E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 109 CONGRESS, FIRST SESSION

Vol. 151 WASHINGTON, MONDAY, JUNE 20, 2005 No. 82 Senate The Senate met at 2 p.m. and was U.S. SENATE, bate for that vote has been scheduled called to order by the Honorable RICH- PRESIDENT PRO TEMPORE, between 5 and 6. We plan on having ARD BURR, a Senator from the State of Washington, DC, June 20, 2005. that vote at 6 p.m. today. We have a North Carolina. To the Senate: very busy week as we move through Under the provisions of rule I, paragraph 3, of the Standing Rules of the Senate, I hereby the Bolton nomination and the Energy PRAYER appoint the Honorable RICHARD BURR, a Sen- bill. I expect we will have votes every The Chaplain, Dr. Barry C. Black, of- ator from the State of North Carolina, to day this week, including Friday, as we fered the following prayer: perform the duties of the Chair. wrap up work on the energy legisla- Let us pray. TED STEVENS, tion; therefore, Senators should be pre- Our Heavenly Father, Creator and President pro tempore. pared and should adjust their schedules Sustainer of all things, we acknowl- Mr. BURR thereupon assumed the accordingly to remain available until edge You as the ultimate source of our Chair as Acting President pro tempore. we complete passage of this important lives and of all of the good that we f bill. know. We look to You to speak to the RECOGNITION OF MAJORITY f questions for which we shall never LEADER RECOGNITION OF MINORITY know the complete answers. We ask LEADER You only to reply in faith strength- The ACTING PRESIDENT pro tem- ened, hope renewed, and love deepened. pore. The Senate majority leader is The ACTING PRESIDENT pro tem- So bless our Senators today that recognized. pore. The Senate minority leader is their lives will be a testimony that old f recognized. Mr. REID. Mr. President, I agree things have passed away and the new SCHEDULE has come. Season their words with with the distinguished majority leader. kindness and their spirits with humil- Mr. FRIST. Mr. President, today the It would be good if we did not have to ity. Remind them that honesty will Senate will resume consideration of file cloture. Having said that, I do not keep them safe. the Energy bill, which we will com- know what it takes to get people to Help each of us to live with such in- plete this week. Chairman DOMENICI come over and offer amendments. tegrity that trouble will flee. Give us will be here to continue working Thursday afternoon, we were here. The the wisdom to remember that our fu- through amendments. We made very two managers were willing to stay as ture belongs to You. We pray in Your good progress on the bill last week. We long as necessary to meet whatever powerful Name. Amen. are on track to complete the bill later amendments were offered by Senators. this week. As I announced at the end of I realize last week was somewhat dis- f last week, it may be necessary to file jointed because of the various events, cloture on the bill tomorrow. If we file but there was no reason on days and PLEDGE OF ALLEGIANCE cloture tomorrow, the cloture vote evenings when we were actually here would then occur on Thursday, which and able to take amendments that peo- The Honorable RICHARD BURR led the would allow us to complete the bill this ple could not offer amendments. Pledge of Allegiance, as follows: week. Today, we have 3 hours to offer I pledge allegiance to the Flag of the I hope we do not have to file cloture, amendments on this bill. It will be in- United States of America, and to the Repub- but I think it is important for people teresting to see how many show up to lic for which it stands, one nation under God, to realize we are going to finish the bill offer amendments. I guess the alter- indivisible, with liberty and justice for all. this week. People had the opportunity native would be to see if we could get at the end of last week to offer amend- a finite list of amendments and have f ments. They will have the same oppor- those the only amendments that would tunity today and over the course of be in order prior to this bill’s termi- APPOINTMENT OF ACTING this week. I do ask our Senators to nation. PRESIDENT PRO TEMPORE work with the bill managers to expe- The other problem we have this week The PRESIDING OFFICER. The dite consideration of their amendments is that all over the country, there are clerk will please read a communication early in the week. base-closing hearings being held by the to the Senate from the President pro This evening, we will have a second BRAC hearing commission. For Sen- tempore (Mr. STEVENS). cloture vote on the nomination of John ators who are involved in these issues, The assistant legislative clerk read Bolton to be ambassador to the United they involve thousands of members of the following letter: Nations. As announced earlier, the de- the military and thousands of civilians

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

S6785

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VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00001 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.000 S20PT1 S6786 CONGRESSIONAL RECORD — SENATE June 20, 2005 who are tied to these bases, and they kind of problem we have been in the Mr. DOMENICI. Mr. President, I ask are going to leave and go to these hear- past. As both Senators know, we can unanimous consent that the order for ings. Everyone should know that to get to the amendments pretty quickly. the quorum call be rescinded. wait around here and want to make The PRESIDING OFFICER. The ma- The ACTING PRESIDENT pro tem- sure that all of the Senators are here jority leader. pore. Without objection, it is so or- for a given vote—it will not work be- Mr. FRIST. Mr. President, to clarify dered. cause I think there will be Senators the comments that were going back Mr. DOMENICI. Mr. President, I un- gone virtually every day this week. I and forth between the Senate Demo- derstand the distinguished Senator, have received word from a couple of cratic leader and myself, we will finish Mr. WYDEN, is here and desires to Senators who will not be here tomor- the bill this week. We pay our respects speak. row. I know some of the hearings are to the Senator from New Mexico by I yield the floor. going to be held in New Mexico, and I saying he has been more than willing The ACTING PRESIDENT pro tem- understand the two Senators from New to be here to receive amendments. The pore. The Senator from Oregon. Mexico are going to leave late in the fact that there were not a lot of people AMENDMENT NO. 792 afternoon on Thursday. They are the either on Thursday or today rushing to Mr. WYDEN. Mr. President, I thank managers of the bill. So I hope that we the floor to offer the amendments actu- the distinguished chairman of the com- can work into the night on this bill ally leads me to be very hopeful that mittee, Senator DOMENICI. I ask unani- this week because if we have any hope we will complete this bill Thursday, al- mous consent to call up at this time an of doing those appropriation bills next though I know in all likelihood it is amendment I filed with Senator DOR- week, we have to finish this bill this going to be Friday. We are down to just GAN, No. 792. week; otherwise, we will spend all next very few amendments. Mr. DOMENICI. Reserving the right week on this bill, spending a lot of We recognize that some people will to object, is there a pending amend- time in quorum calls waiting for people not be here over the course of even ment? to come and offer amendments. today, voting tonight, tomorrow, and The ACTING PRESIDENT pro tem- I am a little frustrated because I the next day. That is not going to slow pore. There is no pending amendment. know there are people on both sides of us down at all in our obligation to ad- Mr. DOMENICI. He does not need the aisle who say they have amend- dress the Nation’s business. When there consent to bring up the amendment. ments but they are not quite ready or are amendments, we will take them to The ACTING PRESIDENT pro tem- they want to do it at a more conven- the Senate floor to debate them. I pore. The Senator from New Mexico is ient time. The convenient times are think we are discouraged a little by the correct. over. We will not have 100 Senators fact that people are not rushing down The clerk will report. here on any day this week. That is the to offer amendments. On the other The assistant legislative clerk read way it is going to be. So some of these hand, it kind of gives me a little bit of as follows: very tough, tight amendments are encouragement. It means we are going The Senator from Oregon [Mr. WYDEN] for going to have to be decided on the to finish this bill. We are going to file himself and Mr. DORGAN proposes an amend- votes of less than 100 Senators. cloture Tuesday in order to finish it, in ment numbered 792. The ACTING PRESIDENT pro tem- all likelihood, unless we come to some Mr. WYDEN. Mr. President, I ask pore. The majority leader. agreement by both the managers. unanimous consent the reading of the Mr. FRIST. Mr. President, I am I congratulate them for where we are amendment be dispensed with. happy to yield to the Senator from today. We intend on finishing the bill The ACTING PRESIDENT pro tem- New Mexico. with certainty this week. pore. Without objection, it is so or- The ACTING PRESIDENT pro tem- The ACTING PRESIDENT pro tem- dered. pore. The Senator from New Mexico. pore. The minority leader. The amendment is as follows: Mr. DOMENICI. I say to the majority Mr. REID. I would be totally opposed (Purpose: To provide for the suspension of leader and minority leader, I apologize; to cloture being invoked if I felt the strategic petroleum reserve acquisitions) I was not here for the entire dialog be- majority was somehow stopping us On page 208, strike lines 11 through 20 and tween the two of them. I know there is from offering amendments, but that insert the following: this business of who is going to be ab- has not been the case. There has been (e) FILL STRATEGIC PETROLEUM RESERVE TO CAPACITY.— sent which days, but I say to both Sen- ample opportunity for people to offer (1) DEFINITION OF PRICE OF OIL.—In this sub- ators, I do not think that should keep amendments. So I think we either have section, the term ‘‘price of oil’’ means the us from continuing to insist that Sen- to have a list of finite amendments the West Texas Intermediate 1-month future ators who have amendments bring two managers can agree on or it ap- price of oil on the New York Mercantile Ex- them forward. We have to see them. pears cloture would have to be invoked. change. Mr. REID. That is what we said. Mr. DOMENICI. I thank the Senators (2) ACQUISITION.—The Secretary shall, as Mr. DOMENICI. We need to know for their comments. expeditiously as practicable, without incur- ring excessive cost or appreciably affecting about them. There are two that we f know of, one to strike the inventory of the price of gasoline or heating oil to con- RESERVATION OF LEADER TIME sumers, acquire petroleum in quantities suf- offshore assets. That will take a little ficient to fill the Strategic Petroleum Re- while. Somebody should offer that be- The ACTING PRESIDENT pro tem- serve to the 1,000,000,000-barrel capacity au- fore the day is out. That is an hour or pore. Under the previous order, the thorized under section 154(a) of the Energy two, and there will be a vote. We think leadership time is reserved. Policy and Conservation Act (42 U.S.C. Senator FEINSTEIN has one. We would f 6234(a)), in accordance with the sections 159 hope that would come forth. I think and 160 of that Act (42 U.S.C. 6239, 6240). ENERGY POLICY ACT OF 2005 over the evening and midmorning to- (3) SUSPENSION OF ACQUISITIONS.— morrow something will filter out with The ACTING PRESIDENT pro tem- (A) IN GENERAL.—The Secretary shall sus- pend acquisitions of petroleum under para- reference to global warming. Whether pore. Under the previous order, the Senate will resume consideration of graph (2) when the market day closing price it is one, two, or whatever, there will of oil exceeds $58.28 per barrel (adjusted in be a conclusion, and somebody will H.R. 6, which the clerk will report. accordance with the Consumer Price Index offer an amendment. That will be the The assistant legislative clerk read for all-urban consumers United States city longest one. as follows: average, as published by the Bureau of Labor I do not know what the Senate lead- A bill (H.R. 6) to ensure jobs for our future Statistics) for 10 consecutive trading days. ership wants to do about the fact that with secure, affordable and reliable energy. (B) ACQUISITION.—Acquisitions suspended it is probably real that there will not Mr. DOMENICI. I suggest the absence under subparagraph (A) shall resume when be 100 Senators each of the days, but I the market day closing price of oil remains of a quorum. below $40 per barrel (adjusted in accordance do not know that that ought to keep us The ACTING PRESIDENT pro tem- with the Consumer Price Index for all-urban from moving forward and getting some pore. The clerk will call the roll. consumers United States city average, as accord as to finishing this bill. I do not The assistant legislative clerk pro- published by the Bureau of Labor Statistics) know which day, but we are not in the ceeded to call the roll. for 10 consecutive trading days.

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.002 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6787 Mr. WYDEN. I thank the distin- Kilduff, senior vice president of energy price goes to $60 or $70 or $80, there is guished chairman for his thoughtful- risk management at Fimat USA, nothing that would force our Govern- ness. whether the SPR fill rate of 300,000 bar- ment to change its policy of filling the Mr. DOMENICI. I wonder if the Sen- rels per day was contributing to oil Strategic Petroleum Reserve at these ator would watch the floor for me price increases. Before the committee very high prices. So with no restric- while I leave for 10 minutes. that day, which the distinguished Sen- tions in sight, I guess the Government Mr. WYDEN. Absolutely. It is my in- ator from New Mexico, Mr. DOMENICI, can just continue indefinitely to fill tent to speak on this amendment I chairs, and our friend, Senator BINGA- the Reserve with these record prices. offer with Senator DORGAN and then MAN, is the ranking minority Member, To address this problem, my amend- lay it aside. My hope is we can work when we were all in our committee, the ment directs that the Secretary of En- something out. I know Senator COLLINS expert witnesses said they do believe ergy suspend the filling of the Stra- and Senator LEVIN are working on these policies are contributing to oil tegic Petroleum Reserve when the something and desire to work with price increases. Mr. Kilduff specifically prices go above the record-high level in you, as well. If we bring it up now, we stated: the market and stay above that record- can start the discussion on it and work A fill rate of 100,000 represents, obviously, high level for 10 consecutive trading something out. 700,000 barrels for a week. At 300,000 it is 2.1 days. The suspension of filling would I see Senator BINGAMAN. He has been million barrels. A 2.1 million barrel increase continue until the price of oil falls so thoughtful throughout the process in U.S. commercial crude oil inventory in a back down for 10 consecutive days. as well. particular weekly report would be a big build I also note the House of Representa- Mr. President and colleagues, the for the particular week and would help with tives at least is trying to move in the reason I have come to the floor today downward pressure on crude oil prices. direction of a bit of consumer protec- is because oil prices per barrel are now So I would say to colleagues that this tion because they have included a pro- at an all-time record high. If you scour notion that this is something the Sen- hibition against continuing to fill the this legislation, it is hard to find any- ate can just let the Secretary of En- Strategic Petroleum Reserve until the thing in it that would provide relief to ergy do what he wants is belied by the price drops below $40 per barrel. Under the American consumer any time soon. expert testimony we have had before my amendment, current SPR filling It is my hope as we go forward with the Senate Energy Committee where could go forward. But additional filling this debate, at a time when prices are experts specifically said that a fill rate would be halted when prices are at in the stratosphere, that we work in a of several hundred thousand barrels per record-high levels unless there is some bipartisan way and at least provide day is contributing to oil price in- consumer protection for our citizens. some help in this legislation for the creases. The bottom line is we cannot con- consumer who is getting clobbered by As far as I can tell, under the policy tinue to allow filling of the Strategic these historically high costs. we are now seeing at the Energy De- Petroleum Reserve when our economy What especially concerns me is it partment, it does not matter how high suffers due to high gas and oil prices seems to this Member of the Senate the prices are, they are just going to without providing some safety valve. that the Federal Government actually keep filling the Strategic Petroleum Unless this amendment is adopted or makes the problem of high oil and gas- Reserve. They will continue to take oil unless we can work out a compromise oline prices worse every day. Every sin- off the private market no matter how with Senator COLLINS and Senator gle day, the Federal Government, high the prices get. LEVIN and other colleagues who worked through its policies, is compounding I would just like to say, Mr. Presi- on this—unless we can get some legis- the problem the consumers are seeing dent and colleagues, I am not talking lation in place—there will be no stand- at the pump because it has been the about taking oil out of the Reserve. I ard for action or any certainty there policy of the Federal Government to know people very often bring that up. I will be some consumer protection for fill the Strategic Petroleum Reserve at am just saying it does not make sense our citizens when oil prices are out of the worst possible time—when prices to have the same fill rate when you are control. are at record-high levels. talking about historically high prices Now, some may argue there should When the prices are at a record-high because that very high cost of filling it not be these kinds of price triggers for level, it seems to me this is not the at that point directly hurts the con- the Strategic Petroleum Reserve. I time to be taking oil out of the private sumer at the pump. guess that argument is: Let’s just leave market and putting it in the Govern- On Friday, and again today, when the it to the Secretary of Energy. Well, ment reserve. It just does not make price of oil skyrocketed to the highest there are parts of this bill, such as sec- economic sense to add more pressure to price ever recorded on the New York tion 313, that do not leave matters to what is already a very tight oil supply. Mercantile Exchange, our Government the Secretary’s discretion, such as Reducing the supply of oil on the mar- has continued to fill the Strategic Pe- when you are talking about price re- ket, of course, leads to higher oil troleum Reserve. Earlier this spring, lief, royalty relief for oil and gas pro- prices. That is simply supply and de- when gasoline prices set an all-time ducers. Section 313 of the legislation mand. Because oil accounts for 49 per- record high of $2.28 for a gallon of gas, has clear price levels for when the oil cent of the cost of gasoline, that means the Energy Department continued to companies get a break from the normal higher prices for consumers at the fill the Strategic Petroleum Reserve. royalty policy. pump. For the life of me, I do not see So I say to those who have reservations So what we have here is a double how it makes sense for consumers, who about what I am advocating, I would standard. There are price levels to pro- are already paying sky-high prices at simply ask, how high do prices have to tect oil and gas producers when it the pump, to then have their Govern- go before we stop pursuing policies comes to their royalties but absolutely ment force them to pay higher prices that drive the prices even higher? At no protection for the consumer who is by taking oil out of the private market some point, there should be some limit getting clobbered at the pump and who and putting it into the Strategic Petro- when it comes to the Federal Govern- could get some relief if the Govern- leum Reserve. So it does not make ment actually compounding the dif- ment simply did not fill the Strategic sense for the consumer, and, in my ficulties consumers are having at the Petroleum Reserve at a time when view, it does not make sense for tax- pump. prices are at a record-high level. payers as well, who have to pay record- Under the language currently in the The last point I would make is sus- high prices for the oil that is taken off bill, there are no limits. There seems pending the fill of the Strategic Petro- the market. to be some language about ‘‘excessive’’ leum Reserve when prices are at a Now, this is not just my opinion. The costs, but there is nothing that actu- record-high level will not hurt this Senate Energy Committee heard testi- ally blocks our Government from fill- country’s energy security. The Reserve mony last year by experts who said the ing the Strategic Petroleum Reserve if already has more than 693 million bar- policy with respect to filling the Stra- the price goes even higher than the rels now in storage. That is the highest tegic Petroleum Reserve when prices current record price of $59.23 per barrel. level in history. The Strategic Petro- are so high jacks up costs. I asked John So I want to repeat that. Even if the leum Reserve is expected to be filled to

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.005 S20PT1 S6788 CONGRESSIONAL RECORD — SENATE June 20, 2005 its current authorized capacity by the ing the highest price ever for that oil Mr. DOMENICI. I wish to say as a end of the summer. in order to put it there. preamble to his speech, for those who What is more, a 2003 study by the There are two problems with that. are going to listen to him, that he is a Senate Permanent Investigations Sub- No. 1, at a time when we have very member of the Energy and Natural Re- committee found that increased filling high prices, which means we have sources Committee and has been for of the Strategic Petroleum Reserve lower supplies and higher demand, it some time. Most of the time people when prices were high did not increase makes no sense to have 100,000 barrels think that the committee is a com- overall U.S. oil supplies. Instead, be- a day taken off the market and stuck mittee of interior, public land States, cause of the higher prices, oil compa- underground. Even more than that, it but it also has a lot to do with coal and nies took oil out of their own inven- makes no sense to do this, with the our energy future, diversification of tories rather than buy higher priced oil last increment to be put into the Stra- our energy resources. on the market. That does not increase tegic Petroleum Reserve, at a time We have had a marvelous committee. our overall oil supply or our Nation’s when oil is $55, $57, $58 a barrel. Part of it is because of Members such energy security. Our amendment is very simple. It as Senator BUNNING. He has been a So what we have is record prices for would suspend the acquisition of oil at great participant. He comes to the the consumer, record costs in terms of these inflated prices, suspend the ac- meetings, he works hard, he offers filling the Strategic Petroleum Re- quisition of oil at a time when we need amendments. He understands we need serve, and the Federal Government, in more supply, not less, and it would an energy bill. He does not win all the effect, providing free oil storage for allow the acquisition to complete fill- time, but he has his views, and he has high-priced oil in the Strategic Petro- ing the SPR when the price of a barrel been a strong proponent for us getting leum Reserve so oil companies can re- of oil reaches $40 per barrel or below. our house in order and to use as much duce their own inventories and storage My hope is the Senate will adopt the American energy as possible for our fu- costs. That is not energy security; that amendment. It is just common sense. It ture. I commend him for it. is just pounding the consumer and tax- is not rocket science to believe that if I trust we will get a bill out of the payers once more. you have a Strategic Petroleum Re- Senate and out of conference, one he For these reasons, I strongly urge serve almost filled, you should not go can vote with not just a ‘‘yea’’ but with colleagues to place some limits on to the market and take $55 or $57 oil in a hearty ‘‘yea,’’ not just one of those when the Energy Department can fill order to take inventory off the market softballs but one of those fastballs he the Strategic Petroleum Reserve. When at a time when you have record prices. used to throw. That is what we are prices are at an all-time high, it seems That doesn’t make any sense. looking for. that to do otherwise denies consumers We are asking that the Senate ap- I yield the floor and thank the Sen- a fair shake and taxpayers a fair shake. prove the amendment. ator. It is my view the Senate can take pres- Before the Senator from New Mexico The ACTING PRESIDENT pro tem- sure off the price of a barrel of oil and leaves the floor, I have another matter pore. The Senator from Kentucky. off consumers who are getting squeezed I wish to address, but I don’t intend to Mr. BUNNING. Mr. President, I at the pump without compromising our address something in morning business thank Chairman DOMENICI for his ex- national security. One way to do it is that would interrupt the work on the tremely hard work in trying to get an along the lines of the amendment I pro- bill. I ask unanimous consent to speak energy policy for the United States pose this afternoon. in morning business for up to 15 min- since I have been in the Senate. Mr. President, I yield the floor. utes with the understanding that if Many of us have spoken on this Sen- The ACTING PRESIDENT pro tem- someone comes to the floor with an ate floor several times about the need pore. The Senator from New Mexico. amendment on the Energy bill, I will for our national energy policy. We have Mr. BINGAMAN. Mr. President, I defer. I don’t want to delay the bill. I been here before debating an energy commend the Senator from Oregon for ask unanimous consent for 15 minutes bill. To some, it may seem like the his comments and his amendment. in morning business with that under- same old song and same old dance. But I yield the floor and suggest the ab- standing. here we are again. I am more opti- sence of a quorum. Mr. BINGAMAN. I don’t think that is mistic than I have ever been about fi- The ACTING PRESIDENT pro tem- going to be any major obstacle to the nally getting an energy bill to the pore. The clerk will call the roll. progress we are making on the Senate President’s desk. The assistant legislative clerk pro- floor this afternoon. I have no objec- I commend Chairman DOMENICI for ceeded to call the roll. tion. his leadership and determination in Mr. DORGAN. Mr. President, I ask The ACTING PRESIDENT pro tem- helping to put America on an inde- unanimous consent that the order for pore. Without objection, it is so or- pendent path with this energy legisla- the quorum call be rescinded. dered. tion. It is a pleasure to serve with him The ACTING PRESIDENT pro tem- (The remarks of Mr. DORGAN are on the Energy Committee. pore. Without objection, it is so or- printed in today’s RECORD under The Energy bill before us is a good dered. ‘‘Morning Business.’’) starting point that attempts to strike Mr. DORGAN. Mr. President, my col- Mr. DORGAN. Mr. President, I sug- a balance between conservation and league, Senator WYDEN, just offered an gest the absence of a quorum. production. In the past, Congress failed amendment on his behalf and mine. He The ACTING PRESIDENT pro tem- to make progress on energy policy be- spoke in support of it. Obviously, I am pore. The clerk will call the roll. cause we tried to make a choice be- a cosponsor so I support the amend- The legislative clerk proceeded to tween conservation and production, ment. It is an amendment that is very call the roll. but it does not have to be one or the simple. We are putting oil away under- Mr. BUNNING. Mr. President, I ask other. ground in something called the Stra- unanimous consent that the order for Many of us understand that a bal- tegic Petroleum Reserve or SPR. The the quorum call be rescinded. anced and sensible energy policy must purpose of putting oil underground at The ACTING PRESIDENT pro tem- boost production of domestic energy this point is in the event that we would pore. Without objection, it is so or- sources as well as promote conserva- have an emergency at some point in dered. tion. This Energy bill takes a good step the future, we would have a substantial Mr. DOMENICI. Mr. President, will toward striking a balance, and passing inventory of oil in the Strategic Petro- the Senator yield to me for 1 minute? an energy bill is important now more leum Reserve. Mr. BUNNING. Absolutely. than ever. That SPR is nearly full. As I under- Mr. DOMENICI. Mr. President, the We all know the price of energy has stand, it is well over 98 percent filled at distinguished Senator, Mr. BUNNING risen very sharply in the last few this point. Yet we are still, each day, from the State of Kentucky, is going to years, and it is only going to keep ris- taking about 100,000 barrels of oil off speak, and I assume he is going to talk ing. It goes without saying that energy the market and putting it underground about the Energy bill; is that correct? costs touch every single part of our at a time when we are effectively pay- Mr. BUNNING. That is correct. economy and our lives. The average

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.006 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6789 price of gasoline has risen, for unleaded gional transmission organizations. to help America in her quest for energy regular around this country, to about States and companies should be able to independency. $2.13 a gallon, and the price of oil is decide on their own what is best for The 21st century economy is going to bumping up against $60 a barrel. Nat- their consumers. So I am pleased to see require increased amounts of reliable, ural gas, coal, and other fuels have also a provision in the bill that explicitly clean, and affordable energy to keep seen record prices this year. This is prevents FERC from mandating RTOs. our Nation running, and clean coal can hitting Americans in their wallets, es- The Energy bill will also help reduce help fill that requirement. pecially now when so many families our dependence on foreign oil by in- With research advances, we have the are hitting the road for vacations. creasing domestic energy production. know-how to better balance conserva- Higher energy prices also slow busi- It also provides important conserva- tion with the need for increased energy ness growth and force businesses to tion provisions which will help protect production at home. pass increased pricing on to consumers the environment. And because coal is The diversity of this energy package with higher priced goods. While passing such a key industry in Kentucky, I am to promote new fuels is quite impres- an energy bill might not help energy pleased that this bill contains clean sive. prices in the short term, it will make a coal provisions that I have authored There are provisions for nuclear, big difference over the long term. and been pushing for a long time. The hydro-power, solar, wind, bio-fuels and This bill’s domestic energy produc- clean coal provisions will help to in- other renewable energy sources. tion provisions and increased conserva- crease domestic energy production and All this put together with the bill’s tion provisions will help slow these help improve the environment. conservation provisions will help spikes of price increases. But without a Coal is an important part of our en- America meet its sensible and long- new energy policy, there is not much ergy plans. It is cheap, plentiful, and term energy strategy and goals. we can do about rising energy prices. we do not have to go very far to find it. I look forward to the continued de- Oil producers and production are at full For my home State and the States of bate and consideration of this bill. capacity, and with China and India up- others, this means more jobs and a And I hope we can get it approved, ping their demands for oil, the world cleaner place to live. Clean coal tech- conferenced and sent to the President’s oil supply will be drawn down while nologies will significantly reduce emis- desk for his consideration. prices continue to rise. This means sions and sharply increase efficiencies The quicker we can do this, then the that we cannot just try to conserve our in turning coal into electricity. sooner we can help make our environ- way out of any kind of energy problem. Previously, our Government overpro- ment, economy, and national security We must find other sources of reliable moted production of one source of en- stronger, and the sooner we can be- and low-cost fuels or our economy and ergy—natural gas. This not only de- come more energy independent from national security will be at risk. pleted our supply, but it created so other sources. We continue to depend on oil from much demand that it completely out- I yield the floor. some of the most dangerous and unsta- stripped supply and left Americans to Mr. JEFFORDS. Mr. President, I ble parts of the world. It is a recipe for pay higher prices for just this one en- want to address some statements made disaster. ergy source. last week, during the debate on the The stock market jumps up and A sound energy policy should pro- Bingaman amendment No. 791, regard- down, all around, depending on the lat- mote the use of many different types of ing community acceptance of renew- est reports of pipeline sabotage in the fuels and technologies instead of favor- able energy in Vermont. After I left the Middle East. Everyone wonders where ing just one source. As we have seen floor, one Senator tried to make a the next terrorist attack is going to time and again, putting all our eggs in point in opposition to the creation of a hit. We also worry about Iran’s devel- one basket simply does not work. national renewable portfolio standard oping nuclear weapons, and we are try- I am glad we are turning things by referencing some opposition to a ing with our allies to figure out a dip- around and taking steps toward mak- wind power project in Vermont. I want lomatic answer that will bring sta- ing sure clean coal and other sources to set the record straight: though we bility to the region. But the Iranians play a vital role in meeting our future have had some siting issues, do not have a lot of incentive to deal energy needs. Vermonters overwhelmingly support when they are getting nearly $60 a bar- This bill encourages research and de- renewable energy over nuclear, coal, or rel for their oil. In a way, our increas- velopment of clean coal technology by natural gas. ing need for energy is cutting our influ- authorizing about $2.4 billion for the The Senate should not confuse local ence in the part of the world where we department of energy. concerns about the appropriate loca- need it the most. We have to reduce These funds will be used to advance tion for wind power siting in Vermont our reliance on foreign oil and do a bet- new technologies to significantly re- as a monolithic objection to any new ter job internally of taking care of our duce emissions and increase efficiency renewable energy in my State. In fact, own energy needs. of turning coal into electricity. the views are contrary to such a con- Congress has been playing political And almost $2 billion will be used for juncture, even in the case of wind football with this issue over the past the clean coal power initiative. power. Numerous polls throughout the few Congresses, and it is time to end This is where the Department of En- last decade have consistently shown the game. Our Nation and our national ergy will work with industry to ad- that Vermonters support wind energy. security continue to be at risk. We do vance efficiency, environmental per- In fact, a survey in March 2004 found 74 not want the United States beholden to formance, and cost competitiveness of percent of respondents said they would other countries just to keep our en- new clean coal technologies. consider wind turbines along a gines running and our lights turned on. And the Finance Committee’s energy Vermont mountain ridge either beau- It impresses me to know that the bill tax package provides $2.7 billion to en- tiful or acceptable. The same survey contains some strengthened electrical courage the use of coal and deployment found 83 percent of Vermonters choose provisions. We have outgrown our elec- of clean coal technologies. renewable energy from wind, solar, trical system, and changes need to be Coal plays an important role in our hydro and wood as preferable to other made. One of the provisions in the bill economy. It provides over 50 percent of energy sources. is PUHCA repeal, which will go a long the energy needed for our Nation’s en- Lawrence Mott, Chair of Renewable way in helping our energy system meet ergy. Energy Vermont, which commissioned increasing demands. The Energy Information Administra- the energy poll said, ‘‘It’s clear, Also, we desperately need to build tion expects coal will continue to re- Vermonters want more renewable en- new transmission lines. I am glad to main the primary fuel for electricity ergy, including wind turbines, and that see that this bill has some provisions generation over the next 2 decades. they find installation on ridgelines which will help ensure that happens. As my colleagues can see, I am a lit- very acceptable.’’ Building a better electric system, how- tle biased when it comes to coal. Vermont’s history with wind power ever, should not require mandates for It means so much to my State, and it goes back to the turn of the century electricity companies to get into re- is such an affordable and plentiful fuel when farmers used windmills to pump

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.021 S20PT1 S6790 CONGRESSIONAL RECORD — SENATE June 20, 2005 drinking water from their wells. One of amendment would have established AMENDMENT NO. 799 the first great experiments in con- that goal—to reduce U.S. dependence Mr. VOINOVICH. Mr. President, I verting wind to energy was conducted on foreign oil by 40 percent by 2025. By send an amendment to the desk and atop a peak in Vermont called turning our backs on this goal, we are ask for its immediate consideration. Grandpa’s Knob in Castleton, Vermont. sending the wrong message. Reducing It was, at the time, the world’s largest our addiction to foreign oil is essential The ACTING PRESIDENT pro tem- wind turbine and produced 1.25 MW to the economic security of our Nation. pore. The clerk will report. with the first synchronous electric gen- We cannot continue to rely on unstable The legislative clerk read as follows: erator. I recall visiting this wind tur- foreign countries for the energy that bine with my grandfather, an archi- runs the economic machine of this Na- The Senator from Ohio [Mr. VOINOVICH], for tion. himself, Mr. CARPER, and Mrs. FEINSTEIN, tect, and we marveled at its beauty and proposes an amendment numbered 799. ingenuity. It was the first time energy Fluctuating energy prices and insta- from a wind turbine was inter- bility in the Middle East once again Mr. VOINOVICH. I ask unanimous connected to the utility grid. are prompting calls for energy inde- consent the reading of the amendment Vermont’s interest in wind power has pendence for the U.S. be dispensed with. Federal efforts to ensure freedom continued to grow since then. Just The ACTING PRESIDENT pro tem- look at Green Mountain Power’s wind from fluctuations in energy prices have been advocated by every President, pore. Without objection, it is so or- farm in Searsburg, Vermont. Eleven dered. wind turbines generate enough elec- both Republican and Democrat, since tricity to power more than 2,000 homes, 1973 and the infamous oil boycott. As (The amendment is printed in today’s reducing toxic air emissions by 22 mil- Americans we count on energy to pro- RECORD under ‘‘Text of Amendments.’’) tect our security, to fuel our cars, to lion pounds compared to the impacts if Mr. VOINOVICH. Mr. President, I provide heat, air conditioning and light that amount of electricity had been offer this amendment today as chair- for our homes, to manufacture goods, produced through combustion of fossil man of the Environment and Public and to transport supplies. In all of fuels. Works Subcommittee on Clean Air, Cli- these needs, we, as consumers, pay the Vermont has a tremendous capacity mate Change, and Nuclear Safety. This for wind power, as several of my col- price for fluctuations in the global en- ergy market. amendment is a bipartisan piece of leg- leagues have demonstrated with wind islation that was introduced last maps produced from the U.S. Depart- Reducing our reliance on foreign oil is essential and the most basic step we Thursday. It is called the Diesel Emis- ment of Energy. Industry representa- sions Reduction Act of 2005, or S. 1265. tives in Vermont envision a handful of need to take to address this crisis. The Cantwell amendment would have re- wind farms scattered about Vermont This bill is cosponsored by Environ- sulted in about 7.6 million barrels per producing enough electricity to power ment and Public Works Committee day less oil being imported in 2025. about 50,000 homes, which would ac- Chairman JIM INHOFE and Ranking Those savings are equivalent to the count for about 10 percent of the Member JIM JEFFORDS and Senators amount of oil the U.S. currently im- State’s electricity needs. TOM CARPER, JOHNNY ISAKSON, HILLARY Last week, Vermont Governor Jim ports from Saudi Arabia. We can and CLINTON, KAY BAILEY HUTCHISON, and should stop the oil cartels from con- Douglas signed a new renewable energy DIANNE FEINSTEIN. Focused on improv- trolling the future of this Nation. bill into law. He did so at the manufac- ing air quality and protecting public In addition, I believe setting an oil health, it would establish voluntary turing plant of Northern Power Sys- saving goal could have beneficial ef- tems, a world leader in off-grid power National and State-level grant and fects on our air quality. Since a vast loan programs to promote the reduc- systems. Northern Power is about to majority of current oil consumption is ship seven 100-kilowatt wind turbines tion of diesel emissions. Additionally, from the transportation sector, I be- the bill would help areas come into at- to three communities in remote west- lieve setting an oil saving goal would ern Alaska, and the Governor used a 31- tainment for the new air quality stand- encourage auto manufacturers to vol- ards. foot-long blade from one of these tur- untarily improve efficiency of cars and bines as his writing table. trucks. As our population continues to Developed with environmental, in- Clearly, Vermont’s Governor and grow and more people are driving more dustry, and public officials, the legisla- Vermont’s legislators see the value of miles, it is essential to our air quality tion complements Environmental Pro- renewable energy. A large majority of to continue to improve fuel efficiency tection Agency, EPA, regulations now Vermonters support wind energy and of the vehicles we drive. being implemented that address diesel renewable energy. And I am very opti- As it stands now, this bill does not fuel and new diesel engines. I am mistic about the role wind energy can require auto manufacturers or others pleased to be joined by a strong and di- play in satisfying a growing proportion in the transportation sector—the verse group of organizations and offi- of this Nation’s energy needs. plane, train and truck sector—to meet cials: Environmental Defense, Clean Last week the Senate defeated an im- corporate average fuel economy stand- Air Task Force, Union of Concerned portant amendment that would have ards. I believe increased fuel economy Scientists, Ohio Environmental Coun- helped set this nation on a course to standards can and should also be in- cil, Caterpillar Inc., Cummins Inc., significantly reduce our reliance on cluded in this bill. But short of adding Diesel Technology Forum, Emissions foreign oil. It is unfortunate that a ma- new standards, setting this goal would Control Technology Association, Asso- jority of my colleagues did not see fit have been a significant step in that di- ciated General Contractors of America, to put the U.S. on the right course—to rection. State and Territorial Air Pollution break our addiction to foreign oil. By failing to set an oil saving goal, I Program Administrators/Association of H.R. 6 requires a 1 million barrel a think we have failed to state one of the Local Air Pollution Control Officials, day oil saving goal. Unfortunately, this most basic goals of this bill—a real re- Ohio Environmental Protection Agen- goal would actually result in more oil duction the amount of foreign im- cy, Regional Air Pollution Control being imported, not less. In fact, the ported oil. Agency in Dayton, OH., and the Mid- U.S. will still be importing 14.4 million I suggest the absence of a quorum. Ohio Regional Planning Commission. barrels a day under the underlying The ACTING PRESIDENT pro tem- bill’s goal. Slowing down the increased The cosponsors and these groups do pore. The clerk will call the roll. not agree on many issues, which is why rate of consumption alone is not The legislative clerk proceeded to this amendment is so special. I ask enough. We should be setting an ambi- call the roll. unanimous consent that letters of sup- tious goal that actually reduces im- Mr. VOINOVICH. Mr. President, I ask port from these organizations be print- ported oil, not a goal that will result in unanimous consent that the order for ed in the RECORD. more oil being imported. the quorum call be rescinded. Instead, the Senate refused to set a The ACTING PRESIDENT pro tem- There being no objection, the mate- national goal to reduce the Nation’s pore. Without objection, it is so or- rial was ordered to be printed in the addiction to foreign oil. The Cantwell dered. The Senator is recognized. RECORD, as follows:

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CATERPILLAR INC., Environmental Defense commends you on Diesel retrofits have proven to be one of the Mossville, IL, June 16, 2005. your leadership in cleaning up the existing most cost-effective emissions reductions Hon. GEORGE VOINOVICH, diesel fleet. We look forward to working with strategies. Furthermore, another advantage U.S. Senate, you and your staff to ensure the passage and to retrofits is that reductions can be realized Washington, DC. funding of the Diesel Emission Reduction immediately after installation and can be DEAR SENATOR VOINOVICH: Caterpillar is in Act. particularly important in metropolitan full support of the Diesel Emissions Reduc- Sincerely, areas where high volumes of heavy-duty tion Act of 2005. Thank you for assembling a FRED KRUPP, trucks are prevalent and/or where major con- broad coalition of stakeholders in this bipar- President. struction projects are underway for long pe- tisan effort to modernize and retrofit mil- riods of time. lions of diesel engines across the country. It THE ASSOCIATED GENERAL is impressive to see such a strong coalition CONTRACTORS OF AMERICA, Finally, I, again, wanted to congratulate of environmental groups, regulators and in- Alexandria, VA, June 15, 2005. you on your efforts to bring our industry to- dustry representatives working hard to ad- Hon. GEORGE V. VOINOVICH, gether with the environmental community vance retrofit as a national energy and envi- U.S. Senate, on this legislation. This legislation is truly a ronmental policy issue. Washington, DC. model on how to find solutions to environ- As a company. Caterpillar has invested DEAR SENATOR VOINOVICH: The Associated mental problems. It is our hope that the more than $1 billion in new clean diesel en- General Contractors of America (AGC) process, which you put together to craft this gine technology. No power source can match thanks you for taking the lead in intro- legislation, can be used to further address the reliability, efficiency, durability and ducing The Diesel Emissions Reduction Act the older fleets as well as advance efforts, cost effectiveness of the diesel engine. From (DERA) to provide assistance for owners to which recognize the energy efficiency and the late 1980s to 2007, Caterpillar will have retrofit their diesel powered equipment. The environmental benefits of clean diesel tech- reduced diesel emissions in on-road trucks legislation would establish grant and loan nologies. and school buses by 98 percent. When meet- programs to achieve significant reduction in Again, Cummins thanks you for your vi- ing Environmental Protection Agency Tier 4 diesel emissions. This initiative could prove sion on these issues and looks forward to regulations, Caterpillar will reduce emis- to be extremely beneficial to local areas at- working with you to pass this legislation. sions for off-road machines an additional 90 tempting to come into compliance with the Very truly yours, percent by 2014. This ensures that clean die- Clean Air Act. sel engines will continue to be the work- The construction industry welcomes this MIKE CROSS, horses of our economy for years to come. legislation because it will provide the needed Vice President, Our customers who operate fleets of buses, assistance to help contractors retrofit their Cummins Inc. and trucks, construction machines and the off road equipment. Contractors use diesel General Manager, equipment that safeguards our homes and powered off road equipment to build projects Fleetguard Emission lives in non-attainment areas are very inter- that enhance our environment and quality of Solutions. ested in retrofit technology. However, they life by improving transportation system, need a nationally consistent approach to ad- water quality, offices, homes, navigation and DIESEL TECHNOLOGY FORUM, dress these challenges. Your bill, which fo- other vital infrastructure. This equipment Frederick, MD, June 9, 2005. cuses on grants and loans, wisely lets the tends to have a long life, and therefore is in Hon. GEORGE VOINOVICH, market determine the right technologies for use for many years before it is replaced. U.S. Senate, various product applications. Retrofitted en- Reducing the emissions from the engines Washington, DC. gines last longer and, most importantly, that power this equipment is a costly under- DEAR SENATOR VOINOVICH: We would like to have fewer emissions. taking and is particularly burdensome for Thank you again for your commitment to small businesses. Providing grants to aid recognize and thank you for your leadership this legislation. You can count on Caterpil- contractors with the expense of retrofitting in developing the Diesel Emissions Reduc- lar’s support as the bill moves forward in is a highly cost effective use of federal funds. tion Act of 2005. We are especially encour- Congress. AGC applauds your efforts in taking an in- aged by the broad coalition of industry and Sincerely, centive approach to addressing environ- environmental groups from whom you have JAMES J. PARKER, mental concerns. AGC urges that this legis- successfully sought not just cooperation, but Vice President. lation be enacted quickly so that environ- real collaboration in development and sup- mental benefits can be achieved as soon as port of this important legislation. ENVIRONMENTAL DEFENSE, possible. New York, NY, June 17, 2005. As you know, the recent advancements in Sincerely, new clean diesel technology have been sub- Re Introduction of the Diesel Emission Re- STEPHEN E. SANDHERR, stantial. New emissions control devices such duction Act of 2005. Chief Executive Officer. as particulate filters oxidation catalysts, Hon. GEORGE V. VOINOVICH, and other technologies will play an impor- U.S. Senate, CUMMINS INC., tant role in the clean diesel system of the fu- Washington, DC. Washington, DC, June 14, 2005. ture, allowing new commercial truck engines Hon. GEORGE V. VOINOVICH, DEAR SENATOR VOINOVICH, I am writing to to be over 90 percent lower in emissions than express Environmental Defense’s support for U.S. Senate, those built just a dozen years ago. And, as we the Diesel Emission Reduction Act of 2005 Washington, DC. have learned over the last 5 years, these which you are introducing today. DEAR SENATOR VOINOVICH: Cummins Inc. As you are aware the U.S. Environmental strongly supports the Diesel Emissions Re- technologies can also be applied to some ex- Protection Agency’s regulations establishing duction Act of 2005, which establishes a vol- isting vehicles and equipment. Your legisla- new standards for diesel buses and freight untary national retrofit program aimed at tion will play an important role in helping to trucks and new nonroad diesel equipment reducing emissions from existing diesel en- deploy more clean diesel retrofit tech- will slash diesel emissions by more than 80% gines, and congratulates you on your efforts nologies to thousands of small businesses from 2000 levels, ultimately saving 20,000 to bring the diesel industry and environ- and equipment owners who might otherwise lives a year in 2030. But because these federal mental groups together on this effort. not be able to afford the upgrading of their standards apply only to new diesel engines The Diesel Emissions Reduction Act of 2005 equipment. and because diesel engines are so durable, recognizes the clean air challenges ahead of Because of its unique combination of en- the high levels of pollution from existing us and puts in place a system to help address ergy efficiency, durability and reliability, diesel sources will persist throughout the them. In the near future, states must de- diesel technology plays a critical role in long lives of the engines in service today. velop plans to address particulate matter many industrial and transportation sectors, Your legislation establishing a national and ozone emission reductions to meet the powering two-thirds of all construction and program to cut pollution from today’s diesel new air quality standards. A federally spon- farm equipment and over 90 percent of high- engines would speed the transition to cleaner sored voluntary diesel retrofit initiative is a way trucks. Diesel technology has played diesel engines and achieve healthier air well great tool to help states and communities and will continue to play a vital role in key meet these new air quality standards. Your in advance of that schedule. The program de- sectors of our economy. Thanks to your leg- sign principles embodied in your bill help en- legislation recognizes that one size does not islation, diesel technology will continue to sure that the funds for diesel emission reduc- fit all, and there are a number of tech- serve these sectors and help assure this tion projects will be spent in an equitable nologies, which can be implemented to mod- country’s continued clean air progress. and efficient manner. ernize diesel fleets. The term retrofit not Environmental Defense has long been a only describes an after treatment exhaust We look forward to continuing to pro- proponent of smart policy design. We have device used to reduce key vehicle emissions moting a greater awareness of the benefits of promoted market-based and cost-effective but also refers to engine repair/rebuild, re- clean diesel retrofits and your legislation. programs such as cap-and-trade as a solution fuel, repower, and replacement. Sincerely yours, to a variety of environmental issues dating The Diesel Emissions Reduction Act of 2005 ALLEN R. SCHAEFFER, back to the 1990 Clean Air Act Amendment. represents a sound use of tax payer dollars. Executive Director.

