Albans playing field, and it was at making better use of energy is more than Rappoport is a 1989 graduate of Saguaro this tree that fate flung a huge bolt of lightning, three-fourths of what the Federal Government High School in Scottsdale, AZ, and the daugh­ and it was under this tree that Noah Eig, 15- spends on Head Start, and an equally large ter of Mike and Suzi Rappoport of Paradise year-old Landon freshman, died. chunk of what is spent on helping low-income Valley. I didn't know Noah; I am acquainted with people to heat their homes. If the Federal Miss Rappaport is an accomplished eques­ some of his family. His first cousin is in my Government didn't waste millions of dollars on trian who began competing during grade son's class, and one of Arthur's best friends. unnecessary heating and cooling costs for its school, and she has chosen dressage as her One of my classmates who was there is a Federal buildings, the many millions of dollars specialty. Dressage is one of the most elegant physician, and helped provide aid and assist­ now squandered on energy could instead be forms of riding in which the rider gracefully ance to the injured. His daughter, a senior at spent on education, health care, and other guides her mount through a series of complex Landon's sister school, Holton Arms, and an worthwhile Federal programs. maneuvers by subtle cues from the rider. The intern in my office, arrived immediately after By improving the energy efficiency of the result is an elegant combination of horse and the lightning strike. Her younger sister was a Federal Government we can not only cut fed­ rider. close friend of Noah's. eral costs, but also improve our Nation's envi­ Miss Rappaport is a student at Tufts Univer­ The Landon family is large, and close. ronmental quality, limiting pollution and other sity in Boston where she is a member of the Graduation is not the end of the Landon expe­ wastes. Our legislation would require a 20 per­ school's equestrian team. The competition in rience, but just the beginning. This kind of cent reduction in energy consumption per Roanoke drew entries from 180 colleges in the tragedy touches every single one of us. I won­ square foot-thus ensuring that the Federal United States and Canada. der how my son is dealing with this. It is his energy used is cleaner and easier on the envi­ Mr. Speaker, I would again like to congratu­ first experience with death. We have talked to ronment. late Miss Rappaport on her accomplishments. him, and are talking to him, and he seems to Mr. Speaker, the President is to be com­ She has demonstrated through her commit­ respond to us, but how badly is he hurt? We mended for his recent Executive order calling ment and perseverances that she not only can know that the boys are talking among them­ for profound reductions in Federal energy use be a successful competitor in a sport that re­ selves, and Arthur has been sought out by his by the year 2000. However, while a lack of quires grace and skill, but also successfully friend, Noah's cousin, and has spent a lot of leadership and Federal requirements on en­ meet the academic challenges of Tufts Univer­ time with him. ergy efficiency have been important obstacles sity. Zoey is a role model for all young When a death occurs, it is natural to try to to improving the Federal energy picture, we women. find some explanation, something that can cannot simply mandate the Federal Govern­ help us to understand why a life has been ment into compliance. taken from us. How can these young people The primary causes of the Federal energy TRAGEDY STRIKES LANDON understand what has happened to them? How glut we have suffered during the past 5 years SCHOOL can Noah;s classmates and schoolmates ex­ are both the failure to fund efficiency improve­ plain to themselves why he is no longer with ments and a lack of incentives for Federal HON. JOHN J. RHODFS m them? As a member of that large and loving agencies to conserve. OF ARIZONA Landon family, I am hurt by this loss, and I Our legislation addresses these root causes IN THE HOUSE OF REPRESENTATIVES can only barely imagine the sense of loss of by taking important steps to ensure the nec­ these young people, and I feel for them, very essary upfront funding for energy improve­ Thursday, May 23, 1991 deeply. ments. It then provides equally important fol- ·. Mr. RHODES. Mr. Speaker, when I was To Noah's family, I can only express my low through to make sure that Federal agen­ growing up here in the Washington area, I at- deepest and most profound sympathies. I can cies that work the hardest to conserve energy May 23, 1991 EXTENSIONS OF REMARKS 12619 and to achieve savings for the Government Mr. Speaker, one final point: At the same A TRIBUTE TO DR. HARRY PITT are rewarded for their efforts. time that we give back to seniors and disabled Keeping in mind that the money saved persons their right to be productive, let's also HON. CONSTANCE A. MOREil.A through conservation and energy efficiency is strengthen the financial integrity of the entire OF MARYLAND money that would otherwise have been wast­ Social Security system. A good way to do so IN THE HOUSE OF REPRESENTATIVES ed, the Federal Energy Savings Incentives Act would be to earmark to the Social Security Thursday, May 23, 1991 rewards local agencies that achieve savings trust fund the income tax collected on new in­ by allowing them to retain one-third of these come earned as a result of the elimination of Mrs. MORELLA. Mr. Speaker, I rise to pay funds, on site, for use in employee education, the earnings limit. The Treasury would be no tribute to Dr. Harry Pitt on the occasion of his day care and childcare, athletic and rec­ worse off; it was not collecting any of this in­ retirement from the Montgomery County Public reational facilities, or other morale-boosters. Schools, ending a career that has spanned come tax in the past because those individ­ Of the remaining two-thirds of the funds more than 30 years. His tenure as super­ uals were not working, and these new funds saved, one-half is returned to the Treasury, intendent of schools was characterized by new will more than offset the additional payout nec­ and the other half is applied to additional con­ teacher induction, increased community in­ essary to restore Social Security benefits to servation measures. Because a portion of the volvement in administrative decisions, and im­ savings achieved go back into further con­ seniors and disabled persons who choose to provement of African-American and Hispanic servation efforts, the program would ultimately work. student achievement. be self-financing. Mr. Speaker, we live in a society in which Harry Pitt ably served in a number of admin­ Mr. Speaker, the Federal Energy Savings the work force is growing older. This rep­ istrative positions with the county public school Incentives Act provides the formula needed to resents not a disadvantage, but a tremendous system, including area associate superintend­ make the Federal energy program a model for opportunity if we are wise enough to grasp it. ent of area 3, associate superintendent for ad­ the Nation, as opposed to a national disgrace. We will increasingly rely on the skills and en­ ministration, and area associate superintend­ I look forward to broad support for this meas­ ergy of older workers. The sooner we not only ent for area 2. From 1979 to 1987, he worked ure. recognize this fact, but accommodate our­ to develop educational goals and priorities as selves to it, the sooner we can all realize our the deputy superintendent of schools. He has full economic potential. served as superintendent since 1987. QUIT PUNISHING SENIORS FOR Dr. Pitt's career was marked by initiation of REMAINING PRODUCTIVE the effective schools project, identification and dissemination of successful teaching practices, HON. TOM CAMPBEU. VERMILLION-NEWCASTLE BRIDGE and an improved accountability program. He PROJECT OF CALIFORNIA promoted early childhood programs with em­ IN THE HOUSE OF REPRESENTATIVES phasis on parent education and outreach, and Thursday, May 23, 1991 revised the elementary science curriculum to HON. TIM JOHNSON focus on hands-on activity. Mr. CAMPBELL of California. Mr. Speaker, OF SOUTH DAKOTA Dr. Pitt will be honored at a gala banquet on senior citizens who want to remain productive May 30. I wish him the very best in all of his workers in our society deserve our admiration IN THE HOUSE OF REPRESENTATIVES future endeavors, and I am sure that he will and encouragement. Our Social Security sys­ Thursday, May 23, 1991 continue to be a vital and effective member of tem, however, gives them just the opposite. the Montgomery County community. Current law actually punishes seniors who Mr. JOHNSON of South Dakota. Mr. Speak­ continue to work by sharply reducing their So­ er, today I am introducing legislation to author­ cial Security benefits. ize the U.S. Secretary of Transportation to HONORING CYRIL A. McGUIRE For a beneficiary between the ages of 65 carry out a highway bridge demonstration and 69, every dollar he or she earns above project in the Vermillion, SD-Newcastle, NE HON. BOB CARR the annual allowable income limit-$9, 720 in area to improve the flow of traffic between the OF MIClllGAN 1991-causes a 331/a-percent reduction in So­ States of South Dakota and Nebraska. IN THE HOUSE OF REPRESENTATIVES cial Security benefits-effectively a 33113-per­ If such a study determines the need for this Thursday, May 23, 1991 cent tax on that income. For those under the bridge, then the U.S. Secretary of Transpor­ age of 65, benefits are reduced 50 cents for tation is authorized to carry out a highway Mr. CARR. Mr. Speaker, I have the privilege every dollar earned above the limit, which in project to plan, engineer, and construct a today to rise and pay tribute to Mr. Cyril A. 1991 is $7 ,08Q-effectively a 50-percent tax bridge across the Missouri River, connecting a McGuire, my dear friend, who will retire after on that income. Add that 50 percent to the in­ Federal-aid highway in the vicinity of Vermil­ 23 years of service to the automotive industry. come taxes-both Federal and State-and lion, SD with a Federal-aid highway in the vi- Cyril's dedication, success, and leadership to FICA taxes an individual must already pay, cinity of Newcastle, NE. · his union, his company, and the people of and a senior could easily receive a return of The strong local effort to make this bridge a Michigan will be greatly missed. less than 30 cents for a dollar earned. What reality stems from the hard work of many dif­ Born and raised in Lansing, Ml, Cyril has a tremendous disincentive for seniors who ferent private citizens, local governments and carved a path of accomplishment during his want to remain active and productive. career. His mark of excellence will remain in private organizations. A bridge in the Vermil­ Mr. Speaker, the earnings limit effectively the community for years. First elected as the lion-Newcastle area would go a long way to shoves seniors into forced retirement. It pre­ education committee chair of Local 652 of the vents thousands of older Americans from con­ improve the interstate flow of traffic, improving United Auto Workers, my friend's acceleration tinuing to exercise one of their most fun­ critical access to rural health care, needed ap­ in the union's rank was inevitable. Positions damental rights-the right to work. Equally dis­ cess to higher education opportunities, and held by Cyril in the UAW include district com­ heartening, it denies to our economy the pro­ significant improvements of farm-to-market mittee person; shop committee person; vice ductive participation of skilled, experienced traffic for grain and livestock producers in both chair, shop committee; vice president of UAW workers. South Dakota and Nebraska. Local 652; President of UAW Local 652; Re­ An even more severe