S7246 CONGRESSIONAL RECORD — SENATE July 24, 2008 and respect on this sad 10-year mile- At a time when home energy bills are ing it harder and harder to stay warm stone. soaring, this legislation would nearly in the winter or stay cool in the sum- Madam President, so Members may double the funding for LIHEAP in fis- mer. join in the planting of the tree on the cal year 2008, taking it from a little In my State of Vermont and through- Capitol grounds, I suggest the absence more than $2.5 billion to $5.1 billion—a out New England and the Northeast, of a quorum. total increase of $2.53 billion. This is, people are extremely worried that they The PRESIDING OFFICER. The in fact, what Congress has authorized will not have enough money to afford clerk will call the roll. for LIHEAP. the price of heating oil next winter. A The bill clerk proceeded to call the Let me say a few words about why we newspaper in my State, the Stowe Re- roll. need to significantly increase funding porter, recently editorialized that the Mr. SANDERS. Madam President, I for LIHEAP. lack of affordable heating oil could ask unanimous consent that the order In 2007, 5.8 million Americans—pri- turn into New England’s version of for the quorum call be rescinded. marily senior citizens, working fami- Hurricane Katrina next winter. We The PRESIDING OFFICER. Without lies with kids, and people with disabil- cannot allow that to happen. objection, it is so ordered. ities—utilized this program. These are I want all of my colleagues to under- f the most vulnerable people in our stand that the home energy crisis that country. Unfortunately, these 5.8 mil- WARM IN WINTER AND COOL IN is being faced throughout the northern lion Americans are only 16 percent—16 SUMMER ACT—MOTION TO PRO- part of our country is something that percent—of the people who are eligible CEED—Continued is very imminent and is something for the program. The vast majority of that people are very concerned about. Mr. SANDERS. Madam President, all the people who are eligible cannot get But this program, LIHEAP, is not just of us recognize there are very strong into the program because we lack the a program for cold-weather States; it is differences of opinion in Congress funds to help them. Madam President, also a program for hot-weather States about how to resolve the major energy 94 percent of the participants in the so that the elderly, the sick, and the crisis facing working families through- LIHEAP program were elderly, dis- frail in hot-weather States can afford out our country. I have my views on abled, or had a child in the family to pay soaring electric bills to provide this issue, and other Members have dif- under 18. the air-conditioning they need. In ferent points of view, and that is the From fiscal year 2003 to fiscal year other words, this program is not just a way it is. 2008, the cost of the average heating oil life-and-death program for the north- I am happy to report, however, that bill has increased by over 93 percent— ern tier of our country; it is vitally im- there is an increasing unanimity of un- almost doubled. The estimated in- portant for the South and Southwest derstanding around one very important crease in an average natural gas bill and for people who are struggling to fact regarding this energy crisis; that during that same period has gone up by pay for the skyrocketing price of elec- is, if we do not dramatically increase about 50 percent. Unfortunately, tricity which has tripled in some parts funding for the highly successful Low- LIHEAP funding has lagged far behind of the country. What we are concerned Income Home Energy Assistance Pro- these outrageously high increases in about there is that if you are 90 years gram, usually known as LIHEAP, sen- energy costs. In fact, we are spending of age and you are sick and you cannot ior citizens on fixed incomes, the dis- 23 percent less on LIHEAP today than afford skyrocketing electric bills and abled, and working families with chil- we did 2 years ago, and after adjusting your electricity gets turned off, you dren are in serious danger of either for inflation, we spent more on are in serious trouble. freezing to death this coming winter or LIHEAP 20 years ago than we are According to the National Energy perhaps dying of heat stroke this sum- spending right now. Assistance Directors’ Association, a mer because they are unable to pay Let’s be very clear. What we are talk- recordbreaking 15.6 million American their home energy bills. We cannot ing about now is a life-and-death situa- families, or nearly 15 percent of all allow that to happen. tion. Many people do not understand households, are at least 30 days over- I am happy to announce, in a this, but more people have died in our due in paying their utility bills. This is tripartisan effort, that more and more country from the extreme heat and ex- a crisis situation and a situation in Senators understand that reality and treme cold since 1998 than all natural which LIHEAP can be of significant are prepared to work together to pro- disasters in this country combined, in- help. tect our citizens. S. 3186, the Warm in cluding floods, fires, hurricanes, and To demonstrate how important Winter and Cool in Summer Act, the tornadoes. LIHEAP is right now for Southern LIHEAP legislation that I recently in- According to the Centers for Disease States dealing with a major heat wave, troduced, now has 53 cosponsors—53 co- Control, over 1,000 Americans from let me give you a few examples of what sponsors—38 Democrats, 13 Repub- across the country died from hypo- I am referring to. This is hard to be- licans, and 2 Independents. I thank all thermia in their own homes just be- lieve, but it is true. Over the past dec- of those cosponsors for their support. I tween 1999 and 2002. Those are the lat- ade, the last 10 years, more than 400 am absolutely confident that as soon est figures we have available. In other people have died of heat exposure in as this bill gets on the Senate floor, words, they froze to death because they the State of Arizona, including 31 in not only do we have the 50 votes, I am could not afford to adequately heat July of 2005 alone. All of these deaths quite confident we are going to have 60 their homes. How many of these deaths could have been prevented if the people votes and perhaps more. were preventable? All of them were, ac- affected had air-conditioning. Without I also thank majority leader HARRY cording to the CDC. We will probably increased support from the Federal REID for filing a cloture motion last not know for several years how many Government, Arizona will be out of night on the motion to proceed to this Americans died last winter because LIHEAP funding before the end of this very important legislation. Senator they could not afford to heat their month. REID understands, as I think most of us homes, but clearly one death is too Let me quote from a letter I received do, that it is absolutely essential for many. on July 15—last week—from Phil Gor- the health and well-being of millions of I understand this country is strug- don, the mayor of Phoenix, AZ. This is our citizens that this bill be passed, gling with an emergency situation in what he writes: and passed as soon as possible. My hope terms of flooding in the Midwest and I am writing to express my support for the is that after passage in the Senate, we wildfires in California, but there is an- Warm in Winter and Cool in Summer Act. can get it over to the House before the other emergency which must be dealt Currently Arizona can only provide assist- August break and see it pass in that with now while we also deal with those ance to 6 percent— body as well. That may be overly opti- emergencies. Six percent— mistic, but that is what I would like to At a time when the costs of home of eligible LIHEAP households. . . . To make see. heating fuels and electricity are soar- matters worse, Phoenix continues to experi- Let me say a few words about why ing and when the economy is in de- ence extreme heat. In the past month alone, this bill needs to be passed. cline, millions of Americans are find- we have had 15 days with temperatures at or

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE July 24, 2008 CONGRESSIONAL RECORD — SENATE S7247 above 110 degrees. This extreme heat is espe- connection or homelessness is Ms. O’Brien, a least 60 votes, if we need that, and cially hard on the very young, the elderly 33 year old, single parent with 5 children be- maybe a lot more than that. My hope and disabled who are on fixed incomes and tween the ages of 7–16, and a newborn grand- is that we move it on to the House to can no longer afford to cool their homes. . . . child which she has taken in. . . . Her power get it passed there as soon as possible Arizona Public Service— was turned off last week because she was un- and we get this desperately needed That is the electric company there— able to pay it. . . . Her need for assistance is based on the high costs of living, not from funding out into the States. This is an reported that there was a 36% increase in the her lack of work ethic and heroic efforts to issue we are making some progress on number of households having difficulty in maintain her household. and I look forward to the support of all paying utility bills and an increase of 11,000 of my colleagues. families being disconnected compared to a In addition, unless this legislation is signed into law soon, the State of Ken- With that, I yield the floor. year ago. The PRESIDING OFFICER. The Sen- tucky will not be able to keep any of Imagine not having electricity, and ator from New Hampshire is recog- day after day the temperature is 110 de- its residents cool this summer through nized. grees. And imagine if you are 90 years the LIHEAP program. Mr. GREGG. Madam President, I of age. Imagine if you are sick. According to the executive director wish to pick up on what the Senator Rising energy and housing costs are plac- of the Community Action Agency in from Vermont is saying because I feel ing enormous strains on low-income house- Kentucky, Kip Bowmar: very strongly that we do need to move holds across Arizona. February of 2008 marked the first time in forward with additional funding for So writes Mayor Phil Gordon of the program’s history that all 120 Counties LIHEAP, the Low-Income Energy As- in Kentucky ran out of LIHEAP funds forc- sistance Program. In fact, I have of- Phoenix, AZ. ing us to close our doors as fuel prices were Madam President, it is not just Ari- soaring and people needed help. fered an amendment to this—or I have zona. Due to a lack of LIHEAP funding, In Florida, Hilda Frazier, the State filed it. I haven’t offered it, because no the State of Texas only provides air- director of the LIHEAP program, has amendments have been allowed by the conditioning assistance to about 4 per- estimated they will serve 26,000 fewer majority party, but I have filed an cent of those who qualify. households this year because of the re- amendment to the Energy bill, which is Let me quote from a letter I received duction of available LIHEAP funding the logical place that we should put on July 15 from Shawnee Bayer from and the rising cost of energy. the LIHEAP language, which would do the Community Action Committee in Moving on to California, Joan three things. It would double the Victoria, TX. She writes: Graham, the deputy director of the amount of funding for low-income en- The temperatures in our area have been 100 Community Action Agency in Sac- ergy assistance, increasing it by $2.5 to 110 degrees for 16 consecutive days. I fear ramento, CA, recently wrote that: billion, which is the essence of the bill it is going to be very tragic at the current Every day we are turning away at least 50 of the Senator from Vermont, which is pace we are going with so little LIHEAP families who qualify for LIHEAP because we exactly what we need to take care of funding available. . . . There are so many lack resources. Energy bills have increased the increased prices for energy accord- who need our assistance, like the elderly 30 percent over last year, yet our funding has ing to the Energy Office in New Hamp- lady in her 80’s who recently almost died due not increased. In 2006, there were 29 heat-re- shire. to kidney failure; now she doesn’t want to lated deaths in Sacramento County. One sen- Secondly, it would add $25 million to use her air conditioner because she is afraid ior who passed away due to extreme heat was she won’t be able to pay the bill. . . . the weatherization program. I think afraid to turn on his air-conditioner because weatherization makes a lot of sense be- That should not be taking place here he knew he would be unable to pay the elec- cause it takes homes which lose a lot in the United States of America. This tric bill. We know there are more like him of their energy through lack of ade- out there at present. is in Victoria, TX. quate windows or adequate insulation I received an e-mail from DeAndra Why is LIHEAP so important in the and helps those homes, especially low- Baker from the Community Action South in the summertime? From 1999 income individuals. Further, it does Agency in Giddings, TX, who writes: to 2003, over 3,400 deaths in this coun- something else which is important. We have a gentleman who is 78 years old try were due to excessive heat. All of LIHEAP is directed to low-income peo- and on a fixed income of $770.00 a month. . . . these deaths were preventable, and air- ple, but middle-income families today, Due to the extremely high temperatures he conditioning is the best way to prevent is unable to afford to keep his home cool. His with the cost of energy doubling and those deaths, according to CDC. tripling, have a serious problem. Folks doctor provided a statement that he must I relate the problems associated with have his air conditioner turned on at a min- who are working for a living but are imum of 80 degrees to avoid congestive heart high heat and lack of LIHEAP funding still on a fairly tight budget or a fixed failure and he is not even able to afford that not because that is necessarily an issue income are going to get hit hard this much. Sadly, he will not continue to run his in my State. In our State of Vermont, winter when their energy bills double A/C or fans and will be at serious risk unless in the northern tier of this country, and triple. So this bill sets up a tax LIHEAP funding is increased soon. the fear obviously is that when winter credit dealing with the first $1,000 for That is what is going on in the State comes and weather becomes 20 below an individual who is purchasing energy of Texas. zero, we are going to have many fami- at fairly moderate income levels, so it Without additional support from the lies who are going to go cold. Some doesn’t benefit high-income individ- Federal Government, the State of may freeze, some may be forced to va- uals, and allows people, to the extent Georgia will not be able to offer any cate their homes and move in with they buy oil to heat their home, to LIHEAP assistance whatsoever to its other relatives and friends. That is take that tax credit to assist them in residents this summer. Currently, what our fear is. Again, this is not just the effort of reducing the cost of that Georgia has a waiting list of 28,000 peo- a fear of northern States, this is a con- oil. ple hoping to receive some relief from cern that impacts every State in this All of this is paid for. My bill is en- the hot weather this summer. country, whether you are in the North tirely paid for. I think that is also a Let me quote from a letter I received or whether you are in the South. It is critical element because what we are from the executive director of the imperative that we move on this issue talking about here is buying a Community Action Agency in Gaines- and it is imperative that we move as consumable product for today—oil to ville, GA, Janice Riley. She writes: quickly as possible. heat your home—and then, unfortu- One family that came in after we ran out So once again, I am delighted that in nately, if you don’t pay for it, you are of LIHEAP funds was the Jones family. . . . the midst of all of the differences of passing the bill for that oil on to our Mr. Jones, came to our office requesting as- opinion we are hearing on energy pol- children and our grandchildren by add- sistance with his electric bill. He has a wife icy in general, there has been a coming ing to the debt of the United States, and five children. . . . They got behind with together around the issue of LIHEAP. and that is not fair. Our children and all their bills when he was injured on the job We now have 52 cosponsors, including six months ago. . . . Their daughter is para- our grandchildren are going to have lyzed from the neck down from a fall she had 13 Republicans. When this bill comes to their own tough time heating their at six months of age. I wish we could help the floor—and it will come to the floor homes; they don’t need to have the them. Another participant that did not re- soon; we are going to pass it—I am debt that is included in paying for that ceive LIHEAP funds and is now facing dis- quite confident we are going to get at program.

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S7248 CONGRESSIONAL RECORD — SENATE July 24, 2008 So my bill is entirely paid for by even, that would dramatically take HOUSING eliminating a tax—what I consider to pressure off of people buying home Mr. GREGG. On another topic, we are be an inappropriate tax break for basi- heating oil this winter in New Hamp- going to take up tomorrow hopefully cally large, integrated oil companies shire. the housing bill. This is an extraor- known as section 199. This tax break So this bill we are debating right dinarily important piece of legislation. was not directed at those companies now, this energy bill, has to be com- It is a big leap for those of us who are originally when it was passed—and it pleted before we move on to Senator fiscal conservatives to say the Govern- should be—but it is being taken advan- SANDERS’ bill. In the debate of this bill, ment should step into this arena as ag- tage of, and it is certainly not needed we should take up the LIHEAP amend- gressively as this bill suggests we do when oil is selling at $120 or $130 a bar- ment which will be offered, I suspect, but, unfortunately, it is a necessary rel, and the incentives to produce oil from our side of the aisle—probably by step. It accomplishes two things which are significant enough by the cost of Senator SUNUNU or myself. At the same are absolutely critical in the present the marketplace. time, we should take up these other context of our economy. I feel very strongly—and I think this ideas of expanding the use of our re- Today there are a lot of people losing is an important point to make—that serves as a nation on the Outer Conti- their homes through foreclosure as a we need to have a comprehensive ap- nental Shelf, in the shale oil reserves, result of taking part in what was proach relative to people who are going using nuclear power. known as the subprime lending process to be impacted this winter, and it We should be expanding these re- and having their ARMs reset, their needs to be a paid-for approach, and serves. Why? Because that will cause mortgage rates reset. This bill sets up that is why I made this suggestion. the price of oil to come down. In addi- a process where people who live in I also feel strongly that if the major- tion, the secondary benefit of this, of their primary residence who have the ity leader calls up the bill which he course, is that we won’t be buying en- wherewithal, the ability, to pay a rea- filed, which is the bill from Senator ergy from people who don’t like us. We sonable mortgage can restructure that SANDERS, in an attempt basically to won’t be buying as much energy from mortgage so they can afford it and so take down the Energy bill so that we Venezuela if we are producing Amer- they don’t lose their home, and so are not going to debate it any longer, ican oil. We won’t be buying energy there isn’t a foreclosure. That is very that is not the right approach. Because from Iran if we are producing more important. It is important not only to the real way you get to the issue of en- American oil. those individuals, but it is important ergy and the cost of energy for low-in- So clearly this is what we should do. to the marketplace to start some activ- come people in New Hampshire this We should produce more and we should ity in the marketplace in the area of winter—or for moderate income people consume less. At the same time, we mortgage lending and home sales. in New Hampshire this winter—is to re- should be promoting—and there will be Secondly, and equally important, duce the overall cost of energy, to an amendment from our side of the this bill addresses the fundamental bring the price of energy down. How do aisle on this bill—promoting the use of strength of our financial institutions. you do that? You produce more and electric cars and development of elec- We have some financial institutions in you consume less. tric batteries, promoting more con- this country which are a bit unstable— We on our side of the aisle have a se- servation ideas, promoting more re- unstable. We need to make sure they newable ideas. These are initiatives ries of ideas as to how you should are stable. Why? Because these institu- which need to be pursued. More impor- produce more. Use the oil that is in the tions, such as Freddie Mac and Fannie tantly, they need to be discussed and a Outer Continental Shelf, drill in the Mae, are essentially at the center of genuine bill needs to come out of this Outer Continental Shelf. Use shale oil. the strength, whether we like it or not, Congress. A bill such as the majority We have 2 trillion barrels of shale oil of our banking industry. We need to set leader has presented—or the Demo- sitting there—more reserves than in all up a process so the marketplace knows cratic side has presented—which deals of Saudi Arabia and many of the Mid- these institutions, specifically Freddie only with one small sliver of the prob- dle Eastern countries combined. Use Mac and Fannie Mae, are going to sur- lem, which is the potential for specula- those resources. Bring them on the vive and are going to be stable and are tion, does nothing to increase supply market. Take away the impediments and it does nothing to increase con- going to be able to have the capital and which we as a Congress—the Demo- servation, the two things we need to do the wherewithal to continue to lend cratic Congress specifically—have put in order to get the price of oil down. and to continue to have the market, to in the way of using Outer Continental The simple fact is this bill should be turn over mortgages so you can have Shelf oil. available and open to amendment. In liquidity in the lending markets. This There is language which has passed an attempt by the majority leader to is critical. this Congress which was put in by the basically sidetrack this bill, to throw Some will argue it may be expensive. Democratic Congress that says you it in the ditch, so we can’t go forward My argument is if we don’t take this can’t drill in the Outer Continental with amendments which deal with ad- step, we know it will be expensive. We Shelf. There is language which says dressing drilling on the Outer Conti- know from the FDIC—— you can’t use oil shale from Wyoming, nental Shelf, which deal with bringing The PRESIDING OFFICER. The Sen- Colorado, and Utah—this huge reserve on more shale oil, which deal with nu- ator has used 10 minutes. of energy. That language should be re- clear power, which deal with more con- Mr. GREGG. Insurance that we will moved so that those sources of oil can servation—I am not going to vote for incur—as a result of bank failures that be used. something that tries to accomplish we will be paying a massive price. So Once you show the world we are will- that. I am going to vote to try to make although I don’t like the idea from a ing to bring on line as a nation addi- sure we come out of this debate with a concept as a matter of practice, this is tional production from our resources, comprehensive policy, something that something we are simply going to have that will reduce the price of energy, be- drives this country toward creating to do in order to assure the fiscal sol- cause these prices which we are seeing more supply that is American-created vency and resilience of our credit mar- today are speculative prices based on while at the same time using less. kets. what they expect to occur in the fu- Madam President, how much time do Madam President, I appreciate the ture, and they expect demand to go up, I have remaining? courtesy of the Chair and I yield the but supply to stay stable—to not go up. The PRESIDING OFFICER. The Sen- floor. Well, if we prove we are willing to ator has used 8 minutes and there is 22 The PRESIDING OFFICER. The Sen- bring more supply on line, and we are minutes left. ator from Alabama is recognized. willing to use other sources such as nu- Mr. GREGG. I believe I have 10 min- Mr. SESSIONS. Madam President, I clear power to reduce our reliance on utes. If the Chair would advise me thank Senator GREGG for his insights oil, that will cause these prices to when I have completed 10 minutes, I on housing and other matters. With re- come down. That is the most signifi- would appreciate it. gard to the potential LIHEAP legisla- cant thing we can do. If we could bring The PRESIDING OFFICER. I will do tion, I respect the fact that he desires the price of a barrel of oil down to $100, that. it to be paid for and for it not to be one