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STATE OF OHIO pollution is easy. Technologies are available CLEAN AIR TASK FORCE, ENVIRONMENTAL PROTECTION AGENCY, today to retrofit existing diesel engines, re- Boston, MA, June 16, 2005. Columbus, OH, June 15, 2005. ducing emissions from the tailpipe by 20– Re Letter of support for the Diesel Emissions Hon. GEORGE V. VOINOVICH, 90%—reductions realized immediately after Reduction Act of 2005. Hart Senate Office Building, installation. In fact, due to EPA’s Diesel Hon. GEORGE V. VOINOVICH, Washington, DC. Rules, starting in 2007 we will see the clean- Hart Senate Office Building, DEAR SENATOR VOINOVICH: It has been a est diesel engines ever coming off production Washington, DC. great pleasure to meet you and discuss air lines. Unfortunately, those rules do not ad- DEAR SENATOR VOINOVICH: The Clean Air quality issues with you over these last few Task Force is proud to be one of the core dress the 11 million diesel engines in use months. Ohio’s air quality has improved dra- members of a group of industry, environ- matically over the last 30 years. However, as today. In order to meet EPA’s goal to mod- mental and government representatives that you are well aware, Ohio faces a significant ernize 100% of these existing engines by 2014, worked together on a collaborative effort to challenge in achieving compliance with the states and fleets will need assistance. find ways of reducing harmful emissions of new federal air quality standards for ozone That is why the Diesel Emissions Reduc- air pollution from existing diesel engines. and fine particle matter. We have 33 counties tion Act of 2005 is so imperative. It will es- We strongly support legislation that grew that don’t meet the more stringent ozone tablish an unprecedented $200 million annual out of that effort, the Diesel Emissions Re- standard, and all or part of 32 counties that national grant and loan program to assist ductions Act of 2005. We thank you and your don’t meet the more stringent particulate staff for your leadership on this important states, organizations and fleets in reducing standard. issue. emissions from diesel engines. These efforts Diesel emissions are part of the problem in Heavy-duty diesel engines powering vehi- both of those scenarios. That is why I am so will serve to help counties in complying with cles and equipment such as long-haul trucks, encouraged by your efforts to develop bipar- federal air standards as well as minimize the buses, construction equipment, logging and tisan legislation to provide federal financial health toll of diesel emissions on the public. agricultural equipment, locomotives and ma- assistance for a voluntary diesel retrofit ini- I am proud to offer the Ohio Environ- rine vessels produce a wide variety of dan- tiative. In many cases, lack of funding is the mental Council’s support to you, Senator gerous air pollutants, including particulate matter, nitrogen oxides and air toxics. These only thing keeping people from using the Voinovich, with the introduction of the Die- pollutants, emitted at ground level often in cleaner technology that is available. sel Emissions Reduction Act of 2005. populated areas, produce substantial harm to As Ohio develops its clean air plans for Sincerely, human health and the environment, up to ozone and particulate matter, we need to VICKI L. DEISNER, and including premature death. consider every tool available to us. A fund- Executive Director. ing program to help reduce pollution from Recently, EPA has determined that 65 mil- diesel engines is a valuable tool. lion people live in areas where the air con- I look forward to the successful passage of MID-OHIO REGIONAL PLANNING tains unhealthy levels of fine particulate your bill and the clean air benefits it bring COMMISSION, matter (PM2.5), areas that EPA has thus clas- Columbus, OH, June 14, 2005 to Ohio and the nation. sified as nonattainment for the PM2.5 Sincerely, Hon. GEORGE V. VOINOVICH, NAAQS. In order for those areas to meet the U.S. Senate, JOSEPH P. KONCELIK, attainment requirements in the Clean Air Washington, DC. Director. Act, substantial reductions of PM2.5 emis- DEAR SENATOR VOINOVICH: Our member- sions will be required. The largest local source of potential PM reductions in most OHIO ENVIRONMENTAL COUNCIL, ship, comprised of 41 local governments in 2.5 urban areas is the existing fleet of heavy- Columbus, OH, June 13, 2005. central Ohio, has identified our ozone and duty diesel engines. Although EPA has pro- Subject: Diesel Emissions Reduction Act of PM2.5 nonattainment status as one of the 2005. mulgated regulations to substantially reduce most daunting challenges facing our region. emissions from heavy duty highway and Hon. GEORGE VOINOVICH, Numerous health studies demonstrate the nonroad diesels, many of these engines are U.S. Senate, negative health impacts of polluted air, espe- long-lived and the air quality benefits of Washington, DC. cially for asthmatic children and older EPA’s new engine rules won’t be fully real- DEAR SENATOR VOINOVICH: The Ohio Envi- adults with heart disease. In addition to ized for more than two decades—a full gen- ronmental Council offers its hearty support these, health impacts, failure to clean up our eration away and long past applicable for the Diesel Emissions Reduction Act of air could inhibit business expansion and in- NAAQS attainment deadlines. 2005. This landmark legislation will help vestment in transportation. Fortunately, efficient and cost-effective clean up one of Ohio’s and the nation’s larg- means of substantially reducing diesel emis- est sources of dangerous air pollution; diesel Freight transportation is one of the pri- sions are readily available today. For exam- engines. mary growth sectors for central Ohio. Yet, ple, diesel particulate filters can reduce die- From our initial meeting with you in April we do not want growth at the expense of a di- sel PM2.5 emissions by about 90% from many of 2004 to discuss the impacts of diesel pollu- minished quality of life for our residents. heavy-duty diesel engines. Widespread use of tion, we have been impressed by your leader- Therefore, it is important that we do what- such controls could dramatically reduce ship in addressing this significant contrib- ever we can to encourage public and private harmful diesel emissions in our cities and utor to Ohio’s, and the nation’s, air quality on and off-road fleets to improve emissions states, would save thousands of lives, problems. As you know, approximately one- from existing diesel engines that will con- produce billions of dollars of societal bene- third of Ohio counties are failing federal air tinue to operate for many years. fits, and help states meet their attainment quality standards for ground-level ozone and obligations under the Clean Air Act. fine particulate matter. Much of the nation MORPC’s Air Quality Committee is work- One of the primary barriers to the wide- faces a similar burden with an estimated 65 ing diligently with a broad coalition of local spread installation of diesel emission control million people living in areas exceeding the governments, manufacturers, industry, technology is a lack of resources. Many fine particulate standard and 111 million health organizations, and environmental heavy-duty diesel fleets, such as buses, people living in areas exceeding the 8-hour groups to identify and implement cost effec- refuse trucks, highway maintenance equip- ozone standard. tive ways to reduce nitrogen oxide (NOX) and ment, trains and ferries are owned or oper- Diesel engines contribute significantly to particulate matter (PM) emissions that con- ated by public agencies with limited re- this problem with on-road and off-road diesel tribute to ozone and particle pollution in sources. engines accounting for roughly one-half of central Ohio. We strongly support the intro- The Diesel Emissions Reduction Act of 2005 the ozone contributing nitrogen oxide and duction of the Diesel Emissions Reduction will provide $200 per year for the next 5 years fine particulate mobile source emissions na- Act of 2005 to provide federal funds to spur to help fund reductions of air pollution from tionwide. According to EPA, diesel exhaust local investment in voluntary diesel emis- in-use diesel engines, including those oper- also contains over 40 chemicals listed as haz- sion reduction programs. This will be an in- ated by cash-strapped public agencies. This ardous air pollutants (HAPs), some of which valuable tool to help us meet the Environ- will produce human health and environ- are known or probable human carcinogens mental Protection Agency’s (EPA) ambient mental benefits far in excess of the costs, including benzene and formaldehyde. Numer- air quality standards. and will provide timely assistance to many ous studies have suggested that diesel pollut- areas to help them achieve EPA’s health ants contribute to health effects such as We look forward to working with you to based air quality standards for particulate asthma attacks, reduced lung function, heart continue to develop support for the Diesel matter and ozone. and lung disease, cancer and even premature Emissions Reduction Act of 2005. Please let CATF urges your support of the Diesel death. me know if we can be of any assistance. Emissions Reductions Act of 2005. Fortunately, unlike many complex envi- Sincerely, Very truly yours, ronmental problems that have very com- WILLIAM C. HABIG, CONRAD G. SCHNEIDER, plicated solutions, the clean-up of diesel air Executive Director. Advocacy Director.

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STATE AND TERRITORIAL AIR POLLU- cleanup technologies off the shelf and onto sions contribute to ozone formation, fine TION PROGRAM ADMINISTRATORS/ today’s vehicles and equipment. particulate matter, and regional haze. With ASSOCIATION OF LOCAL AIR POLLU- USC is pleased to be part of a diverse coali- more than 167 million Americans living in TION CONTROL OFFICIALS, tion of groups—including environmental and counties that do not achieve the National Washington, DC, June 14, 2005. health groups, the diesel industry, and public Ambient Air Quality Standard (NAAQS) es- Hon. GEORGE V. VOINOVICH, agencies—that is working collaboratively on tablished by the Environmental Protection Chairman, U.S. Senate, Committee on Environ- reduciug diesel pollution. This unique mix of Agency, it is more important than ever that ment and Public Works, Subcommittee on voices all agree that reducing pollution from states and other organizations are given the Clean Air, Climate Change and Nuclear diesel engines is a public health priority, and means to address this growing problem. Safety, Washington, DC. that federal and state funding is a key strat- Clean diesel retrofits are a highly cost effec- DEAR CHAIRMAN VOINOVICH: On behalf of egy to clean up diesel engines. tive means of reducing these emissions, cost- the State and Territorial Air Pollution Pro- The Diesel Emissions Reduction Act will ing approximately $5,000 per ton equivalent gram Administrators (STAPPA) and the As- accelerate the public health benefits of the of air pollution removed. The Diesel Retrofit sociation of Local Air Pollution Control Offi- new engine emissions standards, and will Reduction Act of 2005 will ease the growing cials (ALAPCO)—the national associations of help Americans breathe easier. burden states are feeling as they strive to state and local air pollution control agencies Sincerely, reach attainment of these national stand- in 53 states and territories and more than 165 PATRICIA MONAHAN, ards, by providing them with grants and metropolitan areas across the country—I am Senior Analyst, Trans- loans for the purpose of reducing emissions pleased to offer support for the Diesel Emis- portation Program. from diesel engines. sions Reduction Act of 2005 and to commend There are several programs that dem- your leadership in introducing this legisla- REGIONAL AIR onstrate the achievements made by clean tion and in working with a broad coalition of POLLUTION CONTROL AGENCY, diesel retrofits. A prime example is the Met- diverse stakeholders to draft it. Dayton, OH, June 15, 2005. ropolitan Transportation Commission (MTC) Emissions from dirty diesel engines pose Hon. GEORGE V. VOINOVICH, Retrofit Program in San Francisco, Cali- serious threats to public health and the envi- Chairman, U.S. Senate, Committee on Environ- fornia. As part of the MTC program, more ronment. These emissions are not only sub- ment and Public Works, Subcommittee on than 1,700 emission control systems were in- stantial contributors to unhealthful levels of Clean Air, Climate Change and Nuclear stalled on diesel buses. It is estimated that ozone and fine particulate matter (PM ), 2.5 Safety, Washington, DC. 2,500 pounds of NOX and 300 pounds per day of they cause or exacerbate unacceptably high DEAR SENATOR VOINOVICH: The Regional particulates will be eliminated as a result of levels of toxic air pollution in most areas of Air Pollution Control Agency (RAPCA) the MTC transit bus retrofit program. We the country. Although our nation has taken would like to express our support for the are certain that the Diesel Retrofit Reduc- significant action to reduce emissions from Diesel Emissions Reduction Act of 2005. tion Act of 2005 will accomplish similar feats new highway and nonroad diesel engines, and RAPCA is a six county local air pollution upon its passage. additional federal measures are planned to control agency charged with protecting the ECTA thanks you for authoring this im- address new diesel marine and locomotive residents of the Dayton/Springfield area portant legislation and for your leadership engines, several critical opportunities re- from the adverse health impacts of air pollu- on this issue. We look forward to working main for achieving further reductions in die- tion. We would like to thank you and your with you and your staff to ensure its pas- sel emissions. Chief among them is cleaning staff for offering this vital piece of legisla- sage. up existing diesel engines by retrofitting tion which will greatly help the citizens of Sincerely, these engines with new emission control our area breathe healthier air. TIMOTHY REGAN, technologies. By authorizing funds for grants Diesel emission reductions offer a signifi- President. and loans to states and other organizations cant opportunity in the effort to clean the for the purpose of reducing emissions from nation’s air. Diesel emissions represent ap- Mr. VOINOVICH. The process for de- diesel engines, the Diesel Emissions Reduc- proximately one-half of the nitrogen oxide veloping this legislation began last tion Act of 2005 will help states and localities and particulate matter emissions from the year when several of these organiza- achieve their air quality goals, including at- mobile source sector and numerous air tions came in to meet with me. They taining and maintaining health-based Na- toxics. informed me of the harmful public tional Ambient Air Quality Standards for Like many areas across the county, the health impact of diesel emissions. On- Dayton/Springfield area is nonattainment ozone and PM2.5 and reducing exposure to road and non-road diesel vehicles and toxic air pollution. for both ozone and fine particulate matter. STAPPA and ALAPCO are pleased to sup- RAPCA strongly believes that this bill pro- engines account for roughly one-half of port this bill and look forward to working vides a unique opportunity to help the area the nitrogen oxide and particulate with you and other stakeholders as it pro- attain these standards, especially fine par- matter mobile source emissions na- ceeds through the legislative process. ticulates, as well as reducing the health tionwide. Sincerely, risks associated with air toxics. Further- I was pleased to hear that the admin- S. WILLIAM BECKER, more, many of the diesel vehicles that would istration had taken strong action with Executive Director. be affected by this bill operate in the urban new diesel fuel and engine regulations, core, thus providing health benefits to many which were developed in a collabo- UNION OF CONCERNED SCIENTISTS, individuals. Washington, DC, June 10, 2005. Again we would like to express our sincere rative effort to substantially reduce The Union of Concerned Scientists, and our thanks to you for offering the Diesel Emis- diesel emissions. However, I was told 140,000 members and activists nationwide, sions Reduction Act of 2005, which will help that the full health benefit would not strongly support the Diesel Emissions Re- millions of Americans breathe easier. be realized until 2030 because these reg- duction Act of 2005. This landmark legisla- Sincerely, ulations address new engines and the tion will improve air quality across the JOHN A. PAUL, estimated 11 million existing engines country by providing $200 million in grants Supervisor. have a long life. Diesel engines have a and loans to reduce pollution from diesel ve- hicles and equipment. EMISSION CONTROL very long life. The exhaust from conventional diesel-pow- TECHNOLOGY ASSOCIATION, I was pleased that they had a con- ered engines may cause or exacerbate serious Washington, DC, June 14, 2005. structive suggestion on how we could health problems such as asthma, bronchitis HON. GEORGE VOINOVICH, address this problem. They informed and cancer, and can even lead to premature U.S. Senate, me of successful grant and loan pro- death. In addition to its public health toll, Washington, DC. grams at the State and local level diesel exhaust exacts enormous social costs, DEAR SENATOR VOINOVICH: On behalf of the throughout the Nation that are work- with escalating health care expenditures, Emission Control Technology Association loss of work and school days, and the most (ECTA), I would like to thank you for intro- ing on a voluntary basis to retrofit die- costly impact of all—the loss of human lives. ducing the Diesel Retrofit Reduction Act of sel engines. Although standards for new diesel engines 2005, and advise you of our wholehearted sup- I was also cognizant that the new offer important health benefits, they do not port for this legislation. If enacted, this leg- ozone and particulate matter air qual- address the biggest polluters: existing diesel islation will help states to reduce diesel en- ity standards were going into effect engines. The bulk of diesel pollution now and gine emissions, thereby, strengthening the and that a voluntary program was for the next decade or more come from en- economy, public health, and the environ- needed to help the Nation’s 495 and gines already in use. Fortunately, there are ment. Ohio’s 38 nonattainment counties—es- a wide range of readily available cleanup On-road heavy duty diesel vehicles and technologies and strategies, including re- non-road diesel vehicles and engines account pecially those that are in moderate placing high-polluting engines and retro- for roughly one-half of the nitrogen oxide nonattainment like Northeast Ohio. fitting with emissions controls. The Diesel (NOX) and particulate matter (PM) mobile Additionally, I have visited with Uni- Emissions Reduction Act will help get diesel source emissions nationwide. These emis- versity of Cincinnati Medical Center

VerDate Aug 04 2004 04:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.022 S20PT1 S6794 CONGRESSIONAL RECORD — SENATE June 20, 2005 doctors—as recently as earlier this ment’s overall funding would be set Mr. ALEXANDER. Mr. President, I month—to discuss their Cincinnati aside as an incentive for state’s to will ask the Senator from Ohio a ques- Childhood Allergy and Air Pollution match the Federal dollars being pro- tion. I walked in about two-thirds of Study. Some of the early results indi- vided. the way through his remarks. cate disturbing impacts on the develop- The hope is this amendment Do I understand that this is legisla- ment of children living near highways leverages additional public and private tion that helps reduce sulfur in the air because of emissions from diesel en- funding with the creation of State level by retrofitting diesel engines so they gines. programs throughout this country. The comply with the new EPA require- It became clear to me that a national amendment would expand on very suc- ments for low sulfur? program was needed. We then formed a cessful programs that now exist in Mr. VOINOVICH. Right. This is one strong, diverse coalition comprised of Texas and California. of the most effective ways, actually, to environmental, industry, and public of- Second, the program would focus on reduce nitrogen oxide and also particu- ficials. The culmination of this work nonattainment areas where help is late matter. In my remarks I men- was released last Thursday with the in- needed the most. tioned the study at the University of troduction of the Diesel Emissions Re- Third, it would require at least 50 Cincinnati on children. The negative duction Act of 2005. percent of the Federal program to be impact is amazing on children who live The amendment that I am offering used on public fleets since we are talk- very close to freeways with this diesel today is the same as this bill. It would ing about using public dollars. fuel. Retrofitting would be the most establish voluntary national and State- Fourth, it would place a high priority cost-efficient way of dealing with that level grant and loan programs to pro- on the projects that are the most cost problem. mote the reduction of diesel emissions. effective and affect the most people. This program fundamentally is a vol- The amendment would authorize $1 bil- Lastly, the amendment includes pro- untary program. It is a program in lion over 5 years—$200 million annu- visions to help develop new tech- which we encourage all of the States to ally. Some will claim that this is too nologies, encourage more action participate. If they did, each State much money and others will claim it is through nonfinancial incentives, and would get 2 percent of the money. If not enough—so probably it is the right require EPA to reach out to stake- they didn’t, those States that partici- number. holders and report on the success of the pated would benefit from this on a per We should first recognize that the program. capita basis, 30 percent of the program need far outpaces what is contained in EPA estimates this billion-dollar allocated to them and 70 percent of it the legislation. This funding is also fis- program would leverage an additional would be distributed by the Environ- cally responsible as diesel retrofits $500 million, leading to a net benefit of mental Protection Agency based on have proven to be one of the most cost- almost $20 billion with the reduction of submissions submitted and also on the effective emissions reduction strate- 70,000 tons of particulate matter. This basis of giving priority to public re- gies. For example, let’s compare the is a quite substantial 13–1 cost-benefit quests for this money. Mr. ALEXANDER. Mr. President, I cost effectiveness of diesel retrofits ratio. commend the Senator from Ohio. He versus current Congestion Mitigation The Diesel Emissions Reduction Act has spent a long time in this session of 2005 enjoys broad bipartisan support and Air Quality program projects. working on clean air legislation. We are talking about the per ton of and is needed desperately. I urge my As one Senator, I am extremely in- Nitrogen Oxides reduced, cost on aver- colleagues to vote for this amendment. terested in that for our country. The age. We are talking about 1 ton of ni- I ask for the yeas and nays, and I ask Great Smoky Mountains—2 miles from trogen oxides and how much it costs to unanimous consent 10 minutes be set where I live, and on the other side is reduce them: $126,400 for alternative aside prior to the vote on the amend- the Senator from North Carolina, the fuel buses; $66,700 for signal optimiza- ment for sponsors to speak on its be- Presiding Officer—is the most polluted tion; $19,500 for bike racks on buses; half. National Park in America. and $10,500 for vanpool programs. The ACTING PRESIDENT pro tem- Many of our counties are not in at- This is compared to $5,390 to repower pore. Is there a sufficient second? tainment. Our biggest problem is sul- construction equipment and $5,000 to Mr. BINGAMAN. Mr. President, fur. But NOX is also a major problem. retrofit a transit bus. could I ask the Senator from Ohio a Of course, a major contributor is the The bottom line is that if we want to question about his amendment? big diesel trucks on the road. clean up our air to improve the envi- The ACTING PRESIDENT pro tem- One of the President’s greatest ac- ronment and protect public health, die- pore. The Senator may. complishments in terms of sulfur is sel retrofits are one of the best uses of Mr. BINGAMAN. Mr. President, if we tighter restrictions on the fuel that taxpayers’ money. could get copies of the amendment, will be used in these trucks. They also Furthermore, as a former Governor, I OMENICI Senator D would be anxious to are major contributors to NOX, nitro- know firsthand that the new air qual- review it. I would, as well. It sounds gen oxide. My understanding from my ity standards are an unfunded mandate very meritorious as described, but be- visits and discussions with people who on our States and localities—and they fore actually agreeing to a unanimous know about the big trucks is that the need the Federal Government’s help. consent as to the timing of the vote retrofitting of these older engines is We are going to find that out. Many and the amount of time needed in an- not as good as a new engine, but it is a Americans are not aware, because of ticipation of a vote, it would be better very substantial—70 or 80 percent as the ozone and particulate standards to get a copy at this point, if we could. good as having a new engine. that many communities are going to That is just a suggestion. I look forward to reading the legisla- have a difficult time complying with The ACTING PRESIDENT pro tem- tion. The Clean Energy Act that we are these new ambient air standards. pore. Is there a sufficient second? working on is not the Clean Air Act This legislation would help bring There is a sufficient second. The yeas that the Senator spent so much time counties into attainment by encour- and nays were ordered. on, but clean energy is the solution to aging the retrofitting or replacement Mr. VOINOVICH. I withdraw the re- the clean air problem. I am glad the of diesel engines, substantially reduc- quest for the 10 minutes until the rank- Senator is bringing this to our atten- ing diesel emissions and the formation ing member has an opportunity to re- tion. I look forward to reading it. It of ozone and particulate matter. view the amendment, and we can dis- looks like a welcome contribution. The amendment is efficient with the cuss at that time how much time the Mr. VOINOVICH. I thank the Senator Federal Government’s dollars in sev- Senator is willing to give. from Tennessee. The administration eral ways. First, 70 percent of the pro- Mr. BINGAMAN. That will be very should be complimented. The new die- gram would be administered by the good. I appreciate that opportunity. We sel regulations will go into effect next EPA. The remaining 20 percent of the will be back in touch with the Senator. year. The fact is, 11 million on- and off- funding would be distributed to States I yield the floor. road vehicles will still be on the road that establish voluntary diesel retrofit The ACTING PRESIDENT pro tem- for many years to come. As the Sen- programs. Ten percent of the amend- pore. The Senator from Tennessee. ator pointed out regarding retrofitting,

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.004 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6795 we had a bus retrofit. We are talking The energy tax language reflects the EXECUTIVE SESSION about 85 percent reduction. The diesel incentives endorsed by the Finance fuel is fine, but if you do not have the Committee last Thursday. These incen- retrofit, it will not give you the desired tives make meaningful progress toward NOMINATION OF JOHN ROBERT emissions control. energy independence. They provide a BOLTON TO BE REPRESENTA- AMENDMENT NO. 800 balanced package of targeted incen- TIVE OF THE UNITED STATES OF (Purpose: To amend the Internal Revenue tives directed to renewable energy, tra- AMERICA TO THE UNITED NA- Code of 1936 to provide energy tax incen- ditional energy production, and energy TIONS—Resumed tives, and for other purposes) efficiency. The ACTING PRESIDENT pro tem- Mr. DOMENICI. On behalf of the These incentives would encourage leader, we have cleared the amendment pore. Under the previous order, the new energy production, especially pro- Senate will proceed to executive ses- at the desk. I ask unanimous consent duction from renewable sources. that the pending amendment be set sion for the consideration of Calendar aside. I further ask that the Grassley- They would encourage the develop- No. 103, which the clerk will report. Baucus amendment No. 800 which is at ment of new technology. The assistant legislative clerk read the desk be considered and agreed to And they would encourage energy ef- the nomination of John Robert Bolton, and the motion to reconsider be laid on ficiency and conservation. of Maryland, to be Representative of the table. the United States of America to the To encourage production, the tax United Nations. The ACTING PRESIDENT pro tem- language provides a uniform 10-year pe- pore. Without objection, it is so or- The ACTING PRESIDENT pro tem- riod for claiming production tax cred- pore. Under the previous order, the dered. its under section 45 of the Tax Code. The amendment (No. 800) was agreed time until 6 p.m. shall be equally di- This encourages production of elec- vided between the two leaders or their to. tricity from all sources of renewable (The amendment is printed in today’s designees. energy. It would not benefit one tech- The Senator from Indiana is recog- RECORD under ‘‘Text of Amendments.’’) nology over another. Mr. BAUCUS. Mr. President, I nized. strongly support the Finance Commit- In Judith Gap, MT, wind whips across Mr. LUGAR. Mr. President, today the tee’s energy tax language. the wheat plains. Wind is a great and Senate again takes up the nomination Why are the incentives proposed in promising resource in Montana. But fu- of John Bolton to be U.S. Ambassador this language so important? First and ture development of wind projects to the United Nations. This nomina- foremost, they are important because needs support, like that provided in the tion has traveled a long road. I am of the energy challenges facing the Na- tax language. hopeful that we can conclude the de- tion. The tax language recognizes the bate today. Energy is critical to our Nation’s value of coal and oil to our economy. It I appreciate that several of my col- economy and security. Our continuing provides tax incentives for cleaner- leagues continue to be dissatisfied that dependence on foreign oil increasingly burning coal and much-needed expan- their requests for information have not threatens our vital national interests. sion of refinery capacity. been granted in their entirety. Under the rules, clearly they can continue to As the world’s demand for oil con- The lack of refinery capacity is driv- block this nomination as long as 60 tinues to grow at a record pace, the ing up the price of oil. And our lack of Senators do not vote for cloture. Al- world’s oil producers strain to meet domestic capacity increases our though I acknowledge their deeply held consumption. Today, OPEC is pumping vulnerabilities. A new refinery has not opposition to this nominee, we ur- close to full capacity. Even so, refined been built in the U.S. since 1976. The gently need an ambassador at the products remain scarce. tax language would encourage the de- United Nations. A clear majority of The price of oil has soared to more velopment of additional refinery capac- Senators is in favor of confirming Sec- than $55 a barrel. The price of gas at ity domestically by allowing the devel- retary Bolton. the pump is a daily reminder of the opment costs to be expensed. scarcity of energy. Increasing energy The President has stated repeatedly prices stifle economic growth. The tax language also rewards energy that this is not a casual appointment. Folks in my home State of Montana conservation and efficiency, and en- He and Secretary Rice want a specific are hit hard by rising energy prices. courages the use of clean-fuel vehicles person to do a specific job. They have High gas prices particularly hurt folks and technologies. It provides an invest- said that they want John Bolton, an who have to drive great distances. And ment tax credit for recycling equip- avowed and knowledgeable reformer, to high energy prices hurt small busi- ment. These incentives are environ- carry out their reform agenda at the nesses, ranchers, and farmers by rais- mentally responsible. They reduce pol- United Nations. ing the costs of doing business. lution. And they improve people’s Regardless of how each Senator plans We can do more to provide reliable health. to vote today, we should not lose sight energy from domestic sources. That is The energy tax provisions would of the larger national security issues our first challenge. make meaningful progress toward en- concerning U.N. reform and inter- Our next great energy challenge is to ergy independence. They are balanced national diplomacy that are central to ensure safe, clean, and affordable en- and fair. I encourage my colleagues to this nomination. We should recall that ergy from renewable resources. Energy support this legislation. U.N. reform is an imperative mission of produced from wind, water, sun, and I yield the floor. the next ambassador. In fact, on Fri- waste holds great potential. But that day, our colleagues in the House of energy cannot currently meet our na- Mr. BINGAMAN. Mr. President, I Representatives passed an extensive tional energy demands. Technology is suggest the absence of a quorum. U.N. reform bill. This body is also helping to bridge the gap. But further The ACTING PRESIDENT pro tem- working on various approaches to re- development requires financial assist- pore. Without objection, it is so or- form. ance. dered. In 2005, we may have a unique oppor- The energy tax incentives take an The clerk will call the roll. tunity to improve the operations of the evenhanded approach to an array of U.N. The revelations of the oil-for-food The assistant legislative clerk pro- promising technologies. We do not yet scandal and the urgency of strength- ceeded to call the roll. know which new technologies will ening global cooperation to address prove to be the most effective. As we Mr. LUGAR. Mr. President, I ask terrorism, the AIDS crisis, nuclear pro- go forward and provide the needed in- unanimous consent that the order for liferation, and many other inter- centives to develop these new tech- the quorum call be rescinded. national problems have created mo- nologies, we also need appropriate cost- The ACTING PRESIDENT pro tem- mentum in favor of constructive re- benefit assessments to guide future in- pore. Without objection, it is so or- forms at the U.N. Secretary General vestments. dered. Kofi Annan has proposed a substantial

VerDate Aug 04 2004 04:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.028 S20PT1 S6796 CONGRESSIONAL RECORD — SENATE June 20, 2005 reform plan that will provide a plat- ments and interviewing witnesses is to istration. But notwithstanding that, form for reform initiatives and discus- help Senators make up their minds on we should not forfeit our responsibility sions. how to vote. in order to accommodate that obses- Few people in Government have If we accept the standard that any sion. thought more about U.N. reform than Senator should get whatever docu- I do not hold John Bolton account- John Bolton. He served 4 years as the ments requested on any nominee de- able for this administration’s arro- Assistant Secretary of State over- spite the will of the Senate to move gance. John Bolton was gentleman seeing international organizations forward, then the nomination process enough to come see me. At the request under the first President Bush. He has has taken on nearly limitless param- of the Senator from Arizona, Mr. written and commented extensively on eters. Nomination investigations MCCAIN, who contacted me, I said I the subject. During his confirmation should not be without limits. It is easy would be willing to sit with John hearing, Secretary Bolton dem- to say that any inquiry into any sus- Bolton last week and speak with him onstrated an impressive command of picion is justified if we are pursuing about what we were seeking and why issues related to the United Nations. the truth. But as Senators who are fre- we were seeking it. I did that. As a Senator BIDEN acknowledged to the quently called upon to pass judgment matter of fact, one of my colleagues, nominee at his hearing that, ‘‘There is on nominees, we know reality is more the Senator from Connecticut—al- no question you have extensive experi- complicated than that. We want to en- though it wasn’t his idea, and I caught ence in U.N. affairs.’’ Deputy Secretary sure that nominees are qualified, him on the way to have dinner with his Rich Armitage has told reporters: skilled, honest and open. Clearly, we brother—was kind enough to come and ‘‘John Bolton is eminently qualified. should thoroughly examine each nomi- sit with me and listen to John Bolton. He’s one of the smartest guys in Wash- nee’s record. But in doing so, we should I believe Mr. Bolton would be pre- ington.’’ understand that there can be human pared to give us this information. This nomination has gone through and organizational costs if the inquiry Whether that is true is, quite frankly, many twists and turns. But now we are is not focused and fair. irrelevant, because the fact is we both down to an issue of process. The I reiterate that the President has told Mr. Bolton this dispute about the premise expressed for holding up the tapped Secretary Bolton to undertake documents is not about him. I say to nominee is that the Senate has the ab- an urgent mission. Secretary Bolton my colleague from Indiana, this is solute right as a co-equal branch of has affirmed his commitment to fos- above his pay grade. He indicated Government to information that it re- tering a strong United Nations. He has under oath in our committee hearing quests pertaining to a nominee. Polit- expressed his intent to work hard to se- that he was willing to let all of this in- ical scientists can debate whether this cure greater international support at formation come forward. So I actually right actually is absolute, but there is the U.N. for the national security and went to the extent of sitting with Mr. a flaw in this premise as it applies to foreign policy objectives of the United Bolton and suggesting how, as it re- the Bolton nomination. This is that States. He has stated his belief in deci- lated to a matter on which I have been the Senate, as a body, has not asked sive American leadership at the U.N. the lead horse—on Syria—we could ac- for this information. The will of the and underscored that an effective commodate an even further narrowing Senate is expressed by the majority. A United Nations is very much in the in- and detailing of the information we are majority of Senators have voted to end terest of U.S. national security. I be- seeking and why. debate. By that vote, a majority of lieve that the President deserves to Last month, after the Senate stood Senators have said that they have the have his nominee represent him at the up for itself and rejected cloture on the information they need to make a deci- United Nations. I urge my colleagues Bolton nomination, the Democratic sion. to invoke cloture. leader and I both promised publicly— If Members are intent upon exer- Mr. President, before I yield the and today I pledge again—that once cising their right to filibuster this floor, I ask unanimous consent that the administration provides the infor- nominee, they may do so. But they quorum calls be charged equally to mation we have requested and informa- cannot claim that the Senate as an in- both sides. tion that no one thus far has suggested stitution is being disadvantaged or de- The ACTING PRESIDENT pro tem- we are not entitled to—we will agree to nied information it is requesting when pore. Without objection, it is so or- vote up or down on the Bolton nomina- at least 57 Senators have supported clo- dered. tion. ture knowing that invoking it would The Senator from Delaware is recog- At the outset, it should be empha- lead to a final vote. Senate rules give nized. sized that these are not—and I empha- 41 Senators the power to continue de- Mr. BIDEN. Mr. President, I state at size ‘‘not’’—new requests made at the bate. But neither a filibuster nor a re- the outset that the vote we are about 11th hour to attempt to derail a vote. quest from individual Senators counts to take is not about John Bolton. The Nobody is moving goalposts anywhere as an expression of the will of the Sen- vote we are about to take is about tak- except closer, not further away. ate. ing a stand—about the Senate taking a The committee made these requests, Minds are made up on this nomina- stand. The vote is about whether the the same two requests, back in April. tion, as they have been for weeks. In Senate will allow the President to dic- First, we requested materials relating fact, with few exceptions, minds have tate to a coequal branch of Govern- to testimony on Syria and weapons of been made up on this nominee since be- ment how we, the Senate, are to fulfill mass destruction prepared by Mr. fore his hearing occurred. Nevertheless, our constitutional responsibility under Bolton and/or his staff in the summer the Foreign Relations Committee con- the advice and consent clause. It is and fall of 2003. ducted an exhaustive investigation. I that basic. I believe it is totally unac- We already know from senior CIA of- would remind my colleagues that Re- ceptable for the President of the ficials that Mr. Bolton sought to publicans on the Foreign Relations United States, Democrat or Repub- stretch the intelligence that was avail- Committee assented to every single lican—and both have tried—to dictate able on Syria’s WMD program well be- witness that the minority wanted to to the Senate how he, the President, yond what the intelligence would sup- interview. The cases for and against thinks we should proceed. port. Secretary Bolton have been made ex- The fact that the President of the We think the documents we are seek- tensively and skillfully. In the context United States in this case says he does ing will bolster the case that he repeat- of an 11-week investigation involving not believe the information we seek is edly sought to exaggerate intelligence 29 witnesses and more than 1,000 pages relevant to our fulfilling our constitu- data. Some who are listening might of documents culminating in 14 hours tional responsibility is somewhat pre- say: Why is that important? Remember of floor debate, the remaining process sumptuous, to say the least. I am the context in the summer of 2003. In dispute over a small amount of infor- aware—as we all are on both sides of the summer of 2003, there were asser- mation seems out of proportion. This is the aisle—of the sometimes admirable tions being made in various press ac- particularly the case given that the os- but most times excessive obsession counts and by some ‘‘outside’’ experts tensible purpose of obtaining docu- with secrecy on the part of this admin- and some positing the possibility that

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.006 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6797 those weapons of mass destruction that should ask for the names—not the statement of the chairman of the For- turned out not to exist in Iraq had been chairman—he should ask for the eign Relations Committee regarding smuggled into Syria and that Syria names. He said he did, and he said they this long-debated, long-considered had its own robust weapons of mass de- would not give him the names either. nomination. struction program. It has been alleged, as I said, that The Senate has had this nomination Remember, people were speculating Mr. Bolton has been spying on rivals for 5 months. Ambassador to the about ‘‘who is next?’’ Newspaper head- within the bureaucracy, both inferior United Nations is a very important lines and sub-headlines: Is Syria next? and superior to him. While I doubt this, post. In fact, it is a very important po- Syria was at the top of the list—not as I said publicly before, we have a sition at this particular time, as de- the only one on the list. There was duty to be sure that he did not misuse mocracy is on the march, as freedom is speculation, as I said, that the weapons this data. on the march throughout the world, of mass destruction we could not find The administration has argued that whether in Lebanon, Iraq, Afghanistan, in Iraq had been smuggled into Syria. the Syrian testimony material is not or elsewhere. We know, at that same time, the CIA relevant to our inquiry. I simply leave It is important also to note that even says Mr. Bolton was trying to stretch— it by saying that is an outrageous as- the United Nations recognizes that it is stretch—the intelligence case against sertion. The administration may not time for reform. It is vitally important Syria on weapons of mass destruction. decide what the Senate needs in re- that the taxpayers of this country, who The Syrian documents may also raise viewing a nomination unless it claims put in $2 billion every year into the questions as to whether Mr. Bolton, Executive privilege or a constitutional United Nations, ought to have a man when he raised his hand and swore to prohibition of a violation of separation such as John Bolton leading our ef- tell the truth and nothing but the of power. As my grandfather and later forts. John Bolton is a reformer, and truth, in fact may not have done that my mother would say: Who died and that is why the President nominated because he told the Foreign Relations left them boss? No rationale has been him. Committee that he was not in any way given for the testimony. The President was elected by the peo- personally involved in preparing that Parliamentary inquiry, Mr. Presi- ple of this country. A President needs testimony. The documents we seek dent: How much time have I consumed? to have the men and women he desires would determine whether that was true The ACTING PRESIDENT pro tem- to effectuate his goals, his policies, and or not. It may be true, but the docu- pore. The minority has just under 18 to keep the promises he made to the ments will tell us. minutes. people of this country. Second, we have requested access to Mr. BIDEN. Mr. President, I have two This nomination has been held up 10 National Security Agency inter- colleagues who wish to speak. I will be through obstructionist tactics. I am cepts. That means conversations brief. We have narrowed the request of hopeful that my colleagues will review picked up between a foreigner and an the documents. We narrowed them on the thorough and extensive vetting American, where they may have rel- several different occasions. I am grate- process. I am hoping that they will ac- tually take off their political blinders evance to an intelligence inquiry and ful to Chairman ROBERTS and Director where the name of the foreigner is al- Negroponte for accepting the principle and look at this nomination, look at ways listed, but it says speaking to ‘‘an that they can cross-check names on the record of performance, and look at American,’’ or an American rep- the list we have with the list of names all the evidence, all the charges, all the resenting an American entity. on the intercepts. But I hope everyone refutations, and look at the facts re- Mr. Bolton acknowledged, under understands, as my friend from Con- garding Mr. Bolton. I think it is highly irresponsible for oath, that he had sought—which is not necticut will probably speak to, that in the Senate to keep obstructing reform unusual in the sense that it has never offering to provide a list of names, we of the United Nations. And, Mr. Presi- happened, but it is noteworthy—he were trying to make it easier. We were dent, that is what is happening. This sought the identities of the Americans not trying to move the goalposts; we obstruction of John Bolton’s nomina- listed in 10 different intercepts. were trying to make it closer for them. tion, while a political effort, I suppose, When I asked him why he did that, he The bottom line is, it is very easy to in some people’s point of view, clearly said intellectual curiosity and for con- get this resolved. It is not inappro- could be characterized as obstructing text. It is not a surprise to say—and I priate for me to say that I had a very reform of the United Nations. Until we am not revealing anything confiden- good conversation not only with Mr. have our ambassador there with the tial; I have not seen those intercepts— Bolton but with Mr. Card, who indi- strength and the support of the Senate that there have been assertions made cated he was sure we could resolve the and the people of this country, we do by some to Members of the Senate and Syrian piece of this. I indicated from not have someone arguing for the the staff members of the Senate that the beginning that was not sufficient. American taxpayers, arguing for ac- Mr. Bolton was seeking the names of We had two requests for good reason: countability, trying to stop the waste, these individuals for purposes of his in- One relating to intercepts and one re- the fraud, and the corruption in the tramural fights that were going on lating to the Syrian matter. The Syr- United Nations. within the administration about the di- ian matter is within striking distance We have gone through every germane rection of American foreign policy. of being resolved. I said in good faith to argument and stretched allegation These requests resulted in Mr. Bolton him: Do not resolve that if you think against John Bolton. Instead of talking being given the names of 19 different that resolves the matter, unless you about reforming the United Nations, individuals. Nineteen identities of are ready to resolve the matter of the we have been on a fishing expedition. Americans or American companies issue relating to Mr. Bolton and the Every time on this fishing expedition were on those intercepts. intercepts. we end up seeing a dry hole. Mr. Bolton has seen these intercepts. Absent that material being made First, there was concern about his Mr. Bolton’s staff has seen some of available, I urge my colleagues to re- general views in saying the United Na- these intercepts, but not a single Sen- ject cloture in the hope that the ad- tions needed to be reformed. Then the ator has seen the identities of any of ministration will finally step up to its opposition recognized: Gosh, the Amer- these Americans listed on the inter- constitutional responsibility of pro- ican people also think the United Na- cepts. viding this information to us. tions needs reforming. I might note, parenthetically, we I yield the floor and reserve the re- Then there was a great fixation and suggested—I was reluctant to do it, but mainder of the time. focus on the drafting of speeches. And I agreed with the leader of my com- The ACTING PRESIDENT pro tem- wasn’t that very interesting, how mittee—that we would yield that re- pore. The Senator from Virginia. speeches are crafted? sponsibility to the chairman and vice Mr. ALLEN. Mr. President, I rise to Then there was a worry about the chair of the Intelligence Committee. speak in favor of actually voting on sensibilities of some people being of- Later, the majority leader, in a gen- John Bolton’s nomination. I listened to fended by John Bolton. uine effort to try to resolve this issue, my colleague’s arguments, and I lis- Then there was a worry about a asked me what was needed. I said he tened to the studious and accurate woman—I forgot where it was,

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.035 S20PT1 S6798 CONGRESSIONAL RECORD — SENATE June 20, 2005 Kazakhstan or Moscow—that was re- John Bolton has the knowledge, the Senate is the Senator from Indiana, futed as not being a fact. skills, the principles, and the experi- Mr. LUGAR. He has negotiated in good Then there was a concern about a ence to be an exceptional ambassador faith on this issue. Unfortunately, time speech that John Bolton gave where he to the United Nations. He has the after time some on the other side keep said that North Korea was a repressive right, steady, and strong principles to moving the goalpost. I know they do dictatorship and that it was a hellish lead the U.S. mission at a time when not like that term, but every time nightmare to live in North Korea. That the United Nations is in desperate need there is something answered, every was supposedly terrible for him to say, of reform. time this gets ready for a vote, there is when in fact that is a pretty good de- I believe the people of America do always a new allegation, a new request, scription of North Korea. not want a lapdog as our ambassador to something else to delay a vote on this Then there were worries about Great the United Nations, they want a watch- nomination. Obstruction in this case, Britain and what John Bolton might dog. They want to make sure the bil- as in many others, has gone on for too have done with Great Britain. Within lions of dollars we are sending to the long. It is time to vote on John hours our British friends said: No, we United Nations is actually helping ad- Bolton’s nomination. The continued had no problems whatsoever. vance freedom; helping to build rep- delaying tactics can only be viewed as Then the other side said: We want a resentative, fair, just, and free systems obstructionism for petty partisan rea- list of names; we want to see a cross- in countries that have long been re- sons. check, that request got to Senator pressed. It is absolutely absurd and far- This nomination has received inordi- ROBERTS and Senator ROCKEFELLER, cical that countries such as Syria, nate scrutiny and review. Yet oppo- the chair and cochair on the Intel- Zimbabwe, or other repressive regimes nents of voting up or down continue to ligence Committee. are on the Human Rights Commission. demand even more information. This Then there were a few names cross- Even the United Nations recognizes position has been vacant for 5 months, checked. There was nothing new there. they need reform. So that is why the we need to have a conclusion. Mr. What comes up? Now we want 3 dozen President has sent forth an individual, Bolton has an exemplary career in pub- names cross-checked as the fishing ex- John Bolton, to bring this organization lic service. The extensive oversight pedition continues. into account and reform it. that the Senate has undertaken in con- Now there is a fixation, an interest in Whether it is fraud or corruption, sidering this nomination means that the crafting of testimony or a speech this country does not think the United Senators ought to have the guts to get dealing with Syria. Nations ought to be placating or re- out of these cushy seats and vote yes or It is just going to continue and con- warding dictators and oppressive ty- vote no. Anyone who votes to continue tinue. It does not matter what the an- rants. We have heard many absurd ar- to obstruct this nomination can be swers are. It does not matter what the guments since the President has sent fairly characterized as delaying and ob- truth is. It does not matter about the John Bolton’s nomination to the Sen- structing the much needed, reforms in facts. What they want to do, unfortu- ate 5 months ago. What my colleagues the United Nations. And it is also con- nately, is ignore the dire need for re- will see as they look at each and every trary to the will of the American peo- form in the United Nations. The oppo- one of these charges as the process has ple. sition seems to want to completely ig- dragged on, is that they are wild, they I yield the floor. nore John Bolton’s qualifications and are unsubstantiated, or they have been Mr. JEFFORDS. Mr. President, I will cast my vote today in opposition to outstanding record of performance for proven false. Some claims against Mr. ending the debate on the nomination of the people of this country. Bolton have even been retracted. John Bolton has played a significant This nomination has been considered John Bolton to be the U.S. Ambassador role in negotiating a number of trea- for a long time. Throughout, new to the United Nations. I am distressed the administration ties that will result in reducing nuclear charges have been made, and each time has not provided the Congress with the weapons, or keeping them from falling they do not stand up when placed in the accurate context or studied fully. documents it has requested that are es- into the hands of rogue nations and sential for judging the quality of Mr. terrorist organizations. His work on They have been shown to be mis- leading, exaggerated, false, or irrele- Bolton’s performance in his past posi- the Moscow Treaty will reduce by two- tions. When the President sends the thirds operationally deployed nuclear vant. This is the definition of a fishing ex- Congress a request for approval of a weapons in both the United States and pedition, and its sole goal is to bring nominee for a top position, the Presi- Russia. down a nominee because of differing dent must be prepared to assist Con- John Bolton also led the U.S. nego- policy views. Many of those are leading gress in a thorough inspection of that tiations to develop President Bush’s very articulately, even if I disagree individual’s prior Government service. Proliferation Security Initiative, with them, on the Bolton nomination. Withholding information needed by which garnered the support of 60 coun- The five leading most senior members Congress, even classified information tries. This Proliferation Security Ini- of the Foreign Relations Committee, that can be handled in a secure fashion, tiative is an important security meas- who talked about speeches and offend- is detrimental to the successful func- ure to stop the shipment of weapons of ing sensibilities of people, they all tioning of our Government. The admin- mass destruction, their delivery sys- were against Mr. Bolton in 2001 before istration’s full cooperation with Con- tems, and related materials worldwide. any of these accusations arose. So this gress is not optional, but essential. John Bolton also helped create the is just a continuation of that opposi- If Mr. Bolton’s nomination comes to global partnership at the G8 summit, tion. the full Senate for a vote, I plan to which doubled the size of the non- I hope Senators the other side of the vote no. I do not oppose him because of proliferation effort in the former So- aisle who are refusing to bring this his skeptical view of the UN. I do not viet Union. By committing our G8 issue to a close would note what Chair- oppose him because he believes the UN partners to match the $1 billion-per- man ROBERTS noted, that they seem to should be reformed. If the President year cooperative threat reduction of be intent on preserving John Bolton’s wants to change U.S. policy toward the the United States, or as we call it here, nomination as a way to embarrass our UN, he has the right to choose an am- the Nunn-Lugar program. John Bolton President. bassador who will attempt to do so. also has proven that he can work well The President was elected by the peo- The Congress should evaluate that within the United Nations. He has pre- ple of America. It is logical and it is nominee on his or her ability to do the viously served as Assistant Secretary important that our CEO, our President, job for which the individual has been of State for International Organiza- be accorded the ability to bring in and selected. tions, where he worked intensively on to lead our efforts consistent with his I am opposing Mr. Bolton because his U.N. issues, including the repealing of principles, with people who are loyal to past record leads me to believe he does the offensive United Nations resolution those views, and who will effectuate not have the skills to do the job of Am- which equated Zionism to racism. That those goals. bassador to the UN. As the second- is one of the reasons B’nai Brith sup- There is little question that one of ranking foreign policy job in any ad- ports his nomination. the most fair chairmen in this entire ministration, it is very important that

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.036 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6799 this job be done right. My review of his has confirmed 24 men and women to man’s office. The secretary answered. prior experience leads me to conclude serve as U.N. ambassador. Never before This is a private office, his private that Mr. Bolton is not a man who has any President of either party made business, and she said: Oh, yes, he is builds consensus, who appreciates con- such a divisive and controversial nomi- here. He will be right with you. sensus, or who abides by consensus. No nation. In 60 years, only two nominees Then, upon finding out it was my of- matter what one thinks of the UN’s have had a single Senator cast a ‘‘no’’ fice, suddenly Mr. Friedman was no- performance, or how its functionality vote against them. Andrew Young was where to be found and has not returned and mission ought to be reformed, one one. He was confirmed 89 to 3 in 1977, the call. must be able to build support among and Richard Holbrooke was confirmed I represent the largest State in the our allies in order to effect change. As 81 to 16 in 1999. Every other time the Union. Believe me, it is a diverse State. we have seen, nothing is accomplished nominee has been approved unani- We have conservatives and liberals and at the UN by banging one’s shoe on the mously. I long for those days. everything in between. We have every podium. The work of the UN requires This is a President who said he want- political party represented there, and respect for national differences, search- ed to be a uniter, not a divider. Yet in many independent voters. But they all ing for common ground, and develop- light of all the controversy, he sticks want me to be able to make an in- ment of consensus on what actions with this nominee. The fact is, 102 formed decision. This information is must be taken. It would be irrespon- former diplomats, both Republican and very important. Therefore, I think to- sible to approve a UN ambassador who Democrat, signed a letter opposing day’s vote is crucial. There is one more point I would like is not capable of performing these John Bolton. They wrote that his past to make. tasks. activities and statements indicate con- Mr. President, I ask how much time The record shows that on occasion clusively that he is the wrong man for I have remaining? when his personal beliefs clashed with this position at a time when the U.N. is The ACTING PRESIDENT pro tem- administration policy, Mr. Bolton has entering a critically important phase pore. The Senator has 1 minute. not hesitated to take matters into his of democratic reforms. Mrs. BOXER. This is the point. When own hands, to misuse secret materials, Senator VOINOVICH said it well, and we had the whole debate over a judge a to threaten Federal employees with he is a Republican. He is a member of long time ago, a judge named Richard personal retribution and to endanger the committee. He said: Frankly, I am Paez, at that time Dr. FRIST, Senator national security in order to advance concerned that Mr. Bolton would make FRIST supported the filibuster against his own view of a situation. This is not it more difficult for us to achieve the Judge Paez. What he said in explaining who we should be sending to the UN as badly needed reforms we need. his vote was it is totally appropriate to our chief representative. We can, and John Bolton has said that there is no have a cloture vote—as we are going to we must, do better by an institution United Nations. He has said if the U.N. do today—when you are seeking infor- that should be an important part of a Secretariat Building in New York lost mation. That is totally appropriate. successful American foreign policy. 10 floors, it would not make a bit of dif- I have the exact quote here, and I The ACTING PRESIDENT pro tem- ference. How does someone with that would like to read it. He said: pore. Who yields time? attitude get the respect required to Cloture, to get more information, is legiti- Mr. BIDEN. I yield 6 minutes on my bring the reforms? mate. time, and I am told the distinguished As we know, today is not about I agree with Senator FRIST. It is le- Senator from California has 5 minutes whether Senators should vote for or gitimate to hold out on an up-or-down of leader time. I yield to the Senator against John Bolton. Today is a dif- vote, to stand up for the rights of the from California. ferent vote. It is a vote as to whether American people and the information The ACTING PRESIDENT pro tem- the Senate deserves, on behalf of the they deserve to have through us. pore. The Senator from Delaware has American people, to get the informa- I thank Senator DODD and Senator 16 minutes in total remaining. tion that Senators BIDEN and DODD BIDEN for their leadership, and I yield Mr. BIDEN. Yes. have taken the lead in asking for. By the floor. The ACTING PRESIDENT pro tem- the way, Senator LUGAR, at one point The ACTING PRESIDENT pro tem- pore. Under the previous order, the in time, had signed some of those let- pore. Who yields time? time is equally divided until 6. Extend- ters requesting the information. Mr. BIDEN. Mr. President, I yield the ing the time past 6 would take a unani- Why is this important? It is impor- remainder of the time under my con- mous consent request. tant because every Senator is going to trol to the Senator from Connecticut. The ACTING PRESIDENT pro tem- Mrs. BOXER. Senator REID gave me 5 decide whether to vote up or down on pore. The Senator from Connecticut minutes of his leader time, and I ask Mr. Bolton. We need to know what this has 9 minutes remaining. unanimous consent that I might add information will show. Yes, as Senator that to my 6 minutes. Mr. DODD. Mr. President, I thank my BIDEN has said, we get the information, The ACTING PRESIDENT pro tem- colleague from Delaware, as well as my we schedule a vote. But we will look at pore. Is there objection to the unani- colleague from California for her com- the information. What if the informa- mous consent request? ments. Let me say to the distinguished Mr. LUGAR. Mr. President, I object. tion shows that, in fact, John Bolton chairman of our committee, I know The ACTING PRESIDENT pro tem- was trying to spy on other Americans this has been a long ordeal, now going pore. The objection is heard. with whom he had an ax to grind? What up to 2 months that this nomination The Senator from Delaware. if the information shows that John has been before us. No one, except pos- Mr. BIDEN. I yield 6 minutes on my Bolton did not tell the truth to the sibly the chairman of the committee, time to the distinguished Senator from committee and that he had written a would like this matter to be termi- California. speech about Syria which was mis- nated sooner rather than later more The ACTING PRESIDENT pro tem- leading and which could have, in many than I would. I am sure the Senator pore. The Senator from California. ways, made that drumbeat for war from Delaware feels similarly, as I Mrs. BOXER. Mr. President, I think against Syria much louder than it was? know my colleague from California we need to take a deep breath and a re- There is a third piece of information does as well. ality check. All this talk from Senator that Senators DODD and BIDEN did not But there is an important issue be- ALLEN about how obstructionist the think was that important, but I still fore this body that transcends the Democrats are being—now, here is the think is important and we have asked nomination of the individual before us. truth: The Republicans run the Foreign for, which is the fact that Mr. Bolton That is whether as an institution we Relations Committee. They did not has an assistant, someone he has hired, have a right to certain information even have the votes to vote John who has outside clients so that while pertaining to the matter before us. Cer- Bolton out of that committee and he, Mr. Matthew Friedman, is getting tainly the matter that we have re- bring it to the floor with a positive rec- paid with taxpayer dollars, he has out- quested—Senator BIDEN has and I ommendation. side clients. have—regarding this nomination is di- This is a very divisive and controver- Who are these outside clients? We rectly on point when it comes to the sial nomination. Since 1945, the Senate cannot find out. We called Mr. Fried- qualities of this nominee.