earnings limit con­ The interest and need for the Vermillion­ gion 1-C UAW international representative, fronts disabled people; once they reach acer­ Newcastle Bridge has long been a priority for Region 1-C UAW educational director and tain level of outside income, they lose all So­ both South Dakota · and Nebraska citizens. Region 1-C UAW community action programs cial Security benefits. What a tremendous dis­ Providing a link between States at this location coordinator. incentive for a disabled person who has the will seriously enhance quality of life and pro­ Michigan labor and American labor, in gen­ capacity and the desire to be a productive vide access to badly needed services for a eral, have benefited from Cyril McGuire's ef­ worker. l'Ve introduced a bill to correct this considerable number of people. Communities forts for nearly a quarter of a century. I per­ abuse for blind people, and I invite my col­ have worked together for years to make this sonally have witnessed his thoughtfulness and leagues to join me as cosponsors. highway project a reality. gentle nature when presented with difficult 12620 EXTENSIONS OF REMARKS May 23, 1991 problems. Always regarded as a man of wis­ were a priority from the top down, with Presi­ The President is to be commended for this im­ dom, Cyril was a genuine mediator, one who dents Ford and Carter issuing a series of Ex­ portant step, which if accomplished could save could see a situation from all perspectives and ecutive orders on the subject. Over that dec­ $800 million in annual energy costs by the come to the most equitable resolution. ade, Congress appropriated significant funds turn of the century. In addition to a lifetime's work packed into for conservation, reaching a peak of over $256 Yet new goals-however ambitious and 23 years as a member of the UAW, commu­ million for 1985. For Federal employees and worthy-remain only the opening shots of the nity service was a priority for Cyril. Activities the public as a whole, the energy crisis of the war on energy waste. More difficult tasks re­ outside of the workplace include such honor­ early 1970's had served as a powerful impetus main: Crafting appropriate incentives that able posts as board president of the National for energy prudence, and the result was lean­ prompt the adoption of efficiency measures; Council on Alcoholism, regionar board presi­ er Federal energy bills and increased taxpayer finding the necessary funding to invest in con­ dent of the Greater Lansing Democratic Busi­ savings. servation; and facilitating Federal agency par­ ness and Professional Association, Lansing Since 1985, however, the Federal commit­ ticipation in utility-sponsored rebate programs precinct delegate, member of the Ingham ment has all but evaporated, and the trend to­ and shared savings contracts. These hurdles County Democratic Party Executive Commit­ ward savings has been reversed. At times, it are not insignificant and, unfortunately, cannot tee, member of the Michigan State University seems the Federal Government seems intent be accomplished with the stroke of a pen on Labor Advisory Committee, and member of on living up to the public's expectations of a an Executive Order. the Lansing Community College Blue Ribbon bureaucracy so rigid and unwieldy that it is un­ Two excellent reports on this subject have Committee. able to change its wasteful and spendthrift recently been completed, one by the Congres­ Along with his professional accolades, Cyril ways. From 1985 through 1989, the most re­ sional Office of Technology Assessment, "En­ has been a strong leader of the community. cent year for which complete statistics are ergy Efficiency in the Federal Government: The list of awards and admirations include Na­ available, energy use per square foot actually Government by Good Example?" and one by tional Association of Negro Business and Pro­ rose for Federal facilities. After spending over the Alliance to Save Energy, "Energy Use in fessional Women's Distinguished Service $256 million on energy efficiency improve­ Federal Facilities: Squandering Taxpayer Dol­ Award, Lansing Safety Council special rec­ ments in 1985, Federal spending for such ad­ lars and Needlessly Polluting our Environ­ ognition, Big Brothers of Lansing Man of the vances dropped to below $45 million in 1989. ment." I commend each to the attention of my Year, A. Philip Randolph Institute Greater Flint This total is just 1.2 percent of the Federal colleagues for a thorough understanding of the Chapter's Edward Taylor Memorial Lifetime Government's annual energy costs and means problems associated with reducing Federal en­ Achievement Award. that the average Federal building, which costs ergy expenditures. Mr. Speaker, it gives me great pleasure and nearly $7,000 a year to heat, cool, and power, Although the reports approach Federal en­ extreme pride to join with Cyril's wife, Mary receives just $90 in efficiency improvements ergy efficiency in different ways, their conclu­ Jane McGuire, and his family and friends to each year. At this pace, the energy savings sions and recommendations are notably simi­ wish him the best of life and health in his re­ goals set in 1985 to be accomplished by 1995 lar. Each calls for Executive leadership and tirement. I have benefited from Cyril's example would not in fact be met until the year 2030. new goals, revised and simplified procurement of character in politics and in life. I will con­ We cannot wait until the 121st Congress procedures, additional funding commitments, tinue to respect and admire my good friend convenes for these modest 1995 goals to be and incentives for the accomplishment of new and seek his advice. met, and thankfully Congress and the adminis­ savings. The President has accomplished the tration have finally begun to work toward the first of these needs through his Executive accomplishment of truly significant energy sav­ order; the Federal Energy Savings Incentives FEDERAL ENERGY SAVINGS ings. In a time of budgetary constraints, en­ Act of 1991 completes the task. INCENTIVES ACT OF 1991 ergy efficiency makes fiscal sense. And in a This legislation is modeled on last year's time of increased environmental concern, re­ amendment to the DOD authorization bill. Like HON. EDWARD J. MARKEY ducing our Nation's energy consumption re­ that amendment, it prescribes an incentive OF MASSACHUSETTS duces more than just the energy bill-energy system that allows an agency to retain a por­ IN THE HOUSE OF REPRESENTATIVES savings contribute to lower pollution, decrease tion of accomplished energy savings as an in­ acid rain, and can help slow the impact of the centive to conserve. For anyone interested in Thursday, May 23, 1991 greenhouse effect. promoting energy efficiency in government, Mr. MARKEY. Mr. Speaker, today I am in­ The first step toward a new era of accom­ one of the most frustrating hurdles is that in troducing the Federal Energy Savings Incen­ plishment in energy savings was the amend­ the government-like the private sector-deci­ tives Act of 1991. The Federal Government's ment to last year's DOD Authorization Act. sions about conservation and efficiency are commitment to energy conservation in its own Based on legislation I introduced last Con­ made by many different people at all levels of facilities waned in the late 1980's, but if cir­ gress with my colleague from Rhode Island, an organization. Reaching the right cumstances have ever pointed to a renewed Mr. MACHTLEY, who joins me today in introduc­ decisionmaker is a vital part of a successful effort, they do now. The budget deficit de­ ing the Federal Energy Savings Incentives Act incentive program. mands fiscal efficiency, environmental con­ of 1991, the amendment authorized funding Under the bill, one-third of proven savings cerns dictate a sensitivity to energy excesses, for a new conservation program in DOD and can be spent by the agency to lessen the cost and our military role in the Middle East under­ set in place strong incentives for the accom­ of child care for its employees, to reduce the scores the importance of lessening our over­ plishment of new departmental energy per­ cost of employee participation in continuing reliance on imported oil. The Federal Energy formance goals. education programs, to provide recreational fa­ Savings Incentives Act of 1991 will enable The program has begun at DOD, which last cilities such as gyms or playgrounds, or for bold new Federal energy performance goals to year set the ambitious new goal of a 20 per­ other morale or welfare programs. This puts be met by providing adequate funding and cent reduction in energy used per square foot obvious benefits of conservation closer to powerful, new incentives for their accomplish­ by the year 2000. Project applications have agencies' many managers, giving them a very ment. started to pour into the office of DOD's Direc­ real reason to pursue conservation. Another The bill builds upon the Department of De­ tor of Energy Policy, Jeffrey A. Jones, who third of the saved expenditures is devoted to fense [DOD] conservation program, created by last month reported that he had received ap­ additional energy conservation within the an amendment to last year's DOD authoriza­ plications of over $50 million for the $10 mil­ agency, and the final third is returned to the tion bill. That amendment set in place an in­ lion actually appropriated for fiscal 1991. Treasury for deficit reduction. The early indica­ centive program for energy managers, encour­ As a part of his national energy strategy, tion from DOD is that this system has been aged shared savings contracting, and author­ and in response to DOD's new goals, Presi­ extremely successful in stimulating interest in ized a financial investment in conservation and dent Bush last month became the first Presi­ conservation, and it should be applied govem­ efficiency within the Department. dent in over a decade to issue an Executive mentwide. Between 1975 and 1985, Federal agencies Order on Federal energy management. Execu­ The Federal Energy Savings Incentives Act were tremendously successful in saving en­ tive Order 12759, April 17, 1991, set a 20-per­ also duplicates the simplified procurement pro­ ergy, reducing energy use per square foot by cent reduction goal for all Federal agencies by cedures included in last year's amendment. nearly 17 percent. Conservation and efficiency the year 2000, as compared to 1985 levels. The bill details a procedure that would stream- May 23, 1991 EXTENSIONS OF REMARKS 12621 line contracting for shared energy savings (4) The President has provided guidance head of such agency may designate in ac­ [SES] programs. Under such programs, a and leadership on energy efficiency by di­ cordance with regulations prescribed by the company pays for and installs conservation recting Federal agencies, pursuant to Execu­ Secretary. tive Order 12759 (56 Fed. Reg. 16257), to reduce measures deemed cost-effective, and in return "(B) One-half of the amount shall be used overall energy consumption in Federal build­ by the offices of the agency in the building the agency repays the company through en­ ings and facilities by 20 percent by the year at which the savings were realized, as deter­ ergy savings. This legislation calls for a sys­ 2000 which would save an estimated mined by the head of such agency consistent tem under which companies are eligible to be $800,000,000 in annual energy expenditures with applicable law and regulations, for any prequalified to provide SES contracts through and cut Federal energy consumption by the or all of the following: a process of submitting financial and perform­ equivalent of 100,000 barrels of oil per day. "(i) Employee education or training. ance statements to the Department of Energy. (5) Despite the ambitious new Federal "(ii) Daycare or childcare services. This plan, which is endorsed explicitly in the goals outlined in Executive Order 12759, Fed­ "(iii) Athletic or recreational facilities or eral agencies lack necessary funding for the Alliance to Save Energy's report, would facili­ programs. accomplishment of these goals. "(iv) Other morale or welfare programs or tate the adoption of SES programs throughout (6) Incentives for Federal agencies do not services. the Government while maintaining integrity exist at the appropriate managerial levels to "(v) Additional energy conservation meas­ and accountability in such contracting. stimulate the application of energy effi­ ures.". Finally, the bill makes the necessary finan­ ciency improvements. (b) UTILITY INCENTIVE PROGRAMS.