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE July 24, 2008 CONGRESSIONAL RECORD — SENATE S7249 more addition to the public debt. How- experiencing, is a very extraordinary the bottom. With the deep drilling we ever, as a Senator who has believed for departure from our classical history. are doing today, you have to have a the last 12 years I have been here that In 2005 and 2006, we had an energy de- ship. The waters are so deep, they can- this Nation needed to produce more oil bate and passed an important energy not anchor the ship. It has to sit in and gas at home, I have been frustrated bill. The Republicans had the majority place by GPS and have propellers all so often by my colleagues—frequently at that time. I believe there were 15 around it to hold it steady, so it from the Northeast, I have to say—who days of debate, 20 or 30 amendments doesn’t move, and the drilling can go have opposed oil production offshore, were offered, and many more were ac- on. This would be much cheaper and have opposed oil production in Alaska, cepted without a full vote. much quicker to bring onboard. have opposed coal to liquid, have op- Then, last year, the Democratic ma- I have offered legislation that would posed shale oil production and other jority allowed an energy debate that require the Department of Energy to avenues of production. The junior Sen- improved our CAFE´ standards, and it examine the subsidies and incentives ator from Vermont, my colleague on passed overwhelmingly. I voted for we have created and to see which ones the Energy Committee, declared that that. I think it was 10 full days of de- are working. This legislation would we needed more geothermal, we needed bate and many votes were cast on also have the Department of Energy more wind and solar, we needed renew- amendments. At this time, quite a work on a recommendation of how to able energy forms, which I certainly number of amendments were accepted. utilize our subsidies, incentives, and support in every way possible. Why would we not do that now when prohibitions in a way that effectively Yet it is odd to me that those very we are facing an even more severe cri- maximizes our energy capacity in this same persons now walk blithely into sis? That is my question. So I note to country, making us less dependent the Senate and want the taxpayers of my colleagues that energy prices are upon foreign oil. America to subsidize the Northeast so having a very real impact on the lives I believe strongly we need more effi- they can buy more dirty fuel oil to of our constituents. ciency. We need to use less energy. We heat their homes with—the people who According to AAA, the average price need to have a breakthrough. I believe objected to the production of oil and of regular unleaded gasoline was $4.03 we will. In my home State, I believe we gas year after year. I have to say that. this morning. As a result, the typical are going to see, within the next few I know people in the Northeast are American family, with two cars, is pay- months, a breakthrough on the conver- hurting. People all over the country ing approximately—we have calculated sion of cellulose to biodiesel or eth- are hurting. The little county where I this out, according to average miles anol, and that could be a big help to us. grew up in Alabama, according to the driven—paying $1,260 more this year It will certainly be more productive New York Times and a national survey, for the same number of gallons of gaso- than that ethanol we are getting from found that they spend a larger percent- line they were purchasing last year. corn today. age of their income on gasoline than That amounts to a $105-per-month in- I see my colleague, the distinguished any other county in America because crease in expenditures for each family. Senator from Arizona. I wish to say incomes are low in the rural areas and Remember, people have paid taxes, more, but I will conclude by saying they have to drive a long distance to they have had Social Security with- that I believe we need to act. Our sol- work. Those were the primary factors held, they have paid their insurance, diers in Iraq work 7 days a week, 12- to cited. That makes sense to me. Are we their house payment, and all their 15-hour days. Their lives are at risk. going to subsidize people in Wilcox basic expenses. You only have a certain The majority leader said we don’t have County? Who gets subsidized? amount of money. The American peo- time, that we need to recess a week What we need, without any doubt, ple are unhappy because they are pay- earlier than we projected, and we can- colleagues, is an energy policy that ing an extra $105 per month for the not possibly spend more time during will bring down these prices. We need same amount of gasoline they were August—we need to be home on re- an energy policy that makes sense— purchasing before. When they realize cess—dealing with the No. 1 issue fac- not subsidizing the dirtiest oil of all, that a big reason for that is because of ing the American people in this coun- burning heating oil in individual a systematic action by Congress to try. homes. We ought to be thinking about block production of clean American en- I believe that is the wrong policy. I things that could actually work, such ergy, I think they are going to be un- think we need to say so. I believe there as cleaner natural gas, making those happy with us. In fact, they are already are large numbers of Democratic Mem- pipelines available throughout the unhappy with us. The popularity of bers of this Congress who will support country, instead of blocking every at- Congress is at an alltime low. I think, more production that is safe and care- tempt to expand a pipeline. Or maybe on this energy question, we deserve the fully done, that will help us deal with we could expand nuclear power in the criticism. I have to say I have pro- the crisis we are facing, but we cannot Northeast and other places in the coun- moted more production for years. I make progress, unless we are able to try so more of our homes could be con- have warned against this problem. vote and debate. That is being denied verted to clean electricity, produced by As a result of our policies, we are at this time. nuclear power, which produces not one now importing over 60 percent of our I thank the Chair and yield the floor. drop of global warming gases or atmos- fuel. That amounts to $500 billion to The PRESIDING OFFICER. The Sen- pheric pollution. $700 billion in American wealth which ator from Arizona is recognized. I have to say I am disappointed that has been transferred out of this coun- Mr. KYL. Madam President, I asso- the majority leader has decided he did try to foreign nations. They are using ciate myself with the remarks of my not have time—I believe those were his it like Venezuela is right now, with colleague from Alabama a moment words—to deal with energy. Therefore, Chavez in Russia closing a $2 billion ago. I will speak to the reliance of the he filled the tree, using a parliamen- arms deal. He is basically doing that United States on other countries tary procedure that means we would go with our money, with the high price of around the world for too much of our home a week earlier than we expected oil. He is off shopping to buy weapons petroleum and natural gas supplies and to go home and not stay in session next and—hopefully, he will not—possibly what that does to the United States to week and talk about energy and the use them to destabilize South America, make us dependent, to cost us more things the American people care about. since he sees himself as following in money, to reduce our flexibility and They care about energy and the econ- the steps of Fidel Castro, his hero. actions around the world, and also the omy. The economy is adversely af- That is not a good thing. point that every time they want to rat- fected by high energy costs. That is I have offered legislation that would tle their sabers to create instability in what we need to be doing right now. open an area in the Gulf of Mexico on the world, what that does to the mar- I think this idea, that the majority Alabama’s side of the Alabama-Florida kets is to reflect that instability in leader can fill the tree and control the line, called the stovepipe, that has higher prices. So these very countries amendments so we are not able to large amounts of oil and gas in it. It is that we would like not to make so enter into a debate about how to con- in shallower water, so the wells can be much money off their oil supplies, if front the energy crisis this Nation is drilled in a fashion that they can sit on they want to make more, all they have

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S7250 CONGRESSIONAL RECORD — SENATE July 24, 2008 to do is create a little trouble in the ports more offshore drilling. As a mat- I also note that in the House of Rep- world, and it raises the price because ter of fact, on this chart, I will quote resentatives today, legislation was de- the markets go higher for a while. I one of many things I could refer to feated, as it was last week, by the will talk about that in a moment. from his Web site. I have a great deal Democratic majority there that is very I have reflected on a comment a of information in which he makes it similar to, if not identical to, legisla- friend of mine made some time ago. I clear he is for more offshore produc- tion that was introduced by Democrats don’t mean disrespect to my friends on tion. in the Senate. the other side. But he said: You know, Among other things, in June, he said For example, last week the House of Democrats have three approaches to this: Representatives defeated a provision every problem: Taxation, litigation, Opponents of domestic production cling to that says where leases have been let to and regulation. their position, even as the price of foreign oil oil producers, if they do not drill on Sometimes we like to laugh about has doubled, and doubled again . . . every those leases after a period of time, then that because it is, unfortunately, too year, we are sending hundreds of billions of the leases come back to the Federal true. But I thought how does this apply dollars out of the country for oil imports, Government. to energy. Sure enough, it does. They, much of it from OPEC, while trillions of dol- As you probably know, that is al- lars of oil reserves in America go unused. of course, tried taxation and failed, ready the law. The bottom line is you trying to raise taxes on oil companies, He has also said the current Federal get primarily 10-year leases. Some are under the notion it would never be re- moratorium on drilling on the Outer shorter. You cannot obviously imme- flected in consumer prices we pay. But Continental Shelf stands in the way of diately go out and drill on every one of that is exactly what would happen. energy exploration and production. several hundred thousand acres, but They tried litigation against OPEC. JOHN MCCAIN believes it is time for the what you do is try to figure out where There is no way you can sue the OPEC Federal Government to lift these re- it is most likely you are going to get countries. We ought to produce more of strictions and put our own reserves to oil and you start drilling there first what we have, not tell them they have use, and on and on. and keep going until you drill in all the He obviously supports offshore pro- to produce more. They are pretty areas where you think there is poten- duction. So why did some of my col- strained, in terms of where they are in tial. It is obviously not going to be on leagues take a quotation of his, leave production right now, in any event, every acre. Whatever you haven’t done part of it out, and try to create the im- and we are not, as the King of Saudi in 10 years goes back to the Govern- pression that he did not support it and Arabia reminded President Bush not ment. That bill failed because it is al- he did not think it would do any good? too long ago. ready law. Then, the third thing has to do with He was responding to a question earlier Today another bill failed that is to regulation. It is the bill that is pending about whether more of this offshore drain the Strategic Petroleum Reserve. before us right now. This is the Demo- production would produce immediate This is our national security reserve of cratic approach: Let’s regulate the peo- results. All he did was to tell the truth. oil, in case of an emergency, for our ple who buy and sell the contracts for Here is what he said: military primarily. We need reserve so oil and natural gas and the like. Of I don’t see an immediate relief, but I do see the tanks can drive, planes can fly, and course, we already have regulators—it that exploitation of existing reserves, that may exist, and that—in view of many ex- the ships can sail. You don’t want to is called the CFTC—and today we have perts—that do exist off our coasts, is also a reduce that to affect very briefly the some news that demonstrates that this way that we need to provide relief, even price of gas in the country. They would body is doing its job and can do its job. though it may take some years. The fact reduce it by 10 percent. What would To the extent that there is illegal ma- that we are exploiting those reserves would that do in terms of the oil supply in nipulation in the market, the CFTC have a psychological impact that I think is the country? It would reduce the oil can stop it. They announced that, after beneficial. supply by 31⁄2 days—31⁄2 days. If it drove a year of investigation, they had I totally agree with him. My col- the prices down at all, which I doubt stopped a company that was allegedly leagues read this to suggest that he be- would happen, it would be very tem- illegally manipulating the market, and lieves offshore production would have porary because everybody would know they are going to take legal action no benefit except a psychological ben- it is not a permanent solution. So it is against them. The Department of Jus- efit. As we can see, that is not what he no wonder that failed in the House. tice may be looking at it from a crimi- said. But his point is also valid—‘‘is Again, to the extent that is part of the nal aspect, as well. also a way we need to provide relief,’’ Democratic bill, it is obviously not a Both Democrats and Republicans it will provide a psychological boost to solution to the problem. have agreed that one of the things we the markets just as, in fact, President I mentioned I would talk briefly need to do is ensure that the CFTC has Bush’s lifting of the moratorium a about what Senator SESSIONS was talk- all the money it needs and the per- week or so ago on some offshore drill- ing about, and that is the unintended sonnel it needs to continue to do the ing caused prices to drop. Many ana- consequences of not producing our own job we have given it to do, to make lysts believe the drop of about $25 per energy, even though we have it in our sure people are not abusing the proc- barrel was much because of the Presi- country, and relying on other countries ess. That is the good part of regulation. dent’s announcement and the fact that to do it instead. The bad part would be to begin defin- Congress was taking up this subject More than 60 percent of every dollar ing—as the Democratic legislation with the idea that perhaps we would spent at the pump—I filled up my tank does—who good traders are and who actually get something done. last week, and it cost me over $70, and bad traders are and not let the bad What the speculators are doing is my tank wasn’t even empty when I traders trade—something that was de- simply placing a bet into the future filled it. More than 60 cents out of bunked yesterday in an interagency that there is either going to be enough every dollar I paid went to a foreign study concluded by the CFTC, which oil to meet demand or there is not. If country. We could keep that money in concluded that speculation wasn’t the there is not, then they are betting the the United States if we produced our problem; that the reason for the price price will go up. own energy. increases at the pump is the law of sup- What Senator MCCAIN is saying is the I conclude by saying we can do our- ply and demand—not enough supply for mere fact we would pass legislation selves a whole lot of good to take ad- the demand that exists out there. saying we are going to produce more vantage of the resources that exist Today, another diversion was cre- oil offshore would immediately have right here in the United States of ated. I wish to reiterate this. It in- the impact on the markets to bring the America, reduce the cost of gasoline at volves a friend of mine, my colleague, prices down because they would know the pump, and ensure our future energy JOHN MCCAIN. He was grossly mis- in the future we would have enough security. quoted this morning by Senator REID supply to meet our demands. JOHN I hope during the course of the next and others, who have tried to suggest MCCAIN was exactly correct on this, several days we will have an oppor- he is not for offshore drilling. I think and I think it serves no purpose to mis- tunity to do that as we debate this im- everybody knows JOHN MCCAIN sup- quote him and suggest otherwise. portant legislation.

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE July 24, 2008 CONGRESSIONAL RECORD — SENATE S7251 The PRESIDING OFFICER. The Sen- people’s money set up an the entire billion, with U.S. taxpayers bailing out ator from Washington is recognized. economy up for a crash. the institutions to the tune of $125 bil- Ms. CANTWELL. Madam President, I Well, in 1999, Congress repealed key lion. This, of course, added to our def- came to the floor yesterday to talk parts of the Glass-Steagall Act of 1933. icit of the early 1990s. about how our Nation must move for- It allowed banks to operate any kind of So I ask my colleagues: When are we ward on a new energy future and ex- financial businesses they desired. And going to learn this lesson? plain how even if we drilled off all our it set up a situation where they had As George Soros wrote in his book coastlines it would still meet only 1 multiple conflicts of interest. And sev- documenting the credit crisis: percent of our future oil needs. Instead eral economists and analysts have At the end of World War II, the financial we should be moving toward a renew- cited the repeal of this Act as contrib- industry—banks, brokers, other financial in- able energy future and new energy uting to the 2007 subprime mortgage stitutions—played a very different role in crisis. In fact, Robert Kuttner, co- the economy than they do today. Banks and technologies that could actually re- markets were strictly regulated . . . founder and co-editor of the American duce our dependence on foreign oil by Unfortunately, today’s banking and over half. Prospect magazine wrote in September 2007: credit crisis teaches us we have failed But today I come to the floor to talk again to learn the hard lessons. We about the proper policing of oil mar- Hedge funds, private equity companies, and the subprime mortgage industries have two have failed to see that oversight and kets because we are in a crisis that is transparency are always critical, and literally bankrupting families and big things in common. First, each represents financial middlemen unproductively extract- when Congress makes reforms, they businesses and even threatening entire ing wealth from the real economy. Second, cannot disregard these important fun- industries. each exploits loopholes in what remains a fi- damentals. Now, I don’t often agree with Presi- nancial regulation. The only encouraging news I have dent George Bush, but I have to say in Then, in 2000 we also deregulated a seen lately is that Treasury Secretary his latest economic analysis, I actually new and volatile financial derivative Paulson is now working to increase agree with him, because I think it ex- that is at the heart of today’s housing regulation over investment banks, plains part of the reason why we are in credit crisis—credit default swaps. As hedge funds, and other financial insti- a crisis today. White House press secretary Dana tutions. That is right, the President said that Perino would describe it, these new- I could go on and on for my col- ‘‘Wall Street got drunk.’’ That is right, fangled financial instruments that leagues on my own personal experience the President acknowledged that some- posed a risk to the market actually with the western energy crisis that thing was wrong with Wall Street and grew into a $62 trillion industry. happened in electricity in 2000 and 2001. that ‘‘Wall Street got drunk.’’ And Warren Buffett has called these We saw that during the electricity de- Now, I don’t know if the President credit-swaps financial weapons of mass regulation experience which started in meant to say that publically, but it got destruction. So the proliferation of the mid 1990s, people argued that elec- captured on the Internet. I don’t know these newfangled financial instruments tricity was just another commodity. if he plans to keep saying that or all has resulted in huge profits and losses But it is really a very vital element to the intentions he has about trying to without any physical goods changing our economy. Many experts cautioned sober up Wall Street. But I know elabo- hands. that electricity was too vital a part of rating on the President’s point, White So now, I come to the floor asking our economy and way of life to let House press secretary Dana Perino ex- my colleagues when are we going to these markets go without the trans- plained: learn the lessons of the past? When are parency and oversight that is essential. Well, you know, I actually haven’t spoken we going to realize that the the 1929 We all know the rest of the story. We to him about this, but I imagine what he stock market crash has the same root saw that deregulation set the table for meant, as I have heard him describe it before cause as the recent housing bubble? some of Enron’s spectacular manipula- in both public and private, was that Wall Both were financed by dangerously, tion schemes of 2000 and 2001 among Street let themselves get carried away and highly leveraged borrowing, and after other bad actors, which all told caused that they did not understand the risks that the crash many banks failed causing a more than $35 billion in economic loss the newfangled financial instruments would ripple effect that devastated our Na- and over 589,000 jobs were lost because pose to markets. tion’s economy. Well, after the 1929 of this crisis. That is what she said. crash, Congress stepped up and changed Again, only after the crisis was over, I don’t know why the Bush adminis- the banking laws to eliminate some of Congress stepped in and gave the Fed- tration and the regulatory team that the abuses that had led to the crash. eral Energy Regulatory Commission they put in place wasn’t doing some- That is right, only after the crisis did and now the FTC more regulatory au- thing about this situation. We do know Congress act. What I want to know is thority on energy markets. But again, the administration supported deregula- whether we are going to learn that Congress is doing its job after the fact. tion of the financial markets. vital lesson and legislate consumer So I ask my colleagues: When are we And to me, the issue is that while protections in advance, or only after a going to learn? When are we going to Wall Street was getting drunk, it’s bubble bursts. quit deregulating these critical mar- really America and the American mid- The savings and loan crisis of the kets without much thought to the dle class that is feeling the hangover. 1980s and 1990s when 747 savings and transparency and oversight that is Today the Federal Reserve is strug- loan associations went under provides critical for markets to operate and gling to contain what is almost one of a similar lesson. Like before, much of function correctly? When are we going the most severe credit crises since the the mess can be traced back to deregu- to learn that when we give Wall Street Great Depression, and American fami- lation of the savings and loans which an inch, as the President says, Wall lies and businesses are paying dearly gave them many of the capabilities of Street gets drunk? for the poor decisions and inactions of banks, but failed to bring them under We are here today. We are here today this administration. the same regulations as banks. Con- to talk about the oil futures market During the past decade, the financial gress eliminated regulations designed and hopefully enact some meaningful economy seems to have repeated some to prevent lending excesses and mini- legislation. But the real reason we are of the excesses our country has gone mize failures. here is that we deregulated the energy through before. So I wonder when we Deregulation allowed lending in a futures market in 2000, which helped are going to learn the lessons of his- distant loan markets on the promise of spark today’s price bubble that is driv- tory and make sure that we in Con- higher returns, and it also allowed as- ing our markets to no longer be based gress do our job and that regulatory sociations to participate in speculative on supply-and-demand fundamentals. agencies do theirs. construction activities with builders In one fell swoop, this deregulation did In many ways, today’s situation is a and developers who had little or no fi- a number of things that enabled to- repeat of the 1920s when too much bor- nancial stake in the projects. day’s perfect storm to brew. rowing to underwrite too many specu- The ultimate cost of this crisis is es- We let newfangled financial instru- lative bets using too much of other timated to have totaled around $160 ments—called credit default swaps—go