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.032 S20PT1 S6800 CONGRESSIONAL RECORD — SENATE June 20, 2005 For nearly a month since our May It is not only that he had his own It will take real leadership at the 26th cloture vote on this nomination, agenda that is problematic. It is the United Nations to build the case for the administration has stonewalled our manner in which he sought to advance such cooperation. That United States efforts to get the additional informa- that agenda by imposing his judgments leadership must necessarily be em- tion we believe the Senate should have on members of the intelligence commu- bodied in the individual that serves as to make an informed judgment on this nity and threatening to destroy the ca- the United States Ambassador to the nomination. reers of those with the temerity to re- United Nations. Based on what I know Senator BIDEN and I have attempted sist his demands to alter their intel- today about Mr. Bolton, I believe he is to reach an accommodation with the ligence judgments. incapable of demonstrating that kind administration on the two areas of our In so doing, he breached the firewall of leadership. inquiry—draft testimony and related between intelligence and policy which The United States Ambassador to the documents concerning Syria’s weapons must be sacrosanct to protect U.S. for- United Nations is an important posi- of mass destruction capabilities and eign policy and national security inter- tion. The individual who assumes this the nineteen names contained in ten ests. position is necessarily the face of our National Security Agency intercepts That is not to say there should not be country before the United Nations. which Mr. Bolton requested and was a vibrant and healthy disagreement For all of the reasons I have cited— provided during his tenure as Under where one exists. There ought to be, in Mr. Bolton’s management style, his at- Secretary of State for Arms Control fact, more disagreements where these tack on the intelligence community, and International Security. Senator matters have caused friction. But the his tunnel vision, his lack of diplo- BIDEN has narrowed the scope of his re- idea that you would allow that fric- matic temperament—I do not believe quest related to Syria. I have offered to tion, those disagreements to transcend that he is the man to be that face at submit a list of names of concern re- the firewall where you would then seek the United Nations. lated to the NSA intercepts to be cross to have people dismissed from their I hope that when it comes time for an checked by director Negroponte jobs because you disagreed with their up or down vote on Mr. Bolton that my against the list of names provided to conclusions, that goes too far. Mr. colleagues will join me in opposing this Mr. Bolton. Bolton went to far and for those rea- nominee. I am very puzzled, Mr. President, by sons, in my view, does not deserve to But this afternoon’s vote is about the intransigent position that the ad- be the confirmed nominee as ambas- who determines how the Senate will ministration has taken, particularly sador to the United Nations. That fact discharge its constitutional duties re- with respect to the intercept matter. is painfully clear to all Americans fol- lated to nominations. Will the execu- If the intercepts are ‘‘pure vanilla’’ lowing the serious and dangerous intel- tive branch tell this body what is rel- as our colleague, Senator ROBERTS, has ligence failures related to Iraqi weap- evant or not relevant with respect to described them, then why does the ad- ons of mass destruction. its deliberations on nominations? Or ministration continue to withhold the We know that Mr. Bolton’s efforts to will the Senate make that determina- information from the Senate? manipulate intelligence wasn’t some The answer is we don’t know. tion? anomaly because he was having a bad If you believe as I do that the Senate Was Mr. Bolton using the informa- day. The entire intelligence commu- tion from the intercepts to track what is entitled to access to information nity knew of his reputation. that is so clearly relevant in the case other officials were doing in policy We were fortunate to have individ- of the Bolton nomination, then I would areas he disagreed with? uals, like Dean Hutchings, Chairman of respectfully ask you to join Senator Or was he simply utilizing the infor- the National Intelligence Council from IDEN and me in voting against clo- mation in the normal course of car- 2003–2005, who disapproved of and re- B rying out his responsibilities? sisted Bolton’s efforts to cherry pick ture. But this vote isn’t just about the Again, we don’t know. intelligence. Under ordinary circumstances, I We also know that Mr. Bolton needed nomination of Mr. Bolton, it is also would not be inquiring whether a State adult supervision to ensure that his about setting a precedent for future re- Department official had sought access speeches and testimony were con- quests by the Senate of the executive to sensitive intelligence for anything sistent with administration policy. on a whole host of other issues that other than official purposes. Deputy Secretary Armitage took it may come before us—in this adminis- But we know from the Foreign Rela- upon himself to personally oversee all tration and in future administrations. tions Committee investigation of this of Mr. Bolton’s public pronouncements For that reason I strongly urge all of nominee—from interviews of individ- to ensure that he stayed on the res- our colleagues to support us in sending uals who served with Mr. Bolton in the ervation. the right signal to the administration Bush administration—that Mr. Is this really the kind of performance by voting no on cloture when it occurs Bolton’s conduct while at the State De- we want to reward by confirming this at 6 p.m. partment was anything but ordinary. individual to the position of United I yield the floor. We learned how Mr. Bolton harnessed States Representative to the United The ACTING PRESIDENT pro tem- an abusive management style to at- Nations? pore. Who yields time? tempt to alter intelligence judgments Is Mr. Bolton the kind of individual Mr. LUGAR. I suggest the absence of and to stifle the consideration of alter- who we can trust to carry out the a quorum. native policy options—all in further- United States agenda at the United Na- The ACTING PRESIDENT pro tem- ance of his own personal ideological tions at this critical juncture? pore. The clerk will call the roll. agenda. I think not. The bill clerk proceeded to call the According to a story that appeared in We all know that these are difficult roll. today’s Washington Post, we now know times. Our responsibilities in Iraq and Mr. FRIST. Mr. President, I ask that Mr. Bolton’s machinations Afghanistan are significant and costly. unanimous consent that the order for weren’t limited to Cuba or Syria weap- Other challenges to international the quorum call be rescinded. ons of mass destruction. It would seem peace and stability loom large on the The ACTING PRESIDENT pro tem- he was the ‘‘Mr. No’’ of the Department horizon: Iran, North Korea, Middle pore. Without objection, it is so or- on a wide variety of policy initiatives, East Peace. Humanitarian crises in Af- dered. acting as a major roadblock to progress rica and Asia cry out for attention. Mr. FRIST. Mr. President, having lis- on such important initiatives as U.S.- The United States can not solve all tened to my Democrat colleagues dis- Russian cooperative nuclear threat re- these problems unilaterally. We need cuss the Bolton nomination last week, duction. international assistance and coopera- I very briefly come to the floor to set Mr. Bolton has done a disservice to tion to address them. And the logical the record straight. the Bush administration and to the focal point for developing that inter- The plain, simple truth is that some American people by putting his agenda national support is the United Nations. on the other side of the aisle are ob- ahead of the interests of the adminis- But international support will not structing a highly qualified nominee tration and the American people. automatically be forthcoming. and, I believe, by not allowing him to

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.008 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6801 assume this position yet, are doing process and damage America’s foreign This is a critical time for the United harm to our country. I say that be- affairs. States and for the world. Because of cause John Bolton has a long record of The United States has not had an the President’s vision and commit- successfully serving his country. He ambassador at the U.N. for over 5 ment, democracy is on the march has been confirmed by this body no months now. It is time to stop the around the globe. The United Nations fewer than four times. grandstanding and give this nominee a can and should play a central role in We have had 12 hours of committee vote. advancing these developments. hearings, 23 meetings with Senators, 31 John Bolton is a smart, principled, I believe in the U.N.’s potential if it interviews conducted by the staff of and straightforward man who will ef- is reformed and more rightly focused. the Senate Foreign Relations Com- fectively articulate the President’s It has been an important forum for mittee, and 157 questions for the record policies on the world stage. peace and dialogue. And, like the submitted by members of the com- We need a person with Under Sec- President, I believe that an effective mittee. The committee has had nearly retary Bolton’s proven track record of United Nations is in America’s inter- 500 pages of documents from State and determination and success to cut est. USAID. After reviewing thousands of through the thick and tangled bureauc- As we all know, there has been one pages of material, the intelligence racy that has mired the United Nations cloture vote. Tonight, in a few min- community has provided over 125 pages in scandal and inefficiency. utes, we will have that second cloture of documents to the Foreign Relations It is no accident that polling shows vote. Committee. The nominee has had 2 that most Americans have a dim view Mr. President, John Bolton is the days of floor debate. The list goes on of the United Nations. In recent right man to represent us in the United and on. months, we have seen multiple nega- Nations. He is a straight shooter, a The chair and vice chair of the Intel- tive reports about the world body. man of integrity. He is exactly what we ligence Committee have both reviewed We now know that Saddam Hussein need at this time in the United Na- the NSA intercepts. Both have con- stole an estimated $10 billion through tions. He is exactly what the United cluded that there is nothing there of the Oil-for-Food Program. The U.N. of- Nations needs from us. A vote for John concern. ficial who ran the operation stands ac- Bolton is a vote for change there. A I am satisfied with their conclusions, cused of taking kickbacks, along with vote for John Bolton is a vote for re- and I am satisfied that the preroga- other officials. form there. We have had dilatory tac- tives of the Senate have been re- Last month, the head of the Iraq Sur- tics and obstructionism that has been spected. vey Group told the Council on Foreign thinly veiled in words of ‘‘Senate pre- I have been more than willing to try Relations that as a result of the Oil- rogative.’’ John Bolton deserves a vote, and reach a fair accommodation with for-Food corruption, Saddam came to and the American people deserve a Senators DODD and BIDEN, but the goal believe he could divide the U.N. Secu- strong, principled voice in the United posts keep moving from a handful of rity Council and bring an end to sanc- Nations. names to now, three dozen. What is tions. Mr. President, I encourage our col- going on here looks and smells like a He did divide us, but he didn’t stop leagues to vote for cloture tonight be- fishing expedition. us. cause John Bolton deserves an up-or- I supported Senator ROBERTS’ initia- The U.N. failed to stop the genocide down vote as the nominee to the tive last week to strike a compromise. in Rwanda in the 1990s. The U.N. now United Nations ambassadorship. 1t made sense. It fairly and appro- seems to be repeating that mistake in The ACTING PRESIDENT pro tem- priately allowed the Director of Na- Darfur. pore. All time has expired. tional Intelligence to review names. In the Congo, there are numerous al- Under the previous order, the motion The names Senator ROBERTS vetted legations that U.N. peacekeepers have to proceed to the motion to reconsider with the DNI were taken straight from committed sexual abuse against the in- the failed cloture vote on this nomina- the minority report of the Foreign Re- nocent, female war victims they were tion is agreed to, the motion to recon- lations Committee. They are also sent to protect. sider the failed cloture vote is agreed names of persons that were raised by Meanwhile, the U.N.’s Human Rights to, and the Senate will proceed to a Senator DODD and Senator BIDEN dur- Commission, which is charged with vote on the motion to invoke cloture ing committee hearings and delibera- protecting our human rights, includes on the nomination. tions. such human rights abusers as Libya, CLOTURE MOTION The fact that none of these names Cuba, Zimbabwe, and Sudan. Under the previous order, the clerk was in any of the 10 intercepts con- These failures are very real and very will report the motion to invoke clo- firms what Senator ROBERTS and Sen- discouraging. They can be measured in ture. ator ROCKEFELLER have said pre- lives lost and billions of dollars stolen. The bill clerk read as follows: viously. John Bolton did nothing im- And they can be measured in the sink- CLOTURE MOTION proper in requesting these intercepts, ing regard for an organization that We, the undersigned Senators, in accord- and there is no reason for concern. should be held in some esteem. ance with the provisions of rule XXII of the Last week, Senator DODD and Sen- America sends the United Nations $2 Standing Rules of the Senate, do hereby ator BIDEN stated again that they billion per year. Our contribution move to bring to a close debate on Executive wanted to see earlier drafts of Sec- makes up 22 percent of its budget. We Calendar No. 103: William Frist, Richard Lugar, Richard retary Bolton’s 2003 Syria testimony provide an even larger percentage for Burr, Pat Roberts, Mitch McConnell, before the House. peacekeeping and other U.N. activities. Jeff Sessions, Wayne Allard, Jon Kyl, I don’t believe those documents are It is no surprise that Americans are Jim DeMint, David Vitter, Richard necessary, because what really matters calling out for reform. Shelby, Lindsey Graham, John Ensign, is the final draft. John Bolton is the President’s choice Pete Domenici, Robert Bennett, Mel That said, I have been working with to lead that effort. He possesses deep Martinez, George Allen. the White House to make this happen, and extensive knowledge of the United The ACTING PRESIDENT pro tem- and to give Senator DODD and Senator Nations and has, for many years, been pore. By unanimous consent, the man- BIDEN a chance to review these docu- committed to its reform datory quorum call has been waived. ments. Under Secretary Bolton has the con- The question is, Is it the sense of the What is important is to get this proc- fidence of the President and the Sec- Senate that debate on Executive Cal- ess moving, to give John Bolton a fair retary of State, and it is to them he endar No. 103, the nomination of John up-or-down vote, and to get our Ambas- will directly report. Robert Bolton, to be the Representa- sador to the U.N. As Senator LUGAR has pointed out, tive of the United States of America to We will find out today if that will Under Secretary Bolton has served 4 the United Nations, shall be brought to happen and if Members will do what is years in a key position that tech- a close? The yeas and nays are manda- right for our country or if pointless ob- nically outranks the post for which he tory under the rule. The clerk will call struction will continue to stymie the is now being considered. the roll.

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.042 S20PT1 S6802 CONGRESSIONAL RECORD — SENATE June 20, 2005 The assistant legislative clerk called AMENDMENT NO. 799 cess of a billion dollars and the result the roll. The PRESIDING OFFICER. The will tell us much of what we already Mr. MCCONNELL. The following Sen- pending amendment is No. 799, the know. ators were necessarily absent: the Sen- Voinovich amendment. I am asking my colleagues to strike ator from Montana (Mr. BURNS), the Mr. NELSON of Florida. Mr. Presi- the proposed inventory language con- Senator from Minnesota (Mr. COLE- dent, is it in order to ask unanimous tained in this bill and protect the MAN), and the Senator from South Da- consent to lay aside the pending rights of States that have no interest kota (Mr. THUNE). amendment for the purpose of speaking in drilling off their shores. Further, if present and voting, the on an amendment that will be offered This provision offered by my col- Senator from Minnesota (Mr. COLEMAN) by Senator MARTINEZ? league, Mr. Senator LANDRIEU of Lou- would have voted ‘‘yea.’’ The PRESIDING OFFICER. The Sen- isiana, proposes to require a ‘‘seismic Mr. DURBIN. I announce that the ator may ask that consent. survey inventory’’ of all outer conti- Senator from Wisconsin (Mr. FEIN- Mr. NELSON of Florida. Mr. Presi- nental shelf areas, including within GOLD), the Senator from South Dakota dent, I will certainly be willing to have sensitive coastal waters long-protected (Mr. JOHNSON), the Senator from Mas- my colleague from Florida speak. I ask from all such invasive activities by the sachusetts (Mr. KERRY), the Senator unanimous consent that I speak after 24-year bipartisan congressional mora- from Wisconsin (Mr. KOHL), and the the Senator from Florida, Mr. MAR- torium. Senator from Michigan (Mr. LEVIN) are TINEZ, who will offer the amendment. I opposed this amendment in com- necessarily absent. The PRESIDING OFFICER. Without mittee because it contains something The PRESIDING OFFICER (Mr. objection, it is so ordered. we in Florida don’t want and it opens CORNYN). Are there any other Senators The Senator from Florida. the door to a number of problems, envi- in the Chamber desiring to vote? AMENDMENT NO. 783 ronmental problems, economic prob- The yeas and nays resulted—yeas 54, Mr. MARTINEZ. Mr. President, I call lems, and unnecessary challenges for nays 38, as follows: up amendment No. 783. our military. [Rollcall Vote No. 142 Ex.] The PRESIDING OFFICER. Without Why would we inventory an area where we are never going to drill? YEAS—54 objection, the amendment is set aside. The inventory is a huge problem for Alexander Dole McCain The clerk will report. Allard Domenici McConnell Florida. It tantalizes pro-drilling inter- The assistant legislative clerk read Allen Ensign Murkowski ests. It basically puts the State at risk. Bennett Enzi Nelson (NE) as follows: I have received assurances from my Bond Frist Pryor The Senator from Florida [Mr. MARTINEZ], friends on the other side of this issue Brownback Graham Roberts for Mr. NELSON of Florida, for himself, Mr. Bunning Grassley Santorum that States such as Florida, States MARTINEZ, Mr. CORZINE, Mrs. BOXER, Mr. Burr Gregg Sessions that do not want drilling on their LAUTENBERG, Mrs. FEINSTEIN, Mr. KERRY, Chafee Hagel Shelby coast, will not have to do it. Fine. That Chambliss Hatch Smith Mrs. DOLE, and Mr. BURR, proposes an Coburn Hutchison Snowe amendment numbered 783. is Florida’s position. Cochran Inhofe Specter (Purpose: To strike the section providing for I can clearly state that we do not Collins Isakson Stevens a comprehensive inventory of outer Conti- want drilling now, and I do not see a Cornyn Kyl Sununu scenario anywhere on the horizon Craig Landrieu Talent nental Shelf oil and natural gas resources) Crapo Lott Thomas Beginning on page 264, strike line 1 and all where we would change that position. DeMint Lugar Vitter that follows through page 265, line 12. So why, given our objection to drilling, DeWine Martinez Warner Mr. MARTINEZ, Mr. President, I ap- would we spend the resources, more NAYS—38 preciate the opportunity that the than a billion dollars, and damage the environment in the eastern planning Akaka Dodd Murray chairman, Senator DOMENICI, the rank- zone to do this inventory? I would also Baucus Dorgan Nelson (FL) ing member, Senator BINGAMAN, and Bayh Durbin Obama say to my colleagues that an inventory other members have given me to work Biden Feinstein Reed is not a benign thing. Bingaman Harkin Reid on this important piece of legislation. Seismic surveys involve extensive Boxer Inouye I came late to the work of this com- Rockefeller acoustic disruption to marine eco- Byrd Jeffords Salazar mittee on this bill, having joined the Cantwell Kennedy Sarbanes systems and fisheries. Recent scientific Carper Lautenberg Senate just this year. Much of the Schumer studies have documented previously- Clinton Leahy Stabenow work had previously been done. Conrad Lieberman unknown impacts from the millions of Voinovich As the chairman himself has said, high-intensity airgun impulses used in Corzine Lincoln this bill will make a real difference in Dayton Mikulski Wyden such inventories. These sudden, repet- America’s energy landscape. NOT VOTING—8 itive explosions bring about a potential I must tell my colleagues that I want for harm that is simply too great. Burns Johnson Levin to vote for this bill. I think it contains Coleman Kerry Thune Seismic surveys are an invasive pro- Feingold Kohl a lot of what this Nation needs. cedure, inappropriate for sensitive ma- I have grave reservations about one rine areas and economically important The PRESIDING OFFICER. On this particular provision that calls for an vote, the yeas are 54, the nays are 38. fishing grounds. inventory of the resources off this Na- And if one looks at the cost of this Three-fifths of the Senators duly cho- tion’s outer continental shelf. sen and sworn not having voted in the inventory, the Minerals Management It is for this reason that I rise today Service reports that using the most up- affirmative, the motion is rejected. to oppose the inventory, offer an The majority leader. to-date technology to perform an in- amendment to strike the inventory ventory of this magnitude will cost be- f language, and ask for the support of tween $75 million and $125 million for LEGISLATIVE SESSION my colleagues. The inventory language each frontier planning area. Nowhere Mr. FRIST. Mr. President, I ask is opposed by both Senators from Flor- in this legislation can I find a section unanimous consent that the Senate re- ida and a number of coastal State Sen- that suggests how we recoup the cost of turn to legislative session. ators because it opens the door to the such an inventory. The PRESIDING OFFICER. Without development of offshore drilling. So I ask my colleagues to strike the objection, it is so ordered. In my State of Florida, such an in- inventory. Going forward will encroach ventory off our coastlines would take f upon our coastal waters, waters cov- place entirely within a Federal mora- ered by a drilling ban, and would do lit- ENERGY POLICY ACT OF 2005— torium that bans offshore drilling. tle more than act as enticement to oil Continued I oppose the inventory because it en- companies that want our drilling mora- The PRESIDING OFFICER. The Sen- croaches on an area off of Florida’s torium lifted. ator from Florida. coast that we expect will remain under Last year, more than 74 million peo- Mr. NELSON of Florida. Mr. Presi- that drilling ban in perpetuity. ple visited Florida to enjoy its coast- dent, what is the parliamentary situa- My colleagues should be aware that line, its wonderful climate, its excel- tion? this proposed inventory will cost in ex- lent fishing. Families return year after

VerDate Aug 04 2004 03:36 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.043 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6803 year to their favorite vacation spots to As many of my colleagues know, Sen- ready conducts inventories of the eco- relax under our brilliant blue skies, our ator NELSON and I are working to- nomically recoverable oil and gas re- powdery white beaches, and our crys- gether to engage a coalition of Sen- serves on the Outer Continental Shelf, tal-clear emerald waters. ators to help beat back any efforts to including moratoria areas, every 5 The people of Florida share a love encroach upon our coastal waters. I am years. In fact, the MMS will complete and appreciation of the Atlantic Ocean proud to say in doing so I follow in the its next inventory this summer. Its and the Gulf of Mexico, its coastal footsteps of our predecessors, former last inventory came out in the year habitat and our wetlands, which make Senators Connie Mack and Bob 2000. If that is the case, why do we need a very complex ecosystem, and also a Graham, and a bipartisan Florida dele- another inventory? How is the inven- very special place to live. gation, in our firm opposition to drill- tory in this bill different from the one I share these facts for one reason: ing off our coasts. that is already in effect? Two words: The people of Florida are concerned Let me again take a moment to seismic exploration. their coastal waters are coming under praise Chairman DOMENICI and Ranking What is seismic exploration—in other increased pressure to exploit possible Member BINGAMAN for putting together words, what they call survey? It is an oil and gas resources. The people of a comprehensive, bipartisan, and sig- expensive, invasive, and harmful prac- Florida do not want that to happen. nificant energy policy that is forward tice used by oil and gas companies to Floridians are adamantly opposed to looking, forward thinking, and a road determine where to drill. Why doesn’t oil and gas exploration off our coastal map of where we as a Nation need to go MMS use seismic exploration currently waters. We have very serious concerns in order to address the challenges that to complete their inventory? Because that offshore exploration will weaken confront us today. it is too costly and it is considered a the protections we have built over The problem is that this inventory precursor to drilling. these many years. The inventory is but language is a bad provision in a good If you are not going to drill, you a foot in the door; it seriously threat- bill. I cannot emphasize enough how should not be spending hundreds of ens marine wildlife and the coastal damaging this will be to Florida, other millions of dollars to tell you where to habitat off the coast of Florida. coastal States, and our military train- put the drill. MMS estimates that One other area of concern that per- ing and testing operations in the Gulf. these surveys would cost between $75 haps has not been highlighted enough The inventory will have a chilling af- million and $125 million for each of the and I know my colleague from Florida fect on all of these interests. planning areas. Remember, in the shares my view, is that it has a tre- The amendment I offer here tonight Outer Continental Shelf, there are nine mendous impact on military uses of is simple in that it strikes the lan- planning areas. At $75 million to $125 waters off Florida to conduct extensive guage requiring a ‘‘seismic survey in- million apiece for seismic exploration, training and testing. For whatever ventory’’ of all outer continental shelf that means we would be having MMS time it would take to conduct an in- areas. I believe striking this language spend $675 million to $1 billion to sur- ventory off our coastline, it would be makes the overall bill stronger and I vey our moratorium areas, areas on the exact amount of time our military ask for my colleagues to support such our coastline that are under a morato- will be put at a disadvantage. an amendment. rium until the year 2012, pursuant to a We must afford our military the most I yield the floor. Presidential directive. and best training possible for battle The PRESIDING OFFICER. The Sen- Let me tell you a little bit about preparedness. Vieques used to give our ator from Florida. what seismic exploration and sur- men and women that capability. Now Mr. NELSON of Florida. Mr. Presi- veying is. Oil and gas companies use that Vieques is closed, Florida’s Pan- dent, I rise to join my colleague from seismic air guns. They are long, sub- handle plays an increasingly signifi- Florida, as we have introduced this mersible cannons that are towed be- cant role. Oil and gas exploration amendment to strike the portion of the hind boats in arrays, firing shots of would have the potential to halt that Energy bill that would set up an inven- compressed air into the water every 10 important work for an indefinite period tory on the Outer Continental Shelf. seconds. Interestingly, these air guns of time. I want to show how extensive this in- have replaced dynamite as the indus- Here are just some of the current ventory is going to be. The Outer Con- try’s primary method of exploration. missions using our section of the Gulf: tinental Shelf is all of the west coast of But they create sound rivaling that of F–15 combat crew training; F–22 com- the United States, the Pacific coast, dynamite. A large seismic array can bat crew training; Navy cruise missile the area in yellow off the coast of produce peak pressures of sound that exercises; special forces training; car- Washington, Oregon, and California. are higher than virtually any other rier battle group training; composite All of that area would be subject to the manmade source, save for explosives and joint force training exercises; air- inventory. All of this area in the Gulf like dynamite—over 250 decibels. to-surface weapons testing; surface-to- of Mexico is presently covered by the The oil and gas industry typically air weapons testing; and mine warfare moratorium about which Senator MAR- conducts several seismic surveys over testing. TINEZ and I fought very hard last week the life of their offshore leases. They Any military mind knows that it to get an agreement from the two lead- use these seismic surveys to determine takes months to schedule training op- ers and managers of the bill that they the best placement of oil rigs and pipe- portunities when joint operations are would not come in and support any lines and to track fluid flows within involved. If we were to continue on this amendments that would offer drilling the reservoirs. Seismic surveys are path of mandating an inventory in in the Gulf of Mexico off Florida. massive, covering vast areas of the Florida’s waters, we could bring a halt But look at the Outer Continental ocean, with thousands of blasts going to a number of important exercises. Shelf. It extends from Maine all the off every few seconds, in some cases In fact, one of the main reasons the way down to Florida. We are talking over the course of days, weeks, months. military uses this area so extensively about a huge area that would be inven- The arrays towed by boats consist of 12 is due to the protections currently in toried. That sounds innocent enough, to 48 individual air guns, synchronized place. Here is what MG Michael but let me tell you why I oppose it. I to create a simultaneous pulse of sound Kostelnik, the base commander of oppose it because it is unnecessary un- outputting a total of 3,000 to 8,000 cubic Eglin Air Force Base, said in May of less you are preparing to drill in areas inches of air per shot. The sounds are 2000: off our coast that are currently subject so powerful because the array is at- We continue to place the most severe re- to this moratorium; otherwise, why tempting to generate echoes from each strictions in the eastern portion of the pro- would we want to take an inventory if of several geologic boundary layers at posed sale area where oil and gas operations all of this Outer Continental Shelf is the bottom of the ocean. Echoes pro- would be incompatible with military train- now under a moratorium so you cannot duced by these seismic impulses are re- ing and testing operations. drill for oil and gas? corded, and they are analyzed by oil If we allow exploration there now, I oppose it also because it is harmful and gas companies to provide informa- the military will suffer a setback in to marine life and commercial fish, and tion on the subsurface geological fea- their training and preparedness. the Minerals Management Service al- tures.

VerDate Aug 04 2004 03:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.013 S20PT1 S6804 CONGRESSIONAL RECORD — SENATE June 20, 2005 The noise pollution from these tests the total world oil production. We can- pendent future based on the abundant can literally be heard across oceans. If not drill our way to energy independ- natural human and technological re- the sea floor is hard and rocky, the ence. sources found right here within our noise might be heard for thousands of Spending hundreds of millions of dol- borders. miles. And the sound can mask the lars on harmful exploration in areas As we wean ourselves from the oil calls of whales and other animals that whose economic livelihood depends on fields of the unstable Middle East and rely on the acoustic environment to their fishing industry and their marine other parts of the world and rely in- breed and survive. Scientists are docu- ecosystem could have devastating ef- creasingly on field crops and fuel cells menting more and more problems asso- fects. produced in America’s heartland, we ciated with the seismic surveys. For these reasons, I must oppose this will build an energy future that will Whales, dolphins, fish, sea turtles, and invasive, duplicative, and harmful ex- make us more secure and a future of squid have all been impacted adversely ploration on the moratoria areas on which we can be proud. by the seismic activity. I sure would the Outer Continental Shelf. This is the bottom line. When we not want to be a scuba diver in the The bottom line is, if you have the talk about moving toward energy inde- water with one of these seismic blasts Outer Continental Shelf under mora- pendence in this country, we are talk- going off. toria, why do we need to try to inven- ing primarily about reducing America’s The 2004 International Whaling Com- tory all of that if you are not supposed dependence on imported oil. Petroleum mission’s Scientific Committee, one of to have any drilling under Presidential accounts for more than 85 percent of the most well-respected bodies of whale directive at least until the year 2012? our energy imports. As everyone is biologists in the world, concluded that Why go in with the risk to Mother Na- acutely aware, much of the 85 percent increased sound from seismic surveys ture with this kind of seismic explo- comes from some of the world’s most was a ‘‘cause for concern’’ because ration? unstable and, in some cases, openly there is a growing body of evidence I yield to my colleague from Florida. hostile countries. Today, rising global demand for pe- that seismic pulses kill, injure, and dis- The PRESIDING OFFICER (Mr. troleum is driving prices for gasoline turb marine life. DEMINT). The Senator from Florida. The impacts range from strandings Mr. MARTINEZ. If the Senator will and home heating oil to record levels. to temporary or permanent hearing yield, I wonder if in any part of this This year, China passed Japan as the world’s second largest consumer of en- loss, to abandonment of habitat and bill the Senator noticed any area that ergy. China’s use of oil is expected to disruption of vital behaviors such as would denote how the $1 billion, the grow exponentially over the next few mating and feeding. cost of exploration, would be paid for? Studies have also shown substantial Mr. NELSON of Florida. That is an years. So the focus of any national en- ergy strategy must be to reduce our de- impacts on commercial species of fish. excellent question. If you are going to pendence on foreign oil in a sustainable Fishermen, beware. One series of stud- do the seismic exploration which this bill would allow in the nine areas under way and as rapidly as possible. ies demonstrated that air guns caused By far, the largest use of petroleum the moratoria, it is going to cost be- extensive and apparently irreversible in this country is in the transportation tween $650 million and $1 billion. In a damage to the inner ears of snapper, sector, and 97 percent of today’s trans- Congress that is so concerned about and the snapper were several kilo- portation fuel comes from petroleum. budget deficits to the tune of almost meters from the seismic surveys. Thankfully, we know the solution. It is half a trillion a year, where are we The scientific community is not the technologically feasible. We need to going to get that kind of money? one that is raising the alarm bells. build vehicles that use less gasoline or The Senator’s point is well taken. I Courts and governments are starting to no gasoline, and we need to make an thank my colleague from Florida for realize the dangers posed by seismic aggressive transition to clean, renew- making that point. exploration. In 2002, a California Fed- able domestic fuels such as ethanol, Mr. MARTINEZ. A further question: eral court stopped a geologic research biodiesel, and fuel cells. project in the Sea of Cortez, when two It seems to me, when we have a mora- The goal is a future of vehicles pow- beaked whales were found dead with an toria, drilling is prohibited right now. ered by fuel cells. The hydrogen is used undeniable link to the seismic activity. To do this inventory in that particular to create the electricity to turn the The Canadian Government slowed a area, it certainly seems to me to be a motors that turn the wheels. The geologic project off its west coast and waste of taxpayer dollars since there is power from the fuel cell comes from is looking closely at an oil and gas no prospect of drilling with the con- hydrogen that will be made by renew- seismic survey off Cape Breton as a re- gressional and Presidential morato- able resources such as wind, photo- sult of dangers posed by the surveys. riums in place. voltaic, and other forms of renewable The Australian Government refused Mr. NELSON of Florida. The Senator energy. to issue permits for a survey near a is correct. Since a President of the The biggest single step right now marine park because the proponents of United States established this morato- that we can take is to improve vehicle the survey could not prove it would not rium on the Outer Continental Shelf fuel economy. This bill takes a modest harm the marine park. and it is to run to 2012, why do we need step in this direction, for example, by And the Bermuda Government re- to be spending money on seismic sur- offering tax incentives for hybrid gas- fused to issue a permit for seismic geo- veying on an area that is off limits to electric vehicles, but we need improve- logic surveys off its coast, citing con- drilling, which the moratorium has in ments across the board, including rais- cerns for impacts on marine mammals. place until the year 2012? ing the corporate average economy Air gun activity associated with seis- I thank the Senator for joining to standard for vehicles. mic surveys must be considered an offer this amendment. I ask the Senate Another commonsense way to reduce invasive procedure, inappropriate for to consider helping continue to pre- reliance on fossil fuels is to make sensitive marine areas and economi- serve the moratorium. greater use of clean and homegrown cally important commercial fishing I yield the floor. fuels. This bill has several provisions grounds. The PRESIDING OFFICER. The Sen- that take us in the right direction on We have to continue to remember ator from Iowa. this front, starting with the robust 8- that the United States has 3 percent of Mr. HARKIN. Mr. President, we are billion-plus renewable fuel standard the world’s oil reserves. on the eve of a turning point in the en- first proposed by Senator LUGAR and I Yet the United States uses four times ergy future of our country. As we move and overwhelmingly approved by this more oil than any other nation, accord- closer to voting on a comprehensive en- Senate last week. ing to the report from the National ergy bill, we have a truly historic op- It is very disturbing that even with Commission on Energy Policy. Accord- portunity to transform the way we the price of ethanol well below that of ing to Alan Greenspan in a speech he think about energy. We have an oppor- gasoline, fuel blenders are still turning gave in April of this year, the 200 mil- tunity to make a decisive step away their backs on this cleaner, cheaper, lion personal vehicles currently on the from dependence on foreign imports homegrown alternative and turning in- U.S. highways consume 11 percent of and fossil fuels and toward an inde- stead to imports of refined gasoline.

VerDate Aug 04 2004 03:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.046 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6805 This chart illustrates that. Right the bill has in it, as I said, incentives mobile. So biomass is a vital part of now, going back to 5 years ago, there for installing flexible-fuel pumps at combating climate change. has been a steady increase in the im- fuel stations. But we do not have a Now, the biorefineries that produce ports of gasoline. This is weekly total mandate to build flexible-fuel cars. this ethanol will also give us bio-based gasoline imports—thousands of barrels Right now, there is a fuel savings products to supplement or replace ev- per day. From April 28 of 2000 until credit that auto manufacturers get for eryday products now made from petro- March of this year, gasoline imports making E–85 vehicles. It is called the leum. I have a couple of posters that increased 66 percent. This is not oil, CAFE credits. But it is on the assump- indicate that. Shipping materials, this is gasoline. This is oil that has tion that these vehicles will run on E– building construction materials, roof- been refined in some foreign country, 85 at least half the time. In other ing materials, elastomeric-type roofing put on a tanker, and shipped to this words, an auto manufacturer gets the materials, paints, hand sanitizers, and country. So right now, we are up to credits for building a flexible-fuel vehi- even carpets are made from renewable just about a million barrels a day. cle on the assumption the vehicle will resources, biodegradable resources. For Think about that, that is just gasoline. use E–85 half the time. home and automotive use, just think of Not too many people know that. Most But the truth is, most people who all the plastic cups, all these con- people think we are just importing oil. own flexible-fuel vehicles do not even tainers made out of petroleum now. We are importing about a million bar- know it. So E–85 does not get used at And there are lubricants, soy oil. Even rels a day of refined gasoline into this all for that reason, and for the reason rubber tires are made out of renewable country. That is at the expense of there are not many pumps out there. resources which are biodegradable. All American dollars and jobs. This is tak- So we call this the dual-fuel loophole of these things can be made from the ing us in the wrong direction. because carmakers get the credit for biorefineries that will be producing the A recent report by the Consumer alternative fuels even if no alternative ethanol and the biodiesel that we will Federation of America found con- fuel is used. We should close that loop- use in transportation. Many of these sumers would be saving up to 8 cents a hole now by tying CAFE credits to the products are on the market, not in the gallon at the pump if refiners were in- amount of flexible fuel that is actually future but today. stead adding it to the gasoline at just used, or by simply letting the credit Tripling the use of bio-based products 10-percent blends. expire. could add $20 billion in economic bene- My consumers in Iowa, right now, are So what I am saying is we need a fits just by the year 2010—5 years from saving as much as 10 cents per gallon three-pronged approach. We have the now. Replacing the Nation’s petro- on ethanol-blended fuels, for an aver- incentives in the bill to add flexible- chemicals with bio-based equivalents age savings of at least $100 a year for a fuel pumps at fueling stations. Sec- would save some 700 million barrels of typical family. ondly, we need to provide these credits petroleum a year. Just replacing plas- I believe Americans all across the will go only—only—on the amount of tics with bio-based counterparts would country deserve the cost and clean air flexible fuel that is actually used. save another 100 million barrels or benefits that ethanol-blended fuels pro- Third, what I am saying is we actually more. So there is great potential here. vide. It is imperative we insist on our need a mandate that cars sold in Amer- We need to get serious about sup- strong 8-billion-gallon renewable fuels ica be flexible fueled. porting these bio-based products, and standard when this Energy bill goes to Now, another important provision of the Federal Government needs to take conference with the House. the Energy bill extends the income tax the lead. In addition to the renewable fuels credit for the production of biodiesel, Now, I know we are talking about the standard, this bill in front of us in- another excellent renewable fuel. Bio- Energy bill, and that is what I have cludes tax incentives for alternative diesel offers tremendous energy sav- been talking about. But I am just going motor vehicles and fuels. This is very ings by providing 3.5 times more en- to digress for a minute and talk about a provision that was in the farm bill important. But we need to act more ag- ergy than is used to produce it, and by that was passed in 2002 because it has a gressively. For example, I believe we offering improved air quality over tra- lot to do with this Energy bill. Keep in need to mandate that gasoline vehicles ditional diesel. mind what I have been saying is, by sold in this country be flexible-fuel ve- In addition to investment in today’s getting the biorefineries going and hicles that can run on E–85; that is, 85 biofuels, we also need a strong invest- making more ethanol and biodiesel, we percent ethanol or some other biofuel. ment in the future of bio-based fuels have byproducts that can also be made. Now, flexible-fuel vehicles only cost and products of all kinds. New tech- As I mentioned, they are the plastic maybe, right now, between $100 and nology is making it possible to produce containers and the building materials $200 per vehicle. That is with just a biofuels and a host of industrial and and things like that. There is an im- small amount that are being made. If commercial products out of biomass; portant provision in the farm bill, sec- every vehicle was a flexible-fuel vehi- that is, agricultural material such as tion 9002, that we worked very hard to cle, the cost per vehicle would drop corn stalks and wheat straw and get in the farm bill, passed and signed way below $100 per vehicle. The savings switchgrass and wood pulp and things by the President 3 years ago this a consumer would get on that few dol- like that—dedicated energy crops that month. Section 9002 requires all Gov- lars extra added to the sticker price of together are expected to produce 10 ernment Departments and Agencies to a car would be more than made up for, times the current volume of ethanol at give a purchasing preference to bio- probably within the first year or so of prices equal to or less than that of gas- based products. Now, here is the exact buying flexible fuels. oline, and, again, with tremendous ben- wording. This is section 9002. This is So I am saying, right now we do not efits to our environment and our rural law. It has been the law for 3 years: have that many flexible-fuel vehicles. economy. Each Federal agency . . . shall— We need to mandate that cars sold in A recent study found that farmers America—not made here, sold in Amer- can expect to earn an additional $35 per It does not say ‘‘may’’— ica—be a flexible-fuel vehicle. You acre just by selling the excess bio- shall, in making procurement decisions, give preference to such items composed of the might say: Is that possible? Well, mass—the stalks and the straw—from highest percentage of bio-based products Brazil is planning on having all of its traditional corn and wheat operations. practicable . . . unless such items (A) are not new cars flexible-fuel ready by 2008. I Now, ethanol made from this residual reasonably available; (B) fail to meet per- want to ask the question: If the Brazil- biomass is expected to have near zero formance standards; or (C) are available only ians can do it, why can’t we? If the or even negative net carbon dioxide at an unreasonable price. Brazilians can do it, of course we can emissions. How can that be? If you are So price, performance, and avail- do it. using it, you are burning it, burning ability—as long as it meets those three Now, of course, consumers need ac- the fuel in a car, you put carbon diox- criteria, each Federal agency shall buy cess to the renewable fuels. So I am ide into the atmosphere. That is true. them. That is what it says, period. glad the bill in front of us includes in- But as these plants grow, they take Think of all the plastic cups and centives for the installation of flexible- carbon dioxide out of the atmosphere forks used every day in the Senate caf- fuel pumps at fueling stations. So now more than what is burned in the auto- eteria alone.