-Section cial commitment to efficiency and conservation (b) PURPOSE.-The purposes of this Act 546 of the National Energy Conservation Pol­ by authorizing a $100 million investment for are-- icy Act (42 U.S.C. 8256(c)) is amended by add­ these purposes. Although this amount seems (1) to establish a program of energy effi­ ing at the end the following new subsection: large, it is well justified even in tight budgetary ciency and conservation in all Federal agen­ "(d) UTILITY INCENTIVE PROGRAMS.-(1) The cies; and times. Federal expenditures on efficiency Secretary shall permit each agency to par­ (2) to provide incentives for the accom­ ticipate in programs conducted by any gas or dropped by over $200 million per year from plishment of energy use reduction goals. electric utility for the management of elec­ 1985 to 1989, and even by the Department of SEC 3. GOALS AND IMPLEMENTATION PLANS FOR tricity demand or for energy conservation. Energy's estimates, a comprehensive con­ IMPROVED ENERGY EFFICIENCY. "(2) The Secretary may authorize any servation program for the Federal Government Section 543 of the National Energy Con­ agency to accept any financial incentive, would, in the end, save over $800 million each servation Policy Act (42 U.S.C. 8253) is generally available from any such utility, to year. Investments in conservation and effi­ amended by adding at the end the following adopt technologies and practices that the ciency are just that-investments, which pay new subsection: Secretary determines are cost-effective for back the investor many times over. "(c) ADDITIONAL REQUIREMENTS.-(1) In ad­ the Federal Government.". dition to the requirements of subsection (a), I am pleased to introduce this legislation to­ SEC. 5. SHARED ENERGY SAVINGS CONTRACTING. the Secretary shall, after consultation with (a) IN GENERAL.-Title VIlI of the National gether with my colleagues Mr. MACHTLEY, with the head of each agency, designate an addi­ whom I cosponsored on last year's DOD Energy Conservation Policy Act is amend­ tional energy performance goal for each ed- amendment, Mr. SYNAR, the chairman of the agency for the years 1996 through 2000 so (1) by redesignating section 804 as section Government Operations Subcommittee on En­ that the energy consumption of Btu's per 805; and vironment, Energy, and Natural Resources, gross square foot of Federal buildings in use (2) by inserting after section 803 the follow­ whose own work on this issue has contributed during fiscal year 2000 is at least 20 percent ing: less than the energy consumption of Btu's greatly 'to improved Federal efficiency, and Mr. "SEC. 804. SPECIFIC REQUIREMENTS. FAZIO, who has been a steadfast supporter of per gross square foot of Federal buildings in use during fiscal year 1985. "(a) METHOD.-The Secretary shall develop Federal energy management from his position "(2) To achieve the goal designated under a simplified method of contracting under on the Appropriations Committee. paragraph (1), the head of each agency shall this title, consistent with applicable pro­ I urge my colleagues to support fiscal re­ carry out the activities described in sub­ curement requirements, for shared energy sponsibility and environmental accountability section (b), including an updating, by not savings contract services that will acceler­ by cosponsoring the Federal Energy Savings later than 6 months after the date of enact­ ate the application of the authority to use these contracts with respect to Federal agen­ Incentives Act of 1991. ment of this paragraph, of the implementa­ tion plan required by subsection (b)(l). cies and will reduce the administrative effort Mr. Speaker, I insert the text of the bill in and cost on the part of the Federal Govern­ the RECORD following my remarks: "(3) For the purpose of implementing any plan to carry out this subsection, the head of ment as well as the private sector. H.R. 2452 each agency shall provide that the selection "(b) IMPLEMENTATION.-(1) In carrying out Be it enacted by the Senate and House of Rep­ of energy conservation measures under such subsection (a), the Secretary shall consider resentatives of the United States of America in plan shall be limited to those with a positive the advisability of- Congress assembled, net present value over a period of 10 years or "(A) req.uesting statements of qualifica­ SECTION I. SHORT TITLE. less.". tions (as prescribed by the Secretary), in­ This Act may be cited as the "Federal En­ SEC. 4. INCENTIVES. cluding financial and performance informa­ tion, from firms engaged in providing shared ergy Savings Incentives Act of 1991". (a) ENERGY SAVINGS AT AGENCIES.-Section SEC. 2. FINDINGS AND PURPOSE. energy savings contracting; 546(c) of the National Energy Conservation "(B) designating from the statements re­ (a) FINDINGS.-The Congress finds the fol­ Policy Act (42 U.S.C. 8256(c)) is amended to ceived, with an update at least annually, lowing: read as follows: those firms that are presumptively qualified (1) The Federal Government is the Nation's "(c) USE OF SAVINGS.-(1) The head of each to provide shared energy savings services; largest energy consumer, spending agency (other than the Department of De­ "(C) distributing a list of such firms to all $8, 700,000,000 in 1989, of which almost fense) shall provide that two-thirds of the Federal agencies. $3,500,000,000 was spent to heat, cool, and portion of the funds appropriated to such "(2) In carrying out subsection (a), the Sec­ power buildings. agency for a fiscal year that is equal to the retary shall also consider the advisability of (2) Energy use per square foot in Federal amount of energy cost savings realized by providing for the direct negotiation of con­ agencies increased from 1985 to 1989, after such agency (including financial benefits re­ tracts with shared energy savings contrac­ dropping by nearly 17 percent from 1975 sulting from shared energy saving contracts tors that have been selected competitively through 1985. under title VIII and financial incentives de­ and approved by any gas or electric utility (3) A primary cause of the Federal Govern­ scribed in subsection (d)(2)) for any fiscal serving the department, agency, or instru­ ment's failure to reduce energy use is a de­ year beginning after fiscal year 1991 shall re­ mentality concerned.". clining commitment to fund energy effi­ main available for obligation under para­ (b) CLERICAL AMENDMENT.-The table of ciency and conservation programs. By 1985, graph (2) through the end of the fiscal year contents for title VIII of such Act is amend­ Federal agencies were investitlg over following the fiscal year for which the funds ed by striking out the item related to Defini­ $250,000,000 per year in energy conservation were appropriated, without additional au­ tions and inserting in lieu thereof the follow­ improvements, however, by 1989, the Federal thorization or appropriation. ing: investment had dropped to less than "(2) The amount that remains available for $45,000,000. Although the average Federal obligation under paragraph (1) shall be uti­ "Sec. 804. Specific requirements. building incurs over $7 ,000 per year in energy lized as follows: "Sec. 805. Definitions.". costs, an average of less than $90 per building "(A) One-half of the amount shall be used SEC. 6. FEDERAL ENERGY COST BUDGETING. was invested in energy efficiency improve­ for the implementation of additional energy The President shall transmit to the Con­ ments in 1989. conservation measures by the agency as the gress, at the same time as the budget is sub- 12622 EXTENSIONS OF REMARKS May 23, 1991 mi tted to the Congress under section 1105 of ney of time's wheel has rolled, blessed 'long cap." Time portrayed QUAYLE with five other title 31, United States Code, a statement of the way by heaven above, to this destination GOP heavy hitters and the not-so-subtle tag, the amount of appropriations requested, if of wedding gold," this is a special occasion. "Five Who Could Be Vice President." any, on an individual agency basis, for- The parents of three sons: David, Mark, and Underestimating politicians can be a dan­ (1) electric and other utility fuel costs to be incurred in operating and maintaining Thomas; and the grandparents of 10 grand­ gerous game, as President Dukakis and Vice agency facilities; and children; Mr. and Mrs. Snyder are lifelong resi­ President BENTSEN, among others, have dis­ (2) compliance with the provisions of part dents of Armstrong County, where Elmer A. covered. In DAN QUAYLE'S case, this is particu­ 3 of title V of the National Energy Conserva­ Snyder and his brother Charles began operat­ larly true, because there are so many nega­ tion Policy Act (42 U.S.C. 8251 et seq.), the ing Snyder Associates 50 years ago as well, tive, and wholly untrue, stereotypes around Energy Policy and Conservation Act (42 beginning in 1941, the year World War II him. U .S.C. 6201 et. seq.), and all applicable Execu­ began. Contrary to the image of someone who tive orders, including Executive Order 12003 The business began with coal operations (42 U.S.C. 6201 note) and Executive Order leapfrogged into prominence through family 12759 (56 Fed. Reg. 16257). and later expanded to limestone, oil, sand and connections, DAN QUAYLE rose to power the SEC. 7. AUTHORIZATION. gravel, block, and motel operations. Mrs. Sny­ traditional way. He was a political novice in There are authorized to be appropriated to der, a graduate of Slippery Rock State Col­ 1976 when, 5 months before election day, he carry out this Act not more than $100,000,000. lege, taught junior high school for 1O years at decided to challenge incumbent Congressman Worthington West Franklin and is now active J. Edward Roush. In that short time, QUAYLE at the Union Presbyterian Church in set up his own precinct organizations and INVESTIGATE THE NAVIGABIL­ Cowansville, and at the Armstrong County Me­ upset Roush on election day. ITY OF LAKE MONTAUK, NY morial Hospital, where Mr. Snyder also con­ Six years later, in the 1980 Reagan land­ tributes his time. slide, QUAYLE swept to a smashing Senate HON.GEORGEJ.HOCHBRUECKNER Snyder Associates now employs between victory over Democrat Birch Bayh, an 18-year OF NEW YORK 500 and 600 workers, including many family veteran. QuA YLE followed that with another IN THE HOUSE OF REPRESENTATIVES members and the golden anniversary couple's victory 6 years later, winning his Senate race sons. Thursday, May 23, 1991 by the largest margin in Indiana history. Mr. Snyder enjoys hunting and fishing, and The job of Vice President does not lend it­ Mr. HOCHBRUECKNER. Mr. Speaker, the couple both enjoy golf. self to flashy displays. Still, QUAYLE has made today I am introducing legislation to call for an Mr. Speaker, I rise today before the U.S. several remarkable--and mostly unremarked investigation of what may be a navigability Congress to honor Mr. and Mrs. Elmer A. Sny­ upon--accomplishments during his tenure. problem meriting Federal attention at the Lake der because they have unselfishly contributed While President Bush was at the Malta Sum­ Montauk Harbor Inlet, in my district. to their family and to the community at large, mit