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S7252 CONGRESSIONAL RECORD — SENATE July 24, 2008 unregulated and made it too easy to ally recovered a tape of a trader talk- Hardworking Americans are counting use bad debt to finance home mort- ing to one of the individuals from on us and are suffering in this crisis. gages. We also let newfangled crude oil Enron doing a contract and actually Congress is their last resort as an over- trading—called energy swaps—go un- saying on the phone: No, this isn’t true sight agency to make sure there are regulated and essentially allow Wall about the future price, but go ahead functioning markets and not the ma- Street to trade without any trans- and tell your buyer it is so they will nipulation of supply based on the fact parency. And we allowed electronic sign this contract. that we have created dark markets trading of energy commodities to So now we are seeing the same thing without proper oversight. But don’t emerge as a new form of trading. In a happening again. To quote again from just listen to me on this subject about nutshell, we let Wall Street rewrite the the Dallas Star Telegram, in an article the CFTC. Listen to what other people rule book for all the traditional ex- called ‘‘ICE ICE BABY’’: have said about our CFTC, our Com- changes, like as NYMEX and the Chi- Investors know that if they invest huge modity Futures Trading Commission. cago Merc, which were previously sub- amounts in the commodities futures, they Others have been critical as well. In ject to considerable CFTC oversight. can create a shortage on paper, driving fact, William Engdahl, who is an expert prices up just like an actual shortage. The consequences of allowing these and an author on oil markets, wrote in energy speculators to move into this That is right, investors know they May of this year: market, as my colleagues on the floor can invest huge amounts in commod- The CFTC seems to have deliberately have said, in spades, shows it is similar ities futures and they can create a walked away from their mandated oversight to a casino game, instead of playing in shortage on paper and drive up the responsibilities in the world’s most impor- the legitimate trading market. And the price just like an actual shortage. So, tant traded commodity—oil. consequences are the American people yes, we are concerned. So there is one expert who doesn’t In fact, that article goes on further, paying hand over fist for our lack of think the CFTC is doing its job. An- speaking about the Intercontinental regulatory oversight. other expert, Steven Briese, who is a Exchange, better known as ICE—that Why are we talking about the futures futures market analyst and author of this ICE platform has been a big prob- market? Because it should be a key the ‘‘Commitments of Traders Bible,’’ lem because we have allowed it to oper- price discovery method to establish the which is a futures market trade publi- ate in the dark without the same regu- true price based on supply and demand. cation, wrote in May of this year as lator oversight as other exchanges. Ed well: As the Government Accountability Of- Wallace is also quoted in that article fice has said: Congress has provided the CFTC the power as saying: to control this unlimited speculation—the The prices for energy commodities in the What kept traders from cornering the mar- law is very specific about establishing posi- futures and in the spot or physical markets ket in the past where the government’s anti- tion limits. The problem is they have abdi- are closely linked because they are influ- manipulation rules. cated this role. enced by the same market fundamentals in the long run. He is talking about what kept bad ac- He is talking about the ‘‘behind the tors in check in the past, but once we closed door’’ situation where the CFTC That is right, the prices for the en- deregulated in 2000, they didn’t have said: We are not going to enforce the ergy commodities in the futures and in the same tools in place to keep the ma- laws we have on the books. the spot or physical markets are close- nipulation from happening. So we are We have heard from other people, ly linked because they are influenced here today, on the floor now, talking Mark Cooper, of the Consumer Federa- by the same market fundamentals in about whether we are going to move tion of America, recently testifying be- the long run. So why is that so impor- ahead on a speculation bill to deal with fore Congress, because the Consumer tant? Well, it is important because the this problem. Federation of America focuses on pro- facts are clear: Speculation, and exces- Compounding this problem is that we tecting consumers. He had something sive speculation, have driven up oil have a CFTC and an administration to say about the CFTC’s poor perform- prices over 100 percent in a year, and that is watching out more for Wall ance. In fact, he said the CFTC’s poor energy market experts are telling us Street than for Main Street. It is up to performance is ‘‘the regulatory equiva- the price should be more like $60 a bar- us to make sure we are going to pass lent to FEMA’s response to Hurricane rel. legislation that puts transparency and Katrina.’’ So people are questioning why the fu- tough rules in place to make sure the What he is basically saying is they tures market is so high, driving the markets work for consumers and that dropped the ball, at least at the begin- price people pay at the pump today. both the future price and physical price ning of this crisis, and have not re- Well, as Ed Wallace, with the Dallas of oil today are truly based on supply sponded. Star Telegram, said: and demand. So there are other people who have Record high prices without record low oil Americans may be surprised to learn said things, like the trucking industry. inventories, analysts saying that so much that our oil futures markets were fur- They have a big stake in making sure money flows into the oil commodities that it ther deregulated—besides this 2000 Act. the markets function properly. They gives the impression of shortages, when in I am talking about a CFTC decision say: ‘‘There’s oversight that’s lacking fact no shortage exists. made by staff behind closed doors who or not taking place—so the private So that is to say that when you have decided to take no action against a market is taking advantage of that.’’ record-high prices without the record- London-based trading exchange that So, Madam President, I am not the low inventories, and I note we haven’t actually trades U.S. oil products. As only person. I know The Washington had a supply disruption, so much my colleague from Maryland likes to Post has also talked about this. They money flows into the oil commodities call it, the London loophole. It is like said, in an article: ‘‘The CFTC has ex- it gives the impression of a shortage driving on a U.S. highway but only ap- empted these firms from rules that when, in fact, a shortage doesn’t actu- plying the same speed limits as the limit speculative buying, a prerogative ally exist. German Autobahn. traditionally reserved for airlines and Now, I learned this phenomenon the It is abundantly clear to me that the trucking companies that needed to hard way because that’s how Enron CFTC is doing everything it can to con- lock in future fuel costs.’’ manipulated the electricity markets tinue to operate this way without So it is clear the CFTC has abdicated coming up with various names for thinking about its job, which is to pro- its authority and responsibility. It has these various schemes—Darth Vader, tect the American consumers from oil abdicated its authority and responsi- Get Shorty—where Enron created the price manipulation. So that’s why I am bility, and we have been trying to perception in the futures market that making no secret of the fact that I am clean this up and to push forward on there was somehow not enough supply holding up the renomination of CFTC important efforts in this regard. and then went in the physical market commissioners. And I am holding up Madam President, I would like at and signed people up for contracts at new appointments to the CFTC until this time to reference for the record a exorbitant rates. Thank God, through Congress gets to the bottom of this and document prepared by Professor Mi- the hard work of people in my office, a we can get Commissioners who are chael Greenberger that responds to in- little utility in Washington state actu- going to enforce the law on the books. formation from the Senate Permanent

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE July 24, 2008 CONGRESSIONAL RECORD — SENATE S7253 Subcommittee on Investigations. I gate speculation limits across all ex- those fiscal policy choices; therefore, I know the SPI staff analysis of Pro- changes. It has to be transparent, and wish to focus on tax policy as it relates fessor Greenberger’s recent testimony it has to be enforced on all markets. to the choices Americans will face this before Congress on this topic has been We cannot have a bill on the Senate fall. discussed on the floor, and I would like floor that has all the right words in it In all of the discussion about vague to make my colleagues aware of his re- but none of the important words in the notions of change and vague notions of buttal to that PSI staff report. proper places. That is what I am going hope, there are some substantive issues Now, I am sure many of my col- to continue to fight for. I am going to Americans will be facing in the fall. leagues probably didn’t realize I was continue to fight to make sure we put The big question will be how much is going to come and talk so much about real teeth back into the law, to make the Federal Government going to take the history of Congress deregulating sure the American consumer is pro- out of the American taxpayers’ pocket- markets, the crises that have ensued— tected from the manipulation of oil books. We will need to evaluate before billions of dollars paid by taxpayers— markets in the future. the election what we are being told on and Congress finally coming in and We can give the CFTC the tools it the campaign trail—not just what we doing its job and making sure over- needs, and we must insist that it use are told, compare it with what is likely sight agencies are performing their them, but we will have to do our job to occur starting at high noon, Janu- proper role and responsibility. But I here and pass this important legisla- ary 20, 2009. thought it was important context so tion. Wall Street may be drunk, but it I think from history we have some that we do not repeat the same mis- is America that is suffering the hang- pretty good indicators that tell us takes. over, and we must help them recover. what will happen based upon the Some of my colleagues today talked We need a new, tough law on the books, choices of the American people in the about the CFTC’s recent investigation and it is imperative that we learn from next election. To do that, we must look that uncovered oil market manipula- the past mistakes of Congress in their at our current tax burden. Then we tion, which underscores the point. The attempt to lighten the load on some of need to take a look at what Senators CFTC could only take action against these financial institutions with tools, MCCAIN and OBAMA are telling us about traders that are using exchanges regu- only to find it wreaking havoc with how they will change the tax burden. lated under their purview. What we housing oil speculation bubbles that is Finally, we have to consider the ability need to ask is: what are we going to do causing our country great distress. I of each candidate to deliver on prom- ises. Each taxpayer is going to have to about the dark markets, the markets hope we get this right in the next cou- make choices, choices about what that operate within the United States ple of days, and I am going to continue these candidates will do on tax issues with U.S.-traded products that have to fight until we do. been given an exemption and loophole I yield the floor. once they get into that position of power. Every American taxpayer and in oil futures that we are not regu- The PRESIDING OFFICER. (Mr. every American family budget will be lating and are probably also causing WHITEHOUSE). The Senator from Iowa is impacted by the new President and the the problem? We want to know what recognized. agenda of the Congress. Elections have they are doing about that. FISCAL POLICY So what is the American consumer consequences. Mr. GRASSLEY. Mr. President, in a Today, I wish to consider future tax saying about this? I know my col- little over 3 months, Americans will policy and do it in the context of the leagues have been saying a lot about make a very important choice on the CONGRESSIONAL RECORD over the last 3 Americans and what their preferences future direction of the country. We will decades. are. But it is clear to me that the go to the polls, we will select a new First, I want to compare the actions American public wants us to act. In President. Americans will also vote on of Congress on tax hikes and tax cuts fact, 80 percent of the American public roughly one-third of the Senate and all in relation to each party’s hold on the believes that oil commodities specula- the Members of the House of Rep- White House and do it from the con- tion and manipulation of the oil mar- resentatives. gressional as well as the White House kets are taking place. That is right. According to public opinion polls, basis. As a baseline, I will show a They want Congress to act. Eighty per- economic issues will be among the scorecard of tax hikes and tax cuts for cent of Americans polled said they be- most important matters voters will each 4-year Presidential term since lieve oil commodities speculators are consider when they go to the voting 1981. manipulating the price of oil. So Amer- booth in November. I have a chart here. The chart shows icans are very concerned. Everybody knows that the Federal three things. They start, as I said, with Two-thirds of Americans believe we Government affects economic issues, the year 1981. As you will note, the should pass legislation that creates and we do it through Federal fiscal pol- years are divided into Presidential new regulations governing all oil spec- icy. How we deal with Federal fiscal terms, so we start with President Rea- ulators. They want us to put back in policy can be viewed as two sides of a gan’s first term and work our way place the rules we had before we threw ledger: On one side is tax policy, and on through to the present, which is the them out in 2000. So two-thirds of the other side is spending policy. The last year of President George W. Bush’s Americans polled believe we should choices about how we as a nation want second term. You see the bottom lines pass legislation that creates the nec- to balance each side of the ledger will across there, the ones that have red essary regulations, and that is what we have very important consequences and and blue, and the years there for the need to be doing today. implications on our economic future. Presidential terms. I wish to make sure I am clear to my Most economists agree that high Right above the line for the Presi- colleagues. We have done a great serv- taxes dampen economic growth. Too dential terms, we have a thick line. It ice by having an open debate on these much spending, just like too much tax- is a three-part line. The line shows rel- issues. And just this week, experts said ation, can also dampen economic ative power of Democrats and Repub- the Senate action is one of the reasons growth. As elected representatives of licans. The top third of the line, if red, prices have fallen $20 below where they the American people, we have an obli- shows Republicans holding the White were, because we have had this discus- gation, as the Constitution directs us, House. The middle third of the line sion what a more regulated market- to spend those tax dollars for the com- shows who held the Senate majority place should look like. But I want to mon defense and also for the general for a certain period. If red, then Repub- make sure my colleagues are clear that welfare of the Nation. We all have a licans held the Senate; if blue, the we need to pass legislation that really stake in a growing economy, and we Democrats held the Senate. Then the will crack down on excessive specula- will all suffer from a shrinking econ- bottom line, that is in regard to the tion. We cannot have a study bill, we omy. House majority. Like the other two cannot punt this to the future. We have As ranking Republican on the tax- lines, if red, it means the Republicans to pass a bill that really addresses all writing Senate Finance Committee, I held the majority; if blue, it means areas of potential for excessive specu- believe it is my obligation to explain Democrats were in charge of the other lation. We need a bill that has aggre- the choices and the consequences of body.

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S7254 CONGRESSIONAL RECORD — SENATE July 24, 2008 If you move up the chart, there is a sion, campaigned on a middle-income licans increased their House and Sen- running total of how much on a yearly tax cut and tax increases on higher in- ate majorities. average that particular Congress and come taxpayers. President Clinton was So in 2006, President Bush and the President agreed to raise or reduce elected, and Congress Democrats re- Republican Congress extended the tax taxes. The lines going up or down are tained a very comfortable majority in relief in the first term through the in regard to the tax raises or tax de- the House and Senate, as you can see year 2010. It is shown here. It averages creases. This data is not mine; it was by the blue lines there, during those about $22 billion per year. In 2006, the drawn from the Treasury Office of Tax years. situation now, as a result of that elec- Analysis report that was released—the In 1993, less than a year later, on the tion, Democrats gained majorities in most recent one in 2006. The amounts force of the Democratic votes alone, both the House and Senate. are derived from the nonpartisan Joint the largest tax increase of modern era Despite the opposition of the Demo- Committee on Taxation revenue esti- was enacted. There you can see it very cratic leadership in the House and Sen- mates of each of the enacted bills Con- definitely, a big tax increase at that ate, Congress passed and President gress passed during that 26-year period period of time. You will note it is at Bush signed an ‘‘unoffset’’ alternative of time. the highest point on the tax increase minimum tax. That legislation aver- Let’s take a further look at the chart part of the chart. aged $13 billion in tax relief. so you get some specifics. Republicans claimed majorities in This year Congress and the President President Reagan made tax relief a the House and Senate in the 1994 elec- agreed to $34 billion in temporary eco- cornerstone of his successful 1980 cam- tion. nomic stimulus. At present, the Demo- paign. His election helped Republicans President Clinton agreed to a rev- cratic Congress and President Bush are attain a narrow majority for the first enue-neutral small business tax relief in a stalemate on an AMT patch exten- time in over a generation. The House, package in 1996. During that campaign, sion and other expiring tax relief mat- of course, remained in Democratic President Clinton campaigned once ters. The reason for the stalemate is hands. again on middle-income tax relief. the House and Senate Democratic lead- In 1981, President Reagan proposed President Clinton was reelected, Re- ership’s opposition to passing these and Congress agreed to a large tax cut. publicans increased their majority in bills ‘‘unoffset.’’ So you have it. The first green line the Senate, and we retained a majority I want to use one chart to sum up to- goes there. On average, if fully imple- in the House. day’s discussion. This chart shows a mented, it meant that you would have In 1997, congressional Republicans tax thermometer. We have got it up a tax cut of almost $111 billion per and President Clinton agreed to a sig- there. The heat side is the tax increase year. Over time, the Democratic House nificant tax relief package. It was the side. This chart shows the relationship pushed for and President Reagan reluc- first tax relief law since the President between party control of Congress, tantly agreed to some smaller tax in- Reagan administration, and it aver- Presidency, and tax hikes or tax relief. creases, and they are the second line aged about $13 billion a year. There If Republicans control the Presidency where the tax increases come down to- you can see it in the year of 1997. and Congress, then lowering the tax ward the zero line there. George W. Bush campaigned on a burden, which is a tentative Repub- For the 1984 campaign, President broad-based tax relief plan for 2000, or lican philosophy, is virtually certain to Reagan made revenue-neutral tax re- in the 2000 campaign. He was elected be put in place. So you can point to form a central part of his campaign for then, obviously. The parties split the that point in the chart there that dem- reelection. Republicans held a majority Senate 50–50, with Republicans in con- onstrates having both a Republican in the Senate for that election, and trol because of Vice President CHE- President and a Republican Congress is President Reagan had built a case for NEY’s tie-breaking vote for organiza- a certainty to have a lower tax burden reform. Republicans in the Senate and for the American people. Democrats in the House agreed, and tion. Republicans held their House ma- If Democrats control both the Presi- the chart reveals tax reform for 1986 of jority. In 2001, President Bush and Congress dency and the Congress, then an in- a small amount, as you can see there, agreed on the largest comprehensive crease in the tax burden is certain to but still tax reform. It is significant, I occur. That is what history of the last would say. tax relief package since President But in 1986, Republicans lost control Reagan. Here it is, as you can see, the 25 years shows. So it is a virtual cer- of the Senate. I happen to remember big tax reduction of 2001, averaging tainty, regardless of campaign rhetoric that because I was on the Finance about $82 billion per year. to the contrary. Committee for my first 6 years in the As things happen around here, I was If the parties split control of the Senate. We didn’t have enough Repub- chairman of that committee for only Presidency and the Congress, the lican seats after that, I didn’t have about 5 months because Senator Jef- record is, as you might expect, mixed, enough seniority, and so I lost my seat fords switched from being a Republican though generally against tax relief. on the Finance Committee. to a Democrat, and in the wake of 9/11, So if you look at the median picture Congressional Democrats insisted on corporate scandals, and other events, there, you see that we have about three and obtained, after their success in President Bush, a Republican House, decades of history backing this up. I that election, a tax increase in 1987. and a Democratic Senate agreed on an would encourage everyone to take a You can see that tax increase there for economic stimulus package that aver- look at this thermometer chart. When 1987. aged about $12 billion a year. folks go to the voting booth on Novem- In 1988, as you recall, President Republicans regained the Senate ma- ber 4, they will need to consider the Bush’s father, George H.W. Bush cam- jority in 2002. So in 2003, President probability of a change in fiscal policy. paigned, in 1988, and included a pledge Bush and the Republican Congress con- They will need to consider the poten- not to raise taxes. President George tinued to significantly reduce the over- tial change to their family budget, H.W. Bush won that election, but con- all tax burden. from higher or lower taxes, because gressional Democrats solidified their So here you can see in the 2003 and elections have consequences. They will majorities, and, as a part of a deficit- 2004 tax bills a combined about another have to also think about the broader reduction package, President George $82 billion a year reduction in taxes. If economic effects of higher or lower tax H.W. Bush forgot about his campaign you look at President George W. Bush’s burdens on business or investment, be- promise and agreed to a tax increase. first term, enacted legislation totaled cause tax policies by the Congress of And here it is. You can see the big tax roughly $174 billion per year, on aver- the United States do have con- increase—in 1989–1990, it was. Shortly age. Republicans held the House for all sequences, some ways good, some ways after that tax increase went into ef- of that term. Republicans held the Sen- bad. My view is, higher taxes are bad fect—there are consequences of policy ate for most but not all of that term. for the economy. made here in Congress—the American In 2004, President Bush campaigned That change could be dramatic if the economy went into recession that year. for reelection by emphasizing the per- vote is for one party to control the Then you get to the 1992 campaign. manence of the lower tax burdens se- House, the Senate, and the Presidency. Bill Clinton, in response to the reces- cured during his first term. Repub- There would be consequences then,