VerDate Aug 04 2004 03:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.048 S20PT1 S6806 CONGRESSIONAL RECORD — SENATE June 20, 2005 Think of the Department of Defense, America’s dangerous dependence on In 2004, when extension of the produc- think about all of the plastic materials fossil fuels extends beyond oil. Natural tion tax credit was delayed, more than they use in serving the troops every gas prices have skyrocketed, hurting $2 billion in wind power investment day. Think of the millions of gallons of everyone who uses gas to heat their was put on hold. I am pleased a 3-year metal-working fluids, lubricants, and home or fuel their appliances or to extension of the production tax credit paint used by the Department of De- make fertilizer for our farmers. Ameri- for wind has been included in this bill. fense. Yet 3 years after the passage of cans now pay two to three times what We could do more, much more. It the farm bill, we still do not have a Europeans pay for natural gas due to should be extended longer than that, bio-based procurement program in our ever-growing demand and limited but at least this minimal amount place in the Federal Government. That availability. Farmers are hit hard. Our should provide developers the certainty has been there. It has been the law. farmers rely on natural gas not only to they need to move ahead with wind And we are still not doing it. McDon- heat homes and run much of their power projects. ald’s can go buy plastic cups made out equipment but also for fertilizer in the We also need to make sure farmers of renewable resources. Good for them. fields. These impacts on farmers are se- and farmer co-ops can be full partici- Why can’t the Department of Defense? vere and getting worse. We need an en- pants in wind power projects. The farm Why can’t the Department of Interior ergy bill that looks for sensible ways bill’s energy title, section 906, is pro- that operates in our national parks? to lower natural gas costs for all Amer- viding grants and loans to farmers and Why aren’t they using more biodegrad- icans. We need to look for environ- rural small businesses to install wind able materials? The law says they are mentally sensitive ways to increase and other renewable energy systems on supposed to, but they are not doing it our supply. their property. It also supports energy- That is why I keep saying, the House because USDA has yet to issue the efficient improvements to farm and put in a bill to drill for oil in the Arc- rules. small business operations. This pro- tic National Wildlife Refuge, but we all Again, I bring that up because this is gram has been a real success over the know that oil doesn’t amount to any- part and parcel of the Energy bill. This past several years. We expect it to thing. Most of that oil—I could be cor- saves us energy because right now all grow substantially in the years ahead. rected—I believe all of that oil is going I have also introduced a bill, S. 715, this material is made from imported to go to Japan. It is a drop in the buck- to help more farmers and other rural oil, or most of it. It could be made by et compared to what we use. But what citizens become active investors in homegrown products here in America. else they have in Alaska is a lot of nat- wind energy by removing restrictions We need to have the Federal Govern- ural gas, and we need to pipe that nat- that are in the production tax credit. ment setting an example and leading ural gas from Alaska down to the lower This bill I am sponsoring includes a the way in reducing dependence on 48. That has been on the drawing pass through of the wind production products made from foreign oil. I am boards in the past to get that natural tax credit to cooperative members, just sorry to say that 3 years later we still gas down here. And for various and like the small ethanol producer credit are not doing it. sundry reasons that I don’t need to go pass through right now. This will pro- We also need to invest in research into here, it has been held up. vide another needed boost to rural and commercialization of bio-based I call upon the Governor of Alaska to America’s wind power development. fuels and products. That is why a few move expeditiously to reach the agree- Right now, if a co-op builds an ethanol weeks ago, I, along with Senators ments that are necessary to get the plant, they can get the production tax LUGAR, OBAMA, and COLEMAN, intro- natural gas pipeline constructed and credits passed through to their mem- duced the National Security and Bio- built to deliver the natural gas down to bers. If a co-op wants to build wind- energy Investment Act of 2005. Our bill the lower 48. They have been talking a mills, however, they can’t pass it promotes targeted biomass research lot about how they would pipe it through to their members. Hopefully, and development in order to expand the down—they would liquefy it and then we can lift this restriction, and we can cost-effective use of bio-based fuels, send it down to the west coast, or do it on this Energy bill before us. products, and power. It provides incen- maybe to the Gulf States. That costs a Finally, we need to look to the tives for the production of the first 1 lot of money when you liquefy natural longer term future, and we need to do billion gallons of biofuels from cel- gas, when we could build a pipeline it now by laying the groundwork. To lulosic biomass; that is, crop residues that could be environmentally safe and deliver truly sustainable energy that like corn stocks and wheat straw, or bring that gas right down to the Mid- will not add to climate change and wood chips from lumber mills. It pro- west where it is needed, not only for global warming, that will not pollute vides bioeconomy development grants the Midwest but for the upper part, the the environment, we must invest in to small bio-based businesses. It cre- northern part of the United States. So clean technologies. What I am talking ates a new Assistant Secretary posi- we need to move ahead aggressively on about is hydrogen. It offers real poten- tion at the Department of Agriculture that, and we are not doing it. tial for a clean, domestic, sustainable to carry out energy and bio-based ini- We need to look for all environ- energy future. But only if it is pro- tiatives. mentally sensitive ways to increase duced from renewable resources. That It requires the Capitol complex to supply, and we need to look for solar is why we need to support research and lead by example by procuring bio-based and biomass and wind. I am glad so demonstration of technologies to products. This bill has the support of a many colleagues from both sides of the produce hydrogen from ethanol and broad coalition of agricultural pro- aisle joined together in approving the other renewable resources. My bill, S. ducers, clean energy and environment amendment offered by Senator BINGA- 373, the Renewable Hydrogen Transpor- groups, and national security experts. I MAN requiring 10 percent of this coun- tation Act, would do just that, by fund- have a number of letters from these or- try’s electricity to come from renew- ing the installation of an ethanol-to- ganizations supporting the bill. able resources by 2020. Wind power in hydrogen reformer, as well as the oper- I ask unanimous consent that the particular has tremendous potential to ation of hybrid electric vehicles con- letters be printed in the RECORD at the provide clean, abundant energy in verted to run on renewable hydrogen conclusion of my remarks. many parts of the country. Wind power instead of gasoline. The PRESIDING OFFICER. Without generation can provide thousands of Making hydrogen from ethanol and objection, it is so ordered. dollars in additional revenue to our other renewable fuels makes a lot of (See Exhibit 1.) farmers and ranchers and people in sense for transportation—one, because Mr. HARKIN. Mr. President, I am ex- rural areas, while continuing to allow we can use the existing ethanol produc- cited about this new bill. I hope my for crop production and grazing. Valu- tion and distribution network; two, be- colleagues will get behind it. In fact, able incentives for wind power produc- cause it could well be the least expen- we may be offering an amendment to tion exist in the section 45 wind pro- sive renewable hydrogen option avail- the Energy bill that would take a small duction tax credit. However, develop- able. I appreciate the willingness of the part of that and add it to the Energy ment of this vital industry has been chairman and the ranking member to bill. I hope we can get that done this tied up by Congress’s refusal to provide work with me to put this modest, but week. a long-term extension of this incentive. meaningful, initiative in the bill.

VerDate Aug 04 2004 03:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.049 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6807 Again, to get to that sustainable fu- port the increased procurement of biobased ducing nations with growing oil demand ture, we have to think about making products by Federal agencies and all Federal from China and India is seriously threat- hydrogen from renewable resources. government contractors. Biobased products ening our national security. Moreover, as we You use the wind power. When the wind represent a large potential growth market import greater amounts of oil each year, we for corn and soybean growers in areas such are draining more and more of the wealth blows at night and you don’t need all as plastics, solvents, packaging and other from our states. that electricity and you cannot store consumer goods to provide markets for U.S.- The key provisions contained in your bill it, what do you do with it? You waste grown crops. The biobased product industry bring focus and resources to biomass-derived it. It is gone. But if you can use that has already started to grow, bringing new ethanol research and commercialization ef- wind at night to turn a turbine that products to consumers, new markets to forts. The result, over time, will be the re- makes electricity, and you can use growers and new investments to our commu- placement of significant amounts. of im- that electricity to hydrolyze water—re- nities. ported oil with domestically produced fuels— The procurement of biobased products pro- improving our rural economies, cleaning our member the old chemistry experiment motes energy and environmental security. air, and contributing to our national secu- where you put positive and negative in Products made from corn and soybeans could rity. Of particular importance is the bill’s water, and off of one comes oxygen and replace a variety of items currently pro- aim to broaden ethanol production to in- off of the other comes hydrogen. There duced from petroleum, and aid in reducing clude all regions of the nation so that many are two atoms for oxygen for every dependence on imported oil. Already the pro- more states will reap the benefits of biofuels. atom of hydrogen. As long as those tur- duction of ethanol and biodiesel reduces im- Again, thank you for inclusion of the Coa- ports by more than 140 million barrels of oil. bines are turning, we can make hydro- lition’s recommendations in this landmark The production of biobased products gen- legislation. Please let us know how the Coa- gen. You can store hydrogen. You can erates less greenhouse gas than traditional lition can help with the passage of this very save it. You can compress it. You can petroleum-based items. There are also tre- important legislation. The continued expan- pipe it. So, therefore, at times when mendous opportunities for grower-owned sion of ethanol production and use, particu- you don’t need a lot of electrical power processing facilities and rural America and larly biomass-derived fuels, and the accom- and the wind is blowing, you can make agriculture as a whole. New jobs and invest- panying economic growth and environmental hydrogen. You can store it and take ments will be brought into rural commu- benefits for our states is essential to the na- the hydrogen and put it through a fuel nities, as new processing and manufacturing tion’s long-term economic vitality and na- facilities move into those communities to be cell to make the electricity when you tional security. near renewable feedstocks. Sincerely, need it. The beauty of doing that is you NCGA, ASA and RFA applaud your contin- TIM PAWLENTY, only get one product—H2O, water. ued efforts to promote the use of biobased I Chair, Governor of Nothing else. It doesn’t pollute, doesn’t products that will encourage the develop- Minnesota. add to global warming or anything. So ment of new markets for corn and soybeans KATHLEEN SEBELIUS, that is the cycle that we need. Use the and ultimately help to revitalize rural Vice Chair, Governor Sun, use the wind, hydropower, what- economies and the agriculture industry as a of Kansas. whole. We have been avid supporters of the ever is renewable, take that and make biobased products industry, and we look for- hydrogen, store it, compress it, put it NATURAL RESOURCES DEFENSE COUNCIL, ward to working with you as you continue to Washington, DC, June 7, 2005. through a fuel cell, and make the elec- provide vision and direction for this emerg- DEAR SENATORS HARKIN AND LUGAR: The tricity, and the cycle starts all over ing industry. Natural Resources Defense Council strongly again. I know a lot of this is some Sincerely, supports the National Security and Bio- years down the pike. We cannot do it LEON CORZINE, energy Investment Act of2005, which you in- tomorrow. But we can start now by President, National troduced today. This important bill would building assistance that will enable us Corn Growers Asso- expand and refine research, development, ciation. to move to a renewable hydrogen-based demonstration and deployment efforts for NEAL BREDEHOEFT, the production of energy from crops grown economy in this country. President, American by farmers here in America. The bill would Mr. President, let me close by thank- Soybean Associa- also expand and improve the Department of ing Senator DOMENICI and Senator tion. Agriculture’s efforts to promote a biobased BINGAMAN for the extraordinary job BOB DINNEEN, economy, federal bio-energy and bioproduct they have done during the past months President, Renewable purchasing requirements, and federal edu- and during floor consideration of the Fuels Association. cational efforts. bill. The bipartisan cooperation we are The Research and Development (R&D) title GOVERNORS’ ETHANOL COALITION, of this bill continues your tradition of lead- seeing is due largely to their example June 9, 2005. ership in this area by updating the Biomass and impressive leadership, and the en- Hon. TOM HARKIN, Research and Development Act of2000, which tire Senate owes them a debt of grati- Hart Senate Office Building, you also crafted. This title will not only ex- tude for a job well done. Washington DC. tend the provisions of the original bill and Of course, we are not done yet. Hur- Hon. BARACK OBAMA, greatly increase the funding for these provi- dles remain. We are headed, though, to- Hart Senate Office Building, sions, it will also refine the direction of this ward concluding a strong, bipartisan Washington DC. funding. Taken together, these changes Hon. RICHARD LUGAR, bill that leads America decisively into maximize the impacts of R&D on the great- Hart Senate Office Building, est challenges facing cellulosic biofuels the new world of clean, renewable, Washington DC. today. home-grown energy. When the time Hon. NORM COLEMAN, Your bill also creates extremely important comes, we need to stand firm for the Hart Senate Office Building, production incentives for the first one bil- Senate provisions when we go to con- Washington DC. lion gallons of cellulosic biofuels. The pro- ference. DEAR SENATORS: On behalf of the thirty duction incentives approach taken by the Mr. President, I yield the floor. members of the Governors’ Ethanol Coali- bill a combination of fixed incentives per tion, we strongly support and endorse the gallon at first, switching over to a reverse EXHIBIT 1 National Security and Bioenergy Investment auction will maximize the development of JUNE 9, 2005. Act of 2005, as well as your efforts to expand cellulosic biofuels production while mini- Re The National Security and Bioenergy In- development of other biofuels and co-prod- mizing the cost to taxpayers. vestment Act of 2005. ucts. The Governors’ Ethanol Coalition is In addition, the bill creates an Assistant Hon. TOM HARKIN, pleased that this bill embodies the rec- Secretary of Agriculture for Energy and U.S. Senate, ommendations developed by the Coalition in Biobased Products. Coupled with the bill’s Washington, DC. Ethanol From Biomass: America’s 21st pi development grants, tax incentives, biobased Hon. RICHARD LUGAR, Century Transportation Fuel. When signed product procurement provisions, and edu- U.S. Senate, into law, this act will catalyze needed re- cational program, the bill would make a Washington, DC. search, production, and use of biofuels and huge contribution to developing a sustain- DEAR SENATORS HARKIN AND LUGAR: The bio-based products, thereby enhancing our able biobased economy, reducing our oil de- National Corn Growers Association (NCGA), economic, environmental, and national secu- pendence and improving our national secu- the American Soybean Association (ASA), rity. rity. and the Renewable Fuels Association are The Coalition believes that the nation’s de- The technologies advanced by this bill will writing to express our support for the Na- pendency on imported oil presents a huge undoubtedly make important contributions tional Security and Bioenergy Investment risk to this country’s future. The combina- to reducing our global warming pollution Act of 2005. In particular, we strongly sup- tion of political tensions in major oil-pro- and the air and water pollution that comes

VerDate Aug 04 2004 04:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.053 S20PT1 S6808 CONGRESSIONAL RECORD — SENATE June 20, 2005 from our dependence on fossil fuels. We are in the production of these commonly used rural economic development, and strengthen concerned, however, that the eligibility pro- items. Also, the more we increase the use of our national energy security. ELPC also ap- visions for forest biomass do not exclude sen- these items, the better it will be environ- preciates that this legislation reflects your sitive areas that need protecting, including mentally for future generations. longstanding support for farm-based sustain- roadless areas, old growth forests, and other We wholeheartedly support your legisla- able energy programs. ELPC strongly sup- endangered forests, and do not restrict eligi- tion and look forward to working with you ported your successful efforts to create the bility to renewable sources or prohibit pos- to promote the expansion of biobased prod- new Energy Title in the 2002 Farm Bill, sible conversion of native forests to planta- ucts. which established groundbreaking new fed- tions. We know that you do not want to see Sincerely, eral incentives for renewable energy and en- this admirable legislation applied in ways DAVID J. FREDERICKSON, ergy efficiency, while renewing existing pro- that exploit these features, and will be happy President. grams such as the Biomass Research and De- to work with you in the future to take any velopment Act of 2000. steps needed if abuses arise. BIOTECHNOLOGY The National Security and Bioenergy In- Sincerely, INDUSTRY ORGANIZATION, vestment Act of 2005 is a natural com- KAREN WAYLAND, Washington, DC, June 8, 2005. plement to the 2002 Farm Bill Energy Title Legislative Director. Senator TOM HARKIN, programs, and it will help to strengthen sup- Ranking Democratic Member, port for the right bioenergy production pro- ENERGY FUTURE COALITION, Senator RICHARD LUGAR, grams in the 2007 Farm Bill. Accordingly, Washington, DC, June 8, 2005. Member, Committee on Agriculture, Nutrition ELPC is pleased to support this legislation. Hon. TOM HARKIN, and Forestry, U.S. Senate, Washington, DC. Very truly yours, Hon. RICHARD G. LUGAR, DEAR SENATORS HARKIN AND LUGAR: The HOWARD A. LEARNER, U.S. Senate, Biotechnology Industry Organization (BIO) Executive Director. Washington, DC. Industrial and Environmental Section fully DEAR SENATORS HARKIN AND LUGAR: On be- supports the National Security and Bio- INSTITUTE FOR LOCAL SELF-RELIANCE, half of the Energy Future Coalition, I am energy Investment Act of 2005. We greatly June 6, 2005. writing to commend your leadership and vi- appreciate your vision and initiative to ex- Senator TOM HARKIN, sion in drafting the National Security and pand the Biomass Research and Development U.S. Senate, Bioenergy Investment Act of 2005. Act and to create new incentives to produce Washington, DC. In our judgment, America’s growing de- biofuels and biobased products. DEAR SENATOR TOM HARKIN: Congratula- pendence on foreign oil endangers our na- America’s growing dependence on foreign tions on your bill, National Security and tional and economic security. We believe the energy is eroding our national security. We Bioenergy Investment Act of 2005. It is a Federal government should undertake a must take steps to drastically increase pro- breakthrough piece of legislation. Your well- major new initiative to curtail U.S. oil con- duction of domestic energy. As an active par- conceived bill, combining needed executive sumption through improved efficiency and ticipant in the Energy Future Coalition, BIO branch changes, welcome increases in re- the rapid development and deployment of ad- believes this country needs a major new ini- search and development funding and innova- vanced biomass, alcohol and other available tiative to more aggressively research, de- tive commercialization techniques, can move petroleum fuel alternatives. velop and deploy advanced biofuels tech- the use of plants as a fuel and industrial ma- With such a push, we believe domestic nologies. With sufficient government sup- terial from the margins of the economy to biofuels can cut the nation’s oil use by 25 port, we can meet up to 25% of our transpor- the mainstream. I urge everyone with an in- percent by 2025, and substantial further re- tation fuel needs by converting farm crops terest in our environmental, agricultural ductions are possible through efficiency and crop residues to transportation fuel. and economic future to support this bill. gains from advanced technologies. That is an The National Security and Bioenergy In- Sincerely, ambitious goal, but it is also an extraor- vestment Act of 2005 will boost the use of in- DAVID MORRIS, dinary opportunity for American leadership, dustrial biotechnology to produce fuels and Vice President. innovation, job creation, and economic biobased products from renewable agricul- The PRESIDING OFFICER. The Sen- growth. tural feedstocks. With the use of new biotech You took an important step forward by in- tools, we can now utilize millions of tons of ator from New York is recognized. troducing S. 650, the Fuels Security Act, in- crop residues, such as corn stover and wheat AMENDMENT NO. 805 corporated into the Senate energy bill dur- straw, to produce sugars that can then be Mr. SCHUMER. Mr. President, first, I ing Committee markup. This legislation is converted to ethanol, chemicals and bio- thank my colleague from Iowa for his another important step, authorizing the ad- based plastics. These biotech tools can only being always thoughtful. We even want ditional research and development and fed- be rapidly deployed if federal policy makers to produce ethanol plants and wind in eral incentives needed to accelerate the take steps to help our innovative companies New York. We just don’t want to trans- adoption of biobased fuels and coproducts. get over the initial hurdles they face during We are pleased to support it. the commercialization phase of bioenergy port it over to Iowa. I am not from Sincerely, production, and your bill will help get that Iowa. In any case, I am not here to talk REID DETCHON, job done. about that. Executive Director. We are pleased to endorse this visionary Mr. President, I ask unanimous con- legislation. sent that the pending amendment be NATIONAL FARMERS UNION, Sincerely, laid aside, and I send an amendment to Washington, DC, June 9, 2005. BRENT ERICKSON, the desk. Hon. RICHARD LUGAR, Executive Vice President. Mr. DOMENICI. Reserving the right Hart Senate Office Building, to object. ENVIRONMENTAL LAW & POLICY CENTER, U.S. Senate, Washington, DC. Mr. SCHUMER. This is the sense of Hon. TOM HARKIN, Chicago, IL, June 8, 2005. Hart Senate Office Building, Hon. TOM HARKIN, the Senate amendment on the Stra- U.S. Senate, Washington, DC. Hon. RICHARD G. LUGAR, tegic Petroleum Reserve. DEAR SENATORS LUGAR AND HARKIN: On be- U.S. Senate, Mr. DOMENICI. We will temporarily half of the family farming and ranching Washington, DC. set it aside, and then we will return to members of the National Farmers Union, we DEAR SENATORS HARKIN AND LUGAR: The where we were. I have no objection. are writing to express our strong support for Environmental Law and Policy Center The PRESIDING OFFICER. Without your bipartisan, National Security and Bio- (‘‘ELPC’’) is pleased to support the National objection, it is so ordered. energy Investment Act of 2005 legislation. Security and Bioenergy Investment Act of Mr. SCHUMER. Mr. President, I be- The provisions within this act contain cru- 2005, and we commend you for your leader- lieve the amendment is at the desk. ship and vision in introducing this legisla- cial measures that will benefit not only The PRESIDING OFFICER. The rural, but all of America. tion. This bill would accelerate research, de- Importantly, your legislation would create velopment, demonstration and production ef- clerk will report. an Assistant Secretary for Energy and forts for energy from farm crops in the The assistant legislative clerk read Biobased Products position at USDA, which United States, especially cellulosic ethanol. as follows: we feel would complement and reinforce ini- It also will expand and prioritize the United The Senator from New York [Mr. SCHUMER] tiatives created by the energy section of the States Department of Agriculture’s leader- proposes an amendment numbered 805. 2002 Farm Bill. ship responsibilities to promote clean and Mr. SCHUMER. Mr. President, I ask We also applaud your proposals for pro- sustainable energy development, and it will unanimous consent that further read- moting the usage of biobased products with- increase procurement of biobased products. in the U.S. government, which will expand By significantly expanding the develop- ing of the amendment be dispensed future development of these technologies. ment and production of clean energy ‘‘cash with. These products, and their use, are an asset to crops,’’ this legislation will improve our en- The PRESIDING OFFICER. Without the rural producers of the commodities used vironmental quality, stimulate significant objection, it is so ordered.

VerDate Aug 04 2004 03:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.030 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6809 The amendment is as follows: (2) direct the Federal Trade Commission country. Other parts are warmer or use (Purpose: To express the sense of the Senate and Attorney General to exercise vigorous more natural gas. I know these fami- regarding management of the Strategic oversight over the oil markets to protect the lies were hoping for a quick spring so Petroleum Reserve to lower the burden of people of the United States from price they could enjoy a brief respite from gasoline prices on the economy of the gouging and unfair practices at the gasoline pump. the high energy prices. United States and circumvent the efforts Unfortunately, that hasn’t been the of OPEC to reap windfall profits) (c) RELEASE OF OIL FROM SPR.— (1) IN GENERAL.—For the period beginning case, as the increased burden of oil On page 208, after line 24, add the fol- lowing: on the date of enactment of this Act and costs has just moved from the home to ending on the date that is 30 days after the SEC. 303. SENSE OF THE SENATE REGARDING the highway. As Americans are begin- MANAGEMENT OF SPR. date of enactment of this Act, 1,000,000 bar- ning to plan for their road trips and (a) FINDINGS.—Congress finds that— rels of oil per day shall be released from the summer vacations, the national price (1) the prices of gasoline and crude oil have SPR. of gasoline has seemingly reached a a direct and substantial impact on the finan- (2) ADDITIONAL RELEASE.—If necessary to lower the burden of gasoline prices on the new record high every week. Last cial well-being of families of the United week, the Energy Information Admin- States, the potential for national economic economy of the United States and to cir- recovery, and the economic security of the cumvent the efforts of OPEC to reap windfall istration reported that prices had in- United States; crude oil profits, 1,000,000 barrels of oil per creased for the second straight week, (2) on June 13, 2005, crude oil prices closed day shall be released from the Strategic Pe- to $2.13 for regular self-service. That is at the exceedingly high level of $55.62 per troleum Reserve for an additional 30 days. an increase of almost 49 cents from last barrel, the price of crude oil has remained Mr. SCHUMER. Mr. President, I year. Unfortunately, it could give way above $50 per barrel since May 25, 2005, and thank my friend from New Mexico for to even higher prices in the future. the price of crude oil has exceeded $50 per his grace, as usual. I will be brief as I We know who is being hurt by these 1 barrel for approximately ⁄3 of calendar year make a statement on the amendment. oil prices, and we know who is bene- 2005; (3) on June 6, 2005, the Energy Information I rise to offer this amendment, which fiting—OPEC. Last year, OPEC made Administration announced that the national will express the sense of the Senate $300 billion in oil revenue. They stand price of gasoline, at $2.12 per gallon, could that the Federal Government should to gain much, much more if the price reach even higher levels in the near future; take long, overdue action to curb the of oil stays as high as it is—strato- (4) despite the severely high, sustained record-high gasoline prices that are spheric levels. In order to institu- price of crude oil— plaguing American consumers at the tionalize the profits from these spikes, (A) the Organization of Petroleum Export- pump. As my colleagues are well OPEC agreed to abandon their long- ing Countries (referred to in this section as ‘‘OPEC’’) has refused to adequately increase aware, for weeks, oil and gasoline standing price target of $22 to $28 a production to calm global oil markets and prices have been placing an immense barrel, as I mentioned before, and some officially abandoned its $22–$28 price target; burden on working families and threat- of its members say they could be com- and ening our fragile economic recovery, fortable with oil remaining at $40 to $50 (B) officials of OPEC member nations have and it is time that this body took ac- permanently. I know who will not be publicly indicated support for maintaining tion to protect our Nation’s economic comfortable—American families who oil prices of $40–$50 per barrel; security from the sky-high oil prices depend on affordable oil to commute to (5) the Strategic Petroleum Reserve (re- and the whims of the OPEC cartel. ferred to in this section as ‘‘SPR’’) was cre- work, heat their homes, and provide for ated to enhance the physical and economic This amendment would urge the ad- their energy needs. security of the United States; ministration to provide the American Some of my colleagues may be ask- (6) the law allows the SPR to be used to consumer with relief by releasing oil ing: Didn’t OPEC agree to increase pro- provide relief when oil and gasoline supply from the Strategic Petroleum Reserve duction in March by 500,000 barrels a shortages cause economic hardship; through a swap program in order to in- day? (7) the proper management of the resources crease the supply, quell the markets, The reality is that OPEC’s pledge to of the SPR could provide gasoline price relief and bring down prices at the pump. Of increase production on paper has not to families of the United States and provide the United States with a tool to counter- course, the other side of the swap is reduced prices at the pump. OPEC, balance OPEC supply management policies; that we would buy back the oil when after having cut production by 1 mil- (8) the Administration’s policy of filling the price was lower and put it back in lion barrels in the face of rising oil the SPR despite the fact that the SPR is the Strategic Petroleum Reserve, prices—it is not that amazing—claimed nearly full has exacerbated the rising price which is now just about full. that they would increase production by of crude oil and record high retail price of Mr. President, what we are faced half the previous cut. While this would gasoline; with here is simple market economics seem like a step in the right direction, (9) in order to combat high gasoline prices of supply and demand. If demand goes during the summer and fall of 2000, President the reality is they were already pro- Clinton released 30,000,000 barrels of oil from up, price goes up. If supply goes up, ducing 700,000 barrels over their quota, the SPR, stabilizing the retail price of gaso- price goes down. At a time facing so as a result this paper increase added line; record-breaking gasoline prices, it is no oil to U.S. markets. (10) increasing vertical integration has al- hard to believe that the Federal Gov- These are exactly the type of shell lowed— ernment would be taking oil off the games that the OPEC cartel uses to (A) the 5 largest oil companies in the market and exacerbate the high energy take money out of Americans’ pockets United States to control almost as much costs to working families. to put toward OPEC profits. crude oil production as the Middle Eastern The price of crude oil has remained We have to act to stop it. Once again, members of OPEC, over 1⁄2 of domestic re- finer capacity, and over 60 percent of the re- at near record highs for over one-third OPEC is talking about another 500,000- tail gasoline market; and of 2005, with oil having traded at over barrel increase. We will see if they ac- (B) Exxon/Mobil, BP, Royal Dutch Shell $50 a barrel since May 25. Just today, tually follow through. Group, Conoco/Philips, and Chevron/Texaco we saw the biggest jump yet, with oil Instead of standing up to OPEC, what to increase first quarter profits of 2005 over closing at almost $60 a barrel. OPEC has this administration done? It has first quarter profits of 2004 by 36 percent, for used to claim it was interested in help- continued, incredibly enough, taking total first quarter profits of over ing to keep prices under $30 a barrel. oil off the market and placing it in the $25,000,000,000; (11) the Administration has failed to man- That is when it went from a $22 to $28 SPR. This policy, which further age the SPR in a manner that would provide rate. It may be fun to double down in tightens oil markets by taking much gasoline price relief to working families; and Las Vegas but not in the oil market, needed supplies out of commerce, is (12) the Administration has failed to ade- and certainly not at the gas pump. slated to take an average of almost quately demand that OPEC immediately in- These prices have already burdened 85,000 barrels per day off the market crease oil production in order to lower crude Americans in New York and in the rest during the height of the driving season, oil prices and safeguard the world economy. of the Northeast. We get a double between April and the end of August, (b) SENSE OF CONGRESS.—It is the sense of Congress that the President should— whammy because we have high home despite the fact that the SPR is almost (1) directly confront OPEC and challenge heating oil prices, as well as high gaso- completely full. OPEC to immediately increase oil produc- line prices because we depend on heat- I understand that some of my col- tion; and ing oil more than most parts of the leagues think the SPR should never be

VerDate Aug 04 2004 03:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.054 S20PT1 S6810 CONGRESSIONAL RECORD — SENATE June 20, 2005 touched, even to safeguard our eco- will be discussed and when that amend- become of good television. Or you nomic security. I would argue that con- ment to strike will be taken up. So we might tune in to another program cerns to this degree do not properly might have some understanding by where you see a couple of women or balance America’s physical security morning on a series of votes. men engaged in a fist fight over some needs against its economic security For now, I do not think we are going romance that turned sour, where on needs. With the SPR almost full, we to do anything else other than wrap up that program day after day they hold can easily reduce 30 million barrels business, and we will take care of that this imperfection up to the light and through a swap and still have an effec- in due course. say: Isn’t this ugly? Let’s entertain tive safeguard against a physical sup- I suggest the absence of a quorum. ourselves with everyone else’s dysfunc- ply disruption. The PRESIDING OFFICER. The tional behavior. Initiating a swap of oil from the SPR clerk will call the roll. You won’t find that on public broad- to increase the supply of oil is a proven The assistant legislative clerk pro- casting. They sink their teeth into way to reduce the price of gasoline and ceeded to call the roll. some pretty interesting things. I men- heating oil. In the fall of 2000, the Clin- Mr. DOMENICI. Mr. President, I ask tioned Big Bird. I suppose could you ton administration announced a swap unanimous consent that the order for say Big Bird isn’t quite so serious, but of 30 million barrels over 30 days, caus- the quorum call be rescinded. a lot of children grow up with Sesame ing crude oil prices to quickly fall by The PRESIDING OFFICER. Without Street watching Big Bird and the les- over $6 a barrel and wholesale prices to objection, it is so ordered. sons therein. Frankly, it is wonderful fall 14 cents a gallon. Under a swap, the f television—more than television for Federal Government could decide on a children, I will give you an example of MORNING BUSINESS set quantity of oil to release from the the kinds of things public broadcasting SPR and accept bids from private com- Mr. DOMENICI. Mr. President, I ask tackles that others will not. panies for the rights to that oil. The unanimous consent that there now be a Do you think ABC, CBS, NBC or FOX companies would then bid on how much period for morning business with Sen- is going to tackle the question of con- oil they would be willing to return, in ators permitted to speak for up to 10 centration in broadcasting? There are addition to the oil they would receive minutes each. no more than five or six companies and under the swap, to the SPR at a later The PRESIDING OFFICER. Without people that control what we see, hear, date. objection, it is so ordered. and read. Because we see all of these The administration has had these f concentrations of television stations tools in its hands and could have acted CORPORATION FOR PUBLIC and radio stations, the Federal Com- more quickly, earlier, to stand up for BROADCASTING munications Commission decided in the American consumer, but it has not. their ruling, which the court subse- Instead, despite repeated urgings from Mr. DORGAN. Mr. President, I want quently stayed, that it is OK to open Members of this body, among others, it to speak about the Corporation for this up. And the Federal Communica- has steadfastly refused to intervene Public Broadcasting. My understanding tions Commission said: We believe that and to allow oil prices to soar. It has is their board of directors is meeting in one major American city, one com- been good for oil companies, it has today. I don’t know whether they are pany ought to be able to own eight been good for OPEC and bad for the going to select a new president for the radio stations, three television sta- American consumer. corporation, but I know that was at tions, the cable company, and the dom- This amendment says enough is least announced as the intention today inant newspaper. We think that is fine. enough and gives this body an oppor- of the Corporation for Public Broad- It is not fine with me. It is limiting tunity to do what others have refused casting. Let me go all the way back to what people can see and read and hear. by hitting the breaks to stop runaway Big Bird. Everyone who grows up The controversy surrounding public gasoline prices. watching Sesame Street and Children’s television, public radio, the Corpora- An oil swap would result in a win-win Television Workshop understands that tion for Public Broadcasting saddens situation where gasoline prices are Cookie Monster, Big Bird, and all of me. My hope is that perhaps actions lowered and long-term contributions to those things represent learning devices taken in the next couple of days might the SPR are augmented at no addi- and the wonderful characters on Ses- resolve that. tional cost to the taxpayers. The SPR ame Street. The Corporation for Public There is apparently a board meeting is intended to provide relief at times Broadcasting was created a long while this afternoon and apparently another when American families are struggling ago as a part of an approach to do meeting of some type tomorrow where to make ends meet. The time is now. something unique. they will choose a new president. This The summer driving months are just The Corporation for Public Broad- all is with the backdrop of the chair- beginning. casting, Public Television, and Na- man of the Corporation for Public I urge my colleagues to join me in tional Public Radio have been pretty Broadcasting, who has consistently and protecting the pocketbooks of working remarkable. Every week 94 million publicly said that public broadcasting, families from OPEC profiteering by Americans watch public television or public television, public radio has a lib- supporting this amendment. some portion of public television and 46 eral bias. There have been all of those Mr. President, I yield the floor. million people listen to public radio. allegations over some long period of The PRESIDING OFFICER. The Sen- That is a remarkable statistic. Public time. A liberal bias, it is easy to say. It ator from New Mexico is recognized. radio and public television are avail- doesn’t have a liberal bias. It is just Mr. DOMENICI. Mr. President, we able to over 90 percent of American independent television which most peo- will not argue our case against the case homes. We have come a long way since ple appreciate. of the Senator from New York yet. We President Johnson signed the Public Let me talk for a moment about my will do that tomorrow. Suffice it to say Broadcasting Act of 1967. concern about where we are heading. we are talking about a reserve. It is It is the case that public broad- Press accounts from last week noted there as a safety valve in the event casting will tackle issues that other that the House Appropriations Com- something were to happen, and we will broadcasters don’t tackle. I admit you mittee approved a spending bill on talk about the perils of that and why won’t see Fear Factor on public tele- Thursday that would slash spending for the amendment should not be adopted. vision. You won’t tune in and see some- public television and radio by nearly For now, it looks as if we are lining one sitting in front of a bowl of half. That includes a 25-percent cut in up a number of amendments for tomor- maggots to see whether they can eat financing for the Corporation for Pub- row, including some amendments that an entire bowl in 15 or 30 seconds. That lic Broadcasting and a total of $112 mil- should be in place with reference to is not the kind of television I watch. lion in additional cuts for programs global warming and some agreements But occasionally when you are brows- that provide continuing children’s pro- and understanding regarding them. ing through the television routine, you gramming. Later on, an amendment about the in- tune in to programs that have that Just the news coming out of the Ap- ventory of offshore assets, resources, kind of approach. You wonder what has propriations Committee in the House is

VerDate Aug 04 2004 03:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.056 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6811 ominous. But more than that, inside I don’t mean to make light of this. I the most wonderful pastries you could the organization, the chairman of the think it is serious. In addition to all of find. Bolstered by the bakery’s success, Corporation for Public Broadcasting this, an allegation of bias—a relentless he opened Andre’s in 1980 in a con- hired a consultant to evaluate the bias allegation of bias by the chairman of verted Spanish-style home one block in public broadcasting. He hired a con- the Corporation for Public Broad- east of Las Vegas Boulevard. It was an sultant to go after the program called casting, in addition to his hiring a con- unlikely location for a restaurant—but ‘‘NOW with Bill Moyers.’’ He hired that sultant to do this kind of thing—evalu- he quickly found success. consultant without notifying the board ate programming, whether it is anti- Twenty-five years later, Andre’s has of directors. This is the chairman of Bush or pro-Bush—in addition to all of become what some have called the the board. He hired that consultant that, there is now a discussion and po- ‘‘most honored, awarded and respected with public funds. tentially even a vote today in which restaurant in Las Vegas.’’ The res- As an appropriator, I asked him: they would select a new president of taurant’s intimate dining rooms, won- Would you provide me with the infor- the Corporation for Public Broad- derful food and outstanding service mation that the consultant provided casting, and the leading candidate for have made it a landmark. you. that job is a former cochairman of the Andre’s arrival in our city was the This is what I received. I received a Republican National Committee. result of hard work and determination. substantial amount of what he called I would not think it appropriate for a He was born in the Savoie region of raw data. It didn’t include any sum- former cochair of the Democratic Na- the French Alps and inherited a love mary, just raw data. I was struck and tional Committee to assume the presi- for his trade from his parents, who disappointed to see that a consultant dency of the Corporation for Public owned a delicatessen and butcher shop. was hired, and this is a summary of Broadcasting; nor would I think it At 14, Andre left home and began an April 4 to June 4, just to pick one. And would be wise for Mr. Tomlinson, the apprenticeship at Leon de Lyon, in they go through the list of programs, chairman of the board, to usher in a Lyon, France. After serving in the and they label anti-Bush, anti-Bush, former partisan as president of the Cor- French Navy, Andre came to the anti-DeLay. I guess if he reported on poration for Public Broadcasting. United States in 1965, landing in Bos- the controversy about TOM DELAY, it is Again, I only say that, going back ton with just $5 and his knives. Eventu- anti-DeLay programming. some 35 years and more, I think public ally, he made his way to Las Vegas and It says, ‘‘anticorporation.’’ In fact, broadcasting has been a real service to forever changed the city’s dining scene. they did a program about some waste. our country. Public television and pub- Today Las Vegas is home to many It might have been about Halliburton, lic radio tackle things other interests great chefs. But Andre was one of the although I have done hearings on Halli- will not tackle in this country. They first. He now has two more restaurants burton. I guess that would then be de- clared anticorporation. It is really not. are, in fact, independent. That is pre- in the city, and both of them continue Again, it reads anti-Bush, anti-Bush, cisely what drives some people half- in the award winning tradition begun pro-Bush. wild. My hope is that the actions of Mr. by Andre’s French Restaurant 25 years I am struck that it is way out of Tomlinson, the chairman, the actions ago. bounds to be paying money for a con- of the board, whatever they might be I congratulate Andre on 25 great sultant who decides to evaluate public today—my hope is that those actions years and thank him for sharing his broadcasting through the prism of will not further contribute to injuring outstanding gifts. Las Vegas is privi- whether or not it supports the Presi- public broadcasting. leged to be able to enjoy his world-re- dent. That is not the role of public We fund public broadcasting because nowned talents, and it won’t be long broadcasting, to decide whether it sup- we think it is a great alternative to before Landra and I return to Andre’s ports the President of the United commercial television. If you tune in— to enjoy our favorite meal, the Im- States. If we ever get to the point nothing against broadcasts in the ported Dover Sole Sauteed Ve´ronique where you can’t be critical of public evening on the commercial station, but with Lemon Tarts for dessert. policy, Democrats and Republicans, I happen to think Jim Lehrer has one f of the best newscasts in our country. Congress and the President, then there TRIBUTE TO DRAKE DELANOY is something wrong. He covers both sides aggressively. I Interestingly enough, they used an- think it contributes to our country and Mr. REID. Mr. President, I rise today other approach on another set of pro- I think, in many ways, public broad- to congratulate Drake DeLanoy of Las gramming, and they divided these seg- casting is a national treasure. I regret Vegas, NV as he reaches two incredible ments that were shown into either lib- that I have to describe these things— milestones in life: his 55th wedding eral or conservative segments. And consultants who evaluate whether or annirersary and his 77th birthday. For there was a segment on June 7 last not something is anti-Bush. That is not four decades, Drake has been a friend year and Senator HAGEL from Ne- the prism through which one should and mentor of mine, and I wish him braska, a conservative Republican, was evaluate whether something makes and his wife Jackie all the best as they on that segment and apparently said sense. I will wait to see what happens mark these two occasions. something that wasn’t completely in today at the meeting taking place of Drake DeLanoy was raised in Reno. sync with the White House. So he is la- the board. My hope is that they will He graduated from the university of beled as a liberal. A conservative Re- not take action that will further injure Nevada, Reno, and married Jackie on publican Senator from Nebraska is la- and be detrimental to public broad- June 19, 1950. Drake earned his law de- beled a liberal by the consultant for casting. gree from Denver University. the Corporation for Public Broad- f Following law school, Drake served casting. Why? Because he said some- in the United States Air Force and 25TH ANNIVERSARY OF ANDRE’S thing liberal? No, apparently he just eventually returned to Nevada to prac- didn’t have the party line down and FRENCH RESTAURANT tice law, which is where I had the good said something that was perhaps at Mr. REID. Mr. President, I rise today fortune of working with him. odds with policy coming out of the to congratulate Chef Andre Rochat, the Drake and I practiced together for 13 White House. Dean of Las Vegas Chefs. Twenty-five years, beginning in the mid-1960s. When This list goes on and on. My guess is years ago, he opened the doors to his we started working together, I was my colleague Senator HAGEL is going first restaurant, Andre’s French Res- right out of law school and an inexperi- to be mighty surprised to discover that taurant. In the decades since, he has enced attorney. But Drake and his a consultant hired by the Corporation served patrons—including my wife partners William Singleton and Rex for Public Broadcasting views his ap- Landra and I—the finest French cui- Jameson took me under their wing. pearances on public broadcasting as ap- sine in the city. These three men were great teachers pearances that contribute to a liberal I first encountered Andre in the who gave me the freedom to learn and bias because a conservative Republican 1970s—a few years before he opened An- grow. They let me take the legal cases Senator from Nebraska shows up on dre’s. At that time, he was operating I wanted to pursue, and they allowed public broadcasting. the Savoy French Bakery and selling me to watch them in the courtroom

VerDate Aug 04 2004 04:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.011 S20PT1 S6812 CONGRESSIONAL RECORD — SENATE June 20, 2005 and observe them work during trials. left a positive mark on every life he Many religious and human rights They also gave me the opportunity to touched. Chad’s brave and selfless ac- leaders, communities, and institutions be politically involved, and I have no tions have made the world a better and throughout the world have already spo- doubt that the freedom and support I safer place for all of us and we owe him ken out, and called for an end to the enjoyed with them allowed me to serve a debt of gratitude which we will never genocide. In my own state, thousands and now be in the U.S. Senate. be able to pay. To his wife Becky and participated in a Darfur Sabbath Week- At the age of 77, Drake DeLanoy con- their soon-to-be-born child, I send my end on May 14–15, 2005, when clergy and tinues to build on his strong career. As humble thanks for Chad’s sacrifice on congregations throughout New Jersey an appointee of the Governor, Drake our behalf. Your family will remain in addressed this crisis during their wor- now serves on the Governing Board of my thoughts and prayers. ship services. With my friend and col- the Tahoe Regional Planning Agency, f league Representative DONALD PAYNE, I which protects and preserves the beau- was privileged to visit a mosque, a syn- LOCAL LAW ENFORCEMENT ty of the Tahoe basin. agogue, a Catholic rectory, an African ENHANCEMENT ACT OF 2005 I will forever be grateful to Drake American Baptist Church and a United DeLanoy. The lessons he taught and Mr. SMITH. Mr. President, I speak Methodist Church during those two the experiences he provided have about the need for hate crimes legisla- days. stayed with me all these years. tion. Each Congress, Senator KENNEDY Whatever the denomination, we As Drake and Jackie celebrate their and I introduce hate crimes legislation spoke to each other in the same lan- 55th anniversary and Drake looks for- that would add new categories to cur- guage, and committed ourselves to the ward to another year, I congratulate rent hate crimes law, sending a signal same determination to act according to them both and wish them many more that violence of any kind is unaccept- our words and the dictates of our uni- years of happiness together. able in our society. Likewise, each versal conscience. That profound expe- f Congress I have come to the floor to rience impels me to this broader out- highlight a separate hate crime that reach. I want to take this opportunity HONORING OUR ARMED FORCES has occurred in our country. to urge my fellow members of Congress LANCE CORPORAL CHAD MAYNARD A 17-year-old transgender woman and to join me in saying, ‘‘never again.’’ Mr. SALAZAR. Mr. President, I rise her 18-year-old friend were shot in the Never again, will we accept the slaugh- today to remember one of Colorado’s head while sitting in a SUV, which was ter of fellow human beings. Never fallen heroes, Marine LCpl Chad Bry- set on fire. The SUV was found in an again, will we stand by as systematic ant Maynard who was killed last week isolated parking lot after the two had crimes are inflicted upon humanity. I in Ar Ramadi, Iraq. He was only 19 been missing for a day. Their bodies ask that you join me, Senator years old. were burned beyond recognition. The BROWNBACK and people all across the Lance Corporal Maynard hailed from perpetrator allegedly killed the two globe in supporting this unified move- Montrose, CO, on the Western Slope. victims when he discovered that one of ment to tell the world that humanity Growing up, it was his dream to serve them was a crossdresser. will never again allow genocide to his country. Chad Maynard’s deep pa- The Government’s first duty is to de- occur. triotism was a family tradition—his fa- fend its citizens, to defend them f ther served in the Marines, and his against the harms that come out of brother Jacob returned from his second hate. The Local Law Enforcement En- NATIONAL HISTORY DAY tour in Iraq a few months ago. hancement Act is a symbol that can Mr. ALEXANDER. Mr. President, I As a high school student, Chad had become substance. I believe that by salute today the students who partici- secretly contacted recruiters when he passing this legislation and changing pated in the National History Day na- was 16 about his wish to join the Ma- current law, we can change hearts and tional contest that was held last week rines. His parents remember him minds as well. at the University of Maryland. More sneaking recruiting brochures into the f than 700,000 students in grades 6 house. The recruiters had to ask him to through 12 from all over the country stop contacting them until he was 18. CRIMES AGAINST HUMANITY IN chose topics, researched, and presented But Lance Corporal Maynard was de- DARFUR their projects at State and local com- termined to serve his country. He Mr. CORZINE. Mr. President, Sen- petitions this year. I am proud that 52 joined the junior ROTC at Montrose ator BROWNBACK and I have submitted students from Tennessee made it to High School. One of his friends once a resolution to designate July 15–17, Washington. I especially want to recog- quipped, ‘‘God rested on the seventh 2005 as a National Weekend of Prayer nize two of those students, Daniel Jor- day and on the eighth day made May- and Reflection to draw attention to the dan and Tyler Sexton, eighth graders nard for the Marines. . . .’’ He worked genocide and Crimes Against Humanity at St. John Neumann School in Knox- hard at his classes so he could graduate occurring in Darfur, Sudan, and to find ville. early to go to boot camp. At his 2004 a solution to this great moral chal- Their National History Day project is graduation from Montrose High, Chad lenge. The resolution calls upon the a documentary on Sequoyah’s Sylla- Maynard stood proudly in his Marine people of the United States to pray and bary, which they presented at the Corps dress uniform. reflect. Churches, synagogues, Smithsonian American Art Museum. Lance Corporal Maynard’s friends mosques, other communities of faith, Sequoyah was a Cherokee warrior who and instructors remember him as a and all individuals of compassion will was born in east Tennessee and created young man who took his commitment join together to acknowledge, observe, a syllabary, which is often called the to his country very seriously. On Sep- and reflect upon the crimes against hu- Cherokee alphabet. He was born in 1776 tember 11, Lance Corporal Maynard or- manity that continue to occur in in the village of Tuskeegee, which was ganized a prayer around the flagpole at Darfur, so that we can together end the very near Vonore, TN, where the school. He sought out the Marines be- genocide and bring about lasting peace Sequoyah Birthplace Museum is lo- cause he wanted to be on the front to Sudan. cated. lines, making a difference for his coun- The Congress and administration Daniel and Tyler say the seed for try. have already defined the atrocities in their documentary was planted during Today in Montrose is the funeral for Darfur as genocide. Estimates of the a visit to the Sequoyah Birthplace Mu- Lance Corporal Maynard. Just 1 year death toll range from 180,000 to 400,000. seum. The two boys got tired and de- and 6 days after he picked up his di- More than two million people have cided to sit on several bales of hay in ploma, Chad Maynard was taken from been displaced from their homes, in- the center of a field. After a few min- us, a life of extraordinary promise cluding over 200,000 refugees in Chad. utes, two Cherokee approached the snuffed out all too soon. He served his Recent accounts of these atrocities, as boys and explained that they were sit- Nation with honor and distinction. reported by Doctors without Borders, ting on a holy prayer circle. The boys LCpl Chad Maynard set an example include documented rapes by soldiers apologized profusely and removed for all those around him to follow and and government-backed militia. themselves, but not before they learned

VerDate Aug 04 2004 04:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.028 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6813 more from Star Medicine Woman and telling him that the Department of the that forced the Government to ac- Elk Dreamer about the Cherokee Indi- Army had assured my office that they knowledge that the documents from ans, especially Sequoyah and the rela- never made nuclear weapons in Bur- the plant were just inadequate to accu- tion to present-day culture. The boys lington! rately reconstruct the levels of radi- were fascinated and appreciated the In fact, the list of weapons that were ation that workers were exposed to. kindness shown to them. made by Bob and 4,000 other Iowans in- I also want to thank Joe Shannon, Along with congratulating these out- cludes many familiar names: Polaris, Laska Yerington, Sharon Shumaker, standing students, I also recognize Titan, Pershing, Minuteman the list Marge Foster and Nancy Harman for their teacher, Judy Buscetta, who is just goes on and on. It’s a tribute to there service on the Advisory Board the winner of the National History Day the workers in Burlington that while here in Burlington and Shirley Wiley in Tennessee’s Teacher of the Year the Cold War was going on, no one be- and Ed Webb for their help with the pe- award. Daniel said it best in a letter he yond the workers at the plant—includ- tition. wrote to me to let me know he was ing me—ever had a clue about the work No thank-you is complete without going to be in Washington. He said: that was occurring. They did their job acknowledging how fortunate we were Without good teachers, we do not have with excellence, and they did it at to have the help of the University of a chance. great personal peril. The men and Iowa team: Laurence Fuortes, Bill I am proud of Judy and Daniel and women of Burlington truly were on the Field, Kristina Venske, Howard Nichol- Tyler. Students and teachers like them front lines of the Cold War. They re- son, Christina Nichols, Marek Mikul- are who I had in mind when I intro- ceived no medals, no thank-you’s, no ski, Phyllis Scheeler, Stephanie Leon- duced legislation along with the distin- special pay. Instead, they paid a ter- ard, and Laura McCormick. guished minority leader to put the rible price. The levels and types of can- I would also like to thank my own teaching of American history and cer that have afflicted this workforce staff. Alison Hart, my staffer in Dav- civics back into our classrooms, so our are shocking. And along with these ill- enport, Iowa, has put her heart into children grow up learning what it nesses have come financial hardships— helping hundreds of workers and their means to be an American. I am proud pain and suffering—which family mem- families navigate this whole process. that the Presidential academies for bers have witnessed and nursed loved I would also like to thank Peter teachers and congressional academies ones through—and, in too many cases, Tyler, Lowell Unger, Michelle Ever- for students in American history and premature death. more, Jenny Wing, Ellen Murray, and civics through the Department of Edu- Today, finally, workers from IAAP, Beth Stein of my Washington, DC, staff cation are beginning this summer as a including Bob Anderson, at long last, for their years of sustained work on result of Congress passing and the will receive compensation. Equally im- this effort. And a special thank you is President signing that bill into law. portantly, at long last, they have some owed to Richard Miller of the Govern- I have also introduced legislation measure of justice. ment Accountability Project for his as- with Senator EDWARD KENNEDY of Mas- This has been a long process. It sistance and his commitment to mak- sachusetts to create a 10-State pilot seems like more than seven years since ing this compensation program work. study to provide State-by-State com- I brought then-Secretary of Energy Finally, I would like to thank Bob parisons of U.S. history and civics test Bill Richardson to the plant to meet Anderson and his wife Kathy. Bob and data for 8th and 12th grades adminis- with workers. It seems like more that Kathy have weathered the ups and tered through the National Assessment six years since I got a team from the downs of this process with patience, of Educational Progress, NAEP, to as- University of Iowa School of Public good humor, and great fortitude. It will sess and improve knowledge of Amer- Health to track and analyze the ill- be a proud day for me when they actu- ican history. nesses that workers had developed. And ally receive a compensation check in I appreciate National History Day it has been almost five years since Con- hand from the Treasury. It speaks vol- and its commitment to improving the gress passed the Energy Employees Oc- umes that a letter from one Iowan can teaching and learning of American his- cupational Illness Compensation Act to set in motion a monumental process tory in our schools. I also appreciate actually provide compensation to these that, in the end, will bring acknowl- Daniel, Tyler and Judy, fellow Ten- workers. edgement, compensation, and a meas- nesseans, who are working to keep his- For almost five years we have strug- ure of justice to so many. tory alive. gled through one of the worst bureau- While more than 700 former workers f cratic processes that I have ever seen. are still seeking compensation, today We have been required to demonstrate marks our first significant victory. The ELIGIBILITY FOR AUTOMATIC that no documents existed that would people who will now be receiving com- COMPENSATION allow the radiation doses the workers pensation include at least 364 of those Mr. HARKIN. Mr. President, I have received to be accurately recon- who got the most serious illnesses from come to the floor today to celebrate a structed. It has been mind-boggling their work at IAAP. Unfortunately, landmark achievement for former nu- that a program designed to compensate this group includes far too many work- clear weapons workers in Iowa. Today people who had been deceived by the ers who are no longer with us. In their marks the completion of an adminis- government, could put those same peo- honor and in their memory, I thank all trative process whereby workers from ple through a second bureaucratic of the former workers of the Iowa the Iowa Army Ammunition Plant, nightmare. Army Ammunition Plant for their pa- who assembled some of the most sig- But today is a day to celebrate. It is tience, their persistence, and their nificant nuclear weapons in this Na- also a time to say thank you for the service to America. They are genuine tion’s history and subsequently devel- marvelous team effort that has made patriots. oped devastating forms of cancer, will this day possible. IAAP was the first f become eligible for automatic com- facility to file a petition for automatic pensation. compensation, and only the 2nd in the COMMEMORATING 142 YEARS OF Reaching this point has been an ex- Nation to be approved. While I have WEST VIRGINIA STATEHOOD ample of both the best and the worst in worked hard to make that happen, it Mr. ROCKEFELLER. Mr. President, our system of government. I first start- simply could not have happened with- today I commemorate 142 years of ed working on this issue back in 1997 out the workers themselves, as well as statehood for my State of West Vir- when I received a letter from a con- the University of Iowa scientists. ginia. In doing so, I believe that it is stituent, Bob Anderson, who wrote I would like to say a special thank important to note my State’s motto, about how he and many of his former you to Jack Polson, Sy Iverson, Paula ‘‘Mountaineers Are Always Free.’’ This coworkers had become ill after work- Graham, and Vaughn Moore. It was phrase, as relevant today as it was 142 ing on nuclear weapons in Burlington, their willingness to repeatedly chal- years ago, truly embodies a people who IA. I shake my head every time I think lenge the assumptions that were made have done so much to contribute to our of what Bob’s reaction must have been about the work performed at the plant, great Nation and a State so abundant when he got a letter back from me, and about how that work was done, in natural beauty.