in 1989, rebels in the Philippines launched Constituents of mine have complained about and that is a 50th anniversary well worth cele­ a coup against America's ally, Corazon a shoaling problem along the east jetty of the brating and recognizing here today. Aquino. In the President's absence, QUAYLE Montauk Inlet which requires boaters to con­ took charge and ordered U.S. planes to buzz fine their vessels to the west side going to and rebel strongholds. He even ordered hourly from Block Island Sound. The result is heavy IN DEFENSE OF DAN press calls to CNN, ensuring that the U.S. re­ boat traffic causing delays and navigation dif­ sponse was well-known to those who might ficulties for both commercial and pleasure HON. BOB UVINGSTON not be paying attention to formal diplomatic boats. OF LOUISIANA channels. The legislation I am introducing today au­ IN THE HOUSE OF REPRESENTATIVES QUAYLE has also proved adept at handling thorizes the Secretary of the Army to review Thursday, May 23, 1991 key diplomatic missions. A case in point: A previous reports on the Lake Montauk Harbor, East Hampton, NY, navigation project to deter­ Mr. LIVINGSTON. Mr. Speaker, how quickly week after Saddam Hussein invaded Kuwait, President Bush dispatched QUAYLE to South mine the feasibility of modifying the project for we forget: Conventional wisdom once labeled further navigation improvements. The measure Harry Truman a Missouri mule driver, a failed America. In separate meetings, QUAYLE pres­ authorizes funding for this reconnaissance haberdasher, and an Army artilleryman whose sured the leaders of both Brazil and Argentina work at a level of $400,000. This study should language would have embarrassed Atilla the to cease selling ballistic missile technology to also consider the feasibility of dredging Hun. It also joked that Dwight Eisenhower Hussein. After initial protests, the two leaders Coonsfoot Cove. couldn't read when his lips were chapped. assented to the American request. Mr. Speaker, I urge my colleagues to sup­ And Ronald Reagan? He was the hope­ Could a less talented envoy have accom­ port this legislation, which is important to the lessly naive, B-grade actor who starred along­ plished the same results? In all likelihood, yes. people and economy of eastern Long Island. side Bonzo. However, the fact that QUAYLE brought off After reaching the Oval Office, however, such a sensitive mission with so clean a result each of these men turned conventional wis­ is a telling indication of his capability. TRIBUTE TO ELMER AND dom on its head and conducted themselves Two other events over the past year high­ ANNABELLE SNYDER with remarkable success. Such is the case light QUAYLE'S underestimated savvy. Last with the elusive quality of leadership in our so­ summer, as congressional Democrats were HON. JOE KOLTER ciety. The irony of America's democracy is coaxing the White House into jettisoning the OF PENNSYLVANIA that we know exactly what we want from our no new taxes pledge, QUAYLE was one of the IN THE HOUSE OF REPRESENTATIVES leaders; however, we have no reliable yard­ few who saw the trap. He predicted, correctly, stick to calibrate those qualities. Sometimes that going back on that pledge would pull the Thursday, May 23, 1991 the most unlikely men--Lincoln, Teddy Roo­ rug out from under GOP candidates. Sure Mr. KOLTER. Mr. Speaker, I rise today be­ sevelt-become our heroes, while those with enough, after the budget deal went through, fore the U.S. House of Representatives to impeccable qualifications-Carter-flounder. GOP candidates in several close races honor and pay very special tribute to two out­ Which brings us to Vice President DAN promptly sank into defeat. standing and virtuous members of their com­ QUAYLE. For 28 months, DAN QUAYLE has en­ Even more important, QUAYLE, I am told, munity in my Fourth Congressional District of dured a barrage of talk show jokes and media was one of the strongest administration sup­ Pennsylvania. critiques. Unfairly, but not surprisingly, public porters of putting before Congress a vote on I rise to honor Elmer and Annabelle Snyder dissatisfaction with QUAYLE is greater than the use of force against Iraq. At a time when of Cowansville, Armstrong County, as they with any other postwar Vice President except other officials were dubious, QUAYLE argued celebrate their 50th wedding anniversary June Nelson Rockefeller. that the resolution could indeed pass Con­ 8. In the wake of President Bush's recent med­ gress. It did, albeit by only a two-vote margin As this statement from their celebration an­ ical troubles, the national spotlight again fo­ in the Senate. In hindsight, though, the con­ nouncement indicates, "Half a century ago cused on QUAYLE. Newsweek put him on the gressional vote clearly had the dual effect of these two vowed true love and now the jour- cover with the caption, "The Quayle Handi- strengthening the Presidenf s hand and forging May 23, 1991 EXTENSIONS OF REMARKS 12623 unity within the country-both laudable and Last year, the House and the Senate Massachusetts has enacted lighting stand­ crucial national goals. passed World Population Awareness Week. ards which are the basis of the standards set DAN QUAYLE may not yet have the full con­ The President and 38 State Governors issued forth in this bill. Other States are interested in fidence of the American people. No doubt that proclamations declaring World Population following Massachusetts' lead. By imposing stems in large part from his faltering perfor~ Awareness Week as a time to reflect on rapid Federal energy efficiency standards, and pre­ ance in the 1988 campaign debate with LLOYD population growth and the consequences of it. empting States from enacting their own-per­ BENTSEN. But QUAYLE is slowly, carefully re­ Population related-events were held all across haps different ones-this measure reduces the building his foundation. This is no surprise to the country. regulatory burden on industry by replacing an those of us who worked with him in Congress, Today, Representative PORTER and I, along ever-changing patchwork of State standards and still count him a good friend. with 61 of our colleagues are again introduc­ with a single Federal standard. Mr. Speaker, come 1992, the Democrats will ing this resolution which will designate Octo­ Mr. Speaker, this bill fills a large gap in the again try to make DAN QUAYLE a campaign ber 20 through 26, 1991 as World Population administration's national energy strategy. By issue. Likely, their success will equal that of Awareness Week. I urge my colleagues to join requiring the manufacture of only the most en­ 1988. us in support of this resolution. Congress can ergy efficient equipment, we will be reducing show its commitment to bettering the quality of energy demand, a critical factor in addressing life for people worldwide by again passing this our energy supply problems-particularly our WORLD POPULATION AWARENESS resolution. overreliance on imported oil. WEEK According to a Department of Energy study, over the last decade, most conservation gains SAVING ENERGY have resulted from applications of energy effi­ HON. JIM MOODY cient technologies. It was concluded, however, OF WISCONSIN E. that much more could be done. This bill takes IN THE HOUSE OF REPRESENTATIVES HON. GERRY STIJDDS those next important steps. I urge my col­ OF MASSACHUSETTS Thursday, May 23, 1991 leagues to lend it their support. IN THE HOUSE OF REPRESENTATIVES Mr. MOODY. Mr. Speaker, the number of Thursday, May 23, 1991 people inhabiting our planet today is 5.4 bil­ DEALING WITH UNFAIR TRADE lion, 95 million more than last year at this Mr. STUDDS. Mr. Speaker, today I am PRACTICES time. This is the largest population increase in pleased to join Representatives MARKEY, the history of humankind. Though it took tens SCHEUER, and BILIRAKIS in introducing the En­ HON. FRED GRANDY of thousands of years for our human numbers ergy Efficiency Standards Act of 1991. This OF IOWA to reach 1 billion, at current growth rates the legislation-which is expected to save con­ IN THE HOUSE OF REPRESENTATIVES Earth's population should double to almost 11 sumers $40 billion through the year 2010- billion in only 40 years. represents an important step forward in i~ Thursday, May 23, 1991 Virtually all of this exponential population in­ proving the energy efficiency of a number of Mr. GRANDY. Mr. Speaker, I along with my crease is taking place in the poorest nations of consumer and industrial products. colleague Congressman BYRON DORGAN of the developing world, those least able to cope In 1987, the Congress enacted legislation North Dakota, am introducing legislation today with such burgeoning growth. Sixty-five devel­ requiring the Department of Energy to set en­ to clarify section 301 of the Trade Act of 197 4 oping countries which depend on subsistence ergy efficiency standards for 13 home appli­ as amended. Section 301 empowers the U.S. farming may be unable to feed their popu­ ances. The following year, fluorescent lamp Trade Representatives [USTR] to investigate, lations by the close of this decade. To accom­ ballasts were added to the list. negotiate, and, if necessary, retaliate against modate this demographic explosion, develop­ The measure we are introducing today goes any unjustifiable, unreasonable, or discrimina­ ing countries will have to produce 800 million a step further by setting energy performance tory act, policy, or practice of a foreign govern­ new jobs in less than 1O years. We know al­ standards for light bulbs, showerheads, fau­ ment that unfairly burdens or restricts U.S. ready that these countries have accrued insur­ cets, industrial motors, commercial heating, commerce. mountable debts in order to maintain an even ventilating and air-conditioning [HVAC] equip­ Section 301 has been an effective means pace with their swelling numbers. Yet, in order ment, and transformers. In addition, the De­ for American industry to seek aid from the to pay only the interest on their debts, these partment of Energy is directed to prescribe U.S. Government when a foreign government countries have had to sell off natural re­ testing and labeling requirements for certain subsidizes its industries or violates trade sources, destroying millions of acres of tropi­ office equipment. agreements. Unfortunately however, under the cal rain forest. Increasing human numbers and The energy savings from this bill, Mr. current section 301, it is unclear whether the a shrinking supply of natural resources are ex­ Speaker, will be significant. Light bulbs-in­ USTR has the authority to bring an action on acerbating poverty and social unrest. candescent and fluorescent-and motors ac­ behalf of U.S. industry to address a practice or Right now we are seeing a dramatic exa~ count for over 70 percent of national electricity project that preliminary research has shown pie of the effects of rapid population growth in consumption. According to the American will injure U.S. commerce if it continues. It Bangladesh. This small nation which is only Council for an Energy-Efficient Economy, i~ seems that the way our current law is written, one sixty-fifth the size of the United States, plementation of the lighting standards set forth U.S. businesses have to wait until their mar­ has a population of about 115 million people, in the bill would save energy equivalent to kets are flooded with subsidized foreign prod­ roughly half the U.S. population. Many of the over 1 O billion barrels of oil through the year ucts and actually suffer often irreparable injury problems this poor country faces today are di­ 2010. Requiring the manufacture of only highly before any action is taken. rectly related to its rapid population growth. efficient electric motors will save energy equal The legislation we are introducing today . About 50 percent of the 10 million infant to over 365 million barrels of oil over the same would attempt to remedy this situation. It clari­ deaths and 25 percent of the 500,000 mater­ time period. fies that the USTR may take appropriate ac­ nal deaths that occur each year could be pre­ Similarly impressive savings can be tion under section 301 when an unfair trade vented if voluntary means of child spacing and achieved by requiring the manufacturers of act, policy, or practice of a foreign government maternal health programs were expanded to commercial heating, ventilating and air-condi­ threatens to burden or restrict U.S. commerce. meet minimal needs in developing countries. tioning equipment-which accounts for 60 per­ When such a threat is reasonably foreseeable, About 500 million women in developing na­ cent of the total energy use in commercial USTR should respond in a timely manner. We tions want family planning but lack either the buildings-to meet efficiency standards al­ are adding one more weapon to our trade law information or the means to obtain it. Increas­ ready required for Federal buildings. Highly ef­ arsenal to insure that free trade remains fair ing population assistance is inexpensive, it ficient HVAC equipment consumes up to 50 trade, pure and simple. saves lives, it improves the quality of life, and percent less energy than standard equipment. Our other major trade laws-countervailing it is essential for those countries struggling Its use would result in energy savings equiva­ duty, antidumping, and sections 201 and with social, economic, and environmental lent to over 145 million barrels of oil through 406-all contain the threat of injury language. problems. 