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE July 24, 2008 CONGRESSIONAL RECORD — SENATE S7255 lower taxes if that is House and Senate keep them from focusing on the re- Ms. STABENOW. I object. Republicans, Republican President; forms that were needed. The PRESIDING OFFICER. Objec- House and Senate Democratic, Demo- When this housing bill comes back, I tion is heard. cratic President, higher taxes. have proposed one amendment. I asked Mr. DEMINT. Mr. President, the ma- In my next discussion, which will not for one amendment in this process, jority clearly will not permit this or be today, I will follow up this one with that if the American taxpayers put any other amendment on the bill. He a detailed examination of what hap- their money on the line to back these says he does not want anything to pens in the last bit of history most like private companies, that these private delay it. As I have already pointed out, the present. I am referring to the 1992 companies should no longer be able to however, I think his own obstruction is campaign and the legislative record spend millions of dollars lobbying delaying the bill. that followed in 1993. Members of Congress to keep them The reason I do that is I think I see from implementing the reforms that I wish to make one more proposal. I the same thing evolving in this cam- are so important. will explain it, and if the majority is paign. We ought to learn from history, Last night I made an offer to the ma- willing, then I will read the technical and the voters need to take that into jority leader. I suggested we could have language. But I am very willing to consideration before November 4. one vote under a time agreement to offer a unanimous consent request to I yield the floor. allow my amendment to prohibit lob- move immediately to a final vote on The PRESIDING OFFICER. The Sen- bying and political donations from the housing bill, and then once the en- ator from South Carolina is recognized. Fannie Mae and Freddie Mac. We could ergy debate is completed, that my Mr. DEMINT. Mr. President, I ask have been done with the bill last night. amendment, then in bill form, be al- unanimous consent to speak for 15 min- If the majority leader tabled the lowed a straight-up vote in the Senate. utes as in morning business. amendment, the bill would have been This may be several weeks from now. The PRESIDING OFFICER. Without passed and sent to the President last But if the concern by the majority is objection, it is so ordered. night. But I do not think he wanted his that my amendment would slow the Mr. DEMINT. Mr. President, I com- Members to have to vote on that. bill down, they should certainly agree mend Senator GRASSLEY for focusing If the amendment had been adopted, the bill would have been immediately that if we can move to housing and again on the importance of lower taxes pass it straight up, and finish the en- and promoting a better economy and sent to the House, passed and sent to the President, probably today. The ergy debate, whatever time that is fin- higher standard of living in America. ished, then we could have a simple vote It is disturbing, as we talk about en- only thing that prevented this from at the scheduling of the majority lead- ergy and high gas prices, to hear from happening was the objection of the ma- er to vote on this lobbying amendment. our Democratic colleagues in the jority leader last night, because the House that they are actually consid- majority leader was intent on blocking I would be glad to put this in unani- ering raising taxes on gasoline 10 cents this amendment to prohibit Fannie mous consent form if the majority is or more per gallon at a time when it is Mae and Freddie Mac from lobbying. interested in entertaining this. If I already a crushing cost to Americans The bill will likely pass the Senate could get some indication from the on energy. on Saturday and will not reach the speaker or the leader over there. Would The energy debate has been very President until next week. So the argu- you be interested in that unanimous helpful. I think for years Americans ment that my one amendment is slow- consent request? have known, at least many Americans, ing this down is not true. Let me state Ms. STABENOW. Mr. President, in that the Democratic Party has blocked again one more time, to be clear. This response to my colleague, I would indi- the development of energy supplies, Senator was prepared to vote on the cate that on behalf of the majority, if America’s own energy supplies, from housing bill last night. I do not support that were offered I would object. the bill. I do not think it should be- the time of Jimmy Carter stopping nu- Mr. DEMINT. I thank the Senator. clear generation to President Clinton come law. I simply wanted one amend- ment. Clearly there is no need to continue to vetoing the legislation that would have My constituents sent me here to try to get this housing bill expedited. opened some oil reserves in Alaska, to Washington to clean up this place. It is clear my Democratic colleagues constant votes by our Democratic col- Fannie Mae and Freddie Mac have do not support this reform, and appar- leagues to stop the opening of oil and spent hundreds of millions of dollars ently they are going to do everything natural gas which is plentiful in Amer- over the past decade to block common- they can to protect their relationship ica. sense reform, which could have been with these Government entities. Americans do not trust Congress to prevented. We could have prevented the The majority leader suggested yes- fix this because they know it is the in- debacle that we are faced with now if terday that he would be happy to join action by Congress that has caused the Congress had not been blind to the me in sending a letter to these two en- gas prices, and we see that the Demo- problem. But because the leader was tities, Freddie Mac and Fannie Mae, to cratic leadership is going to do every- intent on filibustering my amendment, request that they be more transparent thing they can to keep amendments blocking me from doing what my con- in their lobbying. Well, I am not inter- and an open and honest debate about stituents sent me here to do, the hous- ested in sending a letter to the man- real energy development in America ing bill will be delayed until next agement of Fannie Mae and Freddie from happening. week. This is fine with me, because Mac. That would be as effective as HOUSING there is a lot wrong with the bill. But sending a letter, which has been sug- The same thing has happened on an- the decision to delay the bill was made gested by my Democratic colleague, to other bill that is going to be inter- by the majority leader and him alone. Saudi Arabia demanding lower gas jected into this energy debate, this I wish to offer one more opportunity prices. I am not interested in trans- massive housing bill, this massive here for the majority to expedite the parency in their lobbying or political mortgage bailout that is going to come housing bill and to give me the one donations. The lobbying contracts need back to the Senate floor for a vote. vote on this amendment and then we to be terminated and their PACs This is another situation where the can proceed to a final vote. should be disbanded. American people know that the mort- UNANIMOUS CONSENT REQUEST—H.R. 3221 The majority leader disagrees. In gage crisis, the foreclosure crisis, the Mr. President, I ask unanimous con- fact, his staff sent out a blast e-mail to problems with Freddie Mac and Fannie sent that when the Senate resumes the their lobbyist friends asking for help in Mae are caused by incompetence and consideration of the housing bill, the defeating my amendment. gross negligence by this Congress and pending Reid amendment be withdrawn past administrations. and the only amendment in order be a I want to protect taxpayers and end We suspect, and there is every evi- DeMint amendment which I will send the culture of corruption in Wash- dence, that part of that negligence has to the desk. This is a measure to ad- ington, but I am afraid in this case, the come from the ability of Fannie Mae dress lobbying by Fannie Mae and majority clearly does not want to join and Freddie Mac to spend hundreds of Freddie Mac. me. millions of dollars to lobby Members of The PRESIDING OFFICER. Is there All I am requesting is one amend- Congress and other watchdog groups to objection? ment on a 694-page bill that spends

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S7256 CONGRESSIONAL RECORD — SENATE July 24, 2008 anywhere from $25 billion to hundreds The PRESIDING OFFICER. The Sen- childcare, to try and maybe take a lit- of billions of dollars of taxpayer money ator has about 3 minutes remaining. tle vacation up north in beautiful to bail out two companies, Fannie Mae Mr. DEMINT. I thank the Chair. I can northern Michigan or Rhode Island. I and Freddie Mac. see I have more to say than I have time can’t leave out beautiful Rhode Island, I believe my amendment is essential to say it. the State of our Presiding Officer. to considering the way Fannie Mae and Let me close by encouraging my col- But the reality is, families are mak- Freddie Mac have spread their wealth leagues. There is no need for this issue ing incredibly tough choices. At the around Washington for years to buy to be partisan. Clearly, if we are going same time, energy prices certainly are Government influence and to cover up to put hard-working taxpayer dollars taking a toll on the economy. We are their problems. The housing legislation behind our bailout of Fannie Mae and seeing the level of unemployment that will be before us authorizes the Freddie Mac, we should not allow them going up. People are losing their jobs Secretary of the Treasury to use tax- to continue to throw millions of dollars or are underemployed or are working payer money to rescue Fannie Mae and around for political activities. It just three jobs, trying to get to work, pay- Freddie Mac, but it does not include an makes good common sense. ing more for gas. It is outrageous. I go immediate end to their lobbying and On a bill that is this large and this home every weekend, and it is amaz- political activities. important and that probably not one ing. It makes you want to scream as If American taxpayers are forced to Senator has read even half of, the op- you stand at the pump and the price bail out or buy out Fannie Mae and portunity to have at least one amend- goes $50, $60, $70, $80, to fill up a gas Freddie Mac, their lobbying and polit- ment and a limited time for debate tank. It is unbelievable. Families are ical activities should stop. Our Nation seems to be a small request. Unfortu- trying to figure out what to do about has a longstanding tradition of pre- nately, the majority is not going to it. venting American tax dollars from give us any amendments, and appar- Unemployment rises, and we have being used for lobbying and for solic- ently they are going to turn a blind eye now 12 States with unemployment iting and making campaign contribu- to this obvious problem on which the rates over 6 percent. My State has an tions. There is no doubt that this hous- Wall Street Journal and news media all unemployment rate of 8.5 percent, 45 ing legislation crosses that line. Under over the country have been focusing. out of 50 States have seen job loss and current law, the Department of Treas- The American people know about it. I unemployment numbers going up. One of the challenges, if we are going ury cannot retain high-powered lobby- think they would trust the Senate to talk about what to do about this, is ists or make political contributions to much more to make the proper reforms we need to be talking about how we got candidates. This rule should apply to for housing and mortgages and Fannie here. How did we get here? We have had Fannie and Freddie. There may have and Freddie Mac if they could see that 8 years and two oilmen leading us in been some doubt as to whether a gov- we were eliminating a conflict of inter- the White House, and it is not, unfortu- ernment guarantee existed for Fannie est that has clearly existed for a num- and Freddie before, but now with this nately, a surprise, based on their agen- ber of years. da, that we have ended up with $4 and legislation, that guarantee is made I thank the Presiding Officer and en- higher per gallon of gasoline. That is very explicit. They are, in effect, gov- courage my colleagues to ask the ma- the shorthand way of talking about ernment entities and should be treated jority leader to reconsider and give us as such. what has been happening. the opportunity to have a vote on this For the folks they represent, for the The Politico newspaper recently re- one amendment, and then we could ported on how Senators and Congress- folks who met with the Vice President speed the housing bill through. to put together his energy policy, what men are benefiting politically from I yield the floor. propping up these two mortgage giants. has been happening for them, while The PRESIDING OFFICER. The Sen- families are seeing their wages go The article said: ator from Michigan. If you want to know how Fannie Mae and down, if they have a job at all, every Ms. STABENOW. Mr. President, let cost they have going up—what has Freddie Mac have survived scandal and cri- me indicate my strong support for the sis, consider this: Over the past decade, they been happening to them? The total have spent nearly $200 million on lobbying Low-Income Home Energy Assistance combined net profits of the big five oil and campaign contributions. But the polit- Program and the motion to proceed companies since this President took of- ical tentacles of the mortgage giants extend under which we are currently working. fice are upwards of $556 billion. That is far beyond their checkbooks. The two gov- I hope we will have a strong vote. We net profits. ExxonMobil alone has had, ernment-chartered companies run a highly know regardless of the debate we are sophisticated lobbying operation with deep- since this President took office, $185 having on solutions or causes for how billion in profits. pocketed lobbyists in Washington and scores we got here, seniors, families, those we of local Fannie- and Freddie-sponsored One could say, well, businesses want homeowner groups ready to pressure law- represent are being affected by this to be profitable. I want them to be makers back home. every single day. profitable, and I am working hard to One thing that should get our col- Making sure that LIHEAP is in- make sure our manufacturers who, by leagues’ attention, this chart is a copy creased and that we have support for the way, pay a lot of these costs and of an invitation by Freddie Mac and families in paying their heating bills is are impacted by gas prices when it Fannie Mae and other groups for a big absolutely critical. I very much appre- comes to what is happening in the party at the Democratic National Con- ciate our majority leader making this economy, I want them to be profitable vention. There is one very similar to a top priority and Senator SANDERS for as well. This is not about whether com- this for the Republicans. They will con- his advocacy. I look forward to what I panies should be profitable. This is tinue to lavish entertainment on those hope will be a strong bipartisan vote in about the fact that we have had an en- of us in Congress until we stop it. support of improving and strength- ergy policy put forward by two oilmen National Public Radio reported that ening LIHEAP. in the White House that has focused on in the first 3 months of the year alone, I want to speak further today about supporting an industry and their back- Fannie Mae and Freddie Mac spent a the reality of what is happening for ers, their supporters, that has now cre- combined total of $3.5 million on lob- families, businesses all across America, ated a crisis in America, a crisis in the bying and hired 42 outside firms. certainly in my great home State of economy. According to the Center for Respon- Michigan. Since President Bush and To add insult to injury, it is one sive Politics, Fannie Mae and Freddie Vice President CHENEY, two oilmen, thing if there are profits and they are Mac have been such prolific donors to two people from the oil industry, took put back into creating more oil and gas political parties, candidates, and PACs office, gas prices have nearly tripled. exploration, alternative energy explo- that they are the No. 1 and No. 3 top Oil prices have gone up four times ration, if this was reinvested to contributors in the mortgage industry higher than before the current admin- strengthen America, the folks who are and rank in the top 100 political donors istration came into office. The average helping to subsidize this, taxpayer of all time. family is spending a record 6 percent of money. The folks I represent who have May I inquire as to how much time I their income, and counting, paying for lost their jobs, they are subsidizing have remaining? gas to get to work, to get the kids to this right now because of tax policy.

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE July 24, 2008 CONGRESSIONAL RECORD — SENATE S7257 To add insult to injury, are they put- the administration, for friends of my nothing happens to this. So there was a ting this back into the economy to colleagues, the Republican leadership filibuster that then we were not able to make us energy independent? No. The that has been fighting for the oil agen- overcome because we were missing one oil companies have spent $188 billion in da of this country. It has achieved a vote. stock buybacks over the last 5 years, goal but not a goal for the American So the solution that has come for- instead of investing in increasing sup- people. This is a question of who you ward by this administration, the solu- ply at home or in supporting a man are fighting for, whose side you are on. tion that has come over the last 8 who has now become very well known These folks are doing well. We know years of the leadership in the White to everyone, T. Boone Pickens, an whose side the current administration House—the two oilmen in the White oilman his whole life, who is now in- and those who support the administra- House—has been simply to have one so- vesting in alternative energy. Instead tion are on. Unfortunately, it is not the lution, which is to continue drilling of going in that direction because they side of the folks in Michigan who are even if, in fact, that oil does not stay care about America, the American peo- worrying about whether they can buy in the United States. So between 2001 ple, American businesses, American enough gas to get to work. and 2007, the Bush administration economy—no, that is not what is hap- We have, in fact, a formula the Pre- issued leases on over 26 million acres of pening. That is what adds such insult siding Officer is very well aware of: 8 onshore public lands. There are already to injury about what is happening to years divided by 2 oilmen in the White 44 million acres, as we know, of on- the people of Michigan and around the House has gotten us this result: $4 and shore Federal lands under lease, but 31 country. It is the fact that people are counting. million acres of those are currently not taking this and having stock buybacks So what has been the energy plan of being drilled upon. There are 2,200 pro- or adding another corporate jet or put- the administration that has gotten us ducing leases on the Outer Continental ting it into their pockets as opposed to to this situation? Well, for one thing, Shelf and 6,300 nonproducing leases at investing in America and the ability we have seen a free ride for the oil this time. for us to have energy independence. companies. In January 2006, the New So that has been the strategy. That Then, on top of that, with what is York Times reported that the Bush ad- has been the strategy that has gotten being drilled for—and we know we are ministration was allowing oil and gas us to this—okaying more and more in a global market. We understand companies to forego royalty pay- land and not even using it. And in the that. We are in a global economy where ments—so they were not having to pay first 4 months of this year, when we commodities move around the world. their royalty payments they should be were drilling for domestic production— But it is important to know that when paying—on oil and gas leases in Fed- because we are in a global economy—33 our colleagues put forward the oil eral waters in the Gulf of Mexico. This percent more of that went out into the agenda of drill, drill, drill, let’s keep decision by the Department of Interior global marketplace. Let me say there is a better way. In doing what we have always done and could cost American taxpayers more addition to supporting the energy spec- hope maybe something will change, than $60 billion. So to go back again to another ulation bill that is in front of us and in maybe we will get out of the hole we addition to supporting efforts, as I are in if we just keep digging—when chart—they are not paying oil and gas leases, which costs American taxpayers have done before, to have a responsible they talk about that, they are not ac- drilling policy in this country, there is up to $60 billion. I wonder how much of knowledging the fact that a record 1.6 a quicker way to get to where we want these profits came from that decision. I million barrels a day from U.S. refin- to go, and it is one that creates jobs, eries, 1.6 million barrels a day in re- wonder how much. We all know that the administration jobs right now. fined petroleum products were exported I am so appreciative of the fact that, and, unfortunately, those who support in the first 4 months of this year, up 33 through our budget resolution in the the administration’s policy, Repub- percent. Senate, our Democratic majority put lican colleagues, have joined in sup- So we are paying more. We are being jobs as No. 1 and green-collar jobs in porting an effort to block the elimi- told the problem is we are not drilling support of manufacturing and retooling more, and then 33 percent more of the nation of taxpayer subsidies to the oil our auto industry at the top of the list. oil drilled in America leaves America. industry so we can take those precious I am grateful for our leader’s support, dollars, hard-earned dollars of people Why? We are in a global marketplace. Senator REID, and Senator DORGAN, It goes to the highest bidder. We under- working every single day, money that who has been such a leader on these stand that. We understand the fact has been going to subsidize the oil com- issues, chairing the Energy and Water that China is using more, the fact that panies—we wanted to move that over Subcommittee in Appropriations. I am the weak dollar impacts that and oil to real energy independence, to focus very grateful for his support. But here speculation, the whole question of en- on the priorities of the American peo- is what we could be doing. ergy speculation which, again, I appre- ple, American families, American busi- Oil exploration and drilling will take ciate Senator REID and all the leader- nesses that are having to pay for all 7 to 10 years to bring new supplies to ship of my colleagues—Senator DUR- this. We tried to move over $12.5 billion market. Some people say longer. But BIN, Senator DORGAN, so many people— that would be used for real energy there are technologies we can bring to who have been focused on this as a independence, for incentives for solar market in the next 2 years—in the next piece of the problem, but we are being and wind and, yes, our new hybrid and 2 years—for advanced technology vehi- told: Use the old solution over and over plug-in vehicles that are coming in the cles. The more we invest in tech- and over, knowing that we don’t even next couple years that, frankly, pro- nologies such as advanced battery know if that oil is going to stay here. vide a much quicker opportunity for us technologies, the quicker we are going I have supported drilling in the gulf. to be able to get to energy independ- to find relief at the pump. That is the I have supported efforts to add to our ence than what we are talking about way we are going to do it, not by re- domestic supply. But this is not the here in terms of a long-term drilling warding the oil companies more but by way we are going to create energy strategy. investing in our own energy independ- independence by only focusing on that. We have an opportunity to take pre- ence, with innovation, American inge- According to the Department of En- cious taxpayer money and move it over nuity, hard work that allows us to not ergy, shipments this February topped to invest in the future, to invest in the only create jobs but create a future for 1.8 million barrels a day, shipments American people and in the future, us here in terms of energy independ- outside the country, the highest for the rather than in the past and the oil ence and lowering costs. first time in any given month. companies. We lost that by one vote, The facts are simple. Advanced vehi- We are being told that we should do not because we did not have enough to cles that run with new batteries are the same old thing, add to it, but do pass it, not that we did not have 51 much cheaper to drive than conven- the same old strategy, and somehow we votes, but unfortunately the Bush ad- tional automobiles, and we need to be will get a different result. I suggest ministration and the Senate Repub- moving to them as quickly as possible. that the same old strategy, first of all, lican leadership blocked it, filibustered Currently, the average cost to run a ve- has achieved great results for friends of it: Let’s filibuster. Let’s make sure hicle is 16 cents per mile—16 cents per

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S7258 CONGRESSIONAL RECORD — SENATE July 24, 2008 mile—on the roads. But the cost to run That is just a reality. I believe it was . . . But if we create a new RENEWABLE en- a plug-in hybrid car with advanced last year when I looked at the Presi- ergy network, we can break our addiction to lithium-ion batteries is only 3 or 4 dent’s budget and it was something foreign oil. cents a mile—a 75-percent reduction. like $22 million he was suggesting for There are some folks who are making Not only does this save energy, but, as advanced battery technology research. a lot of money by ignoring this strat- I said before, it creates jobs. This tech- Unfortunately, they just don’t get it egy, there is no question about it. nology is right around the corner. about what is going on around us. There has been an energy strategy in Frankly, there is a huge competition If we want to see prices go down and place that has worked for the oil com- going on in the world today to see who have energy independence and be able panies. I understand that when some- is going to get to that plug-in battery, to move to the future for our country, body comes out of a particular indus- that lithium-ion battery that is light- frankly, that is the fastest way to do try, their focus is on that industry. I weight enough, small enough, with the it. I am very proud our Democratic ma- understand that. But the reality is, we technologies that will allow it to be jority understands that. have gone too long—too long—with a mass-produced on the assembly lines so We know there is no silver bullet on strategy: 8 years of a Republican strat- thousands can be produced a day. The any of this. But I can tell you what I egy, with two oilmen at the head of prototypes are there. We have probably also know: a game show approach to this, creating $4-per-gallon gasoline. all driven them. We have prototypes battery technology research is not the That is the simple explanation for how for a variety of different vehicles. The answer. Frankly, both the Republican we got where we are. We have to stop question is not the prototype; the ques- alternative as well as the candidate digging. We have to stop doing more tion is being able to get something who we understand will be the Repub- and more of the same and hoping some- mass-produced so it is in the realm of lican nominee for President have put how we are going to get a different re- price where consumers can afford to forward the idea of a prize at the end of sult. We need a new strategy: Energy buy it and it can be produced in the the line, a prize for whoever can create independence, investing in American volumes we need. We are really in a the new advanced battery technology ingenuity, investing in a strategy for race right now to do that. research. the future, and, most importantly, I am grateful there is support from Well, Mr. President, we do not need a what we need is to put the American our Senate Democratic leadership to prize. We do not need motivation. We people first. That has not happened for invest in advanced battery research, do not need the motivation to get the last 8 years. It is time to make it R&D, the next generation, to provide there. We need the capital to get there. happen. That is what our energy pro- low-interest credit to retool our plants, We need the investment. We need the posals are all about. That is what we to keep the jobs here in America, and partnering. We need the priority of in- are fighting for, and we are going to to provide consumer tax credits for vesting in this innovation to get there. continue to fight for that until we plug-ins and hybrids to make sure the The prize is going to be real easy. Who- make it happen. price is affordable. All of those things ever gets there first, they are going to The American people have had are in legislation right now. They are get a big enough prize without us in enough, and I don’t blame them. I have before us in the tax package. They are terms of the marketplace. had enough too. It is time for a change, before us in Senator BINGAMAN’s The question is, How do we invest up and we are going to work very hard to amendment, if he has the opportunity front? What is it that Germany knows, get that change. Mr. President, I ask unanimous con- to offer it, as it relates to the Energy Japan knows, South Korea knows, sent that Senator MENENDEZ be the bills. They are in our appropriations. China knows that we do not know next speaker following the remarks of They are right now in front of us, and about this, when they are all racing to Senator SNOWE. we have the ability to act on this and put hundreds of millions of dollars into The PRESIDING OFFICER. Is there quickly be able to move us to the next this technology? It is very unfortunate generation of vehicles that go from a objection? that the approach that has been Without objection, it is so ordered. cost of 16 cents per mile on the road taken—primarily in the Republican al- down to 3 or 4 cents—much faster than The Senator from Maine is recog- ternative; not completely but pri- nized. what is being talked about in terms of marily; and certainly by the Repub- drilling. Ms. SNOWE. Mr. President, today I lican nominee—is to treat our economy rise in strong support of the Warm In Germany has announced the Great and certainly the industry that I care Battery Alliance, which will invest Winter and Cool In Summer Act as the deeply about somehow as a game show, lead Republican cosponsor, along with over $650 million in advanced lithium- and I find that really appalling. ion batteries for German vehicles. The 52 of my colleagues on both sides of the As I conclude, as indicated before, German automobile companies are re- political aisle. there is no silver bullet to stop the out- ceiving the support of the German Gov- I first thank the Senator from rageous price increases at the pump. ernment to be able to be the first ones Vermont, Senator SANDERS, for his We know that. We have to pass our leg- that are able to get to where we need tireless leadership on this vital issue of islation dealing with energy specula- to be in terms of the new battery tech- heating and cooling assistance and for tion. I hope we will be able to proceed nology. his steadfast vigilance throughout the to do that. We all understand that a re- South Korea, by 2010, will have spent last few months in pressing for this de- sponsible drilling policy is part of this. $700 million on advanced batteries and bate on energy assistance when there is We have, frankly, supported that and developing hybrid vehicles. not a moment to waste in preparing for China has invested over $100 million made those acres available. But we also what could be the worst winter in a in battery research and development. know—we also know—if we want Amer- generation, given the historic cost of Over the next 5 years, Japan will ica to be energy independent, we have energy today. At a time when sky- spend $230 million on advanced battery to invest in the future. rocketing energy prices are at the fore- research. It is spending $278 million a We have seen this chart before, but I front of our national agenda—when year on hydrogen research for zero- am going to show it again because we heating oil prices have increased from emission fuel-cell vehicles. have a lifelong oilman now running ads about $2.77 per gallon a year ago in my We are in a race. We are in a race as on television who is so concerned about home State of Maine to a staggering it relates to technology. We have the what is happening in our country and $4.81 cents a gallon today, and when engineers. We have the scientists. We this constant policy that has not been electricity has risen 3.6 percent in the have the skilled workforce here in working that he has been presenting, last 12 months, and gas prices have America to do this. We have not had an through commercials, a message that jumped from $3.05 a gallon to $4.05 in administration or a willingness by our we should be paying attention to: the last year—as we know, it should Republican colleagues to join with us I’ve been an oilman all my life, but this is come as no surprise that countless to be able to partner in the invest- one emergency we can’t drill our way out of. American families are faced with ments that need to be made in the ... choices that, frankly, no family should automotive industry of the future. ‘‘We can’t drill our way out of.’’ have to make. Indeed, as a direct result