VerDate Aug 04 2004 03:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.026 S20PT1 S6814 CONGRESSIONAL RECORD — SENATE June 20, 2005 Historically, West Virginia’s mag- erans in West Virginia, giving my a pancake breakfast, and plenty of nificent landscape has nurtured and in- State the highest per capita ratio of games for kids. spired her inhabitants, endowing will- veterans in the Nation. Again, I salute the current and past ing adventurers the freedom to explore, Such an impeccable record of devo- residents of Forbes as they celebrate experience, and utilize her natural tion to freedom is not surprising from this momentous occasion, and urge my wonders. Native Americans came to a State with origins like West Virginia. colleagues to congratulate Forbes and West Virginia over 9,000 years ago and It was born out of the Civil War in 1863 its residents on their first 100 years and established the State’s first permanent and became the ultimate manifestation wish them well through the next cen- settlement in present-day St. Albans. of a State’s loyalty to our young coun- tury.∑ Their ancient artifacts and impressive try. monuments, such as the Grave Creek For 142 years West Virginians have f Burial Mound, in Moundsville, serve as been selfless in our love for this Na- lasting tributes to the land’s eternal tion, and our contributions to this 100TH ANNIVERSARY OF NEKOMA, contributions to mankind. country are best reflected in President NORTH DAKOTA Today, the people of West Virginia Abraham Lincoln’s own words. As our ∑ Mr. CONRAD. Mr President, today I remain free to explore and enjoy the great President Lincoln said: wish to honor a community in North State’s unspoiled, majestic terrain. We can scarcely dispense with the aid of Dakota that is celebrating its 100th an- Mountainous views extend for miles in West Virginia in this struggle . . . Her brave and good men regard her admission into the niversary. On July 9 and 10, the resi- every direction, and blend seamlessly dents of Nekoma, ND, will celebrate with glades of rhododendron and deep Union as a matter of life and death. They have been true to the Union under very se- their community’s history and found- river valleys. vere trials. ing. Hundreds of thousands of acres of for- Nekoma is a small town in the north- ests, such as the Monongahela National The meaning of these words, and the contributions of my State in the devel- eastern part of North Dakota with a Forest, blanket our State with lush population of 51. Despite its small size, plant life. West Virginia has over 50 opment of this country’s freedom, con- tinue to hold immense importance with Nekoma holds an important place in State and national parks that protect North Dakota’s history. Charles B. Bil- our natural habitat and provide recre- West Virginians today. I am proud to be a West Virginian. So, today, as we lings was the postmaster of the town’s ation to millions of visitors each year. first post office, which opened in 1898. Nearly 20 different species of endan- celebrate West Virginia’s 142nd birth- day, we remember our history, cele- The town was nearly named Polar, but gered or threatened animals, including it changed after the Soo Line Railroad the bald eagle, have found refuge with- brate our present, and look with hope toward the future of our truly wonder- townsite was plotted in 1905. The name in our ecosystem. Nekoma was selected by the Postal De- Pocahontas County’s pristine rivers ful State. partment from a list of names sub- and streams provide some of the best f mitted by the first appointed post- trout fishing in the State, and offer ADDITIONAL STATEMENTS master, Orzo B. Aldrich. those who visit countless opportunities Nekoma is the site for America’s to escape into the serenity of the Appa- 100TH ANNIVERSARY OF FORBES, only Safeguard ABM and Missile Site lachian Mountains. The county is NORTH DAKOTA Radar military installations. Nick- known as the ‘‘Birthplace of Rivers’’ ∑ Mr. CONRAD. Mr. President, today I named the ‘‘prairie pyramid,’’ the inac- because 8 different rivers have head- tive installation site is just northeast waters there, with their only source of salute the North Dakota community of Forbes as it celebrates its centennial of the town. The SALT treaty between water being the fresh mountain rain. the United States and the former So- In addition to the freedoms provided this July 2–4. Its 100th anniversary is a viet Union, stated that only two safe- by West Virginia’s natural environ- testament to the resilience and dedica- guard sites were allowed—one of which ment, the citizens of West Virginia tion of the 64 residents who call this was the site in Nekoma, ND, and the have fostered a social climate of ac- North Dakota town home. other in Washington, DC. ceptance, where all are free to express Located in Dickey County a few Mr. President, I ask the Senate to their thoughts and beliefs and take ad- miles east of the Coteau Hills and on join me in congratulating Nekoma, ND, vantage of the benefits of a good edu- the North Dakota border with South and its residents on their first 100 years cation. Dakota, Forbes is a town rich in North Booker T. Washington, following Dakota history even though it is the and in wishing them well through the President Abraham Lincoln’s emanci- youngest town in the county. It boasts next century. By honoring Nekoma and pation proclamation, sought refuge in the Schulstad Stone House Museum, a all the other historic small towns of West Virginia and was raised in a small stone house built in 1907 and furnished North Dakota, we keep the pioneering mining town called Malden. It was to that time period, and the Shimmin frontier spirit alive for future genera- there that he was encouraged to follow Tveit Museum, which has displays of tions. It is places such as Nekoma that his dream of education, and there that historical artifacts from American In- have helped to shape this country into he developed the skills to become one dians and early settlers. From railroad what it is today, which is why Nekoma of our country’s foremost educators agent and town merchant, S.F. Forbes, is deserving of our recognition. for whom the town bears its name, to Nekoma has a proud past and a and leaders. ∑ Another location, the Sumner School current mayor, Troy Anliker, this bright future. in Parkersburg, became the Nation’s town has been a home on the prairie first free school for African-American for several generations of farmers, f children below the Mason-Dixon. It was ranchers, and business people. operated until school segregation The southern Dickey County area 100TH ANNIVERSARY OF ended in 1954 and currently houses the where Forbes is located boasts a diver- GARRISON, NORTH DAKOTA Sumnerite African-American History sified agricultural economy. The area ∑ Mr. CONRAD. Mr. President, today I Museum. has farmers who plant and harvest wish to recognize a community in In addition to these advances to free- wheat, barley, corn, sunflowers, and North Dakota that will be celebrating dom and education made within our soybeans, along with ranchers who its 100th anniversary. On June 30–July home State, West Virginians have con- manage several prominent cattle oper- 3, the residents of Garrison will gather sistently and overwhelmingly devoted ations. Like most of rural North Da- to celebrate their community’s history their lives to protect the ideals on kota, the area has a rich heritage in and founding. which this Nation was founded—liberty farming and ranching. Garrison is a vibrant community in and equality. As a part of the community’s cele- west-central North Dakota, along the Five hundred thousand West Vir- bration, organizers have planned to edge of beautiful Lake Sakakawea. ginians, since the time of the Civil honor Forbes’ centennial with food, a Garrison holds an important place in War, have fought to protect our coun- pickup pull, a demolition derby, danc- North Dakota’s history. Founded by try in battles and conflicts all over the ing, beard and dress judging, crafts, two brothers, Cecil and Theodore Tay- world. There are currently 200,000 vet- team penning, fireworks, a beer garden, lor in 1903, Garrison, like most small

VerDate Aug 04 2004 04:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.045 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6815 towns in North Dakota, got its start and its residents on their first 100 years 29, 2005, citizens of Arlington will cele- when the railroad stretched through- and in wishing them well through the brate their city’s proud past and look out the State. The post office was es- next century. By honoring Alsen and forward to a promising future. tablished in June 17, 1903, and Garrison all the other historic small towns of Located near the eastern border of was organized into a city on March 20, North Dakota, we keep the great tradi- South Dakota in Kingsbury County, 1916. In its early years, Garrison was tion of the pioneering frontier spirit Arlington is only 35 miles from the known as a town ‘‘bustin’ at the alive for future generations. It is places Minnesota line. Like many towns in seams’’ with gun carrying rascals. such as Alsen that have helped to South Dakota, Arlington got its start Today, Garrison is a magnet for shape this country into what it is with help from the railroad in 1880. In sports fisherman who venture to tap today, which is why Alsen is deserving fact, the town’s original name, into the abundance of walleye preva- of our recognition. Nordlund, was given by the Dakota lent in Lake Sakakawea. Garrison is Alsen has a proud past and a bright Central Railroad, inspired by the large the host for the North Dakota’s Gov- future.∑ number of Scandinavians who settled ernor’s Cup Walleye Tournament that f in the area. In 1884, however, the West- attracts hundreds of serious sports en- ern Town Lot Company objected and HIGHLAND HIGH SCHOOL WE THE thusiasts from across the country. the county commissioner renamed the PEOPLE COMPETITION For those who call Garrison home, it town Denver. That title was also short is a comfortable place to live, work, ∑ Mr. DOMENICI. Mr. President, it is lived, as one year later, in 1885, the and play. It is certainly true, as its with great pleasure that I rise before local post office insisted on again re- residents say, that it is ‘‘a town worth you today to commend the hard work naming the community. This time, the knowing from the start.’’ The people of and dedicated spirit of the students Dakota Central Railroad chose Arling- Garrison are enthusiastic about their from Highland High School in Albu- ton, and 120 years later, its name en- community and the quality of life it of- querque, NM. These fine students com- dures. fers. The community has a wonderful peted in the National Finals of the We Arlington’s spirited residents live in centennial weekend planned that in- the People: The Citizens and the Con- the midst of some of South Dakota’s cludes an all school reunion, parade, stitution contest in Washington DC, most fertile farmland, as this rural pitch fork fondue, street dance, fire- from April 30–May 2, 2005 against more community is a dependable corn pro- works, games, and much more. than 1,200 students from across the ducer. Additionally, Arlington’s 1,000 Mr. President, I ask the Senate to United States. residents have come to count on The join me in congratulating Garrison, The We the People competition is a Sun, founded in 1885, for quality and ND, and its residents on their first 100 national tournament designed to forge accurate reporting on local events. years and in wishing them well a strong understanding of the U.S. gov- In the twelve and a half decades since through the next century. By honoring ernment in the minds and hearts of our its founding, Arlington has proven its Garrison and all the other historic future leaders. Students compete to ability to flourish and serve farmers small towns of North Dakota, we keep demonstrate their knowledge, not sim- and ranchers throughout the region. the great pioneering frontier spirit ply of how the government works, but Arlington’s proud residents celebrate alive for future generations. It is places of why it works, and how it is best able its 125th anniversary on July 29, 2005, such as Garrison that have helped to to provide for the protection of its peo- and it is with great pleasure that I shape this country into what it is ple and their natural liberties. share with my colleagues the achieve- today, which is why this fine commu- Programs such as this help to ignite ments of this great community.∑ nity is deserving of our recognition. the noble flame of civic duty and demo- f Garrison has a proud past and a cratic spirit in the souls of our young bright future.∑ people, and it is with great pride that HONORING THE TOWN OF WAUBAY, SOUTH DAKOTA f I wish to commend the students of Highland High School for their placing ∑ Mr. JOHNSON. Mr. President, today 100TH ANNIVERSARY OF ALSEN, in the top 10 of the Nation and received I wish to publicly recognize the 125th NORTH DAKOTA an honorable mention. These fine stu- anniversary of the founding of the city ∑ Mr. CONRAD. Mr. President, I rise dents and their teachers have dem- of Waubay, South Dakota. On July 2, today to honor a community in North onstrated to everyone that the spirit of 2005, Waubay citizens look back on Dakota that is celebrating its 100th an- our founding fathers is alive and well their city’s proud past and look for- niversary. On July 2, 2005, the residents today. ward to a promising future. of Alsen, ND, will celebrate their com- I would like to congratulate Chad Platted on November 16, 1880, the munity’s history and founding. Adcox, Joseph Baca, Sarah Bellacicco, community was first known as Station Alsen is a small town in the north- Hannah Doran, Katye Ellison, David #50 until later that year, when crew eastern part of North Dakota with a Estrada, Stephen Ford, Elizabeth Jack- members of the Milwaukee Railroad population of 68. Despite its size, Alsen son, Mia Kimmelman, Paul Kruchoski, Company named it Blue Lake. It was holds an important place in North Da- Graceila Lopez, Joshua McComas, not until 1885 that the town took on its kota’s history. In August 1905, this Soo Samuel Montoya, Samantha Morris, current name of Waubay, meaning Line Railroad townsite was founded. Ngoc-Giao Nguyen, Maria Osornio, ‘‘Nesting place of the birds,’’ given by Originally named Storlie when it was Martha Ramirez, Leon Richter-Freund, the Sioux Indians. One hundred twenty established on April 6, 1899, the town- Julie Russell, Benjamin Trent and five years later, Waubay thrives as the ship was named after Halvor Storlie, teachers Steve Seth and Bob Coffee. oldest city in Day County. who was the county clerk and post- May Albuquerque, and New Mexico as Waubay, like many South Dakota master. On August 31, 1905, officials of a whole, continue to produce such fine towns and communities, got its start the Tri-State Land Co. plotted a town examples for the youth of America, and with the help of the railroad. Although site in another area of Storlie Town- may they use the knowledge and expe- the rail tracks that pass through the ship, and named it Alsen for the local rience they gained with this program town ran as far as Bristol and were settlers, who had come from Alsen Is- to help lead us all into the next genera- ready for travel in 1880, the first train land off of the coast of Denmark. The tion of American freedom, prosperity, to ever pass through Waubay didn’t ar- village of Alsen was incorporated in and honor.∑ rive until May, 1881. A severe blizzard 1920 and reached its peak population of f hit the region in October of 1880, and 358 in 1930. the snow and subsequent run-off in the Alsen’s citizens are very proud of the HONORING THE COMMUNITY OF spring rendered the rail line impass- Alsen Farmers’ Elevator, the Swiss ARLINGTON, SOUTH DAKOTA able. Mennonite Church, and the Alsen Post ∑ Mr. JOHNSON. Mr. President, today The town, which was incorporated as Office. I wish to honor and publicly recognize a village in 1894 and as a city in 1920, Mr. President, I ask the Senate to the 125th anniversary of the founding grew rapidly in its early years. Station join me in congratulating Alsen, ND, of the city of Arlington, SD. On July #50 began with only 50 residents, yet

VerDate Aug 04 2004 04:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.017 S20PT1 S6816 CONGRESSIONAL RECORD — SENATE June 20, 2005 Waubay swelled to a population of 1,007 celebrates its 125th anniversary on ficult for businesses in Egan to draw in in 1925; currently, about 625 South Da- July 4, 2005. It is at this time that I customers. Nevertheless, technology kotans live in the town. By the early would like to draw to my colleagues’ and progress can never undermine the 1900s, the community boasted a general attention the achievements and his- firm resolve and remarkable work store, a lumber yard, a corner drug tory of this charming town on the prai- ethic that is characteristic of the great store, a livery barn, a railroad depot, rie. Egan stands as an enduring tribute people of this country’s heartland. The several coal sheds, the Waubay Clipper, to all those who had the courage to vision of those individuals who had the The Advocate, a power company, sev- pursue their greatest dreams on the courage to make a home for them- eral banks, a creamery, several grain plains of South Dakota. selves on the plains of the Dakotas elevators, a school, and many stores. Egan is a small community nestled serves as inspiration to all those who In May of 1890, the Waubay Clipper, amongst the fertile farmland of south- believe in the honest pursuit of their owned by Charles W. Stafford and his eastern South Dakota. It was founded dreams. On July 4, 2005, the 257 proud son, published the paper’s first issue. It in 1880 to service the Milwaukee Rail- residents of Egan will celebrate their was the only newspaper in town for two road as it made its way west through vibrant history and the legacy of the decades, until The Advocate began Dakota Territory. The town was first pioneer spirit with the 125th anniver- under the direction of Major Maynard incorporated by Joe Enoe, Alfred sary of the city’s founding.∑ in 1910. However, in December 1917, the Brown, and John Hobart. Rectangular f Clipper purchased The Advocate and in shape, Egan grew quickly and soon merged the two, again returning the included seven square miles of Moody MESSAGES FROM THE PRESIDENT Clipper’s status as Waubay’s sole news County, thereby encompassing a new Messages from the President of the publication. Despite management turn- mill on the Big Sioux River and the United States were communicated to over over the years, Waubay residents small village of Roscoe—which was, by the Senate by Mr. Williams: one of his still rely on the Clipper for quality and the way, a different community than secretaries. accurate reporting on local events 115 the Roscoe, SD that exists in Edmunds f years later. County today. Prior to 1910, most Waubay residents Roscoe had been started four years EXECUTIVE MESSAGES REFERRED lacked the convenience of electricity. earlier, in 1876, when Decatour D. As in executive session the Presiding However, in 1884, officials partitioned Bidwell chose the spot on the Big Sioux Officer laid before the Senate messages the town into wards, which Roy River for his new mill. Roscoe also from the President of the United Thompson used to his advantage in 1900 served as a stopping point for the nu- States submitting sundry nominations when he devised a lighting system uti- merous travelers who used a nearby which were referred to the Committee lizing windmill power. In 1910, Dr. Park river crossing, one of the best fords for on the Judiciary. Jenkins, a prominent Waubay resident, many miles. Soon the town of Roscoe (The nominations received today are established an electricity plant in back boasted two restaurants, a store, a sa- printed at the end of the Senate pro- of the Yellowstone Garage. Although loon, a newspaper, and the first court- ceedings.) the plant was quite successful during house in Moody County. However, due f the early portion of the 20th century, to Egan’s increasing growth and popu- the Ottertail Power Company ulti- larity, in addition to the railroad’s new REPORT OF THE CONTINUATION mately became the primary service sturdy and reliable bridges that phased OF THE NATIONAL EMERGENCY provider for Waubay, and still main- out Roscoe’s river crossing, all that re- WITH RESPECT TO THE RISK OF tains that role to this day. mains of the pioneer village of Roscoe NUCLEAR PROLIFERATION CRE- Waubay was home to South Dakota’s is a small pasture scattered with pieces ATED BY THE ACCUMULATION State Board of Health in the early of millstone. OF WEAPONS-USABLE FISSILE 1900s. Headed by Dr. Park Jenkins, who The Baptist and Methodist Episcopal MATERIAL IN THE TERRITORY in 1913 was appointed Board Super- churches were the first to be built in OF THE RUSSIAN FEDERATION— intendent, the office employed 22 peo- the town of Egan. These two churches PM–13 ple at its peak. The board moved to were constructed by all members of the The PRESIDING OFFICER laid be- Pierre, SD in 1933. community, regardless of faith or pro- fore the Senate the following message Today, Waubay is a multicultural fession, in response to a promise made from the President of the United community that includes many resi- by Mr. Egan, the prominent railroad States, together with an accompanying dents of Sisseton-Wahpeton Oyate, as official for whom the city is named. report; which was referred to the Com- well as those of European descent. It is Mr. Egan promised a church bell to the mittee on Banking, Housing, and also home to Waubay National Wildlife first church with a belfry equipped to Urban Affairs. Refuge, managed by the U.S. Fish and receive it. The Baptist Church was the Wildlife Service. Waubay’s location first completed, and therefore received To the Congress of the United States: near several area lakes makes it a the much-desired bell. While the bell Section 202(d) of the National Emer- prime location for fishermen. Blue Dog now hangs in the tower of the Meth- gencies Act (50 U.S.C. 1622(d)) provides State Fish Hatchery is just one mile odist Church, it is still used to call for the automatic termination of a na- north of Waubay, producing walleyes, worshippers to services every Sunday tional emergency unless, prior to the northerns, perch, bass, bluegills, morning. anniversary date of its declaration, the crappies, and trout. Egan experienced a great deal of eco- President publishes in the Federal In the twelve and a half decades since nomic prosperity in the early twen- Reqister and transmits to the Congress its founding, Waubay’s innovative and tieth century. In 1904, Egan boasted a notice stating that the emergency is resourceful residents have proven their nearly seven hundred people and more to continue in effect beyond the anni- ability to thrive as a community. It is than fifty prosperous business enter- versary date. In accordance with this with great pleasure that it share with prises. These included a state bank, provision, I have sent the enclosed no- my colleagues the admirable, pioneer three hotels, two hardware stores, an tice to the Federal Reqister for publica- spirit still present in these wonderful implement house, four grain elevators, tion, stating that the emergency de- South Dakotans, as they celebrate six general stores, a flourishing mill, clared with respect to the accumula- Waubay’s 125th anniversary on July 2, two lumber yards, two doctors, a news- tion of a large volume of weapons-usa- 2005.∑ paper, a furniture store, and an opera ble fissile material in the territory of f house. the Russian Federation is to continue The curtailment of the railroad, bet- beyond June 21, 2005. The most recent HONORING THE CITY OF EGAN, ter roads providing alternate routes notice continuing this emergency was SOUTH DAKOTA that sidestepped Egan, and the rise of published in the Federal Reqister on ∑ Mr. JOHNSON. Mr. President, today more modern methods of transpor- June 18, 2004 (69 FR 34047). I wish to honor and publicly recognize tation fostered travel to larger towns It remains a major national security the town of Egan, South Dakota as it in the state, thus making it more dif- goal of the United States to ensure

VerDate Aug 04 2004 04:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\CR\FM\G20JN6.009 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6817 that fissile material removed from SENATE CONCURRENT RESOLUTION NO. 76 of the State of Hawaii relative to the privat- Russian nuclear weapons pursuant to Whereas, Social Security is our country’s ization of Social Security; to the Committee various arms control and disarmament most important and successful income pro- on Finance. agreements is dedicated to peaceful tection program and provides economic secu- HOUSE RESOLUTION NO. 100 uses, subject to transparency meas- rity to workers, retirees, persons with dis- Whereas, people throughout human history ures, and protected from diversion to abilities, and the surviving spouses and keiki have faced uncertainties, especially those of deceased workers; and uncertainties brought on by death, dis- activities of proliferation concern. The Whereas, Social Security provides essen- ability, and old age; and accumulation of a large volume of tial benefits to over 195,000 people in Hawaii, Whereas, prior to the turn of the twentieth weapons-usable fissile material in the including 139,300 retired workers, 16,090 wid- century, the majority of individuals living in territory of the Russian Federation ows and widowers, 16,790 disabled workers the United States lived and worked on farms, continues to pose an unusual and ex- and 13,630 children; and relying in part on immediate and extended traordinary threat to the national se- Whereas, Social Security has reduced the family, friends, and neighbors to provide poverty rate of our kupuna from over thirty them with economic and social security; and curity and foreign policy of the United Whereas, as the United States moved States. For this reason, I have deter- per cent down to 10.2 per cent in the last forty years, and without Social Security, through the Industrial Revolution and be- mined that it is necessary to continue thirty-four per cent of elderly women in Ha- came an industrial power, increasing num- the national emergency declared with waii would be poor; and bers of individuals began moving to the cit- respect to the accumulation of a large Whereas, six out of ten of today’s bene- ies and suburbs where employment opportu- volume of weapons-usable fissile mate- ficiaries derive more than half of their in- nities abounded; and Whereas, this migration from the farm- rial in the territory of the Russian come from Social Security, and in most low- income households of retirement age, Social lands to the industrial centers of the United Federation and maintain in force these States reduced the degree to which a per- emergency authorities to respond to Security represents eighty per cent or more of their retirement income; and son’s immediate and extended family and neighbors could augment the economic secu- this threat. Whereas, the Social Security Trust Fund is rity of those living in the cities and suburbs; GEORGE W. BUSH. large enough to pay one hundred per cent of THE WHITE HOUSE, June 17, 2005. and promised benefits until 2042, and after that, Whereas, with the stock market crash in f seventy-three per cent of benefits could still 1929 and the beginning of the Great Depres- be paid; and MESSAGE FROM THE HOUSE sion, the United States found its economy in Whereas, proposals are being considered in crisis and individuals in this country, espe- At 3:29 p.m., a message from the Washington, D.C. that would privatize Social cially elder Americans, were faced with eco- House of Representatives, delivered by Security and threaten the retirement secu- nomic hardships never before seen; and rity of millions of Americans and their fami- Whereas, in an address to Congress on June Ms. Niland, one of its reading clerks, lies; and announced that the House has passed 8, 1934, President Franklin Delano Roosevelt Whereas, diverting more than one-third of stating that he intended to provide a pro- the following bill, in which it requests the 6.2 per cent of wages that workers cur- gram for the social security of Americans, the concurrence of the Senate: rently contribute to Social Security into pri- subsequently created, by Executive Order, H.R. 2745. An act to reform the United Na- vate accounts drains money from Social Se- the Committee on Economic Security (Com- tions, and for other purposes. curity and will cut guaranteed benefits; and mittee), with instructions to study the prob- Whereas, diverting money from Social Se- lem of economic insecurity and make rec- f curity will increase the national debt by al- ommendations for legislative consideration; ENROLLED BILL SIGNED most $2 trillion over the next ten years—a and debt that will be passed on to future genera- Whereas, in 1935, six months after its es- The message further announced that tions; and tablishment, the Committee made its report the Speaker of the House of Represent- Whereas, privatization is particularly to the President and Congress, who after de- atives has signed the following enrolled harmful to women and minorities who rely liberations and compromise, enacted the So- bill: most on Social Security by replacing a por- cial Security Act of 1935, which created a so- tion of a secure benefit with investment cial insurance program designed to pay retir- H.R. 483. An act to designate a United risk—a risk that they cannot afford; and ees age 65 or older a continuing income after States courthouse in Brownsville, Texas, as Whereas, widows would experience enor- retirement, and to keep these retirees out of the ‘‘Reynaldo G. Garza and Filemon B. Vela mous cuts under privatization—reducing poverty; and United States Courthouse’’. their Social Security from $829 to $456 per Whereas, Social Security taxes were col- The enrolled bill was signed subse- month, which is only sixty-three per cent of lected for the first time in 1937, with initial quently by the President pro tempore the poverty level, even when proceeds from lump-sum payments being made that first month and regular monthly benefit pay- (Mr. STEVENS). private accounts are included in the total; and ments being made beginning in January, f Whereas, private accounts do not provide 1940; and Whereas, today, Social Security provides a MEASURES READ THE FIRST TIME the lifetime, inflation-adjusted benefit that Social Security does, and they can be de- guaranteed income for more than 147 million The following bill was read the first pleted by long life and market fluctuation; retirees, family members of workers who time: and have died, and persons with disabilities; and Whereas, Social Security beneficiaries Whereas, Social Security needs to be H.R. 2745. An act to reform the United Na- earn their benefits by paying into the system strengthened now for our children and grand- tions, and for other purposes. throughout their years of employment, and children, but the solution should not be currently serves as the main source of in- f worse than the problem; and come for a majority of retirees, with over Whereas, the Social Security System also two-thirds of retirees currently dependent on ENROLLED BILL PRESENTED needs to be changed sensibly in order to Social Security for financial survival; and The Secretary of the Senate reported honor obligations to future generations: Whereas, for the past 70 years Social Secu- that on June 17, 2005, she had presented Now, therefore, be it rity has remained solvent and has been able to the President of the United States Resolved, by the Senate of the Twenty- to pay benefits to millions of Americans the following enrolled bill: third Legislature of the State of Hawaii, with few adjustments; and Regular Session of 2005, the House of Rep- Whereas, although the Social Security S 643. An act to amend the Agricultural resentatives concurring, That the Hawaii trustees state that in its present form, So- Credit Act of 1987 to reauthorize State medi- State Legislature opposes the privatization cial Security has enough funds in its reserve ation programs. of Social Security and urges Hawaii’s con- to be able to meet 100 percent of its obliga- f gressional delegation to reject such proposed tions until 2042 and, there is concern over changes to the Social Security System; and the solvency of the current Social Security PETITIONS AND MEMORIALS be it further system and whether it will be able to pay The following petitions and memo- Resolved, That certified copies of this Con- benefits for the millions of Americans sched- current Resolution be transmitted to the rials were laid before the Senate and uled to retire over the next decade; and President Pro Tempore of the United States Whereas, individuals who support efforts to were referred or ordered to lie on the Senate, the Speaker of the United States reform Social Security are currently review- table as indicated: House of Representatives, and each member ing a three-prong approach including raising POM–111. A concurrent resolution adopted of Hawaii’s congressional delegation. of the retirement age, increasing the max- by the Legislature of the State of Hawaii rel- imum annual earnings subject to Social Se- ative to Social Security reform; to the Com- POM–112. A resolution adopted by the curity tax, and allowing the establishment of mittee on Finance. House of Representatives of the Legislature voluntary private investment accounts; and

VerDate Aug 04 2004 03:40 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.035 S20PT1 S6818 CONGRESSIONAL RECORD — SENATE June 20, 2005

Whereas, the current focus on the national HOUSE RESOLUTION 3 NAFTA, they never would have voted for level has been the establishment of private Whereas, demographic changes and cost in- it.’’; investment accounts to allow taxpayers to creases will drain the existing Social Secu- Whereas, the United States is considering put a portion of their social security tax into rity system; entering into a new 34–member Free Trade stocks, bonds, and other investments that Whereas, without significant changes to Area of the Americas (FTAA) in 2005; and may pay them a higher return and increase the system, costs will exceed revenues start- Whereas, based upon the experience that their retirement benefits; and ing in 2018 and the system may not be able to the United States has had with NAFTA and Whereas, contrary to the original purpose pay any benefits by 2042; the WTO, United States membership in the of Social Security, which established a com- Whereas, anyone born after the year 1970 planned FTAA would increase manufac- prehensive and secure safety net to keep re- will not receive full Social Security benefits turing flight in the state of Utah and tirees out of poverty, private investment ac- if changes are not made to the system; throughout the United States: Now, there- counts may result in Social Security bene- Whereas, not reforming the system will re- fore, be it ficiaries with poor returns on their invest- quire a tax increase on every working Amer- Resolved, that House of Representatives of ments to fall through the cracks of the sys- ican or a benefit cut; and the state of Utah respectfully but firmly tem; and Whereas, allowing younger workers to in- urges all members of the United States Con- Whereas, the costs of transitioning to this vest a portion of their income in personal re- gress to vote no on any agreement for the system of private investment accounts may tirement accounts will avoid any benefit United States to enter into a Free Trade effectively scuttle the current Social Secu- cuts or tax increases: Now, therefore, be it Area of the Americas (FTAA); and be it fur- rity system; and Resolved, that the House of Representatives ther Whereas, it has been estimated that of the State of Utah urges Utah’s congres- Resolved, that the House of Representatives transitioning to a system of private invest- sional delegation to oppose increases in pay- of the state of Utah urges the United States ment accounts will generate costs as high as roll taxes and cuts in Social Security bene- Congress to not enter into the FTAA until $2–$3 trillion, which will degrade any invest- fits; and be it further the United States has had more experience ment earnings of these private accounts; and Resolved, that the House of Representatives with and a greater understanding of the im- Whereas, diverting a portion of Social Se- urges Utah’s congressional delegation to sup- pacts of NAFTA and the World Trade Organi- curity money to private accounts will leave port optional Social Security Personal Re- zation (WTO); and be it further Resolved, that a copy of this resolution be fewer dollars available to pay Social Secu- tirement Accounts; and be it further sent to the Majority Leader of the United rity benefits, and reduce system reserves and Resolved, that a copy of this resolution be Sates Senate, Speaker of the United States the cash on hand to pay beneficiaries; and sent to the members of Utah’s congressional House of Representatives, the members of Whereas, it has further been estimated delegation. Utah’s congressional delegation, the World that by allowing for the establishment of Trade Organization (WTO), and the Free private investment accounts, the current So- POM–114. A resolution adopted by the Trade Area of the Americas (FTAA). cial Security trust fund reserves could be House of Representatives of the Legislature of the State of Utah relative to the United wiped out by 2021, a full 20 years sooner than POM–115. A joint resolution adopted by the States entering into a Free Trade Area of if the system had been left alone; and House of the Legislature of the State of Utah the Americas; to the Committee on Finance. Whereas, arguments have also been made relative to United States trade negotiations; that the way to ‘‘fix’’ Social Security is not HOUSE RESOLUTION 9 to the Committee on Finance. to change the system and its purpose, but Whereas, the United States of America has HOUSE JOINT RESOLUTION rather to help individuals establish their always been the world leader in pushing for own private pensions and retirement savings Whereas, although the United States Con- free trade, which is a hallmark of our cap- stitution places the regulation of trade with accounts such as Individual Retirement Ac- italistic society; counts, to supplement the guaranteed ben- foreign countries within the prerogative of Whereas, free trade only thrives where the Federal Government, the primary re- efit of Social Security; and there is a level playing field of government Whereas, with the myriad of difficult sponsibility for protecting public health, regulations between trading partners; welfare, and safety is left to the states; choices to be made to keep the Social Secu- Whereas, the 1993 North American Free rity system solvent, and given the fact that Whereas, the United States Congress has Trade Agreement (NAFTA) was supposed to consistently recognized, respected, and pre- the Social Security system will still be sol- bring additional prosperity to the United vent for a good number of years, the issue of served the states’ power to protect the States and level the playing field with Can- health, welfare, and environments of their strengthening Social Security and making ada and Mexico, thus perpetuating free trade any changes or adjustments to the system states and their citizens in a variety of stat- between our nations; utes, such as the Clean Air Act, Clean Water should be carefully studied and planned to Whereas, notwithstanding the good inten- ensure that future generations will be pro- Act, and Safe Drinking Water Act; tions of NAFTA, our nation has suffered the Whereas, it is vital that the Federal Gov- vided the retirement security received by loss of almost 900,000 jobs due to NAFTA, ernment not agree to proposals in the cur- past generations; now, therefore, be it many of them coming in the manufacturing rent negotiations on trade in services that Resolved, by the House of Representatives sector; might in any way preempt or undercut this of the Twenty-third Legislature of the State Whereas, manufacturing jobs in the United reserved state authority; of Hawaii, Regular Session of 2005, that this States have plunged from 19.3 million in 1980 Whereas, proposed changes should not, in body hereby urges President George W. Bush to only about 14.6 million today, in large the name of promoting increased inter- to reconsider his plans to hurriedly enter part because of these types of trade issues; national trade, accord insufficient regard for into a Social Security privatization plan; Whereas, the United States has gone from existing regulatory, tax and subsidy policies, and be it further a trade surplus with Mexico prior to NAFTA and the social, economic, and environmental Resolved, that this body also urges Presi- to a substantial trade deficit; values those policies promote; dent George W. Bush to carefully study the Whereas, the United States is a current Whereas, statutes and regulations that the effects that privatization may have on the member of the World Trade Organization states and local governments have validly basic purpose of Social Security, and on the (WTO), which has been called ‘‘The United adopted, that are plainly constitutional and welfare of current and future beneficiaries, Nations of World Trade’’; within their province to adopt, and that re- and to consider privatization within a com- Whereas, the United States consistently flect locally appropriate responses to the prehensive review of alternative methods of bows to the wishes of the WTO, only proving needs of their citizens, should not be over- adjusting Social Security, such as raising the words of Texas Congressman Ron Paul to ridden by federal decisions solely in the in- the retirement age, increasing the maximum be prophetic: ‘‘The most important reason terests of increased trade; annual earnings subject to Social Security why we should get out [of the WTO] is to Whereas, states are concerned about re- tax, and helping more individuals establish maintain our nation’s sovereignty. We taining a proper scope for state regulatory supplementary private pension and retire- should never deliver to any international authority in actual commitments in agree- ment savings accounts; and be it further governing body the authority to dictate ments with one or more United States’ trad- Resolved, that certified copies of this Reso- what our laws should be. And this is pre- ing partners; lution be transmitted to the President of the cisely the kind of power that has been given Whereas, it is crucial to maintain the prin- United States, the Speaker of the United to the WTO.’’; ciple that the United States may request, States House of Representatives, the Presi- Whereas, both the WTO and NAFTA, but not require, states to alter their regu- dent of the United States Senate, the mem- through the use of trade tribunals, now latory regimes in areas over which they hold bers of Hawaii’s congressional delegation, claim the sovereign authority to overrule de- constitutional authority; and the Governor. cisions of American courts and make awards Whereas, if the United States makes broad- to foreign businesses for violations of trade er offers later in the negotiations and the POM–113. A resolution adopted by the agreements; legislation is ‘‘fast tracked,’’ there will be House of Representatives of the Legislature Whereas, Abner Mikva, a former chief little opportunity for states to have im- of the State of Utah relative to the privat- judge on the federal appellate bench and a proper positions reversed; ization of Social Security; to the Committee former congressman, has stated: ‘‘If Congress Whereas, it is critical that there be full on Finance. had known there was anything like this in and effective coordination and consultation

VerDate Aug 04 2004 05:28 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.069 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6819 with the states before the United States States’ offer or counter offer for GATS com- bers of the United States Congress to vote no Trade Representative (USTR) makes any mitments so that state and local govern- on any agreement for the United States to binding commitments; ments have time to discuss its potential im- enter into a Free Trade Area of the Americas Whereas, while the State Point of Contact pact; and be it further (FTAA) at this time; and be it further system was meant to create a clearly Resolved, that the Legislature urges the Resolved, that the Senate of the state of marked channel for two-way communica- USTR to participate in public discussions of Utah urges the United States Congress to tions, the reality has not lived up to those trade policy and energy; and be it further not enter into the FTAA until the United intentions; Resolved, that a copy of this resolution be States has had more experience and greater Whereas, a broader and deeper range of sent to the United States Senate Finance understanding of the impacts of NAFTA and contacts with a variety of state entities, par- Committee, the House Ways and Means Com- the World Trade Organization (WTO); and be ticularly with those bearing regulatory and mittee, the Senate Subcommittee on Inter- it further legislative authority, must be improved and national Trade, the House Subcommittee on Resolved, that a copy of this resolution be maintained over the next several years; Trade, the Secretary of the Department of sent to the Majority Leader of the United Whereas, it is important for state authori- Energy, the United States Trade Representa- States Senate, the Speaker of the United ties to engage with the USTR in the commu- tive, the National Association of Attorneys States House of Representatives, the mem- nications process and to respond to timely General, the National Conference of State bers of Utah’s congressional delegation, the requests in any equally timely manner; Legislatures, the President of the United World Trade Organization (WTO), and the Whereas, as negotiations with other na- States, and Utah’s Congressional delegation. Free Trade Area of the Americas (FTAA). tions continue, they should also be con- ducted in ways that will avoid litigation in POM–116. A resolution adopted by the Sen- POM–117. A joint resolution adopted by the world courts; ate of the Legislature of the State of Utah Legislature of the State of Utah relative to Whereas, the United States is the signa- relative to the United States entering into a Medicaid reform; to the Committee on Fi- tory to the World Trade Organization’s Gen- Free Trade Area of the Americas; to the nance. eral Agreement on Trade in Services (GATS); Committee on Finance. SENATE JOINT RESOLUTION 15 Whereas, the United States Trade Rep- SENATE RESOLUTION 1 Whereas, the Medicaid program provides resentative has published proposals that Whereas, the United States of America has access to health care for Utah’s most vulner- would apply trade rules under GATS to regu- always been the world leader in pushing for able citizens, including low-income children, lation of electricity by state and local gov- free trade, which is a hallmark of our cap- parents, pregnant women, people with dis- ernments; italistic society; Whereas, these proposals would cover regu- abilities, and senior citizens; Whereas, free trade only thrives where Whereas, growth in Medicaid spending per lation of services related to transmission, there is a level playing field of government capita has remained relatively low when distribution, and access of energy traders to regulations between trading partners; compared to private health insurance pre- the grid and, if implemented, might conflict Whereas, the 1993 North American Free miums; with state energy policy and alter the bal- Trade Agreement (NAFTA) was supposed to Whereas, current federal and state Med- ance of domestic authority between states bring additional prosperity to the United icaid expenditures are growing at a rate of and the Federal Energy Regulatory Commis- States and level the playing field with Can- 12% per year and averaging almost 22% of sion (FERC); ada and Mexico, thus perpetuating free trade states’ annual budgets primarily because of Whereas, concerns include the impact of between our nations; the recent economic downturn, rising health market access rules on the structure of Re- Whereas, notwithstanding the good inten- care costs, and an increase in the aging pop- gional Transmission Organization (RTO), tions of NAFTA, our nation has suffered the ulation; and state jurisdiction over utilities that are part loss of almost 900,000 jobs due to NAFTA, Whereas, new funding challenges for state of an RTO, RTO contracts for reliability of many of them coming in the manufacturing government will become more acute as the electricity grid, and potential roles for sector; states absorb new costs to help implement the RTO to structure or facilitate wholesale Whereas, manufacturing jobs in the United the Medicaid Modernization Act: Now, there- trade and brokering services; States have plunged from 19.3 million in 1980 fore, be it Whereas, another question is the impact to only about 14.6 million today, in large Resolved, that the Legislature of the state national treatment rules may have on tax part because of these types of trade issues; of Utah urges the United States Congress to incentives to produce wind energy, and mar- Whereas, the United States has gone from reject any budget reduction and budget rec- ket access rules that may impact renewable a trade surplus with Mexico prior to NAFTA onciliation process for fiscal year 2006 re- portfolio standards that mandate minimum to a substantial trade deficit; lated to Medicaid reform that would shift ad- quotas for acquisition from renewable Whereas, the United States is a current ditional costs to the states; and be it further sources; member of the World Trade Organization Resolved, that the Legislature urges the Whereas, another question is the impact (WTO), which has been called ‘‘The United United States Congress to reject any cap on that GATS rules on domestic regulation may Nations of World Trade’’; federal funding for the Medicaid program, have on rate setting and the public interest Whereas, the United States consistently whether in the form of an allotment, an allo- standard for exercising regulatory authority bows to the wishes of the WTO, only proving cation, or a block grant; and be it further by state public utility commissions; and the words of Texas Congressman Ron Paul to Resolved, that the Legislature urges the Whereas, in early 2004, a working group of be prophetic: ‘‘The most important reason United States Congress to work with state state and local officials consulted three why we should get out [of the WTO] is to policymakers to enact reforms that will re- times with staff of the USTR who described maintain our nation’s sovereignty. We sult in Medicaid cost savings for both the the meeting as timely, productive, and un- should never deliver to any international states and the Federal Government; and be it precedented; Now, therefore, be it governing body the authority to dictate further Resolved, that the Legislature of the state what our laws should be. And this is pre- Resolved that the Legislature urges the of Utah urges the United States Trade Rep- cisely the kind of power that has been given United States Congress to establish a bene- resentative to conduct trade negotiations in to the WTO’’; fits program for the ‘‘dual eligible’’ popu- a manner that will preserve the responsi- Whereas, both the WTO and NAFTA, lation, people eligible for both Medicaid and bility of states to develop their own regu- through the use of trade tribunals, now Medicare, that would be 100% funded by latory structures and that will avoid litiga- claim the sovereign authority to overrule de- Medicare instead of Medicaid; and be it fur- tion in world courts, and be it further cisions of American courts and make awards ther Resolved, that the Legislature of the state to foreign businesses for violations of trade Resolved, that a copy of this resolution be of Utah urges the USTR to take further steps agreements; sent to the Majority Leader of the United to enhance the level of consultation before Whereas, Abner Mikva, a former chief States Senate, the Speaker of the United negotiations commence on any trade com- judge on the federal appellate bench and a States House of Representatives, and to the mitments under the World Trade Organiza- former congressman, has stated: ‘‘If Congress members of Utah’s congressional delegation. tion’s General Agreement on Trade in Serv- had known there was anything like this in ices (GATS); and be it further NAFTA, they never would have voted for it’’; POM–118. A resolution adopted by the Sen- Resolved, that the Legislature of the state Whereas, the United States is considering ate of the Legislature of the State of Hawaii of Utah commends the USTR staff for its entering into a new 34-member Free Trade relative to Medicare and Medicaid services willingness to consult with the working Area of the Americas (FTAA) in 2005; and and benefits; to the Committee on Finance. group and learn about the potential impact Whereas, based upon the experience that of GATS rules on state and local regulation the United States has had with NAFTA and SENATE RESOLUTION NO. 22 of the energy sector; and be it further the WTO, United States membership in the Whereas, Medicaid is a program that pays Resolved, that the Legislature urges the planned FTAA would increase manufac- for medical assistance for certain individuals USTR to disclose to the public the United turing flight in the state of Utah and and families with low incomes and resources; States’ requests for GATS commitments throughout the United States: Now, there- and from other nations, and be it further fore, be it Whereas, the Medicaid program is a crit- Resolved, that the Legislature urges the Resolved, that the Senate of the state of ical source of support for people with mental USTR to give prior notice of the next United Utah respectfully but firmly urges all mem- illness; and