2010. The objective is to prevent the damage from 12624 EXTENSIONS OF REMARKS May 23, 1991 occurring. Bringing section 301 in line with we are introducing this legislation today. We cleonics Week, 2118188, pp. 1, 8-9 by Mark Hibbs these other laws would give USTR more flexi­ are supported in this effort by the following or­ & Ann MacLachlan; Der Spiegel, 1118/88, pp. bility and leverage to resolve trade disputes ganizations which are on record as supporting 18-30, 9/30/89, pp. 59--61; Die Ziet (Hamburg), 1/ before American companies, industries, or identical legislation introduced in the other 22188, pp. 11-14 by Horst Bieber, et al. producers are injured. body: National Association of Wheat Growers, An example of the type of activity that Rep­ National Council of Farmer Cooperatives, resentative DORGAN and I believe could be ad­ Independent Petroleum Association of Amer­ NEW BALTIMORE TAX COLLECTOR dressed under this revision of section 301 is ica, National Cattlemen's Association, National EVELYN PAUL RETIRES AFTER the following which has been brought to our Farmers Union, Rice Millers' Association, Na­ YEARS OF SERVICE TO COMMU­ NITY attention by both farmers and U.S. fertilizer tional Pork Producers Council, Ad Hoc Com­ producers from our States and throughout the mittee of Domestic Nitrogen Producers, and country. The Canadian Provincial Government the American Mining Congress. HON. GERALD B.H. SOLOMON of Saskatchewan has recently approved plans We urge the support and adoption of this OF NEW YORK to enter into a joint venture with a Canadian legislation by our colleagues. IN THE HOUSE OF REPRESENTATIVES subsidiary of a private United States company Thursday, May 23, 1991 to construct a world-scale nitrogen fertilizer plant in the Province. The Provincial Govern­ PROLIFERATION PROFITEERS: Mr. SOLOMON. Mr. Speaker, today I'd like ment is providing significant equity and is PART 17 to tell you about a rather remarkable lady who, guaranteeing commercial debt that will ac­ without a great deal of fame or fanfare has count for most of the cost of the plant. U.S. ni­ HON. FORTNEY PETE STARK earned the love and respect of everyone who trogen producers and analysts have concluded OF CALIFORNIA knows her. Mrs. Evelyn Paul is retiring this that the venture involves subsidization, it is not IN THE HOUSE OF REPRESENTATIVES year after 12 years as tax collector for the commercially viable, and it will cause serious town of New Baltimore, NY. She was always Thursday, May 23, 1991 injury to the U.S. market. Even a coalition of known for having open hours and for her will­ Canadian fertilizer producers has expressed Mr. STARK. Mr. Speaker, today I am plac­ ingness to help anyone with advice. its opposition of this project. Our current trade ing into the CONGRESSIONAL RECORD the 17th But that only begins to give us a picture of law, however, does not clearly provide a in my series of case studies on foreign firms her contribution to her community. means by which the USTR could review the which have aided the nuclear weapons pro­ She. teaches Sunday school at New Balti­ case at this point in time. gram of developing countries. These studies more Reformed Church and has been the or­ The fear is that with the aid of government have been prepared by the Emerging Nuclear ganist there for 40 years. She also has served subsidies, this one plant could drive down Suppliers and Non-Proliferation Project at the as deacon and elder on the Consistory. Chil­ prices and drive U.S. producers out of the Monterey Institute for International Studies. dren at the church would look forward to their business. Once that occurs, it would be a vir­ FmM 5: TRANSNUKLEAR GMBH (GERMANY) birthdays, knowing they were sure to be treat­ tual monopoly supplier and could then raise Until 1988, Transnuklear GmbH was Ger­ ed to Evelyn Paul's homemade cakes. prices. Many U.S. fertilizer producers are many's foremost nuclear waste and nuclear Whenever there has been someone in need farmer-owned cooperatives. Therefore, farm­ materials handling firm, two-thirds owned Mrs. Paul has been there to help. It could be ers could be hurt twice. First, they will lose as by the German firm Nukem GmbH and one­ a trip to a doctor's office, grocery shopping for consumers in the long run by being forced to third owned by the French firm a shut-in, or visiting the sick or elderly. Mrs. pay higher prices to a monopoly supplier. Sec­ Transnucleaire SA. Transnuklear main­ Paul has been a true friend and true Good Sa­ tained several overseas offices, including in ond, they will lose as shareholders of coopera­ the United States where the company held a maritan. tively owned fertilizer production facilities that 50 percent share of the U.S. firm Francis and Evelyn Paul moved to New Bal­ may be forced out of business and from which Transnuclear Inc. Twenty percent of the U.S. timore with their two sons in the early forties. they currently receive patronage refunds. subsidiary's export trade was conducted with It was one of the best things that ever hap­ Because of the severe impact that unfair its European parent firms. Transnuklear was pened to the town because in her quiet, pro­ trade has on producers as well as consumers, the source of a major German nuclear indus­ ductive way she has made it a better place to it is important for all U.S. trade policy channels try scandal that surfaced later in 1987 and live. to be available to resolve unfair trade disputes centered around the firm's fraudulent busi­ Please join me in paying our tribute to Mrs. ness practices involving international nu­ as early as possible. I am not saying for a fact clear materials transport and disposal. These Evelyn Paul of New Baltimore, NY, a great that the Saskatchewan nitrogen plant project practices allegedly included deliberate lady and a great American. is an unfairly subsidized facility, what I and mislabeling of radioactive substances, brib­ others are saying however, is that sufficient ery, and embezzlement. Furthermore, evidence exists to bring the project into ques­ through its association with the Belgian Nu­ CONTRA COSTA COUNTY HEAD tion. clear Research Center at Mol, Transnuklear START PARENT POLICY COUNCIL Due to the fact that section 301 does not reportedly shipped weapons-grade materials, CELEBRATES THE 25TH ANNI­ currently make clear that USTR may pursue possibly through Luebeck, Germany, to VERSARY OF HEAD START Pakistan, Libya, or possibly Sudan. Charges the investigation and negotiations actions were also made that the firm paid the Bel­ under that statute against the alleged unfair gian subcontracting firm Smet-Jet DM 16 HON. RONALD V. DELLUMS Provincial subsidization before the market dis­ million to illegally dispose of German nu­ OF CALIFORNIA ruption occurs, this legislation is necessary. clear waste in the North Sea. These charges IN THE HOUSE OF REPRESENTATIVES The writing on the wall could spell disaster for were never substantiated. Transnuklear had the U.S. industry, and we need to address it. its license suspended and was dissolved in Thursday, May 23, 1991 The countervailing duty and antidumping laws 1988 following the corporate reorganization Mr. DELLUMS. Mr. Speaker, it gives me are of little help because they require evi­ of its parent company, Nukem, in the wake great pleasure today to join with the Contra of the scandal. One of the company's chief dence of sales or irrevocable offers to sell in executives committed suicide after being Costa County Parent Policy Council in paying America. By then, in cases such as the Cana­ fired. At one point no less than 13 different tribute to Head Start on the occasion of its dian fertilizer plant the damage is done. It is commissions were investigating Trans­ 25th anniversary. much easier and more economically beneficial nuklear and its relationship to the research Head Start is at the head of its class in the for both sides to resolve the problem before center at Mol. field of child development. The program's subsidized products flood the U.S. market. Sources: DPA (Hamburg), 1115/88. Bulletin of story of success is a direct result of a tremen­ Congressman DORGAN and I, along with the Atomic Scientists, 4189, pp. 21-27 by Dan dous amount of hard work and dedication per­ others, believe that the U.S. Government has Charles; New York Times, 217188, p. 11 by Serge formed by its students, teachers, parents, and Schmemann; Nuclear Engineering Inter­ the flexibility to deal with such a situation administrators. Year after year these people national, 8188, pp. 57-58, ~1; Nuclear Fuel, 11 under current law, but to clarify the point and 25188, pp. 1, 7 by Mark Hibbs, 317/88, p. 11 by put all of their energy, time, and effort into en­ to insure that American producers can obtain Eric Lindeman, 9/31/88, p. 4, 10/31188, 4-5 by suring that Head Start is the best it can be. help from our Government when they need it, Mark Hibbs; Nuclear News, 4188, pp. 73-74; Nu- These are the people who should receive the May 23, 1991 EXTENSIONS OF REMARKS 12625 accolades and acclaim for Head Starrs won­ The article is about the Amazon, and how The industry's practice of burying highly derful accomplishments. American companies, out from under EPA toxic drilling muds virtually assures the de­ Head Start is a vital program for all Ameri­ scrutiny, are exporting disease and destruc­ struction of the Oriente's groundwater aquifers, while the region's surface water is cans. The young children who come out of tion. being destroyed by pipeline spills and pro­ this program are well equipped to succeed I would like to enter this article from the duction pit discharges. By far the most dis­ once they begin elementary school. Supplied spring 1991 Amicus Journal, in its entirety, turbing impacts are to the quarter-million with many of the necessary basic skills need­ into the CONGRESSIONAL RECORD and I would forest people, including the members of eight ed to achieve academic excellence, these entreat my colleagues to take the time to read indigenous tribes who rely on the natural re­ young people go on to excel in secondary and it. sources of the Oriente for their survival. In post-secondary schools. By focusing young Ecuador, says Jacob Scherr, director of AMAZON CRUDE NRDC's international program, "it's like a children in a positive direction, Head Start not (By Robert F. Kennedy, Jr.) giant oil spill has been going on for twenty only increases their chances of leading suc­ Like most citizens, I like to believe that years and nobody knows about it. It's the cessful and productive lives, it enhances the when U.S. companies go abroad, U.S. values Exxon Valdez times twenty." general productivity of the American work go with them. This has not happened in Ec­ Judy Kimerling's work has made this trag­ force. uador. Today, U.S.-owned companies are edy public for the first time. Kimerling is a Each time a young man or woman enters leaving an ugly legacy of poverty and con­ Yale Law School graduate and a former as­ the labor force with competitive and useful tamination in one of the most important for­ sistant New York State attorney general ests on earth. who fought Occidental Petroleum over its skills, America benefits. These young people hazardous waste sites at Love Canal and Ni­ enable our industries to effectively compete In July 1990, I flew to Quito, Ecuador's cap­ ital, as part of a team of environmental ex­ agara Falls. In February 1989 she went to Ec­ with those of other industrialized nations. perts to meet NRDC's Ecuadorian represent­ uador, where she studied the impacts of pe­ Many of these nations spend far more on edu­ ative, Judy Kimerling, and survey damage troleum development with a particular in­ cating their children than we do. Head Start, caused by oil exploration in the Amazon. Be­ terest in the involvement of American cor­ therefore, helps to keep our businesses com­ cause of my longstanding interest in tropical porations. Over the next eighteen months, petitive and works to make up for the inad­ rain forests, I had made fifteen previous trips she gained the confidence of indigenous peo­ equacies that exist in our educational system. to Latin America and, during the past seven ple and environmentalists impressed by her years, my work as an environmental lawyer commitment and skills. Enduring arrest and Many people will attest to the above state­ other threats to her own health and safety, ments. However, it is not enough to praise had brought me to some of the worst toxic waste sites in New York. I did not expect to she repeatedly traveled to the jungle oil Head Start for its wonderful work and tremen­ be surprised. However, nothing in my experi­ fields, visiting isolated communities and dous effectiveness. We must continue to sup­ ence prepared me for what we were about to drill sites, in crowded buses and dugout ca­ port beneficial programs with funding levels see. Most people know that the Amazon rain noes, and sleeping on floors in jungle huts. that will allow programs such as these, to forest is endangered. But the role of U.S. oil When Kimerling arrived in Ecuador, com­ serve all eligible children. Although Head Start companies in its destruction has largely mon wisdom held that the only real threat from oil development came from speculators reaches many of our Nation's poor and needy gone unnoticed by the outside world. Be­ cause of the remoteness of the Amazon's oil and colonists following oil company roads to youths, it does not reach all who are eligible. occupy tribal lands. Judy Kimerling has ex­ I believe if we want to see Head Start reach fields, much of what we witnessed on that trip had never been recorded before. posed the greater threat of contamination. all who could benefit, then the Congress must The Ecuadorian Amazon is among the DAY ONE: BOOM TOWNS AND NATIONAL PARKS authorize adequate funds. most biologically diverse forests on the From Quito we took a $10 domestic flight Over the past 25 years, Head Start has globe. Some scientists believe that the northeast across the Andean cordillera, drop­ proven that early intervention is essential to Oriente, Ecuador's great rain forest, was one ping into the Amazon basin at the oil boom improving conditions of children in poverty. By of the few regions of the Amazon basin that town of Lago Agrio, twelve miles south of improving conditions for these children there is remained humid during the Pleistocene ice the Colombian border. There, the American a greater chance that they will be able to ages and that areas like this one would prob­ oil company, Conoco, treated us to a 150-mile break out of poverty. Leading these children ably function as "safe houses" or speciation helicopter ride southeast across the Ecua­ centers again, should major climactic shifts dorian Amazon. We had asked to see Con­ out of this cycle benefits the country as a occur. oco's controversial concessions in the Yasuni whole. Head Start is an investment; its costs The Ecuadorian government regards the National Park. are far exceeded by its benefits. rich deposits of heavy grade crude oil 10,000 Although Texaco and its local partner, Head Start is a vital program for all Ameri­ feet beneath the Oriente as its best hope of Petroecuador, have led oil development in cans. It is among the best investments we can keeping pace with its $12-billion foreign debt the Ecuadorian Amazon, a number of other make in the future of our Nation. The young obligations. For almost twenty years, Amer­ American and foreign oil companies con­ men and women that come out of this pro­ ican oil companies, led by Texaco, have tinue to develop Amazon concessions. These gram are well equipped to succeed not only in pumped oil from the Ecuadorian jungle. include Conoco, Occidental Petroleum, and They have created an infrastructure that in­ Clyde Petroleum, a British-owned outfit. The their quest for a better education, but also in cludes over 400 drill sites, hundreds of miles United States is the largest importer of Ec­ their quest for a better way of life. of roads and pipelines, and a primary pipe­ uadorian oil. I salute all of the men, women, and children line that stretches 280 miles across the Yasuni-and Conoco's concession-overlap who have made the past 25 years a success Andes. tribal lands of the Huaorani Indians. The story for Head Start. Thank you for your com­ Ecuadorian officials estimate that rup­ Huaorani are traditionally antagonistic to­ mitment, perseverance and dedication. I re­ tures to the major pipeline alone have dis­ ward cowode (outsiders), and have killed sev­ main committed to supporting your future en­ charged more than 16.8 million gallons of oil eral oil workers and at least two mission­ deavors. into the Amazon over the past eighteen aries hired by the companies to make the years (compared to the 10.8-million-gallon territory hospitable to oil development. Exxon Valdez spill). Discharges from second­ Conoco has pledged to use state-of-the-art ary pipelines have never been estimated or technology to keep the Yasuni and the AMAZON CRUDE recorded, however, the smaller tertiary Huaorani lands free of contamination. Dur­ flowlines discharge approximately 10,000 gal­ ing our flight to Yasuni, we passed over the lons per week of petroleum into the Amazon, Cuyabeno Wildlife Reserve, which has al­ HON. ESTEBAN EDWARD TORRES and each day, production pits dump an as­ ready opened to oil concessions. "We will not OF CALIFORNIA tounding 4.3 million gallons of toxic produc­ do to Yasuni what Petroecuador and City In­ IN THE HOUSE OF REPRESENTATIVES tion wastes and treatment chemicals into vesting have done to the Cuyabeno," said Amazonia's rivers, streams, and ground­ Jorge Jimenez, Conoco's Ecuadorian director Thursday, May 23, 1991 water. of environmental protection, as we ap­ Mr. TORRES. Mr. Speaker, I recently came In 1972, Texaco signed a contract requiring proached the Cuyabeno Reserve. it to relinquish all its operations to Ecua­ Below us I was suprised to see an open pro­ across an article, written by the son of my old dor's national oil company, Petroecuador by duction pit near a drilling platform within friend, the late Bobby Kennedy. It seems that 1992. Today, Texaco is in the final stages of the reserve. The pit was unlined and other­ young Robert F. Kennedy, Jr. has followed in handing over its antiquated equipment, rust­ wise exposed to the environment. Its brim­ his father's footsteps and has become a car­ ing pipelines, and uncounted toxic waste ming surface of gleaming crude oil reflected ing and thoughtful man. sites. the orange glow of the gas flare, and an adja- 12626 EXTENSIONS OF REMARKS May 23, 1991 cent stream wore an evanescent petroleum macaws, scarlet macaws, and green Ama­ child about the size of my daughter, chasing sheen. I pointed to the open pit and shouted zons. Flowering epiphytes spangled the can­ her brothers, fell face down in a puddle of pe­ over the engine noise, "They'd go to jail for opy with purple, red, and orange. Below all troleum and water, soiling her hair and that in New York." "This isn't New York," of this, we could see the tarred underbrush clothing. Nearby, two black pits reflected Kimerling shouted back. and floating scum still remaining from an the wild flames and dense smoke of a gas Oil is enormously toxic. A gallon of it will eight-month-old Petroecuador spill. flare; the lower pit was once a wetland that kill fish in a million gallons of water. It can As we turned south, the Cuyabeno's abort­ fed a small stream. harm aquatic life at concentrations as low as ed landscape receded and we found ourselves A macabre carpet of dead insects-beau­ one pa.rt per hundred billion. Minute quan­ over the rolling hills and tight canopy of tiful cicadas with leaf-like wings, three-inch tities of its constituents (benzene, toluene, Yasuni. Here the primal rain forest was un­ stag beetles, and giant moths-encircled the xylene, and polyaromatic hydrocarbons) interrupted except for the curtains of rain vent stack's base. A small stream wended cause cancer in humans and animals. In the spilling from distant clouds. Through a small around the berm. Formerly the village bath­ United States, a variety of federal and state chablis in the canopy, I saw the forest under­ ing and fishing hole, it was now a toxic civil and criminal statutes govern its pro­ story deep below and wondered about the moat. Stirring the sediments with a stick, I duction, use, storage, and disposal. In order Huaorani and their isolation, and how they sent up gobs of petroleum and a dazzling to comply with federal laws, U.S. oil produc­ find their way around that vastness with no sheen that doused the surface from bank to ers commonly reinject production wastes sun or stars to guide them. As we banked bank. On the opposite side, a blackened into the original formation or into nearby north for our return to Lago Agrio, we plume drew our eyes to a slurry of toxic dry wells. Producers face substantial fines passed over Conoco's proposed base camp on wastes flowing obscenely from the pit's efflu­ for even small accidental releases to the en­ a clearcut hilltop, a barren island in a pro­ ent pipe. vironment. In Ecuador, these same compa­ ductive sea, waiting for the road that will in­ Inside Cuyabeno we found a boom town; a nies simply dump their wastes into local undate this land with civilization. two-story barrack for petroleum works an­ creeks or "production pits," which are un­ That night, in the community health cen­ chored the settlement. Secondary pipelines lined and unstable holes dug in the ground or ter in Lago Agrio, we met with Dr. Adolfo and colonists' houses made of cane or rough­ on the side of the earthen drill platform. Maldonado, the center's chief clinician, and cut lumber with straw or corrugated roofs In addition to large quantities of crude oil with representatives of fourteen commu­ lined the dirt petroleum roads; each house and petroleum in emulsion, production pits nities accounting for about 40,000 people was surrounded by felled trees and small cat­ contain a witches brew of toxic chemicals: from the Aguarico River basin. Each of them tle holdings or by fifty-hectare coffee planta­ scalding hot formation water containing sul­ told the same story: Sick and deformed chil­ tions. "We asked the military to help us fates, bicarbonates, hydrogen sulfide, heavy dren, adults and children affected with skin keep the colonists out but they didn't metals such as arsenic, cadmium, cyanide, rashes, headaches, dysentery and respiratory come," said Gonzalo Moza, one of the re­ lead, and mercury, and lethal concentrations ailments, cattle dead with their stomachs serve 's four wardens. He added without of chloride salt. They contain poisonous rotted out, crops destroyed, animals gone irony, "It's against the law for the settlers drilling muds and clay spoils, industrial sol­ from the forest, and fish from the rivers and to come into the reserve, but now it's not vents, strong acids, diesel and aviation fuels, streams. really against the law anymore because it's biocides, fungicides, flocculants, corrosion "We have studies from a nearby area with­ already done." inhibitors, foam retardants, and descalers. out oil and there is not a single case of mal­ As we drove, we saw a wetland stretching In the Ecuadorian Amazon, all these nutrition," said Dr. Maldonado." Today, we north along the road and west to the distant wastes enter the environment. Each pit has have 70 percent malnutrition in children six jungle. A six-month-old petroleum slick an overflow pipe to a nearby body of water. to twelve and 98 percent in the most con­ stained the surface with the colored confu­ The toxic soups also percolate through the taminated areas. Because there are no ani­ sion of a Jackson Pollock painting. Para­ soil into groundwater or flood into lakes or mals left to hunt and no fish left in the keets, yellow kiscadees, black anis, and a streams when the pits collapse. The only streams, the major sources of protein have lone kingfisher perched in the leafless skele­ treatment occurs when the oil companies disappeared. The children have anemia. All tons of rain forest giants. I wondered, burn the pits to reduce their petroleum con­ during the dry season, they come in here though, where were the gallinules, the tent. with pus streaming from their eyes and rash­ grebes, the bitterns, herons, and jacanas, the As we flew above Cuyabeno, the jungle es covering their bodies from bathing in the ducks, and the other wading and diving birds below was broken by landscapes reminiscent water. The parasitism rate for this area is that should be dipping and fishing here? of war. Through the breaks everywhere in now 98 percent." Within the reserve, at the tiny v11lage of the canopy we saw spots like the tar pits of A campesina woman from the Aguarico Tarapoa, we bought a chicken and hired a LaBrea, where discharges from production area spoke in a subdued voice. "When they motorized dugout for the two-and-a-half pits blackened the earth. The pits spewed burn their pits," she said, "smoke falls in hour trip up the Cuyabeno River to the poison through effluent pipes into the tribu­ pieces from the sky, then we have black lakes. We ducked our heads to pass under the taries of the Rio Aguarico. Acres of red dirt, rains and the particles drop on our crops and dangling prop roots and lianas and the fluted now blackened, surrounded an oil derrick animals and into the lake where we get our trunks of ancient hardwoods, cloaked in and the hulking storage tanks of water. In October of 1989, ash rained on all of mosses and creepers and festooned with Petroecuador. Across the scarred and oil­ us from Texaco's central facility in Lago bromeliads and orchids. drenched earth, corrugated tin workers' bar­ Agrio and the children got skin problems. Roberto, the Siona motorista slowed the racks stood incongruously against the But usually they don't bother to burn and dugout and removed his hat to snatch at an palms, plantains, ficus, kapok, and strangler they just let the petroleum flow into the undulating blue morph bouncing jauntily figs. creeks. Everything here stinks of the chemi­ around the canoe, keeping pace but always Past the petroleum camp, a large river, re­ cals that they put in their pits". just beyond harm's way. When we finally cently burned, still ran black, its banks Manuel Silva, a colonist leader from Lago stopped the engine at a small forested island, charred and devoid of vegetation. Oil wastes Agrio said, "We realize that we live in a very the bird sounds were nearly deafening. A streamed from the broken berm of a nearby rich zone, but our people live in poverty and dozen different species of macaw and parrot production pit. On the horizon, dense plumes misery. Texaco will give us shirts with their flew in flocks and pairs above us. Giant of inky smoke rose from burning production emblem, but they won't spend a sucre to pre­ branches bent with the weight of a hundred pits and gas flares linked by dirt roads vent contamination or to protect our health. birds. The colors are indescribable. This was stained with oil, sprayed to subdue the dust. Those petroleum companies poison our the campsite of the biologists Eduardo Along these roads (still within the reserve), lands, kill our livestock and domestic fowl Asanza. He and his wife, Anita Sosa, an orni­ colonists' homes of cane and thatch stood and contaminate our sources of water. Little thologist, live here with a group of Sionas amidst fields of coffee, plantains, and fallen by little they are leading us to a death that and their cacique (chief) and shaman, trees. The older farms were barren deserts of is certain!" Victoriano Criollo. unprotested red clay, leached of nutrients DAY TWO: THE CUYABENO RESERVE "These lakes are characterized by the and pounded into concrete by the driving We traveled to Cuyabeno the next day to ·highest diversity but low productivity," said rains. The hillside farms were crisscrossed by see the results of the Petroecuador spill from Asanza, who has tagged over 1,000 caymans the cappilleria and chasmic ventricles of ero­ ground level. A rusty, twelve-inch pipe in Cuyabeno Lake over the past twelve sion. draped with termite nests followed the dirt years. In addition to four cayman species, Then we flew over the flooded forest near road from Lago Agrio to the Cuyabeno Re­ the lake and its drainage support endangered Lake Cuyabeno. Indian villages perched on serve. We stopped in Pacayacu, a village Amazon manatees and freshwater dolphins, stilts on promontories jutting from the sub­ where the central square is a drilling plat­ ten monkey species, eighteen species of par­ merged forest floor. A giant striated heron, form. Crude oil from the wellhead pooled rots, macaws, and parakeets, 180 species of shining white in the sunlight, rose below us around a plank shack upon which a tame reptiles and amphibians, 460 fish species, amidst brilliant flocks of blue and yellow green Amazon perched. A three-year-old 18,000 plant species, and over 100,000 insect May 23, 1991 EXTENSIONS OF REMARKS 12627 species. Despite this diversity, there are only wash our hands. They think, 'who will know The dirigentes listened carefully as a few representatives of each species, mak­ what we're doing?' Only the Indians." Kimerling recited the Ecuadorian constitu­ ing them extremely vulnerable to disturb­ Later that afternoon, we joined two Car­ tional provisions guaranteeing "an environ­ ance. melite priests in the community of Shuara: ment free of contamination." In November 1989, Petroecuador spilled an Father Jesus Arroyo, the Church's tough, Contamination is a new concept here. undisclosed amount of petroleum from a col­ lanky human rights coordinator for the There is no word for it in the Quichua lan­ lapsed pit into the upper lakes, the sixth northern Oriente, and Father Pablo Gallejo, guage, but the Quichua are catching on. A spill in these lakes since 1984. "We saw fish a tall, energetic Spaniard with a booming young mechanic, Francisco Serdo, past presi­ and kingfishers dead in the water and cay­ voice, handlebar mustache, and a blue 'l:lase­ dent of the Quichua Federation, pointed out mans covered with oil," said Asanza, "com­ ball cap. Father Gallejo's diocese, the vast that many of the animals are gone from the pletely black and unable to open their eyes. petroleum fields of the Aguarico River wa­ forest in the Napo River basin. "Our people Even today, the diatom diversity is lower, tershed, is too poor for a church, but he find them dead near the pi~eer, wild pigs, productivity is lower, aquatic grasses have knows every colonist by name and manages parrots, turkeys, and lizards. When we open been killed, and we have accumulation of oil to crowd a number of them into his land them up, their stomachs and intestines are in the sediments in certain areas." cruiser that serves as worship house and pub­ completely gone. This is because they come DAY THREE: CUY ABENO LAKES AND THE BLACK lic transportation for the region. to eat the salt [from the production waters). LAGOONS OF SHUARA At · a well called Shuara-5, six men were When the boas and alligators eat these sick Following a night of tracking cayman, mired in the gooey banks of a shimmering animals, they also die." Asanza and Victoriano accompanied us in black lagoon, clothing and arms stained with Serdo and another dirigente offered to take the dugout to the upper lakes. We traveled oil. Some of them were shirtless and wore no us down the Nape River to the Quichua com­ through a narrow break in the canopy of the gloves, their unprotected bodies tarred munity of Limoncocha to see Occidental Pe­ flooded forest forty feet above the submerged black. They cut the trunks of blackened troleum's new exploration site. The Napo is stream bed of the Auca Quebrada, moving trees and other vegetation, using shovels and a giant Amazon headwater. Nine of us crowd­ slowly in the close corridors, flanked by the their hands, scooped up oil and contaminated ed into a small dugout that sat low in the crowns of spiny bactris palms and mimosa, sediments for burial in a series of open pits lively, brown water, which washed over one some of them veiled by the giant webs of so­ ten to fifteen yards from the lagoon. Two gunwale or the other. The motorista bailed cial spiders. Roberto, our motorista, laughed nearly naked men stood neck deep in oil in continuously. gleefully as a startled squirrel monkey leapt the center of the black pit. Periodically they After several hours, we made the overland into our canoe, almost falling in the water. dove under the oil in an effort to attach a portage across mudflats and through jungle We saw wooly and spider monkeys. Above us hemp rope to a submerged tree stump. Their to the Rio Jivino. Serdo pointed up the river. oatzin birds with ruminant stomachs and a eyes gleamed white against the black ooze "Before, when you threw a hook into the cowlike stench rebuked us as they slid past that coated their skin and hair. At the end of river," he said, "you would pull out a fish. on graceless wings. Striated herons posed the day, the company hosed them down with Now you can fish many hours and maybe motionless in the upper branches of sub­ gasoline to remove the crude oil. catch nothing." The bird sounds and our merged trees. Impossible numbers of parrots Petroecuador pays them 60,000 sucres a sense of isolation were suddenly drowned by and macaws filled the branches and sky. month-about $2 a day. "Too little," com­ the roar of heavy machinery and the stench As we moved northward a thin skin of oil plained Jorge Miena as he emerged from the of diesel. Miles from the nearest dirt road, a coated the entire surface. Roberto pointed to pit. He had held the job a little over a week. giant crane dredged the river bottom and the blackened leaves and tarred trunks of "When they are sick, the company fires shore. Work gangs with chain saws and the understory. "Crudo!" he said. Without them," Father Jesus explained. planers stripped the jungle of lumber on both emotion Asanza added, "This type of vegeta­ Armando Naranjo, a sturdy, handsome river banks. Earth-movers crashed and tion will die." campesino with an Omar Sharif smile, clanked as dumptrucks and bulldozers car­ We turned our canoe off the flooded trail showed us his farm of yucca, plantains, and ried the drying sediment into the jungle to into deep, pathless forest and broke into a coffee near the well-site Shuara-1. After grade the new petroleum road. clearing of braspolum grass at the edge of a three years of work, he was expecting his Beneath the ancient rain forest we could large lake called the Auca Cocha. "This and first harvest of coffee beans when, he said, see the carefully tended stands of cacao, the Coca-drillo Cocha were most affected by drunken engineers from Petroecuador cut a yuca, coffee, and fruit, including pasu, the spill," says Asanza. We pulled ashore at pipeline, discharging 300 barrels of petroleum lemon, orange, papaya, aguacate, and chunta a small island where a palm frond lean-to onto his farm, killing all his crops. To drain duro nuts, and cedar and laurel for wood and shaded the cane sleeping platforms of the the on, they opened up a channel to a palm for thatch. To the untrained eye, these Siona Indians hired by Petroecuador to clean stream, killing his cattle when they drank rich farms seemed indistinguishable from its spill. A few feet from the shoreline bloat­ from it. the ordinary rain forest. But they were ed plastic bags and thick crude oil filled an "The stream was full of fish and the leaves chakras, paradigms of sustainable open pit. The pit was unlined, so I knew that were green," he said, "but they lit the agroforestry, each one the product of eons of the oil would eventually make its way back stream on fire and burned everything. They tribal wisdom and decades of backbreaking into the lake. refused me compensation because they say work by Quichua women. Victoriano's dark eyes stared into the pit. this is Indian land and I have no right here." In sixteen days, Occidental Petroleum has His large mouth and chiseled face were After the spill, the Petroecuador engineers cut nine kilometers of road and a five-acre framed by graying hair, and a crown of hard­ laid a pipeline to bring safe water to their drilling ramp from those farms with machin­ wood legume. A traditional Siona cusma own encampment from an uncontaminated ery shipped in on river barges. A Quichua cloak covered his powerful build. He stood on source a mile away. Armando and other woman, Alejondro Lanza, watched the ma­ the massive feet and spayed toes of a man campesinos drink rainwater during the sum­ chinery from the cleared river bank that was who has not worn shoes in seventy-three mer, but in the dry season have to drink once her farm. Her teenage daughter stood years. He pointed to the pit and said quietly, from contaminated streams. beside her with a blank face and a tiny mar­ "Once again they are making stupid things." "All the streams are bad now," said Father moset clinging to her dress. "They destroyed He gestured purposefully. "Before this was Gallejo as we stood in the eerie light of a our chakra and our house and mined away good region. We had peach and didn't know vent flame near the vast production pit at the banks of the river which was ours," she anything of petroleum or contamination. Tetete-9. "There are a few small streams said. "They paid us nothing." Now gringos are coming and taking the oil. where they can still get water during heavy The community has asked Occidental to They are destroying our forests, they burn it rains. But when it is dry they must use the build them a volleyball court in exchange for and it falls on us and into our rivers when it big streams, and all the big streams are con­ the damage. "Limoncocha thinks Occidental rains. In some places all the animals are taminated. None of the water is good." will keep its promise; I know they will not," dead and the people and children are sick. I DAY FOUR: THE VOLLEYBALL DEAL says Serdo quietly. I asked him if the com­ have seen the small fishes and aningas and Fifty miles to the south, in Coca, we · met munity couldn't have driven a better bar­ ducks dead in the water." with Quichua dirigentes (leaders). The gain. "They have fear of the army," he said. He pointed again at the pit. "The settlers dirigentes complained that the oil companies "When we ask for better things the army won't do this work because it is too dirty," had promised to help community develop­ comes and calls us 'subversivos.' They say, he said. "They pay us very little for the ment in return for destroying tribal lands. 'Who has told you to say these things? Why cleaning and make us buy our own machetes The companies signed contracts obligating don't you let this company drill?'" and mosquito nets. We get sick from this them to build a communal house, school, or We followed the new road through the bro­ work on our hands and skin and with sick­ volleyball court, or to donate a generator. ken remains of Quichua orchards. Before us ness of the stomach. But they won't give us The dirigentes said the companies had vio­ in the twilight, a shiny geotextile skin gloves or any protection or pills to make us lated these agreements almost without ex­ stretched through the jungle atop the virgin better when we are sick, but only gasoline to ception. road bed. The powerful material will help 12628 EXTENSIONS OF REMARKS May 23, 1991 support the company's heavy machinery as they said, 'We will do it if we find oil'" he Reading the letter, I had a guarded sense of it moves over the loamy soil. Beside the new said. Occidental paid the family a few sucres hope. road a giant canopy tree with a remarkable for a single year's crop of coffee. girth and spreading crown draped in His mother, five feet tall with a kind, DAY FIVE: OUT OF THE JUNGLE epiphytes stood 150 feet in defiance among round face, her hair pulled back in braids, In Quito, we met with Carlos Luzuriaga, the crushed groves of yucca and plantains. stood up to speak in broken and heavily ac­ the under secretary of environmental affairs As we passed we saw that its roots and but­ cented Spanish. "They didn't want to pay for for the Ministry of Energy and Mines and tresses were neatly cut. Thousands of trees the wood they cut down in my chakra or the with Carlos Esquetini, deputy secretary of cut to stabilize the road lay side by side for food crops. The military came to us and energy. Luzuriaga told us that government miles along its shiny skin. "They pay 300 asked why we were making trouble and why involvement in the environmental affairs of sucres (thirty cents) for each tree cut," the we wanted so much money, and who had been the oil industry was very recent. "Nobody in man said. around here talking to us and who could this country ever told the petroleum compa­ A swarthy obrero (oil worker) from the have been teaching us such things." I nies how to operate," said Luzuriaga. He la­ Andes, sweating from his labor, paused to thought of her years of backbreaking labor mented that the legal system was inadequate stare at us through hooded eyes. His stocky in the stifling heat. "Everything is lost to ensure compliance. "Five hundred dollars frame was half cloaked in a soiled T-shirt now," she 'said. Tears rolled down her is the maximum fine we can impose under sporting a skull on a cactus and the senti­ cheeks. "It was my chakra. I worked it by the National Hydrocarbon Law." His post ment in English, "Bury me in Redneck coun­ myself for many years." was created only in March of 1990, with an try." Stocky men from the Sierras labored We burned the lanterns late into the night. annual budget of $10,000. "How can I accom­ beside tall, muscular blacks from the coastal Francisco Serdo spoke earnestly to Tito in plish anything with this?" he asked. He refinery province of Esmeraldas, stacking or Quichua. Occasionally, we recognized a spent several months appealing to USAID for cutting lumber and pegging and stretching Spanish phrase, "el Banco Mundial" or the skin, all in a pandemonium to stay ahead "contaminacion." Francisco turned to us a grant to study the impacts of oil on the of the bulldozers and trucks that inter the and asked in Spanish, "What part of the Oriente. USAID rejected the request. roadway in river sediment. "They are World Bank money comes from Americans? "Texaco has been in this country for twen­ strange," said one of the Quichua who lost From the Japanese?" ty years," said Carlos Esquetini. "We have his family farm. "They work until six or As they continued, I considered how re­ to take that into consideration. Texaco was seven at night, sometimes without lunch." markable it was that here, in a cane hut in our professor. They taught us how to produce As the stars rose, we reached the drill site. the middle of the Amazon rain forest and and pollute. They never taught us how to Moonlight reflected from five acres of miles from the nearest road, we sat in near clean up the mess." Ecuador's justification geotextile spread over the jungle clearing. darkness and listened to two indigenous jun­ for allowing companies like Occidental Pe­ On the north side, Caterpillars with head­ gle people debating international financial troleum to operate and to use the same dis­ lights pushed up earthen walls to an above­ policy in their native tongue. I reflected that credited technologies that have contami­ ground pit atop the stream where some the only way the Amazon will be saved is if nated the Oriente is the nation's need to pay Limoncocha families bathed and drew their the people who live there choose to save it, its external debt. Yet these practices are cre­ water. The operation's supervisor, a grizzled and then only if they can muster the politi­ ating an accelerating cycle of poverty and Argentine named Billy Potoby, answered our cal power to impose that choice. This will re­ pollution. Ecuador's oil reserves are ex­ questions in a thick Louisiana drawl: "In the quire a rapid growth in their level of politi­ pected to last no more than twenty years. At United States, the pits are much smaller and cal sophistication. That night in the end of that period, the World Bank has they are lined. I'm not going to line this one; Limoncocha I hoped we were witnessing a be­ predicted a massive migration back to the that's not what I'm being paid for." Wastes ginning. cities and Sierra region from the exhausted will be dumped into bathing streams and The next morning as we headed back to soils and resources in the Amazon. then into the Rio Jivino. I wondered if the our canoe, Tito Mamallacta handed me an I am reminded of a conversation with the Quichua know the price they are paying for envelope and asked me to deliver it to Bar­ biologist and Ecuadorian patriot Eduardo their volleyball court. ber Conable, president of the World Bank. Asanza. "Ecuador is a poor country and we A few hours later, we sat in a cane hut, lit The bank was considering a loan to need the oil," he said, "but I have lived here by primitive lanterns, with a young Quichua, Petroecuador, which could be conditional on for fifteen years and have seen this area Tito Mamallacta, and his mother, Zoila strong environmental reforms. The letter in­ grow poorer and poorer. Now when I go to Shiguango. Tito was clean-cut and hand­ vited Conable to Limoncocha and asked him Lago Agrio, I wonder, how can those people some, with an open face. Educated, he is the to demand that Occidental and other petro­ survive? We were all told that the oil would schoolteacher in a nearby community. "We leum companies respect indigenous peoples help the country, but sometimes we wonder, asked them to pay us rent for the land, but and stop contaminating the rain forest. 'Who is being helped?' "