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE July 24, 2008 CONGRESSIONAL RECORD — SENATE S7259 of spiraling energy costs, 70 percent of ceed to consider this legislation and ter, based on today’s prices, is close to low-income Americans are buying less have it become law. I think absolutely $5,000, just to keep warm this winter— at the grocery store, 31 percent are it is our responsibility and obligation $5,000. So if the eligibility standards purchasing less medicine, and 19 per- to give peace of mind to our constitu- are $33,000—$36,000 for a family of four, cent say they have changed plans for ency as they are despairing about the and for an individual it is anywhere the education of their children. Even oncoming winter and how they are from $13,000 to $17,000, it costs $5,000 to now, in the midst of July, in truth, going to meet the costs of home heat- heat one’s home or residence for a win- Americans—and certainly Mainers ing oil that is now close to $5 per gal- ter. These are hard-working individuals across my home State—are wondering lon. and families who, quite frankly, were how exactly they will pay for the fun- I think we do have an obligation to in desperate need of assistance back in damental necessity of heating their continue to support this social safety 2006 when we witnessed the first major homes this coming winter, just as net that is so essential. It is a matter increase in home heating oil. So we many others cannot afford the costs for of life and death, and I don’t think were able to provide additional funding critical cooling during these dan- they should be the victims of our polit- at that time of $1 billion for a total of gerously hot summer months in so ical failure or our failure to address a $3.1 billion. At that point, again, it was many States. In fact, in South Caro- comprehensive energy policy. That a crisis that, given the sharp hike, New lina, electricity services have been sus- should happen. No doubt it should. Englanders were paying about $2.39 per pended to 39,000 homes that are falling Frankly, I hope we can reconcile our gallon. Well, fast forward 2 years to behind on their bills, leaving these in- rhetoric here on the floor of the Senate today and you will see, based on our dividuals with no assistance to allevi- with legislative action that becomes charts we have provided, that oil costs ate the stifling heat. In Arizona there law that has an actual, direct impact $4.81. That is a 75-percent increase in has been a 40-percent spike in shutoffs on people’s daily lives. They deserve only 2 years—75 percent. for residential electricity users. The that. They deserve for us to take ac- So we augmented the funding back in bottom line is this issue knows no tion. Irrespective of the time or place 2006 up to $3.1 billion when home heat- boundaries regionally or politically. we are in, in the Senate—whether or ing oil was $2.39. Today, it is at $4.81, The reality is the stunning effects of not it is a political year—we ought to and of course we are in July, so we these astronomical energy costs are reconcile our differences to do what is have no idea in terms of what we can not a regional problem, they are a na- right for America on this mighty chal- anticipate or expect for home heating tional problem requiring national at- lenge that is facing so many across this oil costs when it comes to winter. So a tention and a national solution. In country, including my constituency. 75-percent increase as we know it fact, as I think about it, with the Low- Here we are in the third energy crisis today. So when winter actually arrives, Income Heating Assistance Program of recent times, and we see that the New England could spend, under to- pending before the Senate—at least the program was at least designed to mini- day’s prices, more than $19 billion on motion to proceed; and I hope we will mize the burden for the least fortunate home heating oil—$19 billion on home proceed, Mr. President and Members of for years and has provided a level of heating oil alone. That is a staggering this body, because I think we ought to funding. However, as you can see, with price increase compared to back in 2006 be translating words into action—I the historically high home heating oil when it was approximately $9 billion. think there is no better place to start prices you see over time, and yet, even That gives us a dimension of the esca- than on this very crucial and vital pro- though we have provided funding for lation of the problem as we face it gram. In fact, if I recall, it was back in low-income fuel assistance basically on today and still not knowing what we 1979 and 1980 when we first had the de- a consistent basis, it never addressed can expect when winter approaches. bate on whether to create this program the gap between the level of funding As we see on this other chart I have called the Low-Income Fuel Assistance and the costs for home heating oil. So presented, here is the cost of home Program, and it was my first term in we are seeing, as you can see in the re- heating oil, and as we have seen, it has the House of Representatives. I, along cent times, in the recent months, what increased 147 percent since 2004. So ba- with the late Speaker O’Neill, testified has happened to the cost of home heat- sically, in the last 31⁄2 years, we have before the then House Appropriations ing oil. Yet at the same time the level seen an increase in home heating oil of Committee to create such a program. of funding for low-income fuel assist- 147 percent. Yet when you look at the It was born out of the energy crisis ance has leveled off. wage increase, it has only been 17.1 per- that was engulfing our Nation at that That is why we need the legislation cent. So you see that the cost of home time when we had gas lines here in the that is pending before the Senate. My heating oil in Maine has outpaced District of Columbia and across this colleague Senator SANDERS is abso- wages by 174 percent. Prices are now country. lutely right, we need to double this well ensconced in the stratosphere, It was interesting to think that at funding. I thank the chairman of the with the legitimate fears that the sky that time, in the midst of an energy Budget Committee as well for doubling may not, in fact, be the limit. It is a crisis, that previously—6 years pre- the authorization. I appreciate his huge disparity when you see how little viously or 7 years previously—we had leadership on this question because we wages have grown over the last 31⁄2 another energy crisis and, unfortu- are in very different times, and that is years and what has happened with a nately, didn’t learn from that event. the reason why we need to increase the basic commodity such as home heating Out of that crisis in 1979 and 1980, we level of support for this valuable pro- oil having increased 147 percent. created the Low-Income Fuel Assist- gram. Yet given all of these alarming num- ance Program in order to give low-in- This program is for the most vulner- bers, what has happened to the level of come families the ability to heat their able. We are talking about income lim- low-income fuel assistance? It has ac- homes and to cool their homes in other its of $17,680 for an individual, and the tually dropped. It has actually declined parts of the country. That is how this average individual recipient earns to $2.5 billion from the $3.1 billion that program was created. So I think this around $13,000 per year. Think about it. we provided and that I sought, very ac- program was created as a result of a The assistance we are providing is for tively, back in 2006, when the prices crisis—as a result of the failure of this those who have income eligibility of had spiked. So we were able to aug- country to create and enact a com- somewhere between $17,000 and $13,000 ment, as I said, that funding by an ad- prehensive energy plan. I think too on an individual basis. That is who we ditional billion dollars to reach $3.1 bil- today, 30 years later, we are in the are talking about when it comes to the lion, but unfortunately, the funding for same circumstance, regrettably and income eligibility standards for low-in- low-income fuel assistance fell back to tragically, and the people who rely on come fuel assistance—$13,000 for an in- $2.5 billion. So it obviously doesn’t this program should not be the victims dividual and as high as $17,000, and for make sense. We are actually regressing of our inability, or our unwillingness, a family of four the limit is $36,000. In in terms of a level of funding at a time to address the energy problem. That is Maine, in terms of the projected costs when home heating oil is actually sky- what we should come to terms with for paying for a household for home rocketing and we don’t know where the here in the Senate, that we should pro- heating oil during the course of a win- boundaries are, we don’t know where

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Certainly, we should KERRY and I convened last month to double funding for this program and to have a comprehensive energy solution, discuss the dimensions involving small do it now and provide the assurances, no doubt. I don’t think we should place businesses and home heating oil and instead of the rhetoric about what we the burden on those individuals who what the impact would be in our re- will do sometime down the road. I rely on this program, who are con- gion, I had an individual from my think we do have a responsibility, indi- cerned—deeply concerned—and an- State—her name is Jennifer Brooks— vidually and collectively, to make the guishing about the future because of who is the community relations man- process work in the Senate and in the our failure to reconcile our differences ager at Penquis Community Action Congress, with the President, to do to reach out across the political aisle. Program. They are on the front lines of what is right for this country, for these I question as to why we cannot do it. I providing critical services to Maine in families who are agonizing over the an- don’t think we should live in an all-or- multiple counties during these difficult ticipation of what next winter will nothing world because that is not the times. bring in terms of costs. Here, with this world our constituents live in. These Last year, the community action program, we are talking about the low- issues are not mutually exclusive. It is program provided fuel assistance to est of incomes. When it comes to not that we cannot do one because we more than 9,000 Maine households. The $13,000, $17,000 for a family of four, or were haven’t done the other. How average benefit received by each house- even $31,000 or $33,000, we need to help about starting someplace? We can start hold was $736. In order to qualify for these families and these individuals, with this program, which was born be- low-income fuel assistance this upcom- without question. cause of an energy crisis 30 years ago. ing heating season, a family of four As my constituent Jennifer Brooks We are in a similar circumstance must earn less than $31,800. So under said in her testimony before the Small today. the best case scenario, if a household Business Committee: These people should not bear the does qualify for LIHEAP and benefits If the average person on fuel assistance brunt of our political failures or un- remain constant, a household on aver- makes about $14,000 a year and the benefit willingness or inability to resolve these age can expect to receive 158 gallons of only pays for 158 gallons of oil, I don’t know differences. I think the Senate should not be a oil for the season, which isn’t even how they come up with any more money . . . roadblock to results but a pathway to enough to fill a 250-gallon tank one they can’t, with the cost of food and the cost of gas and everything else. There is no hope. What I see here today, regret- time. money left over to pay even in the summer tably, is, again, my way or the high- We know it takes, on average, to get months . . . there is talk [of having] ‘‘warm- way. Here, at a time when we are deal- through a Maine winter, 850 gallons of ing places’’ so people can shut their furnaces ing with monumental challenges con- heating oil—850 to 1,000 gallons—and it down real low during the day and go to li- fronting this Nation—and they are af- costs $4.81, which we know is the price braries and stay warm during the day . . . we fecting our country simultaneously. today. When you look at what is avail- are in a crisis. Look at our economy and the job pic- able in the low-income fuel assistance Last year, I heard many stories. ture, the housing, energy, and we are in program, if we fail to take action and After we were expecting $2.50 to $2.70 a a war in Iraq and in Afghanistan and increase funding, as this legislation gallon for home heating oil, I heard we continue to dither, to remain in- would prescribe, to $5.1 billion, our stories of desperation then. One TV tractable, intransigent about achieving lowest income families will receive a station, channel 13, in Portland, ME, results. Truly, it is not in keeping with mere 19 percent of their home heating decided they would initiate a program the legacy of this institution, which oil costs through this program—the where they would provide a few hun- has done so much throughout our his- lowest in the program’s history. dred gallons of heating oil to four fami- tory. Now, it is unbelievable to think peo- lies requiring assistance. They were That is why Senator NELSON, from ple can anticipate this winter facing, asked to submit e-mails or letters if Nebraska, and I sent a letter to the at the minimum, spending close to they believe they qualified for this as- President, along with 14 other col- $5,000 for home heating oil. Yet given sistance. They received an astounding leagues, asking the President for a bi- the dimensions of this program, we will response, with more than 2,000 re- partisan summit. After all, we think only be able to provide support for 19 quests. these times demand it. The President percent of the entire cost for the entire Again, there is no doubt as to the should convene a national energy sum- winter. As you can see from the pre- magnitude of the problem. That was mit, bringing together the congres- vious support of this program, the per- for last winter. One hesitates to think sional leadership, on a bipartisan basis, centages have declined over the years. about what we can expect for this win- and other Members of the House and Over the last 25 years, the average ter, when prices have increased by Senate from the committees of juris- Maine low-income fuel assistance re- more than $2 since last winter. Here we diction, environmental leaders, indus- cipient received assistance that pro- are in July. So we must step up to our try leaders and scientists, to sit around vided 41 percent of their heating oil responsibilities in this crisis and fully a table to see what we can do for the costs. Last year, that started eroding, fund the low-income fuel assistance good of this country now. and it declined from $3.1 billion to $2.5 program at the $5.1 billion. That is the It is immaterial that we are in an billion. For the nearly 50,000 Maine least we can do. It is not that it will election year, that we are 7 months households that received benefits, they address all the problems or fulfill the away from the election. The American were only provided 35 percent of the en- needs for all those individuals who rely people deserve to have us honor our ob- tire cost for the season. on this program, but certainly it will ligations as elected officials. After all, At today’s prices, if we fail to in- be a very important step forward. We there was an election in 2006, as I re- crease or double the funding of the low- must do it now. We should be proactive call. We promised our constituents we income fuel assistance program to $5.1 and preemptive and prescriptive in our would work on the problems facing this billion, then we can only provide 19 measures, not reactive, and not wait country. Here we are today with an percent of the entire cost of winter for until after the August recess and con- abysmal 14 percent approval rating. I home heating oil. Obviously, I think tinue to dither and talk but fail to don’t know, that may be the lowest ap- that speaks volumes, in terms of the take action. proval rating in the history of Gallup dimension of the problem we are facing We have a responsibility to provide Polls. and what families are facing in my assurances to those people we rep- We all bear a responsibility, individ- State, in New England, and across the resent in this country, to take the ually and collectively. We should care country. Whether you are living in a strong measures, and to take those ac- how Americans feel about this institu- cold- or hot-weather region, you de- tions that are so vital and instru- tion and what can we do every day to

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We are going to do every- stoves or other energy-efficient means Frankly, I cannot believe that we thing we can to be a barrier to solu- of heating our homes. Yet the tax cred- would adjourn for the August recess tions. We will wait for the next elec- its for those have expired. They expired without addressing the energy crisis— tion or next year or maybe some other at the end of last year. So they cannot this program, speculation, and much time. even resort to that as an alternative more. The American people do deserve Yet people are suffering. They are because, regrettably, we have not ex- to have a comprehensive approach. losing their jobs. They are wondering tended that tax credit. They do deserve to have their elected how to heat their homes next winter. The question is, Why? Why are we at officials stay here as long as it takes, They are losing their homes. This is a an impasse on those issues upon which as much time as it requires for bold ac- time for us to step up to the plate and we agree? I think that is the most star- tion that will be so essential and can demonstrate to the American people tling dimension to the problems facing measure it with the problems we are that we can do it. Frankly, we are ex- this country—that in the Senate, facing in this country today. periencing a crisis in confidence in where we should be taking and adopt- I yield the floor. America, in a variety of institutions, ing the can-do approach, why can’t we The PRESIDING OFFICER. The Sen- not the least of which is Congress. Peo- do the right thing and address this en- ator from New Jersey. ple are not only despairing about their ergy crisis? We all agree extending tax Mr. MENENDEZ. Mr. President, I individual situations, they are also de- credits for renewables is something we wish to start off by saying how much I spairing about the inability of elected should do. So why aren’t we doing it? agree with my distinguished colleague officials in our political institutions to Because individuals or companies or from Maine. I think the LIHEAP pro- address these problems. It is not so entities aren’t going to make invest- gram is one that is essential. There is much that America has these prob- ments in renewables if they don’t have a real possibility if we do not deal with lems, it is the question of our inability the assurance of tax credits. That is the LIHEAP program, fellow Ameri- to address them and to reach across abundantly clear. They have no way of cans across the landscape of this coun- the political aisle. knowing how long or whether they are try will find themselves in the cold, lit- I hope we can find a way to extricate going to be extended. They are not erally and figuratively, and they will ourselves from this confrontational going to put themselves on the line fi- be in such a situation where they will morass and not constantly engage in nancially without the certainty of have to make desperate choices in all-or-nothing politics and scoring po- knowing they will be extended. their lives. litical points, making it all about the Why are we not doing that? It will So this is something, among other election, and not live up to the expec- create jobs and, certainly, we need job things, on which we should be reaching tations the people rightfully have of creation in America, at a time when across the aisle. As one Democratic their elected officials and political in- unemployment is rising at high levels. Senator, I want the Senator from stitutions to address the mighty chal- We should be concerned about cre- Maine to know that we are absolutely lenges confronting this Nation. ating jobs, and that is one dimension. in agreement with her, and we believe Without question, we can and we We should be concerned about creating this is essential to move forward. must have answers to this national alternatives, creating incentives, in- I appreciate her comments about emergency. That is why I thought it spiring innovation, entrepreneurial coming to common ground and com- would be an important step forward if spirit. We should do all of that and mon cause on those things on which, in the President convened an emergency more, and we hesitate and fail to take fact, we can agree. There is much, at energy summit. There are short-term action on issues on which we agree, least from listening to the speeches on and long-term solutions. There are which is truly dismaying and dis- the Senate floor, that, in fact, we sup- many pieces to the energy pie. The concerting, most certainly to the posedly can agree on. We see there are low-income energy assistance program American people who depend on us to elements of the Republican package is a critical aspect of that in terms of take those measures and those steps that deal with market speculation. mitigating the impact on the most vul- that can begin to resolve effectively That is the essence of the underlying nerable in our society. We have an obli- the problems that are at hand. bill we are debating. Let’s come to- gation, at a very minimum, to address We can do all of these things. We are gether on that. Let’s come together on that for these individuals. It is not certainly capable of doing them, unless the renewable energy tax credit ex- their burden and it should not be; they we are stuck in the status quo and the tenders, something that we began, that should not have the responsibility of gridlock that constantly is where we existed, and we need to extend if we our failure to address the energy prob- try to score the political points time want to get the marketplace not de- lem. That is why we need to double the and time again to no avail. pending on oil, whether it be foreign or funding for this critical program. I hope we can proceed and take ac- domestic. Let’s agree on that. That is Yes, we should pass legislation with tion on this very basic social safety net apparently something we can agree on respect to speculation. It is something program for the most vulnerable in our from speeches I heard. We should come most of us agree on. Why can’t we do society and demonstrate that we do together in that respect. it? There are other aspects to energy have the opportunity, these rare mo- I heard conservation about using policy we have failed to address. Every- ments, to reach across the political less. We agree on that issue. Let’s come body is agreeing we should extend the aisle and proceed to double the funding together on that. I agree with the Sen- tax credit for renewables. So why for this program at this moment in ator from Maine that while there may haven’t we done that? It should have time because, certainly, it is one pro- be differences, there are a lot of ele- been part of the stimulus package—and gram that is of immense value to the ments together that we do agree on, it was, to a point. But, regrettably, people of my State and throughout this and if we can begin to move on those again, there were those who opposed it. country, and it is certainly at the very elements, maybe we could come to a Yet it could have very well been stimu- least, at the minimal, what we should point in which we could move forward lative to this economy. It would have be able to accomplish. on other items as well. created up to 100,000 jobs. In Maine, we I hope we can do more. I hope we can But why not allow those things that get $1.5 billion for wind projects, but find the political wherewithal to search ultimately can make a difference in we didn’t extend the tax credits for re- within ourselves to reach across the the short term and in the long term for newables beyond this year. Why political aisle so the monkey wrenches our collective constituents? When you couldn’t we do it? Everybody talks don’t continue to grind down the delib- are cold, it doesn’t have a Republican about it. Yet we failed to address that erative process with polarization and or Democratic label to it. When you

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She is a voice of reason, asked: Why can’t you create more pro- every time we have to pay to fill our and I appreciate where she stands on duction? tanks and heat our homes? It is the these issues, and I agree with her. He said: We don’t have the infra- American consumer. Hopefully, we can move in that direc- structure and the rigs and the drills We Democrats want to do something tion. and all the pipeline and everything about it. For those who keep saying— COASTAL DRILLING that is necessary to create more pro- even though it is part of their plan— Mr. President, I have come to the duction. He didn’t say why. One of the oh, no, this is really not a problem, let floor various times over the last couple reasons is they haven’t been investing me read to you from an article that ap- of weeks to discuss opening our coast- the money to do that. peared today, July 25, in the New York line to drilling. This is part of one of So all the suggestions to lift the mor- Times: the marvelous beaches in New Jersey. atoria and tomorrow out sprouts oil Firm said to manipulate oil market. Com- You have to get off the New Jersey and, therefore, gasoline and prices modity regulators in Washington have ac- Turnpike to understand. plunge is simply not true. They cannot cused a Dutch trading company of making I had some colleagues say: Why are even pursue the 68 million acres, the roughly a million dollars in illegal profits by you so fixated on this drilling issue? extra area in the gulf, the extra area manipulating the prices of crude oil, heating oil— Isn’t your State one big refining place? off the Outer Continental Shelf in Alas- What we are going to be using this They obviously never got off the New ka that is not subject to any moratoria winter— Jersey Turnpike. right now. They cannot even do that If you get off the New Jersey Turn- and haven’t done it. What an incredible and gasoline— pike, you will see one of the most in- falsehood perpetuated on the American Over what period of time? credible parts of the United States people. But I believe the American peo- over an 11 day period of time. coastline where not only millions of ple know better. One million dollars in 11 days in ille- New Jerseyans go, which they consider If we listen to these proposals, you gal profits. Oh, it is not a problem; a birthright, but people from through- would think—I have seen some of my speculation is not a problem. out the region. Canadians come down colleagues shake the legislation and In audio tapes uncovered in their inves- and contribute to our economy because say: There is no oil in here. Guess tigation, regulators said one defendant de- they want to go to the New Jersey what. There is no oil in their proposals scribed the scheme as an effort to ‘‘bully the shore. either. That is really laughable. market’’— The Presiding Officer, the distin- Who do our colleagues on the other Bully the market— guished senior Senator from Florida, side of the aisle choose to help? The oil by making a large number of trades at or understands what that Florida coast- companies have more money than the near the end of the trading day to move clos- line means to his State and his econ- eye can see, and you don’t even hear ing prices. omy. That is why he has been such a them talk about the oil companies. But this is a marketplace that can- vigorous voice on the floor of the Sen- They never invoke their name unless it not be bullied. Therefore, we don’t need ate. is to say: Oh, we need to give them to do anything about the speculative Ever since I have been having to more. We need to do more for them. We nature and unbridled speculation. Well, come down to the floor, ever since we need to do everything for them. The guess what. One million dollars in 11 have had these two oilmen in the White average American wishes they were in days, with their own voices saying that House, the Presidential candidate they the role of the oil companies—record this is an effort to ‘‘bully the market.’’ support, and many on the other side of profits, huge amounts of money. Let’s Moreover, unlike many manipulation the aisle—not all but many on the give them more. Let’s give them more. cases, this one accuses the defendants other side of the aisle—have begun a We never hear from our Republican of actually succeeding in moving prices very hard sell to the American people friends talking about the oil companies that were used as benchmarks for con- over an absurd notion that opening our having any responsibility—I am not sumer markets—actually moving the coastlines to drilling will ever lower saying the responsibility, any responsi- benchmarks that are used for consumer gas prices. They have grabbed on to a bility—for some of our lack of produc- markets, in essence, saying not only is source of fear and frustration among tion. I have just heard one too many it our intention to bully the market, American families, and there is no speeches that are apologies for the oil but the regulators are saying yes, and question that there is frustration and companies. Multibillion profits—I am they did bully the markets. They did pain for our American families. But not going to be an apologist for the oil bully the markets. they are using that frustration and companies. Now, the complaint that was filed in pain to pull a fast one on the American As we try to pass legislation to crack the Federal District Court in Manhat- people. down on greedy oil speculation which tan says at least two of those attempts Exploitation of pain at the pump to could lower gas prices quicker than resulted in, guess what, higher prices grab more land to build up stock anything, they just say no, even for gasoline and crude oil. But our Re- prices, that is what this is all about. though they include it as part of their publican friends say: Oh, no, market They are using it to sell a plan that in proposals. manipulation and speculation isn’t a reality will bring absolutely zero relief Back at home, people who are hear- problem. But here is only one example, to Americans but instead represents ing these debates say: They keep talk- and this has been a reluctant regulator one last great big handout to oil com- ing about speculation. I know what to pursue this. When they have heard panies that are already making astro- speculation generally means. the speeches on the floor and they have nomically staggering profits. What does it mean in the context to heard this going on for some time now, We just saw the beginning of that pa- the average person? What it means is all of a sudden we grab one of these rade with ConocoPhillips, an incredible traders buy huge quantities of oil on- companies, 11 days, $1 million, bullying increase in profits. On one hand, you line, many times intentionally inflat- the market and doing it successfully. have American families who are get- ing prices. They then turn around and That is why we need the legislation ting absolutely slammed by high gas sell those very orders to other traders Senator REID and the Democratic ma- prices. On the other hand, you have oil at even higher prices. These traders jority brought to the floor and that companies counting their money, sit- never intend to use the oil. This is not others only talk about, saying it is ting on 68 million acres of public land a purchase of oil because they are part of our package. Well, join us. Join that are not being put to use and focus- going to ultimately use it in distribu- us before more market speculation ing way more on taking that money tion in the country and make sure peo- takes place.

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We are try- half a million jobs in the State of New Chance of thunderstorms, 30 percent. ing to create greater transparency, for Jersey supported by the economy there I think the Presiding Officer has a the first time requiring—for the first between recreation, tourism, and the pretty good sense that this is pretty time—detailed reporting of previously commercial and recreational fisher- tame weather conditions for this time undisclosed trades. And oversight— men. of the year—certainly not hurricane stopping speculators from inflating oil It surely would be nice if an oil spill weather. prices by playing domestic and foreign off the coast of Virginia didn’t have the So if you look up ‘‘irony’’ in the dic- markets off of each other. potential to affect the coastline from tionary, I think you will find possibly We had testimony before the Con- South Carolina up to New York. That that it might describe cancelling an oil gress, sworn testimony, as a matter of surely would be nice, if it were true. drilling photo-op because a massive fact—and it is not often we have sworn But the facts always come out, and at nearby oil spill took place. Having to testimony—from oil company execu- the end of the day, the facts always cancel your big oil drilling photo-op tives. They were challenged as to why win. because of a massive oil spill is like we are having these high prices. You Earlier this month, the distinguished cancelling a crime safety photo-op be- tell us, in fact, it is the demand and minority leader made this statement, cause the house next door got robbed. the supply side. We said we have heard echoed by several of his colleagues as In selling this absurd coastline drilling a lot of talk about supply and demand, part of their hard sell to the American plan to the American people, Senator and that largely over the last 2 years people: ‘‘Not a drop of oil was spilled MCCAIN and others have time and time they have traced each other pretty during Katrina.’’ Not a drop of oil. again pointed to advanced technology closely together. Well then, what is the Well, that surely would be nice, if it that would supposedly eliminate the issue? And what is their response, were true. But the fact is, we can see threat of massive oil spills. Well, this these very oil company executives? here from this U.S. Coast Guard photo is the oil fire after Katrina. As he can Their response is: market speculation. that was published in the Washington now personally attest to, even with the But no, we don’t have to go after that. Post on July 14 of 2008 what was hap- most modern technology, we can’t pre- It is not one of the most important pening with this spill and how they vent massive oil spills such as the one issues, something that can be done were trying to burn the spill up in currently devastating the Mississippi, now. So they say no. order to try to deal with the disaster. just as we couldn’t prevent a 7.7 mil- I have to hand it to my colleagues for Oh, but not a drop of oil was spilled lion gallon oil spill after Hurricanes their political talent, to take an issue during Katrina. I guess this picture Katrina and Rita. And that is the type so vital to the daily lives of Americans must be a fabrication of the Coast of straight talk we need about oil drill- and convince them they want to do Guard. ing and the type of talk the American something about it with a proposal Last month Senator MCCAIN said: people need to hear and that they de- that is more about oil company stock ‘‘Not even Hurricanes Katrina and Rita serve. prices than gas prices. That is quite a could cause significant spillage.’’ Well, As to the claim that coastline drill- feat, if you can pull it off. That is tal- the same picture from the U.S. Coast ing will lower gas prices, we know it ent. But here is the problem. The facts Guard. That surely would be nice, if it simply won’t. That is clear when we re- always come out, and the facts ulti- were true. Last time I checked, 7.7 mil- alize there are millions of acres al- mately always win. lion gallons of oil is pretty significant, ready subject to oil exploration that It has been tremendously important pretty significant. aren’t being pursued. In fact, the to me, as a Senator from New Jersey, And then in the last 24 hours, there American Petroleum Institute presi- to come down here and give the facts was a stroke of poetic justice. Senator dent says: Well, we don’t have the in- about coastline drilling. It is not just MCCAIN was ready to fly out to an oil frastructure and the rigs and the drills the facts about drilling and gas prices, platform in the Gulf of Mexico to stage to pursue it. We can’t do that over- although that is how they initially a photo opportunity. He was ready to night. make their plan popular, it is also the show how safe it is to drill for and We know we have reduced 800,000 bar- facts about oil spills, which they say transport oil these days. Nothing to rels a day in demand because of high are virtually impossible with today’s worry about. Unfortunately, he should gas prices. The Saudis have produced drilling technology, virtually impos- have known better, because the facts 500,000 barrels a day in extra produc- sible. always come out, and the facts always tion—a 1.3 million barrel a day shift in That is exactly what they told us win. Just as he was set to do this yes- barrels of oil—and yet gas prices have about the tanker industry that carries terday, there was an accident on the done what? They have gone up. We the oil. We don’t have any rigs that I Mississippi near New Orleans in which opened the gulf—181—and gas prices know of in the country, along the a freighter rammed a barge and spilled have gone up. coastal waters of the United States, 419,000 gallons of fuel oil. Next thing So if 1.3 million barrels in either re- where there is drilling, that either you know, the McCain photo-op was duced demand or increased production don’t have a pipeline system or don’t postponed. It seems they realized it is haven’t done anything about gas ultimately have a vessel. And we were hard to make the case that oil drilling prices, imagine the very large sum of told: Don’t worry about our tanker sys- and oil transportation is completely 200,000 barrels in the year 2030 at this tem. In fact, it is impossible to have safe when there are 419,000 gallons of risk. If 1.3 million barrels can’t do it, any spills. oil floating around and washing up on how does 200,000 do it, and yet accept This is what happened with that im- the shore nearby. this risk? Accept this risk to this envi- possibility. Workers there are cleaning Of course, now his representatives ronment and to the $200 billion that is up after the Exxon Valdez oil spill in are saying it was postponed because of generated by the coasts of the east and Prince William Sound—a lot of oil the hurricane that hit the southern tip west. there, obviously, a huge disaster. So if of Texas yesterday that this event was And, by the way, that 200,000 would we could say that, and if it were true, cancelled. I thought: Well, that might mean that every State would have to that would surely be nice for the east- be a legitimate reason. But then I agree, assuming we would give States ern and western coastlines of the checked the National Weather Service an option, and we have already heard United States. If it were true, in fact, forecast. And what did the National the Governor of California say: No way. that it is virtually impossible to have Weather Service’s detailed forecast They are one of the biggest parts of the no spills, that surely would be nice for say, which I have right here—satellite coastline. I doubt you will get Oregon the $200 billion that our coasts gen- images? and Washington in that respect. We erate each and every year in fishing The National Weather Service made have heard some of their distinguished and tourism revenues—$200 billion. And the following forecast today for the colleagues say that is not going to hap- it surely would be nice if it were true Louisiana gulf coast: Partly cloudy. pen. New Jersey won’t do it. So by the

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But saying it over and Katrina and Rita. we agree to is very significant. over doesn’t make it true, saying over This is a Coast Guard picture. That is The Republicans say they are for a and over that drilling is the panacea, the reality. The fact is, we were told renewable energy source, and are pro- the solution to bring down gas prices. we have the most highly techno- viding the tax credits that existed and The way I hear it, I hear: Pass the logically advanced—it is impossible to expired and should be brought back to legislation, have the President sign it, have any spills as a result of tankers. life. They say they are for that. Well, tomorrow oil sprouts up, gas gets The Exxon Valdez. they have said ‘‘no’’ twice, though. made, prices go down. I give a lot more It simply is not true to suggest that Twice we have brought that forward, credit to the American people than there was not. How is it that it has and twice they have said ‘‘no.’’ that. been quoted here— The fact is that passing the tax cred- The truth, crushed down to the floor, Not even Hurricanes Katrina and Rita it extenders would create the incen- springs back up. The truth is that, in could cause significant spillage . . . tives that are necessary to move us in fact, we have the wherewithal to move At least that says ‘‘significant spill- a direction in which oil is not the our country in a much different direc- age.’’ issue, and risking the coastlines and tion. It is the can-do spirit of America. the $200 billion economy is not the Not a drop of oil was spilled during Katrina It is the pioneer spirit of America. It is ... issue, and where we could do things in a tighter timeframe and better time- the spirit that gets going—the tough It is pretty tough to say that not a frame than the year 2030. That would get going when the going gets tough. drop of oil was spilled during Katrina. move us toward renewable energy That is the spirit we have. That is the This is why we have to be so cautious sources, such as wind, solar, biomass, spirit we should pursue. That is the re- about risking the coastlines, the econ- and cellulosic ethanol, plug-in hybrids, newable energy from tax credits. That omy, the environment, when it will not which are critical. All of these things is the conservation. That is stopping produce a drop of oil for over a decade, would move us in a direction long be- the speculation in the marketplace. it will not do anything about gas prices fore 2030, which is when all of this pro- That is ensuring that, in fact, we move now or in the future, but can create an duction would take place, if it takes to necessary renewable energy sources. enormous consequence. place. That makes for a great America, a new We need to be honest with the Amer- We supposedly agree on moving for- economy—and do something about ican people, and I hope this oppor- ward on that, but our Republican global warming all at the same time tunity to get to the floor and talk friends have said ‘‘no’’ twice. Repub- that we deal with the challenges of gas about some of the facts and show some licans say that speculation is part of prices in the short term and liberate of the photos from the Coast Guard their package. I talked about that ear- ourselves in the long term. That is will make it very clear. lier. We saw already one company what the debate is all about. I yield the floor. being pursued—$1 million, 11 days, bul- Mr. NELSON of Florida. Will the The PRESIDING OFFICER (Mr. lying the market and succeeding in Senator yield for a question? SANDERS). The Senator from Pennsyl- doing it. Well, it is time to move on Mr. MENENDEZ. I will be happy to vania is recognized. speculation. Yet that is the very es- yield. Mr. SPECTER. Mr. President, this is sence of the underlying bill. We can’t Mr. NELSON of Florida. The Senator an unusual day in the Senate. I have seem to get them to agree on that. has given an excellent exposition and been in this body for a while. I have Most of the speeches I have been hear- debunking of a number of these myths. never seen the floor so crowded. I have ing is that they pooh-pooh speculation. As to his recitation debunking the sought, since early morning, to find a When it made a difference in oil and statements made by a number of Sen- little floor time and have waited more gas prices, as that case suggests, I ators on this floor that there was no than an hour at the present time, past would simply say that is certainly not oilspill in the Gulf of Mexico after Hur- the time I was scheduled to speak. I am anything to be pooh-poohed. It is real ricane Katrina and Hurricane Rita, I glad to listen. and it is consequential, and even the want to ask the Senator whether he I am beginning, on my consideration testimony of the oil company execu- had seen this particular report from of the pending legislation, the energy tives says it could produce anywhere the White House, ‘‘The Federal Re- speculation bill, to note what is hap- up to $50 per barrel more. sponse to Hurricane Katrina, Lessons pening on the Senate floor. There has Republicans say that conservation is Learned,’’ February of 2006, after been a lot of talk, a lot of talk in the part of their package. We agree. So Katrina, in August of 2005. Senate for the last 4 days, and really why not join us in that respect as well, I want to find out whether the Sen- no action—only one vote on Tuesday with the conservation proposals we ator had seen this report: morning on a procedural matter to in- have put forward? In fact, Hurricane Katrina caused at least voke cloture to proceed to the consid- There are three very significant 10 oil spills releasing the same quantity of eration of the bill. What has happened? areas: renewable energy tax credits, oil as some of the worst oil spills in U.S. his- We have been talking a great deal but speculation, conservation. Let’s move tory. Louisiana reported at least six major not considering anything which would spills of over 100,000 gallons and four medium advance an energy policy for the forward. But instead, what we have is a spills of over 10,000 gallons. All told, more series of noes. Then we have 18 amend- than 7.4 million gallons poured into the Gulf United States. ments filed by Republicans, all to do Coast region’s waterways, over two-thirds of We are engaged in a process which is what? To open the coastline of our the amount that spilled out during Amer- a little difficult to understand, but I country, which, as I have already dis- ica’s worst oil disaster, the rupturing of the think it is important for the American cussed, will not achieve anything. But Exxon Valdez tanker off the Alaskan coast people to know what is happening. A do you need 18 different amendments in 1989. procedure has been utilized recently— even to pursue what you think is an ap- That is the end of the quote from the the past couple of decades—where the propriate energy policy to open the very report on Katrina from the White majority leader exercises his rights as coastline to drilling, to risk the con- House. Has the Senator seen that re- leader to take a procedural step which sequences of this? OK, the majority port? precludes anybody from offering leader said: Go ahead, we will give you Mr. MENENDEZ. I have. I appreciate amendments to the bill. an amendment. But you cannot take the distinguished Senator from Florida This is an opportunity. The Senate yes for an answer. We have to have 18 pointing it out. The words are powerful Chamber is empty, which it is fre- different amendments to do virtually because there it is not a Member of the quently, certainly past 7 o’clock on a the same thing. Senate saying this, not a Democrat Thursday evening, but it is very hard

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That is why the and proceeding to final passage before I increased their production. ratings of the Senate have plummeted. or others had had an opportunity to If they increase their production, if We have a situation which really offer amendments. the supply goes up, prices will come started to percolate back in 1992, and it Now, what happens as a result? The down—the inexorable law of supply and has been a practice of both Democrats result is that Republicans complain demand, one of the few laws that and Republicans. Customarily—really about what Senator REID has done on works. invariably—when there is political precluding amendments, and Senator So here we are, with an enormously blame in this body, it is attributable to REID complains about it being another serious problem with what is hap- both political parties. You can divide it Republican filibuster in response to the pening with the issue of oil prices and right down the center aisle, and it is Republican’s inability to offer amend- gasoline prices, and here we have a bill evenly split. But this procedure to pre- ments. on the floor which addresses an issue of clude amendments is of fairly recent So there is finger-pointing. That is grave concern to the American people, origin. what we are really good at these days. and my hands are tied. My hands are In the 101st Congress of 1989 to 1990, And the American people do not under- tied with 99 other Senators because where Senator Mitchell was the leader, stand anything except that nothing is procedurally we are blocked. he did not use this procedure on any being done. Now, we have had consider- Then the next move is going to be to occasion. But by the 103rd Congress, ation this week on a bill called the en- invoke cloture. It is not going to be in- 1993 to 1994, Senator Mitchell employed ergy speculation bill. We all wonder voked. Debate is not going to be cut it on nine occasions. Then it was why the cost of oil has gone through off; 60 votes will not be received. Then picked up in the Republican tenure of the roof, causing gasoline prices of the majority leader will remove the Senator Lott in the 106th Congress, in more than $4 a gallon. bill from the floor, and he is going to 1999 to 2000, when Senator Lott used it There is no doubt about the anguish blame Republicans for obstructing, and nine times. Then, in the 109th Con- and difficulties that the American peo- the American people are not going to gress, 2005 to 2006, Senator Frist, the ple are suffering as a result of these have any opportunity to understand majority leader, used it nine times. In costs, of these prices. And there is con- what went on, except for the few who this Congress, the 110th, 2007 and partly cern about the speculators who may be were watching on C–SPAN. through 2008, Senator REID has used it involved. Maybe they are. There are I made this speech during the consid- 13 times. some indicators that part of the prob- eration of the global warming bill. What does this mean so that it can be lem is caused by speculation. There was not a word in the news- understood by the American people Well, we haven’t dealt with the issue papers about it. Why? Well, it is too who have such a vital interest in hav- in a logical, factual way; that is, for complicated. It is too arcane. It is too ing the Senate function? Let me illus- Senators to come to the floor and ad- ‘‘inside the beltway.’’ But until the trate it with a bill on climate change dress the substance of the bill which is American people understand it and which was called up in June of this pending or offer amendments to modify send a message to Washington that year. the bill which is pending. they are not going to tolerate it, we As soon as the bill was called up, Now, Senator REID, the majority are going to have to continue to have Senator REID exercised his rights as leader, has followed the same course of this gridlock. leader to get first recognition. In the action. He has filed cloture. We are When the shoe was on the other foot Senate, Senators are recognized in going to have a cloture vote tomorrow. and Republicans controlled the Senate, terms of who first seeks recognition, It takes 60 votes for cloture to cut off during the time when Senator Frist but in case of a tie it goes to the lead- debate. It will not happen. When the was the majority leader, he invoked er. He then offers an amendment and motion for cloture fails, Senator REID this procedure on nine occasions. Sen- then another amendment so that pro- is going to go to his podium over there, ator REID and the Democrats were very cedurally no other of the 99 Senators and he is going to blast the Repub- unhappy about it, as well as Senator can offer any amendment. licans for shutting down the bill at a DURBIN and Senator DODD. The global warming bill was a very time when the American people need This is what Senator DODD had to say important bill. There has been a de- relief, at a time when the American about it: mand to deal with this issue which people need a decision as to what the This chamber historically is the place poses great threats to our environ- speculators are doing. where debate occurs. ment. There was legislation pending, I want to offer an amendment on And what Senator DODD is referring legislation which Senator BINGAMAN bringing OPEC within our antitrust to is that the Senate, unlike the House and I had introduced, the Bingaman- laws; something that I have been push- of Representatives, Senators have been Specter bill, legislation introduced by ing for years. Right now, the OPEC able to offer any amendment on any Senator LIEBERMAN and Senator WAR- combine has an exemption under our subject at any time. And that is one of NER on a very complex subject. antitrust laws. The OPEC nations get the great beauties about the Senate be- Early in the week of June 2, I came into a room, they decide how much the cause any one of us can bring up an to the floor and spoke about some production is going to be, they limit issue and call the attention of the amendments which I wanted to offer. I supply, and the price of oil goes up. American people to it, and with suffi- wanted to offer an amendment on emis- They have what is called sovereign cient public backing, sufficient news- sion caps. I wanted to offer another immunity. Well, they ought not to paper coverage, radio, TV, a little amendment on cost-containment safe- have it. The Congress of the United broader than C–SPAN2, there can be ty valve—a price cap. I wanted to offer States has the authority to change some action. But that has been fore- a third amendment on energy-intensive that. We can bring them within our closed. manufacturing competitiveness and a antitrust laws so that the Attorney Senator DODD was very emphatic fourth amendment on steel process gas General can take action against them. about it back on May 11, 2006, when the emissions. Of course, that was only one They are subject to jurisdiction in Republican leader, Senator First, had Senator, at the beginning of what I the United States because they do busi- filled the tree. Senator DODD had this wanted to have considered. But I was ness here, and they have a lot of assets to say: here. If we brought OPEC within our foreclosed from offering any of those To basically lock out any amendments amendments by the procedure which antitrust laws, you would see a change that might be offered to this proposal runs Senator REID used to fill the tree. in their policy. They have argued for a contrary to the very essence of this body. Then Senator REID moved for what is long time—Saudi Arabia—that they When the amendment tree has been entirely called cloture; that means to cut off cannot have any greater production. filled—

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S7266 CONGRESSIONAL RECORD — SENATE July 24, 2008 He called it filling the tree when the lomats at the Six Party talks about was impossible, but we were able to procedure is used— ending that country’s nuclear weapons work through it. when the amendment tree has been entirely program. Similarly, in dealing with Libya and filled, obviously we are dealing with a proc- I would urge the President, in the Qadhafi, we were able to work out an ess that ought not to be. The Senate ought course of these talks, to exercise flexi- arrangement where Libya, Qadhafi, to be a place where we can offer amend- bility in the dealings with Iran. There stopped the development of nuclear ments, have healthy debate over a reason- is no doubt that on the international weapons. Qadhafi is the greatest ter- able time, and then come to closure on the scene the possibility of Iran developing rorist in the history of the world; with subject matter. a nuclear weapon is the most serious very heavy competition, the greatest Well, what did Senator REID have to international threat there is in the terrorist in the history of the world. He say about this subject on March 2, 2006, world today. No doubt about that. It is blew up Pan Am 103. It was proved that when we were debating the PATRIOT intolerable for Iran to have a nuclear he did it. He made reparations to the Act? Senator REID said: weapon when its President talks about passengers. He blew up a discotheque in Do not fill the tree. That is a bad way, in wiping Israel off the face of the Earth. Germany, killed American soldiers. my opinion, to run this Senate. And when Iran flouts international law Yet through discussions, through talks, What did Senator REID have to say by supporting international terrorists, he has been brought back into the so- about the subject on February 28, 2006, no doubt about the threat that would called family of nations. Libya has a on the PATRIOT Act reauthorization, pose. seat on the Security Council. It is hard speaking about filling the tree. It has been my urging of the adminis- for me, frankly, to understand how we This is a very bad practice. It runs against tration that the United States not im- have gone that far with Libya, but that the basic nature of the Senate. The hallmark pose a precondition on the talks. The goes to show how far we can go. of the Senate is free speech and open debate. object of the talks is to stop Iran from As these talks proceed, it would be What did Senator DURBIN have to say continuing to process nuclear weapons my hope the United States would show about it, the assistant majority leader and to abandon their effort to get nu- flexibility. When the Secretary of for the Democrats, on May 11, 2006, clear weapons. They should stop their State talks about their having 2 weeks when the Republican majority leader activities on processing uranium. to respond, I don’t think that is the had filled the tree and precluded It seems to me where the object of way negotiators deal in putting on amendments? the talks is to stop Iran from proc- time limits. Iran responded, appar- The Republican majority brings a bill to essing nuclear materials, that ought ently, according to the media reports, the Senate, fills the tree so no amendments not to be a precondition of the talks. It with a long written statement which can be offered, and then files cloture which is very difficult to go to a sovereign na- was not understandable. But they have stops debate; we cannot offer amendments. tion, it seems to me, and say: Before quite a number of points which they So Senator DURBIN outlines it as I we begin the talks, we want you to want to make. I have had the oppor- did: The Republican majority leader have a freeze on processing nuclear ma- tunity, and have discussed this on the Senate floor at some length, of having fills the tree and then files cloture. terials, which is the object of our talks. Well, cloture was not adopted, and then We have to approach anybody in any a number of discussions with the cur- these important issues are not consid- situation with a certain amount of dig- rent Iranian Ambassador to the U.N. ered and the American people wonder nity, with a certain amount of under- and the previous two Ambassadors. what is going on. standing about the other person’s posi- There are people from Iran whom you Well, I have taken a little longer to tion, if we are to find some way to can talk to in a sensible way. But a de- explain the subject, but it is very hard solve the problem. The administration mand on a precondition that they stop to get it across. I am going to keep try- talks about a freeze for freeze, but the processing nuclear material, which is the object of the talks, seems to me to ing. I have acted within the Senate to freezes are very different. The freeze be totally counterproductive. try to get the rule changed. A year and demanded by Iran is for them to stop a a half ago, I filed a rule amendment to I have raised these issues at some process which they have been engaged considerable length over the course of try to get the rule changed. On Feb- in, which they have asserted they have ruary 15, 2007, I introduced S. Res. 83, the past year and a half, going back to a right to as a sovereign nation. We an appropriations hearing on February and so far, I have not been able to get don’t like what they are doing. If they 27, 2007, when Secretary of State Rice an answer from the chairman of the become a sufficient threat under the was before the committee, posing the Rules Committee about what action U.N. charter, article 51, there are cir- issue with her as to why the pre- she intends to take. cumstances where the threat is suffi- condition. I had an extensive discus- I might say to my colleague from ciently imminent to take preemptive sion with her, similarly, with Sec- Washington that I have been waiting action. We all hope we never get to retary of Defense Gates, in hearings be- an hour. I have limited time. But I am that stage. But until you have that sit- fore the Department of Defense Appro- always a little wary when I see a col- uation, they are a sovereign nation, priations Subcommittee. It is worth league waiting. But there are some and they are engaging in activities noting that when Secretary of Defense other subjects I want to talk about, so which sovereign nations do. Gates was on the Commission evalu- I want to give you some advance no- The freeze we are offering is a freeze ating United States-Iranian relations, tice. to not impose sanctions to take nega- he was a party to recommending dis- May the record show that Senator tive action against Iran. It is the pro- cussions with Iran. These discussions, MURRAY has graciously given me a jection of the six powers, led by the these lines of questioning and re- hand signal, sort of like the Patriots United States, that we have sugges- sponses are lengthy. used in the Jets game, a hand signal, tions to make to Iran on a package of I ask unanimous consent that the understanding that I am going to talk economic, political, a variety of incen- full text of the statement be printed in a little more. I will try to be brief, but tives to stop Iran from processing nu- the RECORD. there are some subjects I do want to clear material. It seems to me the best There being no objection, the mate- address. way to get on with it is to start to dis- rial was ordered to be printed in the IRAN cuss with Iran what we have to offer RECORD, as follows: I am very encouraged by what the ad- specifically, to see if what we have to STATEMENT OF SENATOR ARLEN SPECTER, ministration has done as noted in the offer will be sufficient on the talks or U.S.–IRANIAN RELATIONS Washington Post within the past few to engage in the discussions and in the Mr. President. I have sought recognition to days. The President has sent his first negotiations. We do know that not- compliment President Bush and Secretary high-level emissary to sit down with withstanding the grave difficulties in Rice on their initiative to dispatch Under- Iran and has agreed for the first time dealing with North Korea, that when secretary of State for Political Affairs Wil- to set a time horizon for withdrawing the United States was willing to en- liam Burns to meet directly with Iranian of- ficials this past weekend in Geneva, Switzer- troops from Iraq and has authorized gage in bilateral talks with North land. the Secretary of State, Condoleezza Korea, we made some progress. We On Saturday, July 19, Secretary Burns Rice, to join the North Korean dip- thought the North Korean leadership joined representatives of Russia, China, the

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE July 24, 2008 CONGRESSIONAL RECORD — SENATE S7267 United Kingdom, France, Germany and the the ‘evil empire’ and shortly thereafter en- talks with the United States. And I have dis- European Union in negotiations with Iran’s gaged in direct bilateral negotiations and cussed this with you urging you to do so. We chief negotiator, Saeed Jalili, over Iran’s nu- very, very successfully. As noted before, we all know that among the many pressing clear program. This was one of the highest have seen President Bush authorize bilateral problems the United States faces, none is level meetings between a representative of talks with North Korea, as well as multilat- more important than our relation with Iran the U.S. and Iran since the American Em- eral talks, which produced results. As noted and the threat of Iran getting a nuclear bassy was seized in Tehran in 1979, and rep- with Libya, on Gadhafi, the talks have pro- weapon. And the multilateral talks and the resents the highest level of American en- duced very positive results. I note that there sanctions in the United Nations are very, gagement with Tehran during the Bush ad- have been three rounds of bilateral talks very important. But I would again take up ministration’s tenure. where United States Ambassador Crocker and urge the bilateral talks. You were suc- The meeting followed a June 12, 2008 letter has had direct contact with Iranian Ambas- cessful on the bilateral talks with North from Secretary Rice, European Union foreign sador Qomi. So we are not really saying, in Korea in structuring an agreement. There minister Javier Solana, and the foreign min- practice, that we will not talk to them. The had to be multilateral talks with China in- isters of China, France, Germany, Russia, question is to what extent will we talk? I’m volved and Japan and South Korea and other and the United Kingdom to Iranian Foreign very much encouraged, Mr. Secretary, by the nations. But Madam Secretary, in the wan- Minister Manuchehr Mottaki outlining a statement you made on May 14th of this year ing days of the administration, in light of new set of incentives to encourage Iran to that, ‘‘We need to figure out a way to de- the intensity of the problems, why not use stop enriching uranium. The letter proposed velop some leverage and then sit down and the approach taken in North Korea and en- that the six world powers ‘‘will refrain from talk with them. If there is to be a discussion gage Iran in bilateral talks to try to find any new action in the Security Council,’’ then they need something too. We can’t go some way of coming together with them on while Iran ‘‘will refrain from any new nu- to a discussion and be completely the de- the critical issue of their building a nuclear clear activity, including the installation of mander with them not feeling that they need weapon?’’ any new centrifuges.’’ The formula was anything from us.’’ Secretary Rice responded, ‘‘Senator, I called ‘‘freeze-for-freeze.’’ The letter and ac- Continuing with Secretary Gates, I said, think we’ve made clear that we don’t have a companying proposal was notable in that it ‘‘Now the position taken by the Secretary of problem with the idea of talking to the Ira- concentrated on incentives rather than pro- State has been ‘we won’t talk to Iran unless, nians. I said at one point in a recent speech posing new punitive measures. as a precondition, they stop enriching Ura- that we don’t have any permanent enemies, I spoke with Secretary Burns this week nium.’ It seems to me that it is unrealistic so we don’t—’’ who briefed me on the meeting. While I will to try to have discussions but to say to the I told Secretary Rice I was referring to dia- not detail our conversation, I commended opposite party, ‘as a precondition to discus- logue, ‘‘but without preconditions.’’ Secretary Burns for his efforts. sions we want the principal concession that Secretary Rice replied, ‘‘But I think the The Administration has long held they we’re after.’ Do you think it made sense to problem of doing this, and we do talk with would not sit down with the Iranians prior to insist on a concession like stopping enrich- North Korea bilaterally but, of course, in the them agreeing to suspend their nuclear ac- ing Uranium, which is what our ultimate ob- context of a six-party framework, and we tivities. The meeting this weekend at Gene- jective is, before we even sit down and talk have a six-party framework really for Iran. va’s City Hall represents a welcomed flexi- to them on a broader range of issues?’’ The reason that the precondition is there— bility in that policy—a flexibility I strongly I further questioned, ‘‘Isn’t it sensible to and it’s not just an American precondition, support and hope will continue. engage in discussion with somebody to try to it is one that the Europeans set well before I have consistently, both publically and find out what it is they are after? We sit we entered this six-party arrangement some privately, urged President Bush, Secretary apart from them and we speculate. We have two years ago—it’s to not allow the Iranians Rice and Secretary Gates, for the U.S. to all of these learned op-ed pieces and speeches to continue to improve their capabilities have direct talks with the Iranians without made and we’re searching for leverage. But while using negotiations as a cover. They preconditions. wouldn’t it make sense to talk to the Ira- have only one thing to do, which is to sus- During the May 20, 2008 hearing before the nians and try to find out what they need as pend their enrichment and reprocessing ef- Defense Appropriations Subcommittee, I at least one step on the process? We only forts, and then everybody will talk to them. made the following statement: ‘‘I would like have one government to deal with. Let me And I’ve been clear that we’re prepared to to focus on the future and most specifically put it to you very bluntly, Mr. Secretary: is talk to them about anything, not just about on Iran and on the critical issue of talks President Bush correct when he says that it their nuclear.’’ with Iran and whether talking with Iran is is appeasement to talk to Iran?’’ I followed up with Secretary Rice, ‘‘They really feasible. We have seen our talks with Secretary Gates responded, ‘‘Well, I don’t don’t need talks to have a cover to proceed North Korea bear fruition. We have seen the know—I don’t know exactly what the presi- with whatever it is they’re doing. They’re talks with Libya—Qadhafi—bear fruition. dent said. I believe he said it was appease- proceeding with that now. I’ve had some ex- Qadhafi, arguably the worst terrorist in the ment to talk to terrorists, to negotiate with perience. I haven’t been secretary of State history of the world in a very tough competi- terrorists . . .’’ and I haven’t been in the State Department, tion with Pan Am 103 and the bombing of the I interjected, ‘‘He said in his May 15 ad- but I’ve been on this committee—sub- Berlin discotheque, and yet he has given up dress to the members of the Knesset he said, committee for 28 years and chaired the Intel- his nuclear weapons.’’ I further stated, ‘‘We ‘some seem to believe that we should nego- ligence Committee, talked to many foreign have seen the president’s comment about ap- tiate with terrorists and radicals.’ He does leaders, and frankly, I think it’s insulting to peasement of terrorists, but if we do not not say specifically Iran, but I think the in- go to another person or another country and have dialogue with Iran, at least in one ference is unmistakable in light of the entire say we’re not going to talk to you unless you man’s opinion, we’re missing a great oppor- policy of the administration.’’ agree to something in advance. What we tunity to avoid a future conflict.’’ I concluded by telling Secretary Gates, want them to do is stop enriching uranium. This hearing afforded me the opportunity ‘‘I’ve had an opportunity to talk to the That’s the object of the talks. How can we to engage Secretary Gates on the matter. It President about it directly, and I believe he insist on their agreeing to the object that we is important to note that Secretary Gates, needs to hear more from people like you want as a precondition to having the talks?’’ prior to his tenure at the Department of De- than people like me, but from both of us and Secretary Rice replied, ‘‘Well, Senator, fense, co-chaired a Council on Foreign Rela- that it’s not appeasement and that the anal- we’ve not told them that we—the talks tions task force which concluded, ‘‘it is in ogy to Neville Chamberlain is wrong. We’ve would be in fact about how to get Iran civil the interests of the United States to engage only got one government to deal with there, nuclear energy and a whole host of other selectively with Iran to promote regional and they were receptive in 2003. I’ve had a trade and political benefits, by the way, be- stability, dissuade Iran from pursuing nu- chance to talk to the last three Iranian am- cause the package that the six parties have clear weapons, preserve reliable energy sup- bassadors to the U.N. and I think there is an put forward is actually very favorable to plies, reduce the threat of terror, and address opportunity for dialogue. I think we have to Iran. But they do need to stop—suspend until the ‘democracy deficit’ that pervades the be a little courageous about it and take a those talks can begin and those talks can Middle East as a whole.’’ When asked about chance because the alternatives are very, have some substance. They need to stop dialogue and Iran in a questionnaire sub- very, very bleak.’’ doing what they’re doing, because to allow mitted by members of the Armed Services A month prior to my engagement with them to just continue to do it, to say well, Committee, Secretary Gates responded that, Secretary Gates, I posed a similar question we’re in negotiations while they continue to ‘‘no option that could potentially benefit to Secretary Rice during the April 9, 2008 do it, I think sends the wrong signal to them U.S. policy should be off the table’’ and Foreign Operations Subcommittee hearing: and frankly would erode our ability to con- noted that ‘‘in the worst days of the cold war I told Secretary Rice, ‘‘I want to visit with tinue the kind of efforts at sanctions that the U.S. maintained a dialogue with the So- you a couple of subjects that you and I have we’re also engaged in.’’ viet Union and China.’’ talked about extensively both on and off the On February 27, 2007, I questioned Sec- Picking up on Secretary Gates’ comments record, and that is the Iranian issue and retary Rice when she appeared before the Ap- about the Soviet Union, I discussed the ap- later the Syrian issue. We have talked about propriations Committee. I stated that, ‘‘It plicability to Iran: the initiative of 2003, which has been con- would be my hope, as you know from our ‘‘Secretary Gates, we have seen that Presi- firmed by a number of people in the adminis- correspondence in the past and our discus- dent Reagan identified the Soviet Union as tration, on Iran’s effort to initiate bilateral sion, that there would be more intense one

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S7268 CONGRESSIONAL RECORD — SENATE July 24, 2008 on one negotiations with the Iranians. . . . It’s been in the media and the press a little, Now we have a world of rockets, and And the most famous illustration is Presi- but not very much. So if we could elevate security matters are entirely different. dent Nixon going to China—used really as an that, I think you’d really put Iran on the Again, the United States participated example. If that can be done, that’s the way spot that they deserve to be on.’’ Secretary extensively in the Syrian-Israeli talks to do it.’’ While Undersecretary Burns’ re- Rice responded favorably to the suggestion: cent meeting is not of the same magnitude, ‘‘It’s a very good idea, Senator. We’ll try to in the year 2000. I have made many it still represents a step in the right direc- do that.’’ trips to Syria since 1984. I got to know tion and perhaps is the initial building block I have engaged senior Administration offi- President Hafez al-Asad and traveled to or stepping stone to enhanced bilateral dis- cials in meetings, phone conversations and the Middle East extensively and rec- cussions. via letters on the Iranian issue. On January ommended to a number of Israeli Perhaps one of the best opportunities to 14, 2007, I met Secretary Rice in her office Prime Ministers the desirability of my engage in serious dialogue with Iran came and urged her to undertake an aggressive view—at least in one man’s opinion—to during 2003. Press reports have suggested the diplomatic initiative in the Middle East and existence a document that was passed to the to engage all regional actors including Iran. have the negotiations. Right now there United States through the Swiss Ambassador One month later during her February 27, 2007 is a unique opportunity which could to Iran and later rejected by the Administra- testimony before the Senate Appropriations impact on Lebanon. Syria is opening tion. The document laid out issues for the Committee, she announced an initiative to an embassy in Lebanon, treating Leb- U.S. and Iran to discuss and parameters for enhance regional engagement. When I spoke anon as a sovereign nation which is dialogue. to Secretary Rice via phone on August 14, quite a shift. Syria has enormous influ- Knowledge of the memorandum existed in 2007, she indicated there had been no signifi- ence on Hezbollah. It is a very complex cant movement on this front. After learning the State Department and the National Se- subject in Lebanon, with Hezbollah curity Council. However, according to Mi- of the lackluster progress, I wrote to Sec- chael Hirsh of the Washington Post, the retary Rice that, ‘‘The U.S. should be willing having significant power in the govern- memorandum ‘‘was ignored.’’ to engage in dialogue with those whom we ment, a veto in their Parliament. Syria During my May 20, 2008 questioning of Sec- consider to be our enemies in order to ad- has considerable influence with Hamas. retary Gates, he appeared to allude to the vance our goals of peace and security. As I If the circumstances were right, there fact that the U.S. may have missed an oppor- have expressed to you in the past, I believe is a great opportunity to separate tunity following the 2003 memorandum. I that talks with people—even our most ar- Syria from Iran, a great opportunity to asked Secretary Gates, ‘‘Mr. Secretary, we dent adversaries—hold the potential to yield get some assistance with Syria on had leverage in 2003 when we were successful positive results.’’ in Afghanistan and Iraq, and the record is On September 10, 2007, I wrote a six page some major problems. It is unknowable pretty clear that we wasted an opportunity letter to Secretary Rice in which I noted, whether that can happen. But I do be- to respond to their initiatives.’’ Secretary ‘‘Terrorism, military nuclear capabilities, lieve dialog is the way. It would be my Gates stated, ‘‘I think it was one of the energy security, and the Israeli-Palestinian hope the President would show he still things [Khatami’s tenure as President] that dilemma are all major issues confronting the has muscle. He is going to be in the created perhaps an opportunity that may or U.S. and indeed the world. These challenges White House for 6 months. What he has may not have been lost in 2003 and 2004.’’ cannot be confronted without engaging Iran done with respect to North Korea and While I believe it is clear that an oppor- . . .’’ tunity to engage Iran was lost in 2003, I agree In a March 28, 2007 letter to Secretary Iran and Iraq shows he is not taking with Secretary Gates that we need to find Rice, I wrote ‘‘In my view, a renewed focus his last 6 months with a view that ways to generate leverage in dealing with on dialogue with North Korea and recent there are things he can accomplish. I Iran and need to continue to work on a reso- participation of the U.S. in an international refer to an extensive article I have lution. One proposal which I find promising conference attended by Iran and Syria, hold written on this subject which summa- is the Russian proposal to enrich uranium open the possibility of easing the tensions rizes a good many of my activities and for Iran’s civil nuclear program. It would that exist in our relationship with those views in the Washington Quarterly for provide Tehran with the nuclear power it countries through diplomacy.... On a care- 2006–2007. fully selective basis, I believe dialogue claims is the sole intention of its nuclear I thank my colleague from Wash- program, but would prevent Iran from turn- should be pursued with our adversaries.’’ ing the lowly enriched uranium needed for On August 1, 2007, I stated on the Senate ington for her patience, if, in fact, she civil nuclear reactors to the highly enriched floor, ‘‘While we can’t be sure that dialogue has been patient. It is always difficult uranium needed for nuclear weapons. will succeed, we can be sure that without with Senators having the right to During the April 9, 2008 Foreign Operations dialogue there will be failure.’’ speak. But it took me more than an Subcommittee hearing I raised this issue As the clock runs out on this administra- hour to get the floor after waiting with Secretary Rice, ‘‘Let me move to an- tion, I urge it to push for resolution of this most of the day. As usual, Senator other subject, and that is President Putin’s matter through direct, bilateral, uncondi- MURRAY is gracious and nodding in the proposal to have the Russians enrich their tional negotiations with Tehran. The recent uranium. . . . To what extent has the Putin talks in Geneva were significant, but I con- affirmative. I thank her and the Chair. proposal been pressed? In a sense, if we join tinue to believe that bilateral negotiations I yield the floor. with Putin and they refuse what is really a may aid in resolving this issue of tremen- The PRESIDING OFFICER. The Sen- good offer to have somebody else enrich dous importance. ator from Washington. their uranium so they have it for peaceful I yield the floor. Mrs. MURRAY. I assure my colleague purposes, but there is a check on using it for SYRIA-ISRAELI NEGOTIATIONS from Pennsylvania, I was listening military purposes—why hasn’t that Mr. SPECTER. Mr. President, there carefully to his comments. He has trav- worked?’’ is one further subject I wish to discuss. eled worldwide, and I am certainly in- Secretary Rice responded, ‘‘Well, we are This will be not relatively brief, but terested in his viewpoints. I hope I fully supportive of it, and the president just brief. That is a discussion which is didn’t make him feel rushed at all, and told President Putin that again at Shchuchye, that he is fully supportive of the pending between Syria and Israel with I appreciate what he had to say. Russian proposal. And in fact, not only did Turkey acting as an intermediary. It HOUSING President Putin himself put that proposal to would be my hope and suggestion to Mr. President, this week, tens of the Iranians when he was in Tehran, his for- the President that he extend the flexi- thousands of homeowners traveled here eign minister went back within a few days bility which he is now showing as to to the Nation’s Capital, and lined up and put the same proposition to the Ira- Iran and North Korea and Iraq to assist for hours—and even days—in hopes of nians, which makes people suspicious, Sen- in the Israeli-Syrian negotiations. The taking advantage of a mortgage coun- ator, that this is not about civil nuclear United States was instrumental in ne- power but rather about the development of seling workshop through the Neighbor- the capabilities for a nuclear weapon . . . gotiations back in 1995, when Prime hood Assistance Corporation of Amer- Not only did we support the Russians in Minister Rabin almost came to terms ica. making their offer, but when the Russians with Syria on the Golan Heights. It is These homeowners came from as far decided to go ahead and shift the fuel for a very difficult subject that I don’t be- away as Boston or Miami—all because Bushehr saying to the Iranians now that lieve anybody should tell Israel or sug- they are struggling to hold onto their we’ve shipped the fuel, you certainly have no gest to Israel or in any way pressure homes, and they need help with their reason to enrich, we supported that effort Israel as to what to do about the Golan mortgages. Many others are now steps too. So I think this really speaks to the in- Heights. It is a decision Israel has to away from foreclosure because they tentions of the Iranians.’’ I concurred with Secretary Rice, but urged make for itself on their security. But it have seen their mortgage rates rise out her to press this idea at the highest levels: is a different world than it was in 1967, of control, or because their mortgage ‘‘My suggestion would be to try to elevate it. when Israel took the Golan Heights. now exceeds the value of their home

VerDate Aug 31 2005 02:20 Oct 23, 2008 Jkt 059060 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\RECORD08\S24JY8.REC S24JY8 mmaher on PROD1PC76 with CONG-REC-ONLINE July 24, 2008 CONGRESSIONAL RECORD — SENATE S7269 because property values have plum- to reach out and help struggling home- new HUD Secretary, Steve Preston, are meted. owners. Counseling is one of the most determined to reverse this hiring Now, while many of the homeowners cost-effective tools we have to help record and get more people on board who came to DC this week were able to families who are on the verge of fore- soon. I certainly hope they succeed. get help, there are millions more closure. Counselors can help families But I also recognize that as we head across this country in the same posi- negotiate with their lenders, readjust into the new fiscal year, we may need tion who are still in need of assistance. their payments, or learn how to budget to take measures to boost the salary Nearly 8,500 families file for foreclosure their expenses better. and expense funds provided to the FHA each day. And as many as 2 million And it is incredibly important that as well as get money to the agency to homeowners could lose their homes we provide the resources now so that improve its computing capabilities. I this year. Fortunately, we will have a we can help families before they reach intend to address those needs when the bill before us soon that will enable the the crisis point. Appropriations Committee marks up Federal Government to lend a helping Earlier this year, I had the oppor- the next Supplemental Appropriations hand to many of those families. tunity to meet a single mother from bill in September. The housing package that passed the Ohio who had fallen on hard times, Finally, I want to caution my col- House on Wednesday includes a variety which in turn led her to fall behind on leagues on the Banking Committee of provisions that would restore sta- her mortgage. Luckily she was able to that we will all need to continually bility to the housing market, provide talk to a counselor, and she and her monitor the lending activity and the assistance to communities hurt by this children were able to stay in their funding balance of the FHA’s existing crisis, and help prevent thousands of home. She explained that when she got mutual mortgage insurance account as foreclosures. We have considered much behind, she was overwhelmed. She told well as the new homeownership preser- of this package before, but it has been me she didn’t know what to do. She vation entity fund established in this blocked by Republicans who have pre- said, ‘‘This isn’t something they teach bill. None of us wants to saddle tax- ferred to drag their feet than to ad- you in school.’’ payers with unnecessary risk as we try dress this crisis. We now have another This bill would help more families to help homeowners. This bill estab- chance, and I have come to the floor like hers get help. Despite the numbers lishes a new board that will face the today to urge my colleagues to support who traveled to Washington, DC for daunting challenge of deciding which this legislation and get help into the help this week, far too many home- homeowners can and can’t be helped hands of the homeowners and commu- owners still don’t know they have op- under this new program. nities that need it. tions when they get behind on their But Congress will also need to do its Those of us who go home each week- mortgages. part to monitor the fiscal health of end to talk to their constituents know I fought alongside Senators MIKUL- both the new and old FHA accounts to how worried our families are about the SKI, SCHUMER, and BROWN to include ensure that the taxpayer isn’t guaran- economy—and about whether some- this counseling funding back when this teeing loans that have no hope of being thing will happen to threaten their bill was first debated in April. It comes repaid. The whole hope of this legisla- ability to keep their homes. on top of a $180 million initiative that It is hard to overstate how serious tion is about calming the housing mar- my ranking member, Senator BOND, the housing crisis has become. There kets and using the FHA guarantee to and I included in the 2008 Transpor- are communities across this country entice mortgage holders to give bor- tation-Housing Appropriations Act. where people are literally abandoning rowers a better break—an affordable And I want to thank Chairman DODD their homes because they can’t afford loan that will keep them in their home. and Ranking Member SHELBY for help- their mortgages, and they can’t find a But we must ensure that taxpayers willing buyer. As I said, as many as 2 ing to protect the funding in the most don’t end up holding the bill for million families could lose their homes recent package. unsalvageable loans. Next, the bill makes some important to foreclosure this year. And reports Finally, the bill would take impor- changes to help modernize the Federal estimate the number of families facing tant steps to strengthen Fannie Mae Housing Administration and enable it foreclosure is higher than at any time and Freddie Mac by establishing a new since the Great Depression. to help more homeowners refinance regulator. It also provides temporary At the beginning of this crisis, many their mortgages. First, it raises the authority to allow the Treasury De- of those people were subprime bor- loan limit to take into account the in- partment to take action when needed rowers who received adjustable-rate crease in home prices over the last sev- to keep them stable. Fannie Mae and loans or who were the victims of loan eral years. This is very important be- Freddie Mac are the foundation of our scams. But as home values have cause in many communities, home system to finance homeownership in dropped across the country, the prob- prices are higher than the current loan the U.S., and it is absolutely critical lem has spread. Families with strong limits, meaning FHA mortgages aren’t that we take decisive action to help credit, who received fixed-rate mort- an option. quickly restore confidence in them. gages, have seen their homes drop in It also provides $300 billion to enable We started work on this bill in Feb- value by tens or hundreds of thousands the FHA to back loans and help as ruary because Democrats wanted to get of dollars over the past couple of years. many as 400,000 homeowners at risk of help into the hands of homeowners who Their mortgages are now under water, foreclosure get more affordable—and need it. But despite the desperation and thousands of them are at risk for less risky—mortgages. These changes people feel in communities across this foreclosure too. will help stabilize the housing market country, some Republicans have pre- This is a problem even in regions and encourage more mortgage holders ferred up to this point to stall and that have been relatively healthy, like to give borrowers a more affordable block this bill. Now, I was very happy my home state of Washington—where loan that will enable them to keep to see President Bush finally drop his more and more people tell me they are their homes. opposition this week. And I hope my worried that they will be stuck with Now, while I support these measures, Republican colleagues will help us get homes they can’t afford. I want to add—as chairman of the this bill to his desk as quickly as pos- The housing legislation that we will Transportation and Housing Appropria- sible. consider soon may be one of the most tions Subcommittee—that this bill is Especially when it comes to helping important steps we take this year to also putting a lot of new responsibility people keep their homes, timing is ev- help our faltering economy because it into the hands of the FHA. That agen- erything. A family that gets access to addresses the root of the problem—the cy currently has close to 300 vacancies housing counseling before they start housing crisis. So I want to take the and it has the money to fill them. Un- missing mortgage payments can still next couple of moments to talk about fortunately, it has been burdened by save their home. And I hope we will fi- three of the main provisions of this bill the painfully slow hiring processes at nally be able to make that possible for to explain why we must act now. HUD. thousands more families in need. First, the bill provides $180 million to It is my understanding that FHA I hope when we finally get this bill give counseling agencies the resources Commissioner Montgomery, and our out of here, we will be able to make it

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Press Box.’’ Many columnists consid- United States, continue to support ef- The assistant legislative clerk pro- ered his book required reading and a forts to bring justice for these crimes, ceeded to call the roll. foundation to baseball writing. Cubs not just in The Hague, but also at the Mrs. MURRAY. Mr. President, I ask Chairman Crane Kenney remembered local level in Bosnia, where lack of re- unanimous consent that the order for Holtzman as ‘‘an accomplished writer sources and other obstacles mean that the quorum call be rescinded. who earned respect from both his read- many victims continue to wait for jus- The PRESIDING OFFICER. Without ers and from those whom he covered.’’ tice for the crimes committed against objection, it is so ordered. Jerome Holtzman will be remem- them. To that end, local war crimes bered as a great friend and mentor. trials for thousands of other suspected f Chicago and baseball fans across the perpetrators from the Bosnia atrocities MORNING BUSINESS Nation have lost a celebrated sports- must receive support to overcome the Mrs. MURRAY. Mr. President, I ask writer and icon, but future generations challenges they face in order to seal unanimous consent that the Senate will continue to remember his great any remaining impunity gaps in Bos- proceed to a period of morning busi- legacy and influential contributions to nia. ness, with Senators permitted to speak the game. To echo a statement I made on the for up to 10 minutes each. f Senate floor on February 11, 1998, it is my sense that if the war crimes tri- The PRESIDING OFFICER. Without CAPTURE OF RADOVAN KARADZIC objection, it is so ordered. bunal at The Hague is successful, if we Mr. SPECTER. Mr. President, I have can bring the rule of law into the inter- f sought recognition today to commend national arena, we may have the most TRIBUTE TO JEROME HOLTZMAN Serbian authorities for apprehending important institutional change in Mr. DURBIN. Mr. President, I rise former Republika Srpska president international relations of the past cen- today to pay tribute to a remarkable Radovan Karadzic. Earlier this month tury. and legendary Illinoisan, Jerome we marked the 13th anniversary of the f Holtzman. Mr. Holtzman was a pioneer genocide at Srebrenica. The arrest this week of Radovan Karadzic, in connec- ADVANCING AMERICA’S of baseball writing and renowned for PRIORITIES ACT his numerous accomplishments. He tion with that crime, shows that it is Mr. LEAHY. Mr. Presdient, earlier passed away on July 19 at the age of 81. never too late to seek justice for the this week, I joined the majority leader The first official historian of Major terrible crimes committed during the in the introduction of S. 3297, the Ad- League Baseball, Holtzman wrote 1992–95 war in Bosnia. Over a decade vancing America’s Priorities Act. The about the game, but truly he cared after being indicted for genocide, majority leader selected 35 legislative about the people. He was known for crimes against humanity, and war items from the jurisdiction of seven spending time with umpires before crimes by the International Criminal Tribunal for the former Yugoslavia, Senate committees, including eight games and was able to bring genera- bills from that of the Senate Judiciary tions of fans together through his col- ICTY, at The Hague, Radovan Karadzic was arrested on Monday, July 21, out- Committee, for this effort. These are umns. all measures with bipartisan support Jerome Holtzman was a true Amer- side Belgrade. Radovan Karadzic’s arrest represents and, we believe, the support of a strong ican success story. In 1943, at the a significant breakthrough for inter- bipartisan majority of the Senate. I youthful age of 17, he started his news- national jurisprudence. Serge have moved several through the Judici- paper career as a copy boy for the Chi- Brammertz, prosecutor of the war ary Committee, and several have al- cago Times. After 2 years in the U.S. crimes tribunal in The Hague, said, ready passed the House. All have the Marine Corps during World War II, he ‘‘This is a very important day for the support of all Democratic Senators, covered high school sports at the victims who have waited for this arrest and all were cleared for unanimous Times and Sun-Times. for over a decade.’’ ‘‘It is also an im- Senate passage, but each has been He started at the bottom, but he im- portant day for international justice stalled on the Senate floor by Repub- pressed many along the way. Holtzman because it clearly demonstrates that lican objection. stayed on as a baseball beat writer and nobody is beyond the reach of the law One key bill included in this package columnist at the Chicago Sun-Times and that sooner or later all fugitives is the Emmett Till Unsolved Civil for 30 years. It was at the Sun-Times will be brought to justice.’’ Rights Crime Act. I thank Senator where Holtzman met his wife Marilyn Richard Holbrooke, who brokered the DODD and Congressman LEWIS for their Ryan. With their five children, they Dayton Accords in 1995 which ended tireless work on this bill over the last lived in Evanston—in a home fre- the war in Bosnia, said, ‘‘This is a his- 4 years. It will strengthen the ability quented by baseball fans and Jerome toric event.’’ ‘‘Of the three most evil of the Federal Government to inves- Holtzman fans. He spent the last 10 men of the Balkans, Milosevic, tigate and prosecute unsolved murders years of his career writing for the Chi- Karadzic and Mladic, I thought from the civil rights era. It would cre- cago Tribune. Karadzic was the worst. The reason was ate new cold case units in the Justice One of the most distinguished honors that Karadzic was a real racist be- Department and FBI dedicated to in- Holtzman achieved over his remark- liever. Karadzic really enjoyed order- vestigating and prosecuting unsolved able career was the induction into the ing the killing of Muslims. . . . cases involving violations of criminal writers’ wing of the Baseball Hall of Richard Dicker, director of Human civil rights statutes which resulted in Fame in 1989. His colleagues knew him Rights Watch’s International Justice death and occurred before January 1, as ‘‘the Dean,’’ a nickname given to Program, said, ‘‘Radovan Karadzic per- 1970. The Senate legislation was intro- him by fellow Hall of Famer Billy Wil- sonified impunity for more than a dec- duced on February 8, 2007. I was proud liams. The nickname reflects his stat- ade, but his efforts to run the clock on to cosponsor Senator DODD’s bill. The ure as a baseball-writing ‘‘lifer’’ and justice have failed.’’ ‘‘This arrest offers Judiciary Committee reported it by his loyal dedication to the game. hope to the victims of the horrific unanimous consent as amended on Among his accomplishments was the crimes that occurred here. We welcome June 20, 2007, more than a year ago. creation of the save. Holtzman’s save this long-overdue arrest and look for- The House legislation passed the House rule became an official Major League ward to his fair trial in The Hague.’’ on June 20, 2007, more than a year ago, Baseball statistic that acknowledges I commend the Serbian Government by a vote of 422 to 2. Its Republican co- effective relief pitching. Acknowl- for the resolve it has demonstrated in sponsors include Senator COCHRAN,

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