VerDate Aug 04 2004 05:28 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.072 S20PT1 S6820 CONGRESSIONAL RECORD — SENATE June 20, 2005 Whereas, according to the Department of and emergency care is one of the most expen- fully requested to support, work to pass, and Human Services, Medicaid is the single larg- sive types of health care and far more costly vote for National Park protection for the one est source of financing for mental health than routine mental health treatment; and thousand-acre Kawainui and Hamakua care and encompasses over half of state and Whereas, individuals unable to receive Marsh Complex located on the northeast local spending on mental health services; suitable mental health treatment often end coast of the island of Oahu; and be it further and up in the criminal justice system, increasing Resolved, that certified copies of this Sen- Whereas, the federal government is plan- legal and prison costs in a system that is ate Resolution be transmitted to the Presi- ning to reduce Medicaid funding due to fed- neither designed nor capable of meeting dent of the United States, the President of eral budget shortfalls; and their needs: Now, therefore, be it the United States Senate, the Speaker of the Whereas, additional cuts in federal Med- Resolved, by the Senate of the Twenty- United States House of Representatives, and icaid funding will mean fewer low-income third Legislature of the State of Hawaii, the State of Hawaii’s Congressional Delega- people will receive mental health services; Regular Session of 2005, the House of Rep- tion. and resentatives concurring, that the President Whereas, more restrictions will be applied of the United States, the United States Con- POM–121. A resolution adopted by the to the services that are available; and gress and Centers for Medicare and Medicaid House of Representatives of the Legislature Whereas, any reduction in benefits or the Services are urged to preserve the amount of of the State of Utah relative to the partici- level of benefits by the federal government Medicaid coverages and the amount of bene- pation of Taiwan in the World Health Orga- would place more burden on the State of Ha- fits; and be it further nization; to the Committee on Foreign Rela- waii to make up for the cutback; and Resolved, that certified copies of this Con- tions. Whereas, limiting Medicaid services would current Resolution be transmitted to the HOUSE RESOLUTION 10 not reduce costs, but would transfer them to President of the United States, the Speaker Whereas, the World Health Organization’s already overburdened hospital emergency of the United States House of Representa- (WHO) Constitution states that ‘‘The objec- rooms or criminal justice systems; and tives, the President of the United States tive of the World Health Organization shall Whereas, under current law, emergency Senate, the Director of Centers for Medicare be the attainment by all peoples of the high- rooms cannot turn away someone in crises, and Medicaid Services, and the members of est possible level of health’’; and emergency care is one of the most expen- Hawaii’s congressional delegation. sive types of health care and far more costly Whereas, this position demonstrates that the WHO is obligated to reach all peoples than routine mental health treatment; and POM–120. A resolution adopted by the Sen- throughout the world, regardless of state or Whereas, individuals unable to receive ate of the Legislature of the State of Hawaii national boundaries; suitable mental health treatment often end relative to national park status for the Whereas, the WHO Constitution permits a up in the criminal justice system, increasing Kawainui Marsh Complex; to the Committee wide variety of entities, including non- legal and prison costs in a system that is on Energy and Natural Resources. neither designed nor capable of meeting member states, international organizations, their needs; now, therefore, be it SENATE RESOLUTION NO. 51 national organizations, and nongovern- Resolved, by the Senate of the Twenty- Whereas, the Convention on Wetlands was mental organizations, to participate in the third Legislature of the State of Hawaii, signed on February 2, 1971 in Ramsar, Iran; activities of the WHO; Regular Session of 2005, that the President of and Whereas, five entities, for example, have the United States, the United States Con- Whereas, in 1987, the United States joined acquired the status of observer of the World gress and Centers for Medicare and Medicaid the Ramsar Convention, an international Health Assembly (WHA) and are routinely Services are urged to preserve the amount of treaty that aims at halting the worldwide invited to its assemblies; Medicaid coverages and the amount of bene- loss of wetlands and to conserve those that Whereas, both the WHO Constitution and fits; and be it further remain; and the International Covenant of Economic, So- Resolved, that certified copies of this Reso- Whereas, the treaty’s one hundred forty- cial, and Cultural Rights (ICESCR) declare lution be transmitted to the President of the four contracting parties have designated one that health is an essential element of human United States, the Speaker of the United thousand four hundred four wetlands sites rights and that no signatory shall impede on States House of Representatives, the Presi- totaling more than three hundred million the health rights of others; dent of the United States Senate, the Direc- acres for inclusion in the Ramsar List of Whereas, Taiwan seeks to be invited to tor of Centers for Medicare and Medicaid Wetlands of International Importance; and participate in the work of the WHA simply Services, and the members of Hawaii’s con- Whereas, despite the great value of wet- as an observer, instead of as a full member, gressional delegation. lands, they have been shrinking worldwide, in order to allow the work of the WHO to including in the United States; and proceed without creating political frictions POM–119. A concurrent resolution adopted Whereas, on Earth Day 2004, President and to demonstrate Taiwan’s willingness to by the Legislature of the State of Hawaii rel- George W. Bush announced an aggressive put aside political controversies for the com- ative to Medicare and Medicaid services and new national initiative to create, improve, mon good of global health; benefits; to the Committee on Finance. and protect at least three million wetland Whereas, this request is fundamentally SENATE CONCURRENT RESOLUTION NO. 44 acres over the next five years in order to in- based on professional health grounds and has Whereas, Medicaid is a program that pays crease overall wetland acreage and quality; nothing to do with the political issues of sov- for medical assistance for certain individuals and ereignty and statehood; and families with low incomes and resources; Whereas, wetlands are a source of water, Whereas, Taiwan currently participates as and food, recreation, transportation, and, in a full member in organizations like the Whereas, the Medicaid program is a crit- some places, are part of the local religious World Trade Organization (WTO), Asia-Pa- ical source of support for people with mental and cultural heritage. They provide ground- cific Economic Cooperation (APEC), and sev- illness; and water replenishment, benefiting inhabitants eral other international organizations that Whereas, according to the Department of of entire watersheds; and count the People’s Republic of China among Human Services, Medicaid is the single larg- Whereas, wetlands play a vital role in their membership; est source of financing for mental health storm and flood protection and water filtra- Whereas, Taiwan has become an asset to care and encompasses over half of state and tion. In addition, they provide a rich feeding all these institutions because of a flexible in- local spending on mental health services; ground for migratory birds, fish, and other terpretation of the terms of membership; and animals; and Whereas, closing the gap between the WHO Whereas, the federal government is plan- Whereas, the United States designated and Taiwan is an urgent global health imper- ning to reduce Medicaid funding due to fed- three new Ramsar sites last month: the two ative; eral budget shortfalls; and thousand five hundred-acre Tijuana River Whereas, the health administration of Tai- Whereas, additional cuts in federal Med- National Estuarine Research Reserve in San wan is the only competent body possessing icaid funding will mean fewer low-income Diego County, California; the one hundred and managing all the information on any people will receive mental health services; sixty thousand-acre Grassland Ecological outbreak in Taiwan of epidemics that could and Area in western Merced County, California; potentially threaten global health; Whereas, more restrictions will be applied and the one thousand-acre Kawainui and Whereas, excluding Taiwan from the to the services that are available; and Hamakua Marsh Complex located on the WHO’s Global Outbreak Alert and Response Whereas, any reduction in benefits or the northeast coast of the island of Oahu; and Network (GOARN), for example, is dangerous level of benefits by the federal government Whereas, these additional sites bring the and self defeating from a professional per- would place more burden on the State of Ha- total number of United States Ramsar sites spective; waii to make up for the cutback; and to twenty-two, covering nearly 3.2 million Whereas, good health is a basic right for Whereas, limiting Medicaid services would acres: Now, therefore, be it every citizen of the world and access to the not reduce costs, but would transfer them to Resolved, by the Senate of the Twenty- highest standard of health information and already overburdened hospital emergency third Legislature of the State of Hawaii, services is necessary to help guarantee this rooms or criminal justice systems; and Regular Session of 2005, that the State of Ha- right; Whereas, under current law, emergency waii’s elected Representatives and Senators Whereas, direct and unobstructed partici- rooms cannot turn away someone in crises, in the United States Congress are respect- pation in international health cooperation

VerDate Aug 04 2004 04:35 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.076 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6821 forms and programs is therefore crucial, es- Whereas, native inhabitants of Banaba, the Whereas, Using money provided by the pecially with today’s greater potential for Banabans, had been deported to Nauru and Community Services Block Grant program, the cross-border spread of various infectious Kosrae (Caroline Islands) and after their res- Community Action Agencies in this State diseases through increased trade and travel; cue, Banabans elected to live on Rabi Island, not only assist low-income persons in obtain- Whereas, the WHO sets forth in the first Fiji, which had earlier been bought for them; ing employment, training, education, includ- chapter of its charter the objectives of at- and ing participation in Head Start, energy as- taining the highest possible level of health Whereas, the people of Kiribati suffered sistance, senior services, and health and nu- for all people; tremendous atrocities and losses as a result trition benefits, but the Agencies also ac- Whereas, Taiwan’s population of 23 million of the occupation of the island by Japanese quire the infrastructure to develop afford- people is larger than that of three quarters armed forces during World War II; and able housing projects, assist first-time home of the member states already in the WHO Whereas, many people of Kiribati were not buyers in paying down-payment and closing who shares the noble goals of the organiza- given the opportunity during the aftermath costs, and help senior citizens repair their tion; of World War II to file a war reparations homes; and Whereas, Taiwan’s achievements in the claim; and Whereas, When such activities relating to field of health are substantial, including one Whereas, after sixty years, the people of housing are considered, the leverage for each of the highest life expectancy levels in Asia, Kiribati deserve to have a final resolution on federal dollar received by the State of Ne- maternal and infant mortality rates com- the long-awaited issue of war reparations vada increases up to $29; and parable to those in western countries, the and due recognition for their heroic sac- Whereas, The proposed federal budget for eradication of such infectious diseases as rifices and struggle during the Japanese oc- Fiscal Year 2006 recommends the elimination cholera, smallpox, and the plague, and the cupation; and of the Community Services Block Grant pro- first country in the world to provide children Whereas, the member nations of the Asso- gram; and with free hepatitis B vaccinations; ciation of Pacific Island Legislatures recog- Whereas, The elimination of the program Whereas, Taiwan is not allowed to partici- nize the sacrifice and suffering of the people would negatively impact not only the resi- dents of Nevada but citizens all across the pate in any WHO-organized forums and of the Republic of Kiribati and the injustice United States and would significantly hinder workshops concerning the latest tech- further inflicted upon them due to the lack the ability of Community Action Agencies nologies in the diagnosis, monitoring, and of resolution by the governments of Japan and other businesses to improve the eco- control of diseases; and the United States to address war repara- nomic viability of families and businesses, Whereas, in recent years both the Tai- tions for the people of the Republic of hurting those in need and lessening their wanese Government and individual Tai- Kiribati: Now, therefore, be it ability to live a decent life; now, therefore, wanese experts have expressed a willingness Resolved, by the House of Representatives be it to assist financially or technically in WHO- of the Twenty-third Legislature of the State supported international aid and health ac- Resolved by the Senate and Assembly of the of Hawaii, Regular Session of 2005, the Sen- State of Nevada, Jointly, That the members tivities, but have ultimately been unable to ate concurring, that the Legislature of the render assistance; of the 73rd Session of the Nevada Legislature State of Hawaii strongly supports the gov- urge Congress to preserve the Community Whereas, the WHO does allow observers to ernment and the people of the Republic of participate in the activities of the organiza- Services Block Grant program as an inde- Kiribati in their efforts to address war rep- pendent program administered by the De- tion; and arations; and be it further Whereas, in light of all the benefits that partment of Health and Human Services and Resolved, that certified copies of this Con- to appropriate money for the program for participation could bring to the state of current Resolution be transmitted to the health of people not only in Taiwan, but also Fiscal Year 2006 that meets or exceeds the President of the United States through the funding level for Fiscal Year 2005; and be it regionally and globally it seems appropriate, Secretary of State, the President of the if not imperative, for Taiwan to be involved further United States Senate, the Speaker of the Resolved, That the Secretary of the Senate with the WHO: Now, therefore, be it United States House of Representatives, the Resolved, that the House of Representatives prepare and transmit a copy of this resolu- Prime Minister of Japan through the Con- of the state of Utah urges the Bush Adminis- tion to the Vice President of the United sulate General of Japan in Honolulu, the tration to support Taiwan and its 23 million States as the presiding officer of the Senate, President of the Republic of Kiribati through people in obtaining appropriate and mean- the Speaker of the House of Representatives, the Consulate of the Republic of Kiribati in ingful participation in the World Health Or- the Secretary of the Department of Health Honolulu, the President of the Association of ganization (WHO); and be it further and Human Services, and each member of Pacific Island Legislatures, and the members Resolved, that the House of Representatives the Nevada Congressional Delegation; and be of Hawaii’s congressional delegation. urges that United States’ policy should in- it further Resolved, That this resolution becomes ef- clude the pursuit of some initiative in the POM–123. A joint resolution adopted by the fective upon passage. WHO which would give Taiwan meaningful Legislature of the State of Nevada relative participation in a manner that is consistent to the Community Services Block Grant Pro- POM–124. A resolution adopted by the with the organization’s requirements; and be gram; to the Committee on Health, Edu- House of Representatives of the General As- it further cation, Labor, and Pensions. sembly of the Commonwealth of Pennsyl- Resolved, that a copy of this resolution be vania relative to ‘‘Amyotrophic Lateral SENATE JOINT RESOLUTION NO. 13 sent to the President of the United States, Sclerosis Awareness Month’’; to the Com- the United States Secretary of State, the Whereas, The Community Services Block mittee on Health, Education, Labor, and Secretary of Health and Human Services, the Grant program, administered by the Depart- Pensions. majority leader of the United States Senate, ment of Health and Human Services, was HOUSE RESOLUTION NO. 277 the Speaker of the United States House of created by the federal Omnibus Budget Rec- Representatives, the members of Utah’s con- onciliation Act of 1981 and is designed to pro- Whereas, Amyotrophic Lateral Sclerosis gressional delegation, the Government of vide a range of services to address the needs (ALS) is better known as Lou Gehrig’s dis- Taiwan, and the World Health Organization. of low-income persons to ameliorate the ease; and Whereas, ALS is a fatal neurodegenerative causes and conditions of poverty; and disease characterized by degeneration of cell POM–122. A concurrent resolution adopted Whereas, The money allocated by the pro- bodies of the lower motor neurons in the by the Legislature of the State of Hawaii rel- gram is used to provide services that assist gray matter of the anterior horns of the spi- ative to supporting the government and the such persons in attaining the skills, knowl- people of the Republic of Kiribati in their ef- nal cord; and edge and motivation necessary to achieve Whereas, The initial symptom of ALS is forts to address war reparations; to the Com- self-sufficiency and may also be used to pro- weakness of the skeletal muscles, especially mittee on Foreign Relations. vide the immediate necessities of life such as those of the extremities; and HOUSE CONCURRENT RESOLUTION NO. 62 food, shelter and medicine; and Whereas, As ALS progresses, the patient Whereas, two days after the Japanese raid Whereas, Throughout the nation, local experiences difficulty in swallowing, talking on Pearl Harbor, Japanese aircraft bombed governments have created more than 1,080 and breathing; and the Republic of Kiribati, formerly known as Community Action Agencies as public or pri- Whereas, ALS eventually causes muscles the Gilbert Islands, including Banaba, and vate entities to channel the money provided to atrophy, and the patient becomes a func- later reconnaissance parties landed on by the Community Services Block Grant pro- tional quadriplegic; and Tarawa and Butaritari; and gram into communities to coordinate re- Whereas, ALS does not affect a patient’s Whereas, in 1942, Japanese armed forces oc- sources and empower communities in rural mental capacity, so a patient remains alert cupied the Republic of Kiribati; and and urban areas; and and aware of the loss of motor functions and Whereas, American forces invaded Tarawa Whereas, In Nevada, each dollar received the inevitable outcome of continued deterio- in late 1943 and drove the Japanese from by Community Action Agencies leverages at ration and death; and most of the Gilbert Islands; and least $19 brought in from other sources, and Whereas, ALS occurs in adulthood, most Whereas, Banaba was not reoccupied by this money is reinvested in the business commonly between the ages of 40 and 70, American forces until 1945, by which time communities of Nevada, thus enhancing the with the peak age about 55, and affects men the Japanese had massacred all but one man economic vitality as well as the social fabric two to three times more often than women; of the imported labor force; and of the entire State; and and

VerDate Aug 04 2004 05:28 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.080 S20PT1 S6822 CONGRESSIONAL RECORD — SENATE June 20, 2005 Whereas, More than 5,600 new ALS patients Whereas, federal funding for No Child Left leadership role in providing a quality public are diagnosed annually; and Behind falls dramatically short of sufficient education for its citizens; and be it further Whereas, It is estimated that 30,000 Ameri- funds for remedial services for struggling Resolved, That a copy of this resolution be cans may have ALS at any given time; and students, and No Child Left Behind therefore sent to the Utah State Board of Education, Whereas, On average, patients diagnosed requires substantial supplemental state each of Utah’s local boards of education, the with ALS survive two to five years from the funding; United States Department of Education, and time of diagnosis; and Whereas, No Child Left Behind represents to the members of Utah’s congressional dele- Whereas, ALS has no known cause, preven- the greatest federal intrusion in the history gation. tion or cure; and of our nation, over what has historically Whereas, ‘‘Amyotrophic Lateral Sclerosis been a right of the states, to direct public POM–126. A concurrent resolution adopted (ALS) Awareness Month’’ will increase pub- education in a way that best fits the needs of by the Legislature of the State of Hawaii rel- lic awareness of ALS patients circumstances, individual students; ative to the Even Start Family Literacy acknowledge the terrible impact this disease Whereas, while No Child Left Behind was Program; to the Committee on Health, Edu- has on patients and families and recognize appropriately intended, it was nonetheless cation, Labor, and Pensions. the research for treatment and cure of ALS: poorly designed, in that it is too punitive, HOUSE CONCURRENT RESOLUTION NO. 208 Therefore be it too prescriptive, and sets unrealistic expec- Whereas, the federal Even Start Family Resolved, That the House of Representa- tations that demoralize students and edu- Literacy Program (Literacy Program) (Title tives of the Commonwealth of Pennsylvania cators and confuse the general public; I, Part B, subpart 3 of the Elementary and recognize the month of May 2005 as Whereas, No Child Left Behind contains Secondary Education Act of 1965) was first ‘‘Amyotrophic Lateral Sclerosis (ALS) fundamental conflicts between competing authorized in 1988 with an appropriation of Awareness Month’’ in Pennsylvania; and be federal education laws that govern the treat- $14,800,000; and it further ment of students with special needs, as well Whereas, the Literacy Program became Resolved, That the House of Representa- as between federal law and state statutory state-administered in 1992 at which time the tives urge the President and Congress of the and constitutional requirements, and is built appropriation exceeded $50,000,000; and United States to enact legislation to provide on inadequate methods for measuring stu- Whereas, the Literacy Program was most additional funding for ALS research; and be dent and school performance; recently reauthorized by the Learning In- it further Whereas, No Child Left Behind may cause volves Families Together (LIFT) Act of 2000 Resolved, That copies of this resolution be unintended consequences to Utah’s edu- and the federal No Child Left Behind (NCLB) transmitted to the President of the United cation system in that it will redirect the al- Act of 2001; and States, to the Vice President of the United location of resources, amend state and local Whereas, the Literacy Program offers hope States, to the Speaker of the House of Rep- curriculum, standards, and assessments, and for breaking the intergenerational cycle of resentatives, to the members of Congress do more damage in labeling Utah’s schools poverty and poor literacy rates that afflict from Pennsylvania and to the United States and students than it does to improve student the nation by embracing the whole family as Secretary of Health and Human Services. performance, making it a less effective method for Utah to measure student achieve- pupils and incorporating four core compo- nents as follows: early childhood education; POM–125. A joint resolution adopted by the ment; adult literacy; parenting education; and Legislature of the State of Utah relative to Whereas, No Child Left Behind includes ex- interactive literacy activities between par- the federal No Child Left Behind Act; to the pectations for teacher qualifications that ig- ents and their children; Committee on Health, Education, Labor, and nore realities in rural settings and in spe- Whereas, the Literacy Program is designed Pensions. cialty assignments; and Whereas, while No Child Left Behind in- to help parents from low-income families im- HOUSE JOINT RESOLUTION NO. 3 cludes provisions, such as Sections 9401 and prove their own education skills and voca- Whereas, the state of Utah applauds the 9527, that would protect states and provide tional opportunities, making them more ef- laudable goals proposed by the President and regulatory relief from concerns raised about fective parents and improving the academic the United States Congress and articulated its shortcomings, there has been very little achievement of their young children, by: in the No Child Left Behind Act of 2002, effort by the U.S. Department of Education building on existing community resources of those goals being to close the achievement to encourage or allow states to utilize these high quality; promoting the academic gap and increased student performance; provisions: Now, therefore, be it achievement of children and adults; incor- Whereas, these are the same goals the Resolved, That the Legislature of the state porating research-based practices into the state of Utah has pursued and continues to of Utah recognizes that the Legislature, the instructional programs for adults and chil- pursue under the Utah Performance Assess- Utah State Board of Education, and local dren; promoting healthy relationships and ment System for Student (U–PASS), which boards of education have an understanding of interaction between children and adults; and accounts for individual student growth and Utah’s schools that surpasses that of federal helping children and adults meet the state’s the difference among our children; government entities in terms of missions, challenging content standards; and Whereas, the stakeholders in public edu- needs, goals, and values of those schools; and Whereas, the Literacy Program at Blanche cation in the state of Utah are more experi- be it further Pope Elementary School in Waimanalo and enced and have a better understanding of the Resolved, That the Legislature recognizes at other sites in Hawaii has successfully unique needs of Utah students, evident by that the U-PASS should be the basis by helped Literacy Program partners integrate the fact that the state has performed above which students and schools in Utah will be their efforts into a more unified, effective, the national average on the National Assess- assessed and monitored; and be it further and accountable system than the previously ment of Educational Progress while main- Resolved, That the Legislature recognizes fragmented adult and family-focused serv- taining the lowest per pupil expenditures in that in order to increase student achieve- ices; and the nation; ment, Utah should utilize competency-meas- Whereas, the Literacy Program, such as Whereas, No Child Left Behind greatly ex- ured education and student growth measure- the one at Blanche Pope Elementary School pends the reach of the federal government ments as described in U-PASS and Utah in Waimanalo, is a state-administered dis- into the education governance structure in State Senate bill 154, 2003 General Session; cretionary program; and Utah, bypassing critical stakeholders in the and be it further Whereas, the goals of raising quality and policymaking process and dealing directly Resolved, That the Legislature recognizes accountability in family education under the with individual schools and districts, negat- that the state should control its public edu- LIFT Act of 2000 and the NCLB Act of 2001 ing state and local board control and under- cation budget and allocate education dollars are being achieved in Hawaii; and mining the state’s ability to meet its con- according to Utah’s priorities and needs, Whereas, the President of the United stitutional duty to provide a system of pub- driven by decision-making of local school States, in his public comments and proposed lic education in Utah; boards; and be it further budget to Congress, has expressed a loss of Whereas, prior to No Child Left Behind, Resolved, That the Legislature recognizes confidence in, or concern for, the Literacy the federal government’s involvement in that until and unless the federal government Program; Now, therefore, be it education in the state was focused primarily substantially amends No Child Left Behind, Resolved by the House of Representatives of on a small percentage of students, commen- extends waiver authority under Section 9401 the Twenty-third Legislature of the State of surate, with the 7% contribution to the to acknowledge that Utah is complying with Hawaii, Regular Session of 2005, the Senate state’s aggregate spending on K–12 edu- the intent and spirit of the law through U- concurring, that the Legislature urges the cation; PASS, and that the federal government pro- President of the United States, the United Whereas, No Child Left Behind greatly ex- vides funding commensurate with what an States Congress, and the United States De- pands the authority of the U.S. Department independent analysis of implementation partment of Education to continue funding of Education by impacting all students in costs indicates is required to fully imple- the Even Start Family Literacy Program; the state, without a significant increased in ment the law or the Congress significantly and be it further its 7% contribution to the state, making the alters the law such that control of public Resolved, That certified copies of this Con- U.S. Department of Education’s mandates on education is fully restored to our state, Utah current Resolution be transmitted to the public education no longer commensurate should utilize its own proven system of stu- President of the United States, Speaker of with the resources it provided to Utah; dent accountability and reassert its historic the United States House of Representatives,

VerDate Aug 04 2004 04:35 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.047 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6823 President of the United States Senate, Sec- Whereas, A General Accounting Office re- Whereas, Half of all older women with in- retary of the United States Department of port on women’s earnings shows that there come from a private pension receive less Education, and Members of Hawaii’s congres- exists an inexplicable wage gap of approxi- than $5,600 per year, as compared with $10,340 sional delegation. mately 20 percent between men and women, per year for older men; and even after taking into account work experi- Whereas, Men live an average of 77 years POM–127. A resolution adopted by the Sen- ence, education, occupation, industry of cur- and women live an average of 81.7 years; and ate of the Commonwealth of Pennsylvania rent employment, and other demographic Whereas, Assuming men and women retire relative to ‘‘Amyotrophic Lateral Sclerosis and job characteristics; and at age 65; men will rely on their state pen- Awareness Month’’; to the Committee on Whereas, Since, the passage of the Equal sions to help them through 12 years of life, Health, Education, Labor, and Pensions. Pay Act, the gap has narrowed by less than while a woman’s pension will have to last 16.7 years; and SENATE RESOLUTION NO. 96 half, from 41 cents per dollar to 22 cents, and research by the Institute for Women’s Policy Whereas, There is a greater likelihood that Whereas, Amyotrophic Lateral Sclerosis a female worker would outlive her defined (ALS) is better known as Lou Gehrig’s dis- Research finds that recent change is due in large part to men’s real wages falling, not contribution plan; and ease; and Whereas, It is estimated that it would cost Whereas, ALS is a fatal neurodegenerative women’s wages rising; and Whereas, California ranks fifth among all a man $654,000 to purchase an annuity based disease characterized by degeneration of cell states in equal pay, yet it ranks 39th among on 25 years of service and a $6,000 final- bodies of the lower motor neurons in the all states in progress in closing the hourly month salary, while it would cost a woman gray matter of the anterior horns of the spi- over $700,000 to purchase the same annuity wage gap, and at the current rate of change nal cord; and with the same monthly benefits; and California working women will not have Whereas, The initial symptom of ALS is Whereas, if both a man and a woman in- weakness of the skeletal muscles, especially equal pay for another 40 years; and vested $750,000 in this same annuity, it is es- Whereas, The consequences of the wage gap those of the extremities; and timated the women would receive a little reach beyond working women and extend to Whereas, As ALS progresses, the patient under $3,420 per month while the man would their families and the economy to the extent experiences difficulty in swallowing, talking receive $3,670, or a 7-percent difference: Now, that; in 1999, even after accounting for dif- and breathing; and therefore, be it Whereas, ALS eventually causes muscles ferences, in education, age, location, and the Resolved, by the Senate and the Assembly to atrophy, and the patient becomes a func- number of hours worked, America’s working of the State of California, jointly, That the tional quadriplegic; and families lost $200 billion of annual income to Legislature hereby declares April 19, 2004, to Whereas, ALS does not affect a patient’s the wage gap, with an average of $4,000 per be ‘‘Equal Pay Day’’ in California and urges mental capacity, so a patient remains alert family; and California citizens to recognize the full’ and aware of the loss of motor functions and Whereas, Women play a crucial role in value and worth of women and their con- the inevitable outcome of continued deterio- maintaining the financial well-being of their tributions to the California workforce; and ration and death; and families by providing significant percentage be it further Whereas, ALS occurs in adulthood, most of their household incomes and, in many Resolved, That the Legislature respectfully, commonly between the ages of 40 and 70, cases, women head their own households; and urges the Congress of the United States to Whereas, Pay inequity results in a higher with the peak age about 55, and affects men protect the fundamental right of all Amer- poverty rate for women, particularly in two to three times more often than women; ican women to receive equal pay, for equal women-headed households, as evidenced by and work, and to continue to provide more effec- Whereas, More than 5,000 new ALS patients figures from the McAuley Institute which in- tive remedies to victims of discrimination in are diagnosed annually; and dicate that for families that are headed by a the payment of wages on the basis of sex; and Whereas, On average, patients diagnosed woman and have children under the age of be it further with ALS survive two to five years from the five years, the poverty rate is an astonishing Resolved, That the Secretary of the Senate time of diagnosis; and 46.4 percent; and transmit copies of this resolution to the Whereas, ALS has no known cause, preven- Whereas, Women currently comprise 48 President and Vice President of the United tion or cure; and percent of the labor force; and States, to the Speaker of the House of Rep- Whereas, ‘‘Amyotrophic Lateral Sclerosis Whereas, Educated women are not exempt resentatives, to the Majority Leader of the (ALS) Awareness Month’’ will increase pub- from pay disparity; and Senate, and to each Senator and Representa- Whereas, In 2001 the average income for a lic awareness of ALS patients’ cir- tive from California in the Congress of the woman with a bachelor’s degree was 24 per- cumstances, acknowledge the terrible im- United States. cent lower than that of a man with the same pact this disease has on patients and families level of education—$32,238 versus $42,292; and POM–129. A concurrent resolution adopted and recognize the research for treatment and Whereas, The wage gap is also prevalent by the House of Representatives of the Legis- cure of ALS: Therefore be it within minority communities, as shown by a Resolved, That the Senate of the Common- lature of the State of Louisiana relative to 2002 report that African-American women wealth of Pennsylvania recognize the month the federal estate tax; to the Committee on earned 91 percent of what African-American of May 2005 as ‘‘Amyotrophic Lateral Scle- Homeland Security and Governmental Af- men earned, and Hispanic women earned 88 rosis Awareness Month’’ in Pennsylvania; fairs. percent of what Hispanic men earned; and and be it further HOUSE CONCURRENT RESOLUTION NO. 94 Whereas, Even in professions in which Resolved, That the Senate urge the Presi- Whereas, under tax relief legislation women comprise a majority of workers, such dent and Congress of the United States to passed in 2001, the estate tax was tempo- as nursing and teaching, men earn an aver- enact legislation to provide additional fund- rarily phased out but not permanently elimi- age of 20 percent more than women working ing for ALS research, and be it further nated; and in these same occupations; and Resolved, That copies of this resolution be Whereas, farmers and other small business Whereas, According to the data analysis of transmitted to the President of the United owners will face losing their farms and busi- over 300 job classifications provided by the States, to the Vice President of the United nesses if the federal government resumes the United States Department of Labor, Bureau States, to the Speaker of the House of Rep- heavy taxation of citizens at death; and of Labor Statistics, women are paid less in resentatives, to the members of Congress Whereas, this is a tax that is particularly every occupational classification for which from Pennsylvania and to the United States damaging to families who are working their sufficient information is available; and Secretary of Health and Human Services. way up the ladder and trying to accumulate Whereas, The average 25-year-old woman wealth for the first time; and who works fulltime, year round, is projected POM–128. A joint resolution adopted by the Whereas, employees suffer layoffs when to earn $523,000 less over the course of her ca- Legislature of the State of California rel- small and medium businesses are liquidated reer than the average 25-year-old man who ative to Equal Pay Day; to the Committee to pay estate taxes; and works full time, year round; and on Health, Education, Labor, and Pensions. Whereas, if the estate tax had been re- Whereas, If women were paid the same as pealed in 1996, the United States economy SENATE JOINT RESOLUTION 7 men who work the same number of hours, would have realized billions of dollars each Whereas, Forty-two years after the passage have the same education and same union sta- year in extra output, and an average of one of the Federal Equal Pay Act of 1963 and tus, are the same age, and live in the same hundred forty-five thousand additional new forty-one years after the passage of Title VII region of the country, then the annual fam- jobs would have been created; and of the Federal Civil Rights Act of 1964, Amer- ily income, of each of these women would Whereas, having repeatedly passed in the ican women continue to suffer disparities in rise by $4,000, and the number of families United States House of Representatives and wages that cannot be accounted for by age, who live below the poverty line would be re- Senate, repeal of the estate tax holds wide education, or work experience; and duced by half; and bipartisan support: and therefore, be it Whereas, According to statistics released Whereas, The wage gap continues to affect Resolved, That the Legislature of Louisiana in 2004 by the U.S. Census Bureau, year- women in their senior years as lower wages does hereby memorialize the Congress of the round, full-time working women in 2003 result in lower pensions and incomes after, United States of America to take such ac- earned only 76% of the earnings of year- retirement, and affect a woman’s ability to tions as are necessary to work to abolish the round, full-time working men, indicating lit- save, thereby contributing to a higher pov- federal estate tax permanently; and be it fur- tle change or progress in pay equity; and, erty rate for elderly women; and ther

VerDate Aug 04 2004 05:55 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.050 S20PT1 S6824 CONGRESSIONAL RECORD — SENATE June 20, 2005 Resolved, That a copy of this Resolution be POM–132. A concurrent resolution adopted Whereas, the people of the State of Arizona transmitted to the presiding officers of the by the House of Representatives of the Legis- view with growing concern attempts to Senate and the House of Representatives of lature of the State of Louisiana relative to change the definition of marriage through the Congress of the United States of America authorizing state governors to proclaim that judicial action, including, most recently, and to each member of the Louisiana con- the United States flag be flown at half-staff rulings by the courts in Canada, the Com- gressional delegation. upon the death of a member of the United monwealth of Massachusetts and the State States armed forces from their respective of Washington; and POM–130. A concurrent memorial adopted states who died on active duty; to the Com- Whereas, in addition to simply stating that by the House of Representatives of the Legis- mittee on the Judiciary. marriage in the United States consists of the lature of the State of Arizona relative to HOUSE CONCURRENT RESOLUTION NO. 117 union of a male and a female, an amendment sending federal funds directly to the Arizona Whereas, according to Section 7 of Chapter to the Constitution of the United States en- Legislature for appropriation and oversight; 1 of Title 4 of the United States Code, in the sures the democratic process by allowing the to the Committee on Homeland Security and event of the death of a present or former offi- states to establish their own policy in the Governmental Affairs. cial of the government of any state, terri- area of marital benefits, including privileges HOUSE CONCURRENT MEMORIAL 2009 tory, or possession of the United States, the associated with marriage. Whereas, the State of Arizona receives governor of that state, territory, or posses- Wherefore your memorialist, the House of nearly $6 billion in federal grant funds each sion may proclaim that the national flag Representatives of the State of Arizona, the year; and shall be flown at half-staff; and Senate concurring, prays: Whereas, currently, the bulk of these fed- Whereas, it is only fitting that the United 1. That, pursuant to article V of the Con- eral funds that flow into state government States Code also authorize a state governor stitution of the United States, the Congress are sent directly from federal agencies to to proclaim that the flag shall be flown at of the United States propose an amendment state agencies and local governments; and half-staff upon the death of members of the to the Constitution of the United States, to Whereas, the current system of distribu- United States armed forces from that state be ratified by the legislatures or by conven- tion of federal funds gives the state legisla- who have given their lives for their country; tions in three-fourths of the several states, ture little input into how the funds are re- and stating that marriage in the United States ceived, allocated or spent; and Whereas, the long-held tradition of low- shall consist only of the union of a man and Whereas, the direct allocation of federal ering of the flag to half-staff in periods of a woman. funds, including funds that have been ear- recognition of the deceased would be an ap- 2. That the Secretary of State of the State marked by the federal government for a spe- propriate way to pay respect to the memo- of Arizona transmit a copy of this Memorial cific purpose at the state level, to the legis- ries of these honorable men and women; and to the President of the United States Senate, lature would give the legislature appropria- Whereas, the valor displayed by fallen the Speaker of the United States House of tion authority over those funds and would members of the military in the defense of Representatives and each Member of Con- provide additional financial and pro- democratic ideals and the right of free peo- gress from the State of Arizona. grammatic information necessary to make ple to live in peaceful coexistence with their POM–134. A resolution adopted by the more informed budgeting decisions. Where- neighbors is a proud example of the Amer- House of Representatives of the Legislature fore your memorialist, the House of Rep- ican spirit in which all Louisianians take of the State of Utah relative to the support resentatives of the State of Arizona, the Sen- great pride; and of the United States Senate for the Presi- ate concurring, prays: Whereas, flying the flag at half-staff would 1. That the Congress of the United States serve as a solemn and suitable reminder of dent’s Supreme Court nominees; to the Com- send federal funds directly to the Arizona the heroism of those who have made the ulti- mittee on the Judiciary. Legislature for appropriation and oversight. mate sacrifice for freedom; and therefore, be HOUSE RESOLUTION 4 2. That the Secretary of State of the State it Whereas, Article II, Section 2 of the United of Arizona transmit copies of this Memorial Resolved, That the Legislature of Louisiana States Constitution states the President to the President of the United States Senate, does hereby memorialize the United States ‘‘shall nominate, and by and with the Advice the Speaker of the United States House of Congress to take such actions as are nec- and Consent of the Senate, shall appoint Am- Representatives and each Member of Con- essary to amend the United States Code to bassadors, other public Ministers and Con- gress from the State of Arizona. authorize state governors to proclaim that suls, Judges of the Supreme Court, and all the United States flag shall be flown at half- other Officers of the United States’’; POM–131. A resolution adopted by the staff upon the death of a member of the Whereas, there is a high likelihood of at House of Representatives of the Legislature United States armed forces from their re- least one vacancy on the United States Su- of the State of Utah relative to the perma- spective states who died on active duty; and preme Court during the 109th Congress; nent repeal of the Federal Inheritance Tax; be it further Whereas, activist judges on some federal to the Committee on Homeland Security and Resolved, That a copy of this Resolution be courts have frustrated the constitutional Governmental Affairs. transmitted to the presiding officers of the structure which prescribes that laws shall be HOUSE RESOLUTION 2 Senate and the House of Representatives of written by elected legislatures; Whereas, President Bush has expressed his Whereas, under tax relief legislation the Congress of the United States of America commitment to appoint federal judges who passed in 2001, the Federal Inheritance Tax, and to each member of the Louisiana con- will strictly interpret the United States Con- or death tax, was temporarily phased out but gressional delegation. stitution; and not permanently eliminated; Whereas, in the past, a minority of Sen- Whereas, farmers and other small business POM–133. A concurrent memorial adopted ators has used dilatory tactics to prevent a owners will face losing their farms and busi- by the House of Representatives of the Legis- Senate floor vote on several of President nesses if the federal government resumes the lature of the State of Arizona relative to the Bush’s judicial nominees, all of whom were heavy taxation of citizens at death; amending the Constitution of the United Whereas, the death tax is particularly States concerning marriage; to the Com- reported favorably by the United States Sen- damaging to families who are working hard mittee on the Judiciary. ate Committee on the Judiciary; and now, to accumulate wealth for the first time; HOUSE CONCURRENT MEMORIAL 2005 therefore, be it Resolved, That the House of Representa- Whereas, employees suffer layoffs when Whereas, the union of man and woman in tives of the state of Utah requests that the small and medium businesses are liquidated marriage has been recognized as the founda- United States Senate move quickly to con- to pay death taxes; tion of society since the beginning of time; firm all presidential nominations to the Whereas, if the death tax had been repealed and in 1996, the United States economy would Whereas, marriage between one man and United States Supreme Court; and be it fur- have realized billions of dollars each year in one woman substantially and undeniably ther Resolved, That a copy of this resolution be extra output and an average of 145,000 addi- benefits the individuals involved, any chil- sent to the Majority Leader of the United tional new jobs would have been created; and dren resulting from the union and society at States Senate and to the members of Utah’s Whereas, having repeatedly passed in the large; and United States House of Representatives and Whereas, the founders of our country de- congressional delegation. the United States Senate, repeal of the death creed marriage between a man and a woman POM–135. A joint resolution adopted by the tax holds wide bipartisan support: Now to be ‘‘the highest and most blessed of rela- Legislature of the State of Maine relative to Therefore, be it tionships’’; and Resolved, That the House of Representa- Whereas, nearly three-fourths of the states allowing Poland’s citizens to travel in the tives of the state of Utah requests that already have enacted laws to define marriage United States without visas; to the Com- Utah’s congressional delegation support, as being only between a man and a woman mittee on the Judiciary. work to pass, and vote for the immediate and and the federal government enacted the De- JOINT RESOLUTION permanent repeal of the death tax; and be it fense of Marriage Act in 1996; and Whereas the visa waiver program was es- further Whereas, seventeen states have adopted tablished under 8 United States Code, Sec- Resolved, That a copy of this resolution be amendments to their constitutions to pro- tion 1187 to provide under certain conditions sent to the members of Utah’s congressional tect the definition of marriage as being only a visa waiver to citizens of certain countries; delegation. between a man and a woman; and and

VerDate Aug 04 2004 05:28 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.096 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6825 Whereas 8 Code of Federal Regulations, Whereas Filipino interest groups estimate lowing reports of committees were sub- Section 217.2 (2005) delineates the specific re- that there are approximately 58,000 Filipino mitted on June 10, 2005: quirements of the visa waiver program, in- World War II veterans still alive, 12,000 of By Mr. BURNS, from the Committee on them living in the United States; and cluding the list of countries whose citizens Appropriations, with an amendment in the Whereas time is running out for the United may take advantage of its provisions; and nature of a substitute: States to correct the injustice committed Whereas the list of countries allowed to H.R. 2361. A bill making appropriations for against Filipino World War II veterans as have the visa requirement waived includes the Department of the Interior, environ- most are now elderly and frail, and approxi- Andorra, Australia, Austria, Belgium, ment, and related agencies for the fiscal year mately eight die per day based on 2004 mor- Brunei, Denmark, Finland, France, Ger- ending September 30, 2006, and for other pur- tality statistics from the United States De- many, Iceland, Ireland, Italy, Japan, Liech- poses (Rept. No. 109–80). tenstein, Luxembourg, Monaco, the Nether- partment of Veterans Affairs; and lands, New Zealand, Norway, Portugal, San Whereas there are several measures pend- f Marino, Singapore, Slovenia, Spain, Sweden, ing in Congress that propose to confer vet- EXECUTIVE REPORT OF erans’ benefits on Filipino veterans of World Switzerland and the United Kingdom; and COMMITTEE Whereas citizens from Poland are still re- War II; and quired to go through the visa process, de- Whereas these legislative measures include The following executive report of spite the change in circumstances of that na- S. 146, H.R. 302, and H.R. 170; and committee was submitted: Whereas S. 146 and H.R. 302, (Filipino Vet- tion during the last 15 years and its being a By Mr. ENZI for the Committee on Health, staunch ally of the United States; and erans Equity Act of 2005), amend Title 38 of the United States Code to deem certain serv- Education, Labor, and Pensions: Whereas since the breakup of the Soviet *Lester M. Crawford, of Maryland, to be ice in the organized military forces of the Union, Poland has been a free and demo- Commissioner of Food and Drugs, Depart- Government of the Commonwealth of the cratic nation and is a member of the North ment of Health and Human Services. Philippines and the Philippine Scouts to be Atlantic Treaty Organization, known as *Nomination was reported with rec- NATO, and is an indispensable ally to our active service for purposes of benefits under own Nation, actively participating in Oper- programs administered by the Secretary of ommendation that it be confirmed sub- ation Iraqi Freedom and the Iraqi recon- Veterans Affairs; and ject to the nominee’s commitment to struction with troops serving alongside Whereas under H.R. 170, (Filipino Veterans respond to requests to appear and tes- Fairness Act) Filipino World War II veterans American soldiers; and tify before any duly constituted com- who became United States citizens or legal Whereas the President of the United mittee of the Senate. States, George W. Bush, and other high- aliens are entitled to service-connected dis- ranking officials in our government have de- ability payments, vocational rehabilitation, f scribed Poland as one of our best allies; and and housing loans; Filipino World War II vet- erans residing in the Philippines are entitled INTRODUCTION OF BILLS AND Whereas many Polish citizens wanting to JOINT RESOLUTIONS visit the United States are relatives of to out-patient health care; and veterans’ American citizens and they face major im- spouses and dependents are entitled to edu- The following bills and joint resolu- pediments in the visa process, while Ameri- cational and vocational assistance; and tions were introduced, read the first Whereas passage of these measures will cans going to Poland have had the visa re- and second times by unanimous con- mean official recognition of Filipino vet- quirement waived for them since 1991; and sent, and referred as indicated: Whereas in view of the enormous strides erans as American veterans, who will become By Mr. MCCAIN (for himself and Mr. that Poland has made in democratic reform eligible for veterans’ benefits such as health care, disability compensation, pension, bur- LIEBERMAN): and the new status of Poland as a major ally S. 1268. A bill to expedite the transition to of the United States, as firm and staunch as ial, housing loans, education, and vocational rehabilitation: Now, therefore, be it digital television while helping consumers to our oldest allies who have had the visa re- Resolved by the House of Representatives of continue to use their analog televisions; to quirement waived: Now, therefore, be it the Twenty-third Legislature of the State of the Committee on Commerce, Science, and Resolved, That We, your Memorialists, re- Hawaii, Regular Session of 2005, the Senate Transportation. spectfully urge that Poland be included in concurring, that the United States Congress By Mr. INHOFE (for himself, Mrs. LIN- the United States Department of Homeland is urged to support and pass legislation con- COLN, Mr. CRAPO, Mr. BOND, Mr. Security’s visa waiver program as codified in ferring veterans’ benefits on Filipino World 8 Code of Federal Regulations, Section 217.2; CHAMBLISS, Mr. COCHRAN, Mr. War II veterans; and be it further ISAKSON, Mr. THOMAS, Mr. HAGEL, Mr. and be it further Resolved, That certified copies of this Con- Resolved, That suitable copies of this reso- CRAIG, and Mr. ROBERTS): current Resolution be transmitted to the lution, duly authenticated by the Secretary S. 1269. A bill to amend the Federal Water President of the United States Senate, the of State, be transmitted to the Honorable Pollution Control Act to clarify certain ac- Speaker of the United States House of Rep- tivities the conduct of which does not re- George W. Bush, President of the United resentatives, and the members of Hawaii’s States, the United States Secretary of quire a permit; to the Committee on Envi- delegation to the Congress of the United ronment and Public Works. Homeland Security, the Speaker of the States. United States House of Representatives and By Ms. SNOWE (for herself and Mr. the President of the United States Senate ROCKEFELLER): POM–137. A resolution adopted by the Lex- S. 1270. A bill to provide for the implemen- and to each Member of the Maine Congres- ington-Fayette Urban County Government, tation of a Green Chemistry Research and sional Delegation. relative to the Community Development Development Program, and for other pur- Block Grant Program; to the Committee on POM–136. A concurrent resolution adopted poses; to the Committee on Commerce, Banking, Housing, and Urban Affairs. Science, and Transportation. by the Legislature of the State of Hawaii rel- POM–138. A resolution adopted by the Mu- ative to conferring veterans’ benefits on Fili- By Mrs. MURRAY: nicipal Legislature of Moca, Puerto Rico rel- S. 1271. A bill to amend title 38, United pino veterans of World War II; to the Com- ative to the opposition of the elimination of mittee on Veterans’ Affairs. States Code, to provide improved benefits for the Community Development Block Grant veterans who are former prisoners of war; to HOUSE CONCURRENT RESOLUTION 249 Program, and for other purposes; to the the Committee on Veterans’ Affairs. Whereas approximately 142,000 Philippine Committee on Banking, Housing, and Urban By Mr. NELSON of Nebraska: nationals were inducted into the United Affairs. S. 1272. A bill to amend title 46, United States armed forces in 1941, when their coun- POM–139. A resolution adopted by the City States Code, and title II of the Social Secu- try was under American control; and Counsel of the City of Oceanside, California rity Act to provide benefits to certain indi- relative to the funding of Amtrak; to the Whereas Filipino soldiers fought bravely viduals who served in the United States mer- Committee on Commerce, Science, and beside American troops to restore liberty chant marine (including the Army Transport Transportation. and democracy to their homeland by volun- Service and the Naval Transport Service) teering as spies, serving as guerrillas in the POM–140. A resolution adopted by the Pas- saic County (New Jersey) Board of Chosen during World War II; to the Committee on jungles, and fighting in American units in Veterans’ Affairs. the war against Japan; and Freeholders relative to the Passaic River Restoration Initiative; to the Committee on By Mr. REID: Whereas these soldiers exhibited great S. 1273. A bill to provide for the sale and courage at the battles of Corregidor and Ba- Environment and Public Works. POM–141. A resolution adopted by the adoption of excess wild free-roaming horses taan, and their bravery and self-sacrifice Mayor and Municipal Council of the City of and burros; to the Committee on Energy and contributed to the Allied victory in World Clifton, New Jersey relative to the Passaic Natural Resources. War II; and Whereas the United States promised Fili- River Restoration Initiative; to the Com- f mittee on Environment and Public Works. pino solders the same benefits as American SUBMISSION OF CONCURRENT AND soldiers, then rescinded that promise five f SENATE RESOLUTIONS years later; and REPORTS OF COMMITTEES Whereas the Legislature finds that the The following concurrent resolutions United States should honor its promise to Under the authority of the order of and Senate resolutions were read, and the Filipino veterans; and the Senate of January 4, 2005, the fol- referred (or acted upon), as indicated:

VerDate Aug 04 2004 05:28 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.099 S20PT1 S6826 CONGRESSIONAL RECORD — SENATE June 20, 2005 By Mr. KENNEDY: Wyoming (Mr. ENZI) were added as co- S. 647 S. Res. 176. A resolution congratulating sponsors of S. 557, a bill to provide that At the request of Mrs. LINCOLN, the Cam Neely on his induction into the Hockey Executive Order 13166 shall have no name of the Senator from South Caro- Hall of Fame; to the Committee on the Judi- force or effect, to prohibit the use of lina (Mr. DEMINT) was added as a co- ciary. By Mr. KENNEDY (for himself, Mr. funds for certain purposes, and for sponsor of S. 647, a bill to amend title BROWNBACK, Mr. LEAHY, Mr. DEWINE, other purposes. XVIII of the Social Security Act to au- Mr. LIEBERMAN, Ms. SNOWE, Mr. DUR- S. 558 thorize physical therapists to evaluate BIN, Mr. COLEMAN, and Mr. LAUTEN- At the request of Mr. REID, the and treat medicare beneficiaries with- BERG): names of the Senator from Alaska (Ms. out a requirement for a physician re- S. Res. 177. A resolution encouraging the ferral, and for other purposes. protection of the rights of refugees; to the MURKOWSKI) and the Senator from Ne- S. 662 Committee on Foreign Relations. braska (Mr. NELSON) were added as co- By Mr. BENNETT (for himself and Mr. sponsors of S. 558, a bill to amend title At the request of Ms. COLLINS, the LUGAR): 10, United States Code, to permit cer- names of the Senator from Michigan S. Res. 178. A resolution expressing the tain additional retired members of the (Mr. LEVIN) and the Senator from sense of the Senate regarding the United Armed Forces who have a service-con- Rhode Island (Mr. CHAFEE) were added States-European Union Summit; considered nected disability to receive both dis- as cosponsors of S. 662, a bill to reform and agreed to. ability compensation from the Depart- the postal laws of the United States. f ment of Veterans Affairs for their dis- S. 685 ability and either retired pay by reason ADDITIONAL COSPONSORS At the request of Mr. AKAKA, the of their years of military service or name of the Senator from Iowa (Mr. S. 258 Combat-Related Special compensation HARKIN) was added as a cosponsor of S. At the request of Mr. DEWINE, the and to eliminate the phase-in period 685, a bill to amend title IV of the Em- names of the Senator from Kansas (Mr. under current law with respect to such ployee Retirement Income Security BROWNBACK) and the Senator from concurrent receipt. Act of 1974 to require the Pension Ben- South Carolina (Mr. DEMINT) were S. 603 efit Guaranty Corporation, in the case added as cosponsors of S. 258, a bill to At the request of Ms. LANDRIEU, the of airline pilots who are required by amend the Public Health Service Act name of the Senator from Washington regulation to retire at age 60, to com- to enhance research, training, and (Ms. CANTWELL) was added as a cospon- pute the actuarial value of monthly health information dissemination with sor of S. 603, a bill to amend the Con- benefits in the form of a life annuity respect to urologic diseases, and for sumer Credit Protection Act to assure commencing at age 60. other purposes. meaningful disclosures of the terms of S. 687 S. 300 rental-purchase agreements, including At the request of Mr. BURNS, the At the request of Ms. COLLINS, the disclosures of all costs to consumers name of the Senator from Maine (Ms. name of the Senator from Maine (Ms. under such agreements, to provide cer- SNOWE) was added as a cosponsor of S. SNOWE) was added as a cosponsor of S. tain substantive rights to consumers 687, a bill to regulate the unauthorized 300, a bill to extend the temporary in- under such agreements, and for other installation of computer software, to crease in payments under the medicare purposes. require clear disclosure to computer program for home health services fur- S. 611 users of certain computer software fea- nished in a rural area. At the request of Ms. COLLINS, the tures that may pose a threat to user S. 392 name of the Senator from Louisiana privacy, and for other purposes. At the request of Mr. LEVIN, the (Ms. LANDRIEU) was added as a cospon- S. 689 name of the Senator from Ohio (Mr. sor of S. 611, a bill to establish a Fed- At the request of Mr. DOMENICI, the VOINOVICH) was added as a cosponsor of eral Interagency Committee on Emer- name of the Senator from Nevada (Mr. S. 392, a bill to authorize the President gency Medical Services and a Federal ENSIGN) was added as a cosponsor of S. to award a gold medal on behalf of Con- Interagency Committee on Emergency 689, a bill to amend the Safe Drinking gress, collectively, to the Tuskegee Medical Services Advisory Council, and Water Act to establish a program to Airmen in recognition of their unique for other purposes. provide assistance to small commu- military record, which inspired revolu- S. 619 nities for use in carrying out projects tionary reform in the Armed Forces. At the request of Mrs. FEINSTEIN, the and activities necessary to achieve or S. 407 name of the Senator from New Jersey maintain compliance with drinking At the request of Mr. JOHNSON, the (Mr. CORZINE) was added as a cosponsor water standards. name of the Senator from Louisiana of S. 619, a bill to amend title II of the S. 695 (Mr. VITTER) was added as a cosponsor Social Security Act to repeal the Gov- At the request of Mr. BYRD, the of S. 407, a bill to restore health care ernment pension offset and windfall names of the Senator from Iowa (Mr. coverage to retired members of the elimination provisions. HARKIN), the Senator from Colorado uniformed services, and for other pur- S. 633 (Mr. ALLARD) and the Senator from Ar- poses. At the request of Mr. JOHNSON, the kansas (Mr. PRYOR) were added as co- S. 441 names of the Senator from South Da- sponsors of S. 695, a bill to suspend At the request of Mr. SANTORUM, the kota (Mr. THUNE), the Senator from temporarily new shipper bonding privi- name of the Senator from Tennessee Tennessee (Mr. ALEXANDER), the Sen- leges. (Mr. ALEXANDER) was added as a co- ator from North Dakota (Mr. CONRAD) S. 709 sponsor of S. 441, a bill to amend the and the Senator from Louisiana (Mr. At the request of Mr. DEWINE, the Internal Revenue Code of 1986 to make VITTER) were added as cosponsors of S. name of the Senator from Minnesota permanent the classification of a mo- 633, a bill to require the Secretary of (Mr. DAYTON) was added as a cosponsor torsports entertainment complex. the Treasury to mint coins in com- of S. 709, a bill to amend the Public S. 501 memoration of veterans who became Health Service Act to establish a grant At the request of Ms. COLLINS, the disabled for life while serving in the program to provide supportive services name of the Senator from New Jersey Armed Forces of the United States. in permanent supportive housing for (Mr. CORZINE) was added as a cosponsor S. 642 chronically homeless individuals, and of S. 501, a bill to provide a site for the At the request of Mr. FRIST, the for other purposes. National Women’s History Museum in name of the Senator from Georgia (Mr. S. 752 the District of Columbia. ISAKSON) was added as a cosponsor of S. At the request of Mr. LAUTENBERG, S. 557 642, a bill to support certain national the name of the Senator from Michigan At the request of Mr. COBURN, the youth organizations, including the Boy (Mr. LEVIN) was added as a cosponsor of names of the Senator from Alabama Scouts of America, and for other pur- S. 752, a bill to require the United (Mr. SESSIONS) and the Senator from poses. States Trade Representative to pursue

VerDate Aug 04 2004 04:35 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.041 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6827 a complaint of anti-competitive prac- S. 1120 S. 1246 tices against certain oil exporting At the request of Mr. DURBIN, the At the request of Mr. DODD, the name countries. name of the Senator from Louisiana of the Senator from Illinois (Mr. DUR- S. 776 (Ms. LANDRIEU) was added as a cospon- BIN) was added as a cosponsor of S. 1246, At the request of Mr. JOHNSON, the sor of S. 1120, a bill to reduce hunger in a bill to require the Secretary of Edu- name of the Senator from North Da- the United States by half by 2010, and cation to revise regulations regarding kota (Mr. CONRAD) was added as a co- for other purposes. student loan payment deferment with sponsor of S. 776, a bill to designate S. 1137 respect to borrowers who are in post- certain functions performed at flight At the request of Mr. GRASSLEY, the graduate medical or dental internship, service stations of the Federal Avia- name of the Senator from Arizona (Mr. residency, or fellowship programs. KYL) was added as a cosponsor of S. tion Administration as inherently gov- S. 1248 ernmental functions, and for other pur- 1137, a bill to include dehydro- poses. epiandrosterone as an anabolic steroid. At the request of Ms. LANDRIEU, the name of the Senator from Ohio (Mr. S. 877 S. 1172 VOINOVICH) was added as a cosponsor of At the request of Mr. DOMENICI, the At the request of Mr. SPECTER, the name of the Senator from Massachu- S. 1248, a bill to establish a servitude name of the Senator from North Caro- and emancipation archival research lina (Mr. BURR) was added as a cospon- setts (Mr. KERRY) was added as a co- sponsor of S. 1172, a bill to provide for clearinghouse in the National Ar- sor of S. 877, a bill to provide for a bi- chives. ennial budget process and a biennial programs to increase the awareness appropriations process and to enhance and knowledge of women and health S.J. RES. 14 oversight and the performance of the care providers with respect to At the request of Mr. SANTORUM, his Federal Government. gynecologic cancers. name was added as a cosponsor of S.J. S. 924 S. 1178 Res. 14, a joint resolution providing for At the request of Mr. CORZINE, the At the request of Mr. MARTINEZ, the the recognition of Jerusalem as the un- name of the Senator from Colorado name of the Senator from Georgia (Mr. divided capital of Israel before the (Mr. SALAZAR) was added as a cospon- ISAKSON) was added as a cosponsor of S. United States recognizes a Palestinian sor of S. 924, a bill to establish a grant 1178, a bill to amend the Internal Rev- state, and for other purposes. enue Code of 1986 to allow individuals a program to enhance the financial and S. RES. 31 retirement literacy of mid-life and refundable credit against income tax for the purchase of private health in- At the request of Mr. COLEMAN, the older Americans to reduce financial name of the Senator from New Mexico abuse and fraud among such Ameri- surance. (Mr. DOMENICI) was added as a cospon- cans, and for other purposes. S. 1186 At the request of Mr. DOMENICI, the sor of S. Res. 31, a resolution express- S. 933 names of the Senator from Virginia ing the sense of the Senate that the At the request of Mr. HAGEL, his (Mr. WARNER) and the Senator from week of August 7, 2005, be designated as name was added as a cosponsor of S. Idaho (Mr. CRAPO) were added as co- ‘‘National Health Center Week’’ in 933, a bill to amend title XVIII of the sponsors of S. 1186, a bill to amend the order to raise awareness of health serv- Social Security Act to provide for im- Internal Revenue Code of 1986 to pro- ices provided by community, migrant, provements in access to services in vide the same capital gains treatment public housing, and homeless health rural hospitals and critical access hos- for art and collectibles as for other in- centers, and for other purposes. pitals. vestment property and to provide that S. RES. 39 S. 986 a deduction equal to fair market value MITH At the request of Mr. NELSON of Ne- At the request of Mr. S , his shall be allowed for charitable con- name was added as a cosponsor of S. braska, the name of the Senator from tributions of literary, musical, artistic, Illinois (Mr. DURBIN) was added as a co- Res. 39, a resolution apologizing to the or scholarly compositions created by victims of lynching and the descend- sponsor of S. 986, a bill to authorize the the donor. Secretary of Education to award grants ants of those victims for the failure of S. 1197 for the support of full-service commu- the Senate to enact anti-lynching leg- At the request of Mr. BIDEN, the islation. nity schools, and for other purposes. names of the Senator from Connecticut S. 1046 At the request of Mrs. HUTCHISON, her (Mr. LIEBERMAN) and the Senator from name was added as a cosponsor of S. At the request of Mr. KYL, the name Illinois (Mr. DURBIN) were added as co- Res. 39, supra. of the Senator from Louisiana (Mr. sponsors of S. 1197, a bill to reauthorize VITTER) was added as a cosponsor of S. the Violence Against Women Act of S. RES. 162 1046, a bill to amend title 28, United 1994. At the request of Ms. SNOWE, the States Code, with respect to the juris- S. 1214 names of the Senator from Connecticut diction of Federal courts over certain At the request of Ms. SNOWE, the (Mr. DODD) and the Senator from cases and controversies involving the names of the Senator from Minnesota Rhode Island (Mr. CHAFEE) were added Pledge of Allegiance. (Mr. DAYTON), the Senator from Mary- as cosponsors of S. Res. 162, a resolu- S. 1066 land (Ms. MIKULSKI), the Senator from tion expressing the sense of the Senate At the request of Mr. VOINOVICH, the New Jersey (Mr. CORZINE), the Senator concerning Griswold v. Connecticut. name of the Senator from Georgia (Mr. from Maine (Ms. COLLINS) and the Sen- S. RES. 165 ISAKSON) was added as a cosponsor of S. ator from Arkansas (Mrs. LINCOLN) At the request of Ms. SNOWE, the 1066, a bill to authorize the States (and were added as cosponsors of S. 1214, a name of the Senator from Missouri subdivisions thereof), the District of bill to require equitable coverage of (Mr. BOND) was added as a cosponsor of Columbia, territories, and possessions prescription contraceptive drugs and S. Res. 165, a resolution congratulating of the United States to provide certain devices, and contraceptive services the Small Business Development Cen- tax incentives to any person for eco- under health plans. nomic development purposes. ters of the Small Business Administra- S. 1215 tion on their 25 years of service to S. 1081 At the request of Mr. GREGG, the America’s small business owners and At the request of Mr. KYL, the names names of the Senator from New Jersey entrepreneurs. of the Senator from Michigan (Mr. (Mr. LAUTENBERG) and the Senator LEVIN) and the Senator from Texas from Maine (Ms. COLLINS) were added AMENDMENT NO. 783 (Mrs. HUTCHISON) were added as cospon- as cosponsors of S. 1215, a bill to au- At the request of Mr. NELSON of Flor- sors of S. 1081, a bill to amend title thorize the acquisition of interests in ida, the name of the Senator from XVIII of the Social Security Act to underdeveloped coastal areas in order Washington (Ms. CANTWELL) was added provide for a minimum update for phy- better to ensure their protection from as a cosponsor of amendment No. 783 sicians’ services for 2006 and 2007. development. proposed to H.R. 6, a bill Reserved.

VerDate Aug 04 2004 05:28 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.043 S20PT1 S6828 CONGRESSIONAL RECORD — SENATE June 20, 2005 STATEMENTS ON INTRODUCED television like most Americans. There- SEC. 2. SETTING A SPECIFIC DATE FOR THE BILLS AND JOINT RESOLUTIONS AVAILABILITY OF SPECTRUM FOR fore, this bill seeks to not only protect PUBLIC SAFETY ORGANIZATIONS By Mr. MCCAIN (for himself and citizens’ safety, but also the distribu- AND CREATING A DEADLINE FOR TRANSITION TO DIGITAL TELE- Mr. LIEBERMAN): tion of broadcast television. VISION. S. 1268. A bill to expedite the transi- Lastly, the bill would require the En- (a) AMENDMENTS.—Section 309(j)(14) of the tion to digital television while helping vironmental Protection Agency to re- Communications Act of 1934 (47 U.S.C. consumers to continue to use their port to Congress on the need for a na- 309(j)(14)) is amended— analog televisions; to the Committee tional electronic waste recycling pro- (1) in subparagraph (A), by striking ‘‘De- on Commerce, Science, and Transpor- gram. cember 31, 2006’’ and inserting ‘‘December 31, tation. 2008’’; Mr. MCCAIN. Mr. President, I rise The 9/11 Commission’s final report (2) by striking subparagraph (B); today to introduce a bill to support the contained harrowing tales about police (3) in subparagraph (C)(i)(I), by striking Nation’s finest: our police, fire fighters officers and fire fighters who were in- ‘‘or (B)’’; (4) in subparagraph (D), by striking and other emergency response per- side the twin towers and unable to re- ceive evacuation orders over their ra- ‘‘(C)(i)’’ and inserting ‘‘(B)(i)’’; and sonnel. The ‘‘Spectrum Availability for (5) by redesignating subparagraphs (C) and Emergency-response and Law-enforce- dios from commanders. In fact, the re- (D) as subparagraphs (B) and (C), respec- ment to Improve Vital Emergency port found that this inability to com- tively. Services Act,’’ otherwise known as municate was not only a problem for (b) IMPLEMENTATION.— ‘‘The SAVE LIVES Act of 2005.’’ This public safety organizations responding (1) FINAL DTV ALLOTMENT TABLE OF IN-CORE bill is drafted in response to the 9/11 at the World Trade Center, but also for CHANNELS FOR FULL-POWER STATIONS.—The Commission’s Final Report, which rec- those responding at the Pentagon and Federal Communications Commission (in Somerset County, Pennsylvania crash this Act referred to as the ‘‘Commission’’) ommended the ‘‘expedited and in- shall— creased assignment of radio spectrum sites where multiple organizations and (A) release by December 31, 2006, a report for public safety purposes.’’ multiple jurisdictions responded. and order in MB Docket No. 03–15 assigning To meet this recommendation, the Therefore, the Commission rec- all full-power broadcast television stations SAVE LIVES Act would set a date cer- ommended that Congress accelerate authorized in the digital television service a tain for the allocation of spectrum to the availability of additional spectrum final channel between channels 2 and 36, in- public safety agencies, specifically the for public safety. clusive, or 38 and 51, inclusive (between fre- 24 MHz of spectrum in the 700 MHz quencies 54 and 698 megahertz, inclusive); The SAVE LIVES Act would imple- band that Congress promised public and ment that important recommendation safety agencies in 1997. This is a prom- (B) conclude by July 31, 2007, any reconsid- eration of such report and order. ise Congress has yet to deliver to our and ensure that WHEN our Nation ex- periences another attack, or other crit- (2) STATUS REPORTS.—Beginning February Nation’s first responders. Access to 1, 2006, and ending when international co- this specific spectrum is essential to ical emergencies occur, our police, fire fighters and other emergency response ordination with Canada and Mexico of the our Nation’s safety and welfare as DTV table of allotments is complete, the emergency communications sent over personnel will have the ability to com- Commission shall submit reports every 6 these frequencies are able to penetrate municate with each other and their months on the status of that international walls and travel great distances, and commanders to prevent another cata- coordination to the Committee on Com- can assist multiple jurisdictions in de- strophic loss of life. Now is the time for merce, Science, and Transportation of the ploying interoperable communications Congressional action before another Senate and to the Committee on Energy and Commerce of the House of Representatives. systems. national emergency or crisis takes place. (3) TERMINATIONS OF ANALOG LICENSES AND In addition to setting a date certain, BROADCASTING.—The Commission shall take this bill would authorize funds for pub- Several lawmakers attempted to act such actions as may be necessary to termi- lic safety agencies to purchase emer- last year during the debate on the In- nate all licenses for full-power broadcasting gency communications equipment and telligence reform bill, but our efforts stations in the analog television service and ensure that Congress has the ability to were thwarted by the powerful Na- to require the cessation of broadcasting by consider whether additional spectrum full-power stations in the analog television tional Association of Broadcasters. service by January 1, 2009. should be provided for public safety This year, I hope we can all work to- communications prior to the recovered SEC. 3. AUCTION OF RECOVERED SPECTRUM. gether and pass a bill that ensures the (a) DEADLINE FOR AUCTION.—Section spectrum being auctioned. The bill country is not only better prepared in 309(j)(14) of the Communications Act of 1934 contains significant language con- case of another attack, but also pro- (47 U.S.C. 309(j)(14)), as amended by section 2, cerning consumer education in antici- tects the vital communications outlet is amended in subparagraph (B)— pation of the digital television transi- of broadcast television. I believe the (1) in clause (ii), by striking the second tion. The bill would mandate that SAVE LIVES Act achieves both goals. sentence; and warning labels be displayed on analog (2) by adding at the end following new television sets sold prior to the transi- In an effort to expeditiously retrieve clause: tion, require warning language to be the spectrum for the Nation’s first re- ‘‘(iii) ADDITIONAL DEADLINES FOR RECOV- ERED ANALOG SPECTRUM.— displayed at television retailers, com- sponders, to preserve over-the-air tele- vision accessibility to consumers and ‘‘(I) IN GENERAL.—Not earlier than 1 year mand the distribution at retailers of after the date on which the Commission sub- brochures describing the television set to ensure the adequate funding of both, I urge the enactment of The SAVE mits to Congress the report required under options available to consumers, and section 7502(a) of the Intelligence Reform call on broadcasters to air informa- LIVES Act. Additionally, I ask unani- and Terrorism Prevention Act of 2004 (Public tional programs to better prepare con- mous consent that the text of the bill Law 108-458; 118 Stat. 3855), and not later sumers for the digital transition. be printed in the RECORD. than April 1, 2008, the Commission shall— The bill would ensure that no tele- There being no objection, the bill was ‘‘(aa) conduct the auction of the licenses for recovered analog spectrum; and vision viewer’s set would go ‘‘dark’’ by ordered to be printed in the RECORD, as ‘‘(bb) not later than June 30, 2008, deposit providing digital-to-analog converter follows: the proceeds of such auction in accordance boxes to over-the-air viewers with a S. 1268 with paragraph (8), except for those funds au- household income at or below 200 per- thorized to be used in accordance with sec- cent of the poverty line and by allow- Be it enacted by the Senate and House of Rep- tions 4(f) and 5 of the SAVE LIVES Act. ing cable companies to down convert resentatives of the United States of America in ‘‘(II) RECOVERED ANALOG SPECTRUM DE- digital signal signals if necessary. I Congress assembled, FINED.—In this clause, the term ‘recovered analog spectrum’ means the spectrum re- continue to believe that broadcast tele- SECTION 1. SHORT TITLE. vision is a powerful communications claimed from analog television service This Act may be cited as the ‘‘Spectrum broadcasting under this paragraph, other tool and important information source Availability for Emergency-Response and than— for citizens. I know that on 9/11, I Law-Enforcement to Improve Vital Emer- ‘‘(aa) the spectrum required by section 337 learned about the attack on the Twin gency Services Act’’ or the ‘‘SAVE LIVES to be made available for public safety serv- Towers and the Pentagon by watching Act’’. ices;

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.056 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6829 ‘‘(bb) the spectrum auctioned prior to the SEC. 5. ESTABLISHMENT AND AUTHORIZATION 303) is amended by adding at the end the fol- date of enactment of the SAVE LIVES Act; OF APPROPRIATIONS FOR GRANT lowing new subsection: and PROGRAM TO PROVIDE ENHANCED ‘‘(z) Require the consumer education meas- ‘‘(cc) any spectrum designated by Congress INTEROPERABILITY OF COMMU- ures specified in section 330(d) in the case of NICATIONS FOR FIRST RESPOND- apparatus designed to receive television sig- for use by public safety services between the ERS. nals that— date of enactment of the SAVE LIVES Act (a) ESTABLISHMENT OF PROGRAM TO ASSIST ‘‘(1) are shipped in interstate commerce or and the auction described in subclause (I).’’. FIRST RESPONDERS.— manufactured in the United States after 180 (1) IN GENERAL.—The Secretary of Home- (b) EXTENSION OF AUCTION AUTHORITY.— days after the date of enactment of the land Security shall establish a program to Paragraph (11) of section 309(j) of the Com- SAVE LIVES Act; and help State, local, tribal, and regional first munications Act of 1934 (47 U.S.C. 309(j)(11)) ‘‘(2) are not capable of receiving and dis- responders— is amended by striking ‘‘September 30, 2007’’ playing broadcast signals in the digital tele- (A) acquire and deploy interoperable com- and inserting ‘‘September 30, 2009’’. vision service on the channels allocated to munications equipment; SEC. 4. DIGITAL TRANSITION PROGRAM. such broadcasts.’’. (B) purchase such equipment; and (b) CONSUMER EDUCATION REQUIREMENTS.— (a) IN GENERAL.—Beginning no earlier than (C) train personnel in the use of such Section 330 of the Communications Act of January 1, 2008, and not later than July 1, equipment. 1934 (47 U.S.C. 330) is amended— 2008, the Commission, in consultation with (2) COMMON STANDARDS.—The Secretary, in (1) in subsection (d), by striking ‘‘sections commercial television broadcast licensees, cooperation with the heads of other Federal 303(s), 303(u), and 303(x)’’ and inserting ‘‘sub- shall distribute to eligible persons digital-to- departments and agencies who administer sections (s), (u), (x), and (z) of section 303’’; analog converter devices that will enable tel- programs that provide communications-re- (2) by redesignating subsection (d) as sub- evision sets that operate only with analog lated assistance programs to State, local, section (e); and signal processing to continue to operate and tribal public safety organizations, shall (3) by inserting after subsection (c) the fol- when receiving a digital signal. develop and implement common standards to lowing new subsection: the greatest extent practicable. ‘‘(d) CONSUMER EDUCATION REGARDING (b) APPLICATION.—Each eligible person (b) APPLICATIONS.—To be eligible for assist- seeking a digital-to-analog converter device EQUIPMENT, TELEVISION RECEIVERS, AND ance under the program established in sub- OTHER MATERIALS RELATED TO THE DIGITAL under subsection (a) shall submit an applica- section (a), a State, local, tribal, or regional TO ANALOG CONVERSION.— tion to the Commission at such times, in first responder agency shall submit an appli- ‘‘(1) REQUIREMENTS FOR MANUFACTURERS.— such manner, and containing such informa- cation, at such time, in such form, and con- Any manufacturer of any apparatus de- tion as the Commission requires. taining such information as the Under Sec- scribed in section 303(z) shall— (c) PROCUREMENT.—The provisions, rules, retary of Homeland Security for Science and ‘‘(A) place on the screen of any such appa- and regulations of the Federal Property and Technology may require, including— ratus that such manufacturer ships in inter- Administrative Services Act of 1949 (41 (1) a detailed explanation of how assistance state commerce or manufactures in the U.S.C. 251 et seq.) shall apply to the procure- received under the program would be used to United States after 180 days after the date of ment, by the Comptroller General of the improve local communications interoper- enactment of the SAVE LIVES Act, a remov- United States, of the digital-to-analog con- ability and ensure interoperability with able label containing the warning language verter devices described in subsection (a). other appropriate Federal, State, local, trib- required by paragraph (3); and al, and regional agencies in a regional or na- (d) STUDY.—Not later than 12 months after ‘‘(B) also include such warning language on the date of enactment of this Act, the Com- tional emergency; the outside of the retail packaging of such mission shall, in consultation with commer- (2) assurance that the equipment and sys- apparatus in a manner that cannot be re- cial television broadcast licensees, consumer tem would— moved. groups, and other interested parties, com- (A) not be incompatible with the commu- ‘‘(2) REQUIREMENTS FOR RETAIL DISTRIBU- plete a study of— nications architecture developed under sec- TORS.—Any retail distributor shall place ad- (1) the geographic location of eligible per- tion 7303(a)(1)(E) of the Intelligence Reform jacent to each apparatus described in section sons by Nielsen Designated Market Areas; Act of 2004; 303(z) that such distributor displays for sale (2) the use of not only broadcast studios for (B) would meet any voluntary consensus or rent after 180 days after the date of enact- distribution of such digital-to-analog con- standards developed under section ment of the SAVE LIVES Act, a separate verter devices, but the ability of commercial 7303(a)(1)(D) of that Act; and sign containing the warning language re- television broadcast licensees to partner (C) be consistent with the common grant quired by paragraph (3). with grocery stores, electronics stores, and guidance established under section ‘‘(3) WARNING LANGUAGE.— post offices to serve as distribution centers 7303(a)(1)(H) of that Act. ‘‘(A) RULEMAKING PROCEEDING.—Not later (c) REVIEW.—The Under Secretary of for such devices; and than 120 days after the date of enactment of Homeland Security for Science and Tech- (3) the ability of the Commission and com- this Act, the Commission, in consultation nology shall review and approve, in the dis- mercial television broadcast licensees to with consumers and representatives from the cretion of the Under Secretary, all applica- broadcast, cable, and satellite industries, partner together to develop a public commu- tions submitted under subsection (b). nications campaign to inform over-the-air shall complete a rulemaking proceeding to (d) SINGLE GRANTS.—The Secretary of develop warning language to be used by man- viewers of— Homeland Security, pursuant to an applica- ufacturers and retail distributors concerning (A) the need for a digital-to-analog con- tion approved by the Under Secretary of the size and format of the warning language verter device; and Homeland Security for Science and Tech- required by this paragraph. (B) the availability of such a digital-to- nology, may make the assistance provided ‘‘(B) CONTENT OF WARNING.—The warning analog converter device free of charge for el- under the program established in subsection language required by this paragraph shall igible persons. (a) available to all approved applicants in clearly inform consumers, in plain English the form of a single grant for a period of not (e) ELIGIBLE PERSON DEFINED.—In this sec- understandable to the average consumer, of more than 3 years. tion, the term ‘‘eligible person’’ means any the following: (e) REPORT.—Not later than January 1, person relying exclusively on over-the-air ‘‘(i) After December 31, 2008, television television broadcasts with a household in- 2008, the Commission shall report to the Committee on Commerce, Science, and broadcasters will cease analog over-the-air come that does not exceed 200 percent of the broadcasts and will broadcast only in digital poverty line, as such line is published in the Transportation of the Senate and the Com- mittee on Energy and Commerce of the format. Federal Register by the Department of ‘‘(ii) That a television set carrying the Health and Human Services under the au- House of Representatives the amount re- quired to carry out the program described in label required under paragraph (1) will no thority of section 673(2) of the Community longer be able to receive broadcast program- Services Block Grant Act (42 U.S.C. 9902(2)). section 4. (f) AUTHORIZATION OF APPROPRIATIONS.—To ming unless it is connected to a digital (f) AUTHORIZATION OF APPROPRIATIONS.— the extent that proceeds from the auction of tuner, a digital-to-analog converter device, (1) IN GENERAL.—There are authorized to be licenses for recovered analog spectrum under or cable, satellite, or other multichannel appropriated $468,000,000 from the proceeds of section 309(j)(14) of the Communications Act video services. the auction of licenses for recovered analog of 1934 (47 U.S.C. 309(j)(14)) are available and ‘‘(iii) Beyond December 31, 2008, a tele- spectrum under section 309(j)(14) of the Com- exceed the amount required to carry out the vision set carrying the label required under munications Act of 1934 (47 U.S.C. 309(j)(14)). program described in section 4, there are au- paragraph (1) will, however, continue to dis- (2) DISTRIBUTION.—Of the funds authorized thorized to be appropriated from such pro- play images from devices such as DVD re- to be appropriated under paragraph (1)— ceeds such sums as are available to fund the corders and video game consoles or content (A) $463,000,000 shall be available to procure grant program established under this sec- recorded for display on an analog television digital-to-analog converter devices; and tion. using devices such as VCRs, digital video re- (B) $5,000,000 shall be available to to cover SEC. 6. CONSUMER EDUCATION REGARDING THE corders, or DVD recorders. the costs of administration of the digital DIGITAL TELEVISION TRANSITION. ‘‘(iv) For more information regarding the transition program established under this (a) COMMISSION AUTHORITY.—Section 303 of transition to digital television consumers section. the Communications Act of 1934 (47 U.S.C. should call the Federal Communications

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Commission at 1-888-225-5322 (TTY: 1-888-835- SEC. 7. DIGITAL TO ANALOG CONVERSION AVAIL- (1) IN GENERAL.—The Administrator of the 5322) or visit the Commission’s website at: ABLE FOR CABLE SUBSCRIBERS. Environmental Protection Agency, in con- www.fcc.gov. (a) DIGITAL TO ANALOG CONVERSION PER- sultation with appropriate executive agen- ‘‘(4) ENFORCEMENT.—Any violation of the MITTED.—Section 614(b) of the Communica- cies (as determined by the Administrator), requirements of this section, shall be en- tions Act of 1934 (47 U.S.C. 534(b)) is amended shall conduct a study of the feasibility of es- forced by the Federal Trade Commission as by adding at the end the following new para- tablishing a nationwide recycling program if it were an unfair or deceptive act or prac- graph: for electronic waste that preempts any State tice proscribed under section 18(a)(1)(B) of ‘‘(11) DIGITAL.— recycling program. IGITAL PRIMARY VIDEO SIGNAL the Federal Trade Commission Act (15 U.S.C. ‘‘(A) D .—A (2) INCLUSIONS.—The study shall include an 57a(a)(1)(B)). cable operator shall carry the primary video analysis of multiple programs, including pro- of the digital signal of a local broadcast sta- ‘‘(5) SUNSET.—The warning language re- grams involving— quired by paragraph (3) shall not apply to tion in its originally broadcast format with- (A) the collection of an advanced recycling any manufacturer or retail distributor on or out material degradation upon such local fee; after January 1, 2009. broadcast station’s— (B) the collection of an end-of-life fee; ‘‘(i) cessation of analog broadcasting; and ‘‘(6) COMMISSION OUTREACH.—Beginning not (C) producers of electronics assuming the ‘‘(ii) election of cable carriage under this later than 1 month after the date of enact- responsibility and the cost of recycling elec- section or section 615. ment of the SAVE LIVES Act, the Commis- tronic waste; and ‘‘(B) DIGITAL TO ANALOG CONVERSIONS PER- sion shall engage in a public outreach pro- (D) the extension of a tax credit for recy- MITTED.—Notwithstanding subparagraph (A), gram to educate consumers about— cling electronic waste. the conversion by a cable operator, at any ‘‘(A) the deadline for termination of analog (b) REPORT.—Not later than 1 year after location from the cable headend through television broadcasting; and the date of enactment of this Act, the Ad- equipment on the premises of a subscriber, of ‘‘(B) the options consumers have after such ministrator of the Environmental Protection a digital television signal into a signal capa- termination to continue to receive broadcast Agency shall submit to Congress a report de- ble of being viewed by such subscriber with programming.’’ scribing the results of the study conducted an analog television receiver shall be per- under subsection (a); (c) PRESERVING AND EXPEDITING DIGITAL mitted subject to the conditions described in TELEVISION TUNER MANDATES.— SEC. 9. COMPLETION OF CERTAIN PENDING PRO- subparagraph (C). CEEDINGS. (1) IN GENERAL.—The Commission shall re- ‘‘(C) CONDITIONS ON PERMITTED (a) IN GENERAL.—The Commission shall quire not later than— DOWNCONVERSION.—If a cable operator pro- (A) July 1, 2005, that digital television tun- complete action on and issue a final decision vides a converted signal for any station in a not later than— ers be integrated into television receivers local market under subparagraph (B), that— having analog tuners in the case of tele- (1) July 31, 2007, in the Matter of Second ‘‘(i) is carried under this section or section Periodic Review of the Commission’s Rules vision sets with screen sizes 36 inches or 615; and greater; and Policies Affecting the Conversion to Dig- ‘‘(ii) has ceased to broadcast in the analog ital Television, MB Docket No. 03-15; (B) March 1, 2006, that digital television television service; tuners be integrated into television receivers (2) July 31, 2007, should the Commission such cable operator shall provide such a con- begin a Third Periodic Review of the Com- having analog tuners in the case of tele- verted signal for each such station that is lo- vision sets with screen sizes between 25 mission’s Rules and Policies Affecting the cated within the same local market. Conversion to Digital Television; inches and 35 inches; and ‘‘(D) CONVERSION SUNSET.— (C) March 1, 2007, that digital television (3) December 31, 2007, in the Matter of Pub- ‘‘(i) IN GENERAL.—Subject to clause (ii), be- lic Interest Obligations of Television Broad- tuners be integrated into television receivers ginning not earlier than December 31, 2011 having analog tuners in the case of tele- cast Licensees, MM Docket No. 99-360; and not later than December 31, 2012, the (4) December 31, 2007, in the Matter of vision sets with screen sizes between 14 Commission shall cease to impose on a cable inches and 24 inches. Standardized and Enhanced Disclosure Re- operator the requirement under subpara- quirements for Television Broadcast Li- (2) STUDY.— graph (B), if the Commission determines that censee Public Interest Obligations, MM (A) IN GENERAL.—Not later than 1 year such requirement is not necessary to ensure after the date of enactment of this Act, the Docket No. 00-168; the continued ability of the audiences for (5) December 31, 2007, in the Matter of Chil- Commission shall conduct a study to deter- foreign-language and religious television mine whether digital television tuners are dren’s Television Obligations Of Digital Tel- broadcast stations to view the signals of evision Broadcasters, Further Notice of Pro- necessary in television sets with screen sizes such stations. 13 inches or smaller. posed Rulemaking, MM Docket No. 00-167; ‘‘(ii) CONSIDERATIONS.—In making a deter- (6) December 31, 2007, in the proceeding on (B) MANDATES FOR TELEVISION SETS WITH mination under clause (i), the Commission rules regarding the use of distributed trans- SCREEN SIZES 13 INCHES OR SMALLER.—Upon shall take into consideration— completion of the study required under sub- mission system technologies as referenced in ‘‘(I) the penetration of digital televisions, paragraph 5 of MB Docket No. 03-15; and paragraph (A), if the Commission determines digital receivers, and digital-to-analog con- that digital television tuners are necessary (7) December 31, 2007, in the proceeding verter devices among audiences of foreign- adopting digital standards for an Emergency in television sets with screen sizes 13 inches language and religious television broadcast or smaller, the Commission shall enact, not Alert System. stations; and (b) TWO-WAY DEVICES.— later than July 1, 2008, digital television ‘‘(II) the market incentives of cable opera- (1) REPORT.—Not later than 30 days after tuner mandates for such television sets. tors, in the absence of the requirement under the date of enactment of this Act, and every (d) INFORMED CONSUMER REQUIREMENT.— subparagraph (B), to carry the signals of for- 3 months thereafter until July 1, 2007, the Not later than 90 days after the date of en- eign-language and religious television broad- parties in the matter of the Implementation actment of this Act, the Consumer and Gov- cast stations in the format most available to of Section 304 of the Telecommunications ernmental Affairs Bureau of the Commission be viewed by the audiences of such stations. Act of 1996, Commercial Availability of Navi- shall develop and distribute to all consumers ‘‘(E) REVIEW.—Not later than 1 year after gation Devices, Second Report and Order, CS seeking to purchase a televison set a bro- the date of enactment of the SAVE LIVES Docket No. 97-80, shall report to the Com- chure that clearly describes the different op- Act, and every 2 years thereafter until De- mittee on Commerce, Science, and Transpor- tions available to a consumer, including in- cember 31, 2012, the Commission shall review tation of the Senate and the Committee on formation that— the considerations described in subparagraph Energy and Commerce of the House of Rep- (1) in order for a consumer to receive and (D)(ii).’’. resentatives on the status of negotiations for display a digital television signal, a con- (b) TIERING.— two-way devices. sumer must have— (1) AMENDMENT TO COMMUNICATIONS ACT.— (2) FINAL ORDER.—Not later than December (A) both a digital television display or Section 623(b)(7)(A)(iii) of the Communica- 31, 2007, the Commission shall complete ac- monitor and a digital tuner; or tions Act of 1934 (47 U.S.C. 543(b)(7)(A)(iii)) is tion on and issue a final decision in the mat- (B) an integrated digital television set; amended— ter of the Implementation of Section 304 of (2) there is a difference between a digital (A) by striking ‘‘Any signal’’ and inserting the Telecommunications Act of 1996, Com- television and high-definition digital tele- ‘‘Any analog signal’’; and mercial Availability of Navigation Devices, vision signals and a digital television and (B) by inserting ‘‘and a single digital video Second Report and Order, CS Docket No. 97- high-definition digital television set; and programming stream, designated by such 80. (3) current televisions— station, that is transmitted over-the-air by SEC. 10. EXCEPTION TO REMOVAL AND RELOCA- (A) are not obsolete; such station, and’’ after ‘‘television broad- TION OF INCUMBENT BROADCAST (B) can receive digital television signals cast station’’. LICENSEES OPERATING BETWEEN with the use of a digital-to-analog converter (2) EFFECTIVE DATE.—This subsection and 746 AND 806 MEGAHERTZ. device and will display such signals in an the amendments made by this subsection Section 337(e) of the Communications Act analog format; and shall take effect on January 1, 2009. of 1934 (47 U.S.C. 337(e)) is amended by adding (C) will continue to work with cable, sat- SEC. 8. STUDY OF NATIONWIDE RECYCLING PRO- at the end the following new paragraph: ellite, VCRs, DVD recorders, and other de- GRAM. ‘‘(3) EXCEPTIONS.—Paragraph (1) shall not vices. (a) STUDY.— apply to—

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.061 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6831 ‘‘(A) television translator stations; suits including more farmers and for- tion 11207(b) of this title a monthly benefit of ‘‘(B) low-power television stations; or esters. $1,000. ‘‘(C) class A television stations.’’. Our legislation fills this regulatory ‘‘(b) SURVIVING SPOUSES.— gap left by EPA. While the agency’s ‘‘(1) PAYMENT TO SURVIVING SPOUSES.—The By Mr. INHOFE (for himself, Mrs. Secretary of Veterans Affairs shall pay to rule is a step in the right direction, our LINCOLN, Mr. CRAPO, Mr. BOND, the surviving spouse of each person issued a legislation codifies the agency’s long- Mr. CHAMBLISS, Mr. COCHRAN, certificate of honorable service pursuant to standing policy that the application of Mr. ISAKSON, Mr. THOMAS, section 11207(b) of this title a monthly ben- agricultural and other pesticides, in ac- efit of $1,000. Mr.HAGEL, Mr. CRAIG, and Mr. cordance with their label, does not re- ‘‘(2) EXCLUSION.—No benefit shall be paid ROBERTS): quire an NPDES permit. Moreover, the under paragraph (1) to a surviving spouse of S. 1269. A bill to amend the Federal a person issued a certificate of honorable Water Pollution Control Act to clarify rule does not protect farmers, irrigators, mosquito abatement dis- service pursuant to section 11207(b) unless certain activities the conduct of which the surviving spouse was married to such does not require a permit; to the Com- tricts, fire fighters, Federal and State person for no less than 1 year. mittee on Environment and Public agencies, pest control operators or for- ‘‘(c) EXEMPTION FROM TAXATION.—Pay- Works. esters vulnerable to citizen’s suits, ments of benefits under this section are ex- Mr. INHOFE. Mr. President, I rise simply for performing long-practiced, empt from taxation as provided in section today to introduce the Pest Manage- expressly approved and already heavily 5301(a) of title 38. ment and Fire Suppression Flexibility regulated pest management and public ‘‘§ 11206. Qualified service Act. I am proud to be joined by ten of health protection activities. Without ‘‘For purposes of this subchapter, a person my colleagues, Senators LINCOLN, such protection, those who protet us shall be considered to have engaged in quali- CRAPO, BOND, ISAKSON, CRAIG, from mosquito borne illnesses and fied service if, between December 7, 1941, and December 31, 1946, the person— CHAMBLISS, COCHRAN, THOMAS, HAGEL other pest outbreaks or combat de- structive and potentially deadly forest ‘‘(1) was a member of the United States and ROBERTS. This legislation codifies merchant marine (including the Army long-standing Democratic and Repub- fires will continue to be potential vic- Transport Service and the Naval Transport lican Administration policy of not re- tims of mischievous citizen’s suits. Service) serving as a crewmember of a vessel quiring a Clean Water Act permit for My bill codifies EPA’s rulemaking, that was— pesticides in full compliance with their as well as affirms Congressional intent ‘‘(A) operated by the War Shipping Admin- EPA-approved label. It will further af- and the long-held positions of Repub- istration or the Office of Defense Transpor- firm historic a Federal practices with lican and Democratic administrations tation (or an agent of such Administration regard to the Clean Water Act and fire with regard to the CWA and pesticide or Office); suppression and other foreset manage- applications generally, as well as fire ‘‘(B) operated in waters other than— ‘‘(i) inland waters; ment activities. suppression and other forest manage- ‘‘(ii) the Great Lakes; and In 1972, Congress enacted both the ment activities. I am pleased to be ‘‘(iii) other lakes, bays, and harbors of the Clean Water Act and the Federal Insec- joined by so many of my colleagues in United States; ticide, Fungicide and Rodenticide Act. this effort and encourage others to co- ‘‘(C) under contract or charter to, or prop- CWA authorized the Environmental sponsor our proposal. erty of, the Government of the United Protection Agency to protect the Na- States; and tion’s waterways by regulating dis- By Mr. NELSON of Nebraska: ‘‘(D) serving the Armed Forces; and charges of large industrial operations S. 1272. A bill to amend title 46, ‘‘(2) while serving as described in para- and wastewater facilities through the United States Code, and title II of the graph (1), was licensed or otherwise docu- National Pollutant Discharge Elimi- Social Security Act to provide benefits mented for service as a crewmember of such a vessel by an officer or employee of the nation System. FIFRA proyided the to certain individuals who served in United States authorized to license or docu- EPA with the authority to regulate the the United States merchant marine ment the person for such service. sale and use of pesticides through a (including the Army Transport Service ‘‘§ 11207. Documentation of qualified service comprehensive registration and label- and the Naval Transport Service) dur- ‘‘(a) APPLICATION FOR SERVICE CERTIFI- ing protocol. ing World War II; to the Committee on CATE.—A person seeking benefits under sec- Until some recent court decisions, Veterans’ Affairs. tion 11205 of this title shall submit an appli- the application of agricultural and Mr. NELSON of Nebraska. Mr. Presi- cation for a service certificate to the Sec- other pesticides in full compliance dent, I ask unanimous consent that the retary of Transportation, or in the case of with labeling requirements did not re- text of the bill be printed in the personnel of the Army Transport Service or quire NPDES permits. Because pes- RECORD. the Naval Transport Service, the Secretary ticides undergo lengthy testing under There being no objection; the bill was of Defense. ‘‘(b) ISSUANCE OF SERVICE CERTIFICATE.— FIFRA including tests to ensure water ordered to be printed in the RECORD, as quality and aquatic species preserva- The Secretary who receives an application follows: under subsection (a) shall issue a certificate tion, a NPDES permit was considered S. 1272 of honorable service to the applicant if, as unnecessary and duplicative. These Be it enacted by the Senate and House of Rep- determined by that Secretary, the person en- court decisions commonly known as resentatives of the United States of America in gaged in qualified service under section 11206 Talent and Forsgren contradict years Congress assembled, of this title and meets the standards referred of Federal policy and undermine the SECTION 1. SHORT TITLE. to in subsection (d) of this section. manner in which the Federal Govern- This Act may be cited as the ‘‘Belated ‘‘(c) TIMING OF DOCUMENTATION.—A Sec- ment regulates farmers, foresters, Thank You to the Merchant Mariners of retary receiving an application under sub- World War II Act of 2005’’. section (a) shall act on the application not irrigators, mosquito abatement offi- later than 1 year after the date of that re- cials, and other pesticide applicators. SEC. 2. MONTHLY BENEFIT FOR WORLD WAR II ceipt. Similar cases are pending. Groups are MERCHANT MARINERS AND SUR- VIVORS UNDER TITLE 46, UNITED ‘‘(d) STANDARDS RELATING TO SERVICE.—In now using the notice of intent to sue to STATES CODE. making a determination under subsection intimidate farmers, mosquito abate- (a) MONTHLY BENEFIT.—Chapter 112 of title (b), the Secretary acting on the application ment districts and Federal and State 46, United States Code, is amended— shall apply the same standards relating to agencies into stopping or reducing (1) by inserting after the table of sections the nature and duration of service that apply West Nile virus prevention and crop the following new subchapter heading: to the issuance of honorable discharges under section 401(a)(1)(B) of the GI Bill Im- loss rangeland protection operations. ‘‘SUBCHAPTER I—VETERANS’ BURIAL provement Act of 1977 (38 U.S.C. 106 note). While EPA has proposed a rule to en- AND CEMETERY BENEFITS’’; AND ‘‘§ 11208. Definitions sure that pesticides sprayed to, near, (2) by adding at the end the following new or over waters do not need a permit, subchapter: ‘‘In this subchapter, the term ‘surviving spouse’ has the meaning given such term in the rule needs to be codified in statute. ‘‘SUBCHAPTER II—MONTHLY BENEFIT section 101 of title 38, except that in applying Environmentalists who filed notices of ‘‘§ 11205. Monthly benefit the meaning in this subchapter, the term intent to sue Maine’s two largest blue- ‘‘(a) PAYMENT.—The Secretary of Veterans ‘veteran’ shall include a person who per- berry farmers have indicated that they Affairs shall pay to each person issued a cer- formed qualified service as specified in sec- plan on threatening others with law- tificate of honorable service pursuant to sec- tion 11206 of this title.

VerDate Aug 04 2004 05:28 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.061 S20PT1 S6832 CONGRESSIONAL RECORD — SENATE June 20, 2005 ‘‘§ 11209. Authorization of appropriations er protections to our Nation’s wild into private ownership and our bill ex- ‘‘There are authorized to be appropriated horses and make needed improvements tends this protection to horses that are to the Secretary of Veterans Affairs such to the Bureau of Land Management’s acquired under sale authority. sums as may be necessary for the purpose of wild horse and burro adoption program. Our legislation also gives the BLM carrying out this subchapter.’’. Right now there are an estimated (b) CONFORMING AMENDMENTS.—Subsection more flexibility in finding good homes 32,000 wild horses on our Nation’s pub- (c) of section 11201 of title 46, United States for wild horses. We do this by giving lic lands. This is 4,000 more horses than Code, is amended— the BLM the authority to make all our rangeland can sustain. The Bureau (1) in paragraph (1), by striking ‘‘chapter’’ horses that are not suitable for the and inserting ‘‘subchapter’’; and of Land Management has established adoption program available for pur- (2) in paragraph (2), by striking ‘‘chapter’’ that nationwide, the Appropriate Man- chase by caring owners. the second place it appears and inserting agement Level for wild horses and bur- ‘‘subchapter’’. ros is 28,000. Unfortunately, after many We also lift the limit on the number (c) CLERICAL AMENDMENTS.—The table of years of trying, the BLM has been un- of horses that an approved adopter can sections at the beginning of chapter 112 of take title to in a single year, and we title 46, United States Code, is amended— able to reach this benchmark, even (1) by inserting at the beginning the fol- after many significant budget increases lower the minimum adoption fee from lowing new item: for the wild horse and burro program. $125 to $25. It is our firm belief that ‘‘SUBCHAPTER I—VETERANS’ BURIAL AND This situation is compounded by the when good people want to adopt horses CEMETERY BENEFITS’’; fact that wild horses naturally repro- and meet the requirements set forth by and duce at a rate of 20 percent per annum, the BLM, they should have as few bar- (2) by adding at the end the following new adding to management difficulties and riers to overcome as possible. By in- items: placing greater strain on our public creasing the number of horses that can ‘‘SUBCHAPTER II—MONTHLY BENEFIT rangelands. be adopted and lowering the adoption ‘‘11205. Monthly benefit ‘‘11206. Qualified service In Nevada, we feel the failures of the fee, we believe that we can put more ‘‘11207. Documentation of qualified service wild horse and burro program most horses into the hands of more quality ‘‘11208. Definitions acutely. Of the 32,000 horses on Amer- owners. ‘‘11209. Authorization of appropriations’’. ica’s public lands, roughly half are in (d) EFFECTIVE DATE.—Subchapter II of Our goal is to give all wild horses the chapter 112 of title 46, United States Code, as Nevada. So when the program fails, it maximum protection available under added by subsection (a) of this section, shall hits us hard. In recent years, the pro- our current system and to provide the take effect with respect to payments for pe- gram’s shortcomings have been ampli- BLM with the management tools they riods beginning on or after the date of the fied by an ongoing drought in the need to get tens of thousands of wild enactment of this Act, regardless of the date Southwest that has, in places, seri- horses and burros into safe and caring of application for benefits. ously jeopardized the health and well- SEC. 3. BENEFITS FOR WORLD WAR II MERCHANT homes. We believe that this is the right being of wild horses and burros and has thing to do. I look forward to working MARINERS UNDER TITLE II OF THE devastated the rangeland upon which SOCIAL SECURITY ACT. with the Energy Committee and the (a) BENEFITS.—Section 217(d) of the Social they depend for their survival. Senate to move this legislation expedi- At present, the wild horse program is Security Act (42 U.S.C. 417(d)) is amended by tiously. adding at the end the following new para- failing on both ends. The BLM is strug- graph: gling to remove sufficient numbers of I ask unanimous consent that the ‘‘(3) The term ‘active military or naval horses from the range and many of the text of the bill be printed in the service’ includes the service, or any period of horses that are removed are placed into RECORD. forcible detention or internment by an an adoption program that is not locat- There being no objection, the bill was enemy government or hostile force as a re- ing a sufficient number of willing sult of action against a vessel described in ordered to be printed in the RECORD, as subparagraph (A), of a person who— adopters. This means that more horses follows: stay in Government hands, driving the ‘‘(A) was a member of the United States S. 1273 merchant marine (including the Army cost of this troubled program ever Transport Service and the Naval Transport higher. As a result, today we have Be it enacted by the Senate and House of Rep- Service) serving as a crewmember of a vessel nearly 22,000 wild horses sitting in resentatives of the United States of America in that was— long-term holding facilities in the Mid- Congress assembled, ‘‘(i) operated by the War Shipping Admin- west, costing the U.S. taxpayer ap- SECTION 1. SHORT TITLE. istration or the Office of Defense Transpor- proximately $465 per horse, per year. This Act may be cited as the ‘‘Wild Free- tation (or an agent of such Administration And this is only part of the roughly $40 or Office); Roaming Horses and Burros Sale and Adop- ‘‘(ii) operated in waters other than— million we are spending this year to tion Act of 2005’’. manage our Nation’s wild horses and ‘‘(I) inland waters; SEC. 2. SALE AND ADOPTION OF WILD FREE- ‘‘(II) the Great Lakes; and burros. Add this to the fact that the ROAMING HORSES AND BURROS. ‘‘(III) other lakes, bays, and harbors of the cost of running this program has dou- Section 3 of Public Law 92–195 (16 U.S.C. United States; bled in the last five years and it be- 1333) is amended— ‘‘(iii) under contract or charter to, or prop- comes clear that reform is needed. (1) in subsection (b)(2)— erty of, the Government of the United Last year, Congress passed language (A) in subparagraph (B), by striking ‘‘: Pro- States; and that allowed the BLM to sell a limited vided’’ and all that follows through ‘‘adopt- ‘‘(iv) serving the Armed Forces; and number of the horses that are held in ing party’’; and ‘‘(B) while serving as described in subpara- long-term holding facilities. Unfortu- (B) by striking subparagraph (C) and in- graph (A), was licensed or otherwise docu- nately, this additional management serting the following: mented for service as a crewmember of such ‘‘(C) Additional excess wild free-roaming a vessel by an officer or employee of the tool has been abused by a handful of people and a small number of horses horses and burros for which an adoption de- United States authorized to license or docu- mand by qualified individuals does not exist ment the person for such service.’’. ended up at slaughter. These unfortu- shall be sold under subsection (e).’’; (b) EFFECTIVE DATE.—The amendment nate events have led to calls for great- made by subsection (a) shall apply only with (2) in subsection (c), by striking ‘‘not more er protections for wild horses that are than four animals’’ and inserting ‘‘excess respect to benefits for months beginning on being offered to the public under the or after the date of the enactment of this animals transferred ’’; Act. sale program. (3) in subsection (e)— Mr. President, the legislation that we (A) in paragraph (1), by striking subpara- offer today provides that greater pro- graph (A) and inserting the following: By Mr. REID: tection for wild horses, while also giv- ‘‘(A) the Secretary determines that there S. 1273. A bill to provide for the sale ing the BLM greater leverage to put is no adoption demand from qualified indi- and adoption of excess wild free-roam- more horses into the hands of good, viduals for the excess animal;’’; (B) in paragraph (2), by striking ‘‘without ing horses and burros; to the Com- caring owners. limitation’’; and mittee on Energy and Natural Re- Currently, wild horses that are ac- (C) by striking paragraph (4) and inserting sources. quired through the BLM’s adoption the following: Mr. REID. Mr. President, today I rise program are federally protected for 1 ‘‘(4) EFFECT OF SALE.—At the end of the 1- on behalf of myself and Senator ENSIGN year. This is the strongest protection year period following the sale of any excess to offer legislation that will give great- available to wild horses that are placed animal under this subsection—

VerDate Aug 04 2004 05:55 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.057 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6833 ‘‘(A) the Secretary shall grant to the Resolved, That the Senate— other deprivation of the refugees’ basic transferee title to the excess animal; and (1) honors the extraordinary achievements rights in a protracted situation, as a denial ‘‘(B) the excess animal transferred shall no of Cam Neely during his brilliant career in of basic human rights and a squandering of longer be considered to be a wild free-roam- ice hockey with the Boston Bruins; human potential; ing horse or burro for purposes of this Act.’’; (2) commends Cam Neely for his recent and (3) urges the Secretary of State to actively and eminently well-deserved induction into the pursue models of refugee assistance that per- (4) by adding at the end the following: Hockey Hall of Fame; and mit refugees to enjoy all the rights recog- ‘‘(f) MINIMUM FEES AND BIDS.—The min- (3) directs the Secretary of the Senate to nized in the Convention and the Protocol; imum adoption fee required for the adoption transmit an enrolled copy of this resolution (4) urges the Secretary of State to encour- of an excess animal under this section shall to: age other donor nations and other members be $25.’’. (A) Cam Neely; of the Executive Committee of the United f (B) Jeremy Jacobs, owner of the Boston Nations High Commissioner for Refugees’ Bruins; Programme to shift the incentive structure SUBMITTED RESOLUTIONS (C) Harry Sinden, president of the Boston of refugee assistance and to build mecha- Bruins; and nisms into relief and development assistance (D) Mike Sullivan, head coach of the Bos- to encourage the greater enjoyment by refu- SENATE RESOLUTION 176—CON- ton Bruins. gees of their rights under the Convention; GRATULATING CAM NEELY ON (5) encourages the international commu- HIS INDUCTION INTO THE HOCK- f nity, including donor countries, host coun- EY HALL OF FAME SENATE RESOLUTION 177—ENCOUR- tries, and members of the Executive Com- mittee of the United Nations High Commis- Mr. KENNEDY submitted the fol- AGING THE PROTECTION OF THE sioner for Refugees’ Programme, to denounce lowing resolution; which was referred RIGHTS OF REFUGEES resolutely the practice of warehousing refu- to the Committee on the Judiciary: Mr. KENNEDY (for himself, Mr. gees in favor of allowing refugees to exercise Mr. KENNEDY. Mr. President, ear- their rights under the Convention; BROWNBACK, Mr. LEAHY, Mr. DEWINE, lier this month, Cam Neely of the Bos- (6) calls upon the United Nations High Mr. LIEBERMAN, Ms. SNOWE, Mr. DUR- ton Bruins was elected to the Hockey Commissioner for Refugees to monitor ref- BIN, Mr. COLEMAN, and Mr. LAUTEN- Hall of Fame in Toronto, Canada, and ugee situations more effectively for the real- BERG) submitted the following resolu- he will be formally inducted into the ization of all the rights of refugees under the tion; which was referred to the Com- Convention, including those related to free- Hall on November 7. mittee on Foreign Relations: dom of movement and the right to earn a Cam has inspired a generation of ice livelihood; S. RES. 177 hockey fans in Boston and New Eng- (7) encourages those countries that have land, and throughout the Nation with Whereas the Convention Relating to the not yet ratified the Convention or the Pro- his extraordinary skill and brilliant ac- Status of Refugees dated July 28, 1951 (189 tocol to do so; complishments. He is truly one of UST 150) (hereinafter referred to as the (8) encourages those countries that have hockey’s immortals, and he eminently ‘‘Convention’’) and the Protocol Relating to ratified the Convention or the Protocol, but the Status of Refugees done at New York deserves this high honor. have done so with reservations on key arti- January 31, 1967 (19 UST 6223) (hereinafter re- cles pertaining to the right to work and free- In addition, he is also well-known to ferred to as the ‘‘Protocol’’) provide that in- all of us in Boston for his good citizen- dom of movement, to remove such reserva- dividuals who flee a country to avoid perse- tions; and ship and impressive participation in in- cution deserve international protection; (9) encourages all countries to enact legis- spiring our community. Whereas such protection includes freedom lation or promulgate policies to provide for I am submitting a resolution today from forcible return and the basic rights nec- the legal enjoyment of the basic rights of to honor Cam Neely for his on-ice ac- essary for a refugee to live a free, dignified, refugees as outlined in the Convention. complishments and also for his con- self-reliant life, even while in exile; Mr. KENNEDY. Mr. President, today tinuing commitment to charitable Whereas such rights, as recognized in the is World Refugee Day and I welcome causes in the Commonwealth of Massa- Convention, include the right to earn a live- lihood, to engage in wage-employment or this opportunity to reaffirm the funda- chusetts. self-employment, to practice a profession, to mental rights embodied in the United S. RES. 176 own property, to freedom of movement and Nations Refugee Convention of 1951. It Whereas on June 8, 2005, Cam Neely was residence, and to receive travel documents; is an honor to join my colleagues—Sen- elected to the Hockey Hall of Fame in To- Whereas such rights are applicable to a ref- ators BROWNBACK, LEAHY, DEWINE, ronto, Canada, and will be formally inducted ugee independent of whether a solution is LIEBERMAN, SNOWE, DURBIN, COLEMAN, into the Hall of Fame on November 7, 2005; available that would permit the refugee to and LAUTENBERG—in introducing this Whereas as a member of the Boston Bruins, return to the country that the refugee fled; bipartisan resolution to focus atten- Cam Neely became one of ice hockey’s great- Whereas such rights are part of the core tion on the plight of millions of refu- est players, defining the position of ‘‘power protection mandate of the United Nations gees throughout the world who are end- forward’’; High Commissioner for Refugees; Whereas although his career was cut short Whereas warehoused refugees have been lessly confined in refugee camps or seg- when he retired at the age of 31 due to in- confined to a camp or segregated settlement regated settlements. These jury, Cam Neely scored 395 goals and had 299 or otherwise deprived of their basic rights; ‘‘warehoused’’ refugees are denied basic assists in 726 games in his brilliant career; Whereas more than 50 percent of the refu- rights under the Convention, such as Whereas Cam Neely led the Boston Bruins gees in the world are effectively warehoused the right to work, to move freely, and in goals for 7 seasons, led the team in scoring in a situation that has existed for at least 10 to receive a basic education. The depri- for 2 seasons, and was the team’s all-time years; vation goes on for years and in some leader in goals during playoffs; Whereas donor countries, including the cases, even for generations. Whereas Cam Neely had three 50-goal sea- United States, have typically offered less de- Worldwide, more than 7 million refu- sons for the Boston Bruins, including back- veloped countries hosting refugees assist- gees have been restricted to camps or to-back 50-goal seasons in 1989–1990 and 1991– ance if they keep refugees warehoused in isolated settlements for 10 years or 1992; camps or segregated settlements but have Whereas Cam Neely, returning to the Bos- not provided adequate assistance to host more. These populations constitute ton Bruins after an injury in 1993–1994, scored countries that permit refugees to live and more than half of the refugees around 50 goals and was awarded the National Hock- work among the local population; and the world. ey League’s Bill Masterton Trophy as the Whereas warehousing refugees not only In Tanzania, nearly 400,000 refugees ‘‘player who best exemplifies the qualities of violates the rights of the refugees but also from Burundi and the Democratic Re- perseverance, sportsmanship, and dedication debilitates their humanity, often reducing public of Congo are confined in 13 to hockey’’; the refugees to enforced idleness, depend- camps along the western border. Some Whereas Cam Neely, number 8, became the ency, disempowerment, and despair: Now, of these camps have existed for more tenth Boston Bruin to be honored by having therefore, be it than a decade. Many refugees confined his uniform number retired; Resolved, That the United States Senate— in these camps find it extremely dif- Whereas Cam Neely continues to provide (1) expresses deep appreciation and grati- ficult to find employment, let alone ob- invaluable assistance to charitable causes in tude for those States which have and con- the Commonwealth of Massachusetts, includ- tinue to host refugees and offer refugee re- tain other basic necessities of life. ing the establishment of the Neely House settlement; Other refugee populations have been and the Neely Foundation, which comfort, (2) denounces the practice of warehousing warehoused and forgotten for over 20 support, and offer hope to cancer patients refugees, which is the confinement of refu- years, such as Angolans in Zambia, Af- and their families: Now, therefore, be it gees to a camp or segregated settlement or ghans in Iran and Pakistan, Bhutanese

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We must do all we can to (A) the adoption of practical measures to conflicts continue around the world. expand the United States-European Union protect the rights and dignity of refu- economic relationship by reducing obstacles According to the recently published gees everywhere. that inhibit economic integration; and 2005 World Refugee Survey, the total I look forward to working with our (B) encourages continued strong and ex- number of refugees and asylum seekers colleagues on both sides of the aisle, as panded cooperation between Congress and worldwide exceeds 11 million, and 21 well as in the international commu- the European Parliament on global security million more are internally displaced. nity, to pass this important resolution issues. As these shameful statistics dem- and take steps toward implementing f onstrate, there is far more the world its provisions and achieving its objec- AMENDMENTS SUBMITTED AND community can do to ease their plight. tives. The resolution we are offering de- PROPOSED f nounces the practice of warehousing SA 797. Mrs. FEINSTEIN (for herself, Ms. refugees and urges all nations to grant SENATE RESOLUTION 178—EX- SNOWE, Ms. CANTWELL, Mr. JEFFORDS, Mr. them their basic rights under the Ref- PRESSING THE SENSE OF THE CORZINE, Mr. SCHUMER, Ms. COLLINS, Mr. ugee Convention of 1951. Refugee camps SENATE REGARDING THE REED, Mr. DURBIN, and Mrs. MURRAY) sub- mitted an amendment intended to be pro- are often created quickly to address a UNITED STATES-EUROPEAN UNION SUMMIT posed by her to the bill H.R. 6, Reserved; crisis. But the solution creates a great- which was ordered to lie on the table. er problem, if temporary camps are al- Mr. BENNETT (for himself and Mr. SA 798. Mr. PRYOR submitted an amend- lowed to become long-term places of LUGAR) submitted the following resolu- ment intended to be proposed by him to the confinement. tion; which was considered and agreed bill H.R. 6, supra; which was ordered to lie on Under the 1951 Convention, refugees to: the table. have the right to earn a livelihood, to SA 799. Mr. VOINOVICH (for himself, Mr. S. RES. 178 have a job and earn wages, to practice CARPER, and Mrs. FEINSTEIN) proposed an a profession, to own property, and to Whereas over the past 55 years the United amendment to the bill H.R. 6, supra. States and the European Union have built a SA 800. Mr. GRASSLEY (for himself and have freedom of movement and resi- strong transatlantic partnership based upon Mr. BAUCUS) submitted an amendment in- dence. Warehoused refugees can do the common values of freedom, democracy, tended to be proposed by him to the bill H.R. none of these things. Unable to work, rule of law, human rights, security, and eco- 6, supra. travel, own property or obtain an edu- nomic development; SA 801. Mrs. LINCOLN submitted an cation, they live unlived lives, without Whereas working together to promote amendment intended to be proposed to the basic freedoms they are entitled to these values globally will serve the mutual amendment SA 800 submitted by Mr. GRASS- have under the 1951 Convention. political, economic, and security interests of LEY (for himself and Mr. BAUCUS) to the bill This resolution denounces the prac- the United States and the European Union; H.R. 6, supra; which was ordered to lie on the table. tice of warehousing refugees and calls Whereas cooperation between the United States and the European Union on global se- SA 802. Mr. VITTER submitted an amend- for conditions that enable refugees to curity issues such as terrorism, the Middle ment intended to be proposed by him to the exercise their rights. It encourages East peace process, the proliferation of weap- bill H.R. 6, supra; which was ordered to lie on donor countries, including the United ons of mass destruction, ballistic missile the table. States, to increase their assistance to technology, and the nuclear activities of SA 803. Mr. VITTER submitted an amend- host countries that allow refugees to rogue nations is important for promoting ment intended to be proposed by him to the live and work among the local popu- international peace and security; bill H.R. 6, supra; which was ordered to lie on lation. Whereas the common efforts of the United the table. SA 804. Mr. VITTER submitted an amend- It urges the Secretary of State and States and the European Union have sup- ported freedom in countries such as Leb- ment intended to be proposed by him to the the United Nations High Commissioner bill H.R. 6, supra; which was ordered to lie on for Refugees to adopt models of refugee anon, Ukraine, Kyrgyzstan, Georgia, Moldova, Belarus, and Uzbekistan; the table. assistance that achieve the rights rec- Whereas through coordination and co- SA 805. Mr. SCHUMER proposed an amend- ognized in the Refugee Convention. It operation during emergencies such as the ment to the bill H.R. 6 supra. also encourages all nations to ratify 2004 Indian Ocean tsunami disaster, the SA 806. Mrs. HUTCHISON submitted an the Convention, and without reserva- AIDS pandemic in Africa, and the ongoing amendment intended to be proposed by her tions, and to enact legislation and poli- situation in Darfur, the United States and to the bill H.R. 6, supra; which was ordered the European Union have mitigated the ef- to lie on the table. cies that protect human rights and end SA 807. Mr. OBAMA submitted an amend- fects of humanitarian disasters across the the denial of these rights to any refu- ment intended to be proposed by him to the globe; gees. bill H.R. 6, supra; which was ordered to lie on Whereas economic cooperation such as re- The U.S. must strengthen our own the table. moving impediments to transatlantic trade commitment and work with other SA 808. Mr. OBAMA (for himself and Mr. and investment, expanding regulatory dia- LUGAR) submitted an amendment intended countries to solve this problem. logues and exchanges, integrating capitol to be proposed by him to the bill H.R. 6, As a number of authorities have markets, and ensuring the safe and secure supra; which was ordered to lie on the table. pointed out, we may well have to face movement of people and goods across the At- an urgent aspect of the issue ourselves lantic will increase prosperity and strength- f if conditions in Iraq continue to dete- en the partnership between the United TEXT OF AMENDMENTS riorate and significant numbers of States and the European Union; and Iraqis are free to become refugees be- Whereas although disagreements between SA 797. Mrs. FEINSTEIN (for herself, cause of their ties to us. the United States and the European Union Ms. SNOWE, Ms. CANTWELL, Mr. JEF- Over 130 international organizations have existed on a variety of issues, the trans- FORDS, Mr. CORZINE, Mr. SCHUMER, Ms. support the end of warehousing, includ- atlantic relationship remains strong and COLLINS, Mr. REED, Mr. DURBIN, and continues to improve: Now, therefore, be it Mrs. MURRAY) submitted an amend- ing more than 25 agencies based in the Resolved, That the Senate— United States. Nobel Laureates have ment intended to be proposed by her to (1) welcomes the leadership of the Euro- the bill H.R. 6, Reserved; which was or- condemned this practice, including pean Union to the 2005 United States-Euro- Archbishop Desmond Tutu of South Af- pean Union Summit to be held in Wash- dered to lie on the table; as follows: rica, and so has the Vatican. ington, DC, on June 20, 2005; On page 424, line 9, strike ‘‘SEC. 711’’ and We must find long-term solutions and (2) highlights the importance of the United insert the following: alternatives to this abominable prac- States and the European Union working to- SEC. 711. SHORT TITLE. tice. It is a gross violation of both ref- gether to address global challenges; This subtitle may be cited as the ‘‘Auto- ugee rights and human rights. It is (3) recommends— mobile Fuel Economy Act of 2005’’. (A) expanded political dialogue between SEC. 712. INCREASED AVERAGE FUEL ECONOMY wrong to squander the immense human Congress and the European Parliament; and STANDARD FOR LIGHT TRUCKS. potential and condemn human refugees (B) that the 2005 United States-European (a) DEFINITION OF LIGHT TRUCK.—Section to live in despair and isolation for un- Union Summit focus on both short and long- 32901(a) of title 49, United States Code, is acceptable lengths of time. term measures that will allow for vigorous amended—

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(1) in each of paragraphs (1) through (14), (d) CALCULATION OF AVERAGE FUEL ECON- Subtitle E—Diesel Emissions Reduction by striking the period at the end and insert- OMY.—For purposes of this section— SEC. 741. DEFINITIONS. ing a semicolon; (1) average fuel economy shall be cal- In this subtitle: (2) in paragraph (15), by striking the period culated in accordance with guidance pre- (1) ADMINISTRATOR.—The term ‘‘Adminis- at the end and inserting ‘‘; and’’; scribed by the Secretary of Transportation trator’’ means the Administrator of the En- (3) by redesignating paragraphs (12) for the implementation of this section; and vironmental Protection Agency. through (16) as paragraphs (13) through (17), (2) average fuel economy calculated under (2) CERTIFIED ENGINE CONFIGURATION.—The respectively; and subsection (b) for an agency’s vehicles in a term ‘‘certified engine configuration’’ means (4) by inserting after paragraph (11) the fol- class of vehicles shall be the baseline aver- a new, rebuilt, or remanufactured engine lowing: age fuel economy for the agency’s fleet of ve- configuration— ‘‘(12) ‘light truck’ has the meaning given hicles in that class. (A) that has been certified or verified by— that term in regulations prescribed by the SEC. 715. (i) the Administrator; or Secretary of Transportation in the adminis- (ii) the California Air Resources Board; tration of this chapter;’’. (B) that meets or is rebuilt or remanufac- (b) REQUIREMENT FOR INCREASED STAND- SA 798. Mr. PRYOR submitted an amendment intended to be proposed by tured to a more stringent set of engine emis- ARD.—Section 32902(a) of title 49, United sion standards, as determined by the Admin- States Code, is amended— him to the bill H.R. 6, Reserved; which istrator; and (1) by inserting ‘‘(1)’’ after ‘‘AUTO- was ordered to lie on the table; as fol- (C) in the case of a certified engine con- MOBILES.—’’; lows: figuration involving the replacement of an (2) by striking ‘‘The Secretary’’ and insert- On page 755, after line 25, add the fol- existing engine or vehicle, an engine configu- ing ‘‘Subject to paragraph (2), the Sec- lowing: ration that replaced an engine that was— retary’’; and SEC. 13ll. ALTERNATIVE FUELS REPORTS. (i) removed from the vehicle; and (3) by adding at the end the following: (ii) returned to the supplier for remanufac- ‘‘(2) The average fuel economy standard for (a) IN GENERAL.—Not later than 1 year turing to a more stringent set of engine light trucks manufactured by a manufac- after the date of enactment of this Act, the emissions standards or for scrappage. turer may not be less than— Secretary shall submit to Congress reports (3) ELIGIBLE ENTITY.—The term ‘‘eligible ‘‘(A) 23.5 miles per gallon for model year on the potential for each of biodiesel and entity’’ means— 2008; hythane to become major, sustainable, alter- (A) a regional, State, local, or tribal agen- ‘‘(B) 24.8 miles per gallon for model year native fuels. cy with jurisdiction over transportation or 2009; (b) BIODIESEL REPORT.—The report relating air quality; and ‘‘(C) 26.1 miles per gallon for model year to biodiesel submitted under subsection (a) (B) a nonprofit organization or institution 2010; and shall— that— ‘‘(D) 27.5 miles per gallon for model year (1) provide a detailed assessment of— (i) represents organizations that own or op- 2011 and each model year thereafter.’’. (A) potential biodiesel markets and manu- erate diesel fleets; or (c) APPLICABILITY.—Section 32902(a)(2) of facturing capacity; and (ii) has, as its principal purpose, the pro- title 49, United States Code, as added by sub- (B) environmental and energy security motion of transportation or air quality. section (b)(3), shall not apply with respect to benefits with respect to the use of biodiesel; (4) EMERGING TECHNOLOGY.—The term light trucks manufactured before model year (2) identify any impediments, especially in ‘‘emerging technology’’ means a technology 2008. infrastructure needed for production, dis- tribution, and storage, to biodiesel becoming that is not certified or verified by the Ad- SEC. 713. FUEL ECONOMY STANDARDS FOR AUTO- ministrator or the California Air Resources MOBILES UP TO 10,000 POUNDS a substantial source of fuel for conventional GROSS VEHICLE WEIGHT. diesel and heating oil applications; Board but for which an approvable applica- (a) VEHICLES DEFINED AS AUTOMOBILES.— (3) identify strategies to enhance the com- tion and test plan has been submitted for Section 32901(a)(3) of title 49, United States mercial deployment of biodiesel; and verification to the Administrator or the Code, is amended by striking ‘‘rated at—’’ (4) include an examination and rec- California Air Resources Board. and all that follows and inserting ‘‘rated at ommendations, as appropriate, of the ways (5) HEAVY-DUTY TRUCK.—The term ‘‘heavy- not more than 10,000 pounds gross vehicle in which biodiesel may be modified to be a duty truck’’ has the meaning given the term weight.’’. cleaner-burning fuel. ‘‘heavy duty vehicle’’ in section 202 of the (b) EFFECTIVE DATE.—The amendment (c) HYTHANE REPORT.—The report relating Clean Air Act (42 U.S.C. 7521). made by subsection (a) shall take effect on to hythane submitted under subsection (a) (6) MEDIUM-DUTY TRUCK.—The term ‘‘me- January 1, 2011. shall— dium-duty truck’’ has such meaning as shall SEC. 714. FUEL ECONOMY OF THE FEDERAL (1) provide a detailed assessment of poten- be determined by the Administrator, by reg- FLEET OF VEHICLES. tial hythane markets and the research and ulation. (a) DEFINITIONS.—In this section— development activities that are necessary to (7) VERIFIED TECHNOLOGY.—The term (1) the term ‘‘class of vehicles’’ means a facilitate the commercialization of hythane ‘‘verified technology’’ means a pollution con- class of vehicles for which an average fuel as a competitive, environmentally-friendly trol technology, including a retrofit tech- economy standard is in effect under chapter transportation fuel; nology, that has been verified by— 329 of title 49, United States Code; (2) address— (A) the Administrator; or (2) the term ‘‘executive agency’’ has the (A) the infrastructure necessary to (B) the California Air Resources Board. meaning given the term in section 4(1) of the produce, blend, distribute, and store hythane SEC. 742. NATIONAL GRANT AND LOAN PRO- Office of Federal Procurement Policy Act (41 for widespread commercial purposes; and GRAMS. U.S.C. 403(1)); and (B) other potential market barriers to the (a) IN GENERAL.—The Administrator shall (3) the term ‘‘new vehicle’’, with respect to commercialization of hythane; use 70 percent of the funds made available to the fleet of vehicles of an executive agency, (3) examine the viability of producing hy- carry out this subtitle for each fiscal year to means a vehicle procured by or for the agen- drogen using energy-efficient, environ- provide grants and low-cost revolving loans, cy after September 30, 2007. mentally friendly methods so that the hy- as determined by the Administrator, on a (b) BASELINE AVERAGE FUEL ECONOMY.— drogen can be blended with natural gas to competitive basis, to eligible entities to The head of each executive agency shall de- produce hythane; and achieve significant reductions in diesel emis- termine the average fuel economy for all of (4) include an assessment of the modifica- sions in terms of— the vehicles in each class of vehicles in the tions that would be required to convert com- (1) tons of pollution produced; and agency’s fleet of vehicles in fiscal year 2006. pressed natural gas vehicle engines to en- (2) diesel emissions exposure, particularly (c) INCREASE OF AVERAGE FUEL ECONOMY.— gines that use hythane as fuel. from fleets operating in areas designated by The head of each executive agency shall (d) GRANTS FOR REPORT COMPLETION.—The the Administrator as poor air quality areas. manage the procurement of vehicles in each Secretary may use such sums as are avail- (b) DISTRIBUTION.— class of vehicles for that agency to ensure able to the Secretary to provide, to 1 or more (1) IN GENERAL.—The Administrator shall that— colleges or universities selected by the Sec- distribute funds made available for a fiscal (1) not later than September 30, 2008, the retary, grants for use in carrying out re- year under this subtitle in accordance with average fuel economy of the new vehicles in search to assist the Secretary in preparing this section. the agency’s fleet of vehicles in each class of the reports required to be submitted under (2) FLEETS.—The Administrator shall pro- vehicles is not less than 3 miles per gallon subsection (a). vide not less than 50 percent of funds avail- higher than the baseline average fuel econ- able for a fiscal year under this section to el- omy determined for that class; and SA 799. Mr. VOINOVICH (for himself, igible entities for the benefit of public fleets. (2) not later than September 30, 2011, the (3) ENGINE CONFIGURATIONS AND TECH- Mr. CARPER, and Mrs. FEINSTEIN) pro- average fuel economy of the new vehicles in NOLOGIES.— the agency’s fleet of vehicles in each class of posed an amendment to the bill H.R. 6, (A) CERTIFIED ENGINE CONFIGURATIONS AND vehicles is not less than 6 miles per gallon Reserved; as follows: VERIFIED TECHNOLOGIES.—The Administrator higher than the baseline average fuel econ- On page 446, between lines 18 and 19, insert shall provide not less than 90 percent of omy determined for that class. the following: funds available for a fiscal year under this

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section to eligible entities for projects (d) USE OF FUNDS.— tional amount equal to the product obtained using— (1) IN GENERAL.—An eligible entity may use by multiplying— (i) a certified engine configuration; or a grant or loan provided under this section (i) the proportion that— (ii) a verified technology. to fund the costs of— (I) the population of the State; bears to (B) EMERGING TECHNOLOGIES.— (A) a retrofit technology (including any in- (II) the population of all States described (i) IN GENERAL.—The Administrator shall cremental costs of a repowered or new diesel in paragraph (1); by provide not more than 10 percent of funds engine) that significantly reduces emissions (ii) the amount of funds remaining after available for a fiscal year under this section through development and implementation of each State described in paragraph (1) re- to eligible entities for the development and a certified engine configuration, verified ceives the 2-percent allocation under this commercialization of emerging technologies. technology, or emerging technology for— paragraph. (ii) APPLICATION AND TEST PLAN.—To re- (i) a bus; (3) STATE MATCHING INCENTIVE.— ceive funds under clause (i), a manufacturer, (ii) a medium-duty truck or a heavy-duty (A) IN GENERAL.—If a State agrees to in consultation with an eligible entity, shall truck; match the allocation provided to the State submit for verification to the Administrator (iii) a marine engine; under paragraph (2) for a fiscal year, the Ad- or the California Air Resources Board a test (iv) a locomotive; or ministrator shall provide to the State for the plan for the emerging technology, together (v) a nonroad engine or vehicle used in— fiscal year an additional amount equal to 50 with the application under subsection (c). (I) construction; percent of the allocation of the State under (c) APPLICATIONS.— (II) handling of cargo (including at a port paragraph (2). (1) IN GENERAL.—To receive a grant or loan or airport); (B) REQUIREMENTS.—A State— under this section, an eligible entity shall (III) agriculture; (i) may not use funds received under this submit to the Administrator an application (IV) mining; or subtitle to pay a matching share required at a time, in a manner, and including such (V) energy production; or under this subsection; and information as the Administrator may re- (B) an idle-reduction program involving a (ii) shall not be required to provide a quire. vehicle or equipment described in subpara- matching share for any additional amount (2) INCLUSIONS.—An application under this graph (A). received under subparagraph (A). subsection shall include— (2) REGULATORY PROGRAMS.— (4) UNCLAIMED FUNDS.—Any funds that are (A) a description of the air quality of the (A) IN GENERAL.—Notwithstanding para- not claimed by a State for a fiscal year area served by the eligible entity; graph (1), no grant or loan provided under under this subsection shall be used to carry (B) the quantity of air pollution produced this section shall be used to fund the costs of out section 742. by the diesel fleet in the area served by the (d) ADMINISTRATION.— emissions reductions that are mandated eligible entity; (1) IN GENERAL.—Subject to paragraphs (2) under Federal, State or local law. (C) a description of the project proposed by and (3) and, to the extent practicable, the (B) MANDATED.—For purposes of subpara- the eligible entity, including— priority areas listed in section 742(c)(3), a graph (A), voluntary or elective emission re- (i) any certified engine configuration, State shall use any funds provided under this duction measures shall not be considered verified technology, or emerging technology section to develop and implement such grant ‘‘mandated’’, regardless of whether the re- to be used by the eligible entity; and and low-cost revolving loan programs in the ductions are included in the State implemen- (ii) the means by which the project will State as are appropriate to meet State needs tation plan of a State. achieve a significant reduction in diesel and goals relating to the reduction of diesel emissions; SEC. 743. STATE GRANT AND LOAN PROGRAMS. emissions. (D) an evaluation (using methodology ap- (a) IN GENERAL.—Subject to the avail- (2) APPORTIONMENT OF FUNDS.—The Gov- proved by the Administrator or the National ability of adequate appropriations, the Ad- ernor of a State that receives funding under Academy of Sciences) of the quantifiable and ministrator shall use 30 percent of the funds this section may determine the portion of unquantifiable benefits of the emissions re- made available for a fiscal year under this funds to be provided as grants or loans. ductions of the proposed project; subtitle to support grant and loan programs (3) USE OF FUNDS.—A grant or loan pro- (E) an estimate of the cost of the proposed administered by States that are designed to vided under this section may be used for a project; achieve significant reductions in diesel emis- project relating to— (F) a description of the age and expected sions. (A) a certified engine configuration; or lifetime control of the equipment used by (b) APPLICATIONS.—The Administrator (B) a verified technology. the eligible entity; shall— SEC. 744. EVALUATION AND REPORT. (G) a description of the diesel fuel avail- (1) provide to States guidance for use in ap- (a) IN GENERAL.—Not later than 2 years able to the eligible entity, including the sul- plying for grant or loan funds under this sec- after the date of enactment of this Act, and fur content of the fuel; and tion, including information regarding— biennially thereafter, the Administrator (H) provisions for the monitoring and (A) the process and forms for applications; shall submit to Congress a report evaluating verification of the project. (B) permissible uses of funds received; and the implementation of the programs under (3) PRIORITY.—In providing a grant or loan (C) the cost-effectiveness of various emis- this subtitle. under this section, the Administrator shall sion reduction technologies eligible to be (b) INCLUSIONS.—The report shall include a give priority to proposed projects that, as de- carried out using funds provided under this description of— termined by the Administrator— section; and (1) the total number of grant applications (A) maximize public health benefits; (2) establish, for applications described in received; (B) are the most cost-effective; paragraph (1)— (2) each grant or loan made under this sub- (C) serve areas— (A) an annual deadline for submission of title, including the amount of the grant or (i) with the highest population density; the applications; loan; (ii) that are poor air quality areas, includ- (B) a process by which the Administrator (3) each project for which a grant or loan is ing areas identified by the Administrator shall approve or disapprove each application; provided under this subtitle, including the as— and criteria used to select the grant or loan re- (I) in nonattainment or maintenance of na- (C) a streamlined process by which a State cipients; tional ambient air quality standards for a may renew an application described in para- (4) the estimated air quality benefits, cost- criteria pollutant; graph (1) for subsequent fiscal years. effectiveness, and cost-benefits of the grant (II) Federal Class I areas; or (c) ALLOCATION OF FUNDS.— and loan programs under this subtitle; (III) areas with toxic air pollutant con- (1) IN GENERAL.—For each fiscal year, the (5) the problems encountered by projects cerns; Administrator shall allocate among States for which a grant or loan is provided under (iii) that receive a disproportionate quan- for which applications are approved by the this subtitle; and tity of air pollution from a diesel fleet, in- Administrator under subsection (b)(2)(B) (6) any other information the Adminis- cluding ports, rail yards, and distribution funds made available to carry out this sec- trator considers to be appropriate. centers; or tion for the fiscal year. SEC. 745. OUTREACH AND INCENTIVES. (iv) that use a community-based multi- (2) ALLOCATION.—Using not more than 20 (a) DEFINITION OF ELIGIBLE TECHNOLOGY.— stakeholder collaborative process to reduce percent of the funds made available to carry In this section, the term ‘‘eligible tech- toxic emissions; out this subtitle for a fiscal year, the Admin- nology’’ means— (D) include a certified engine configura- istrator shall provide to each State described (1) a verified technology; or tion, verified technology, or emerging tech- in paragraph (1) for the fiscal year an alloca- (2) an emerging technology. nology that has a long expected useful life; tion of funds that is equal to— (b) TECHNOLOGY TRANSFER PROGRAM.— (E) will maximize the useful life of any ret- (A) if each of the 50 States qualifies for an (1) IN GENERAL.—The Administrator shall rofit technology used by the eligible entity; allocation, an amount equal to 2 percent of establish a program under which the Admin- and the funds made available to carry out this istrator— (F) use diesel fuel with a sulfur content of section; or (A) informs stakeholders of the benefits of less than or equal to 15 parts per million, as (B) if fewer than 50 States qualifies for an eligible technologies; and the Administrator determines to be appro- allocation, an amount equal to the amount (B) develops nonfinancial incentives to priate. described in subparagraph (A), plus an addi- promote the use of eligible technologies.

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(2) ELIGIBLE STAKEHOLDERS.—Eligible Sec. 1513. Pass through to patrons of deduc- Sec. 1566. Treatment of deep-draft vessels. stakeholders under this section include— tion for capital costs incurred Sec. 1567. Reconciliation of on-loaded cargo (A) equipment owners and operators; by small refiner cooperatives in to entered cargo. (B) emission control technology manufac- complying with Environmental Sec. 1568. Taxation of gasoline blendstocks turers; Protection Agency sulfur regu- and kerosene. (C) engine and equipment manufacturers; lations . Sec. 1569. Nonapplication of export exemp- (D) State and local officials responsible for Sec. 1514. Modifications to enhanced oil re- tion to delivery of fuel to motor air quality management; covery credit. vehicles removed from United (E) community organizations; and Sec. 1515. Natural gas distribution lines States. (F) public health and environmental orga- treated as 15-year property. Sec. 1570. Penalty with respect to certain nizations. Subtitle C—Conservation and Energy adulterated fuels. (c) STATE IMPLEMENTATION PLANS.—The Efficiency Provisions Sec. 1571. Oil Spill Liability Trust Fund fi- Administrator shall develop appropriate Sec. 1521. Energy efficient commercial nancing rate. guidance to provide credit to a State for buildings deduction. Sec. 1572. Extension of Leaking Under- emission reductions in the State created by Sec. 1522. Credit for construction of new en- ground Storage Tank Trust the use of eligible technologies through a ergy efficient homes. Fund financing rate. State implementation plan under section 110 Sec. 1523. Deduction for business energy Subtitle A—Electricity Infrastructure of the Clean Air Act (42 U.S.C. 7410). property. SEC. 1501. EXTENSION AND MODIFICATION OF (d) INTERNATIONAL MARKETS.—The Admin- Sec. 1524. Credit for certain nonbusiness en- RENEWABLE ELECTRICITY PRODUC- istrator, in coordination with the Depart- ergy property. TION CREDIT. ment of Commerce and industry stake- Sec. 1525. Energy credit for combined heat (a) 3-YEAR EXTENSION FOR CERTAIN FACILI- holders, shall inform foreign countries with and power system property. TIES.—Section 45(d) (relating to qualified fa- air quality problems of the potential of tech- Sec. 1526. Credit for energy efficient appli- cilities) is amended— nology developed or used in the United ances. (1) by striking ‘‘January 1, 2006’’ each place States to provide emission reductions in Sec. 1527. Credit for residential energy effi- it appears in paragraphs (1), (2), (3), (5), (6), those countries. cient property. and (7) and inserting ‘‘January 1, 2009’’, and SEC. 746. EFFECT OF SUBTITLE. Sec. 1528. Credit for business installation of (2) by striking ‘‘January 1, 2006’’ in para- Nothing in this subtitle affects any author- qualified fuel cells and sta- graph (4) and inserting ‘‘January 1, 2009 (Jan- ity under the Clean Air Act (42 U.S.C. 7401 et tionary microturbine power uary 1, 2006, in the case of a facility using seq.) in existence on the day before the date plants. solar energy)’’. of enactment of this Act. Sec. 1529. Business solar investment tax (b) INCREASE IN CREDIT PERIOD.—Section SEC. 747. AUTHORIZATION OF APPROPRIATIONS. credit. 45(b)(4)(B) (relating to credit period) is There is authorized to be appropriated to Subtitle D—Alternative motor Vehicles and amended— carry out this subtitle $200,000,000 for each of Fuels Incentives (1) by inserting ‘‘or clause (iii)’’ after fiscal years 2006 through 2010, to remain Sec. 1531. Alternative motor vehicle credit. ‘‘clause (ii)’’ in clause (i), and available until expended. Sec. 1532. Modification of credit for qualified (2) by adding at the end the following: electric vehicles. ‘‘(iii) TERMINATION.—Clause (i) shall not SA 800. Mr. GRASSLEY (for himself Sec. 1533. Credit for installation of alter- apply to any facility placed in service after and Mr. BAUCUS) submitted an amend- native fueling stations. the date of the enactment of this clause.’’. ment intended to be proposed by him Sec. 1534. Volumetric excise tax credit for (c) EXPANSION OF QUALIFIED RESOURCES TO to the bill H.R. 6, Reserved; as follows: alternative fuels. INCLUDE FUEL CELLS.— Sec. 1535. Extension of excise tax provisions (1) IN GENERAL.—Section 45(c)(1) (defining At the end add the following: and income tax credit for bio- qualified energy resources) is amended by TITLE XV—ENERGY POLICY TAX diesel. striking ‘‘and’’ at the end of subparagraph INCENTIVES Subtitle E—Additional Energy Tax (F), by striking the period at the end of sub- SEC. 1500. SHORT TITLE; AMENDMENT OF 1986 Incentives paragraph (G) and inserting ‘‘, and’’, and by CODE; TABLE OF CONTENTS. Sec. 1541. Ten-year recovery period for un- adding at the end the following new subpara- (a) SHORT TITLE.—This title may be cited derground natural gas storage graph: as the ‘‘Energy Policy Tax Incentives Act of facility property. ‘‘(H) fuel cells.’’. 2005’’. Sec. 1542. Expansion of research credit. (2) FUEL CELL FACILITY.—Section 45(d) (re- (b) AMENDMENT OF 1986 CODE.—Except as Sec. 1543. Small agri-biodiesel producer lating to qualified facilities) is amended by otherwise expressly provided, whenever in credit. adding at the end the following new para- this title an amendment or repeal is ex- Sec. 1544. Improvements to small ethanol graph: pressed in terms of an amendment to, or re- producer credit. ‘‘(9) FUEL CELL FACILITY.—In the case of a peal of, a section or other provision, the ref- Sec. 1545. Credit for equipment for proc- facility using an integrated system com- erence shall be considered to be made to a essing or sorting materials prised of a fuel cell stack assembly and asso- section or other provision of the Internal gathered through recycling. ciated balance of plant components which Revenue Code of 1986. Sec. 1546. 5-year net operating loss carry- converts a fuel into electricity using electro- (c) TABLE OF CONTENTS.—The table of con- over if any resulting refund is chemical means, the term ‘qualified facility’ tents for this title is as follows: used for electric transmission means any facility owned by the taxpayer TITLE XV—ENERGY POLICY TAX equipment. which— INCENTIVES Sec. 1547. Credit for qualifying pollution ‘‘(A) is originally placed in service after control equipment. Sec. 1500. Short title; amendment of 1986 December 31, 2005, and before January 1, 2009, Sec. 1548. Credit for production of Indian Code; table of contents. ‘‘(B) has a nameplate capacity rating of at Country coal. least 0.5 megawatt of electricity, and Subtitle A—Electricity Infrastructure Sec. 1549. Credit for replacement wood ‘‘(C) has an electricity-only generation ef- Sec. 1501. Extension and modification of re- stoves meeting environmental ficiency greater than 30 percent.’’. newable electricity production standards in non-attainment (3) CONFORMING AMENDMENTS RELATING TO credit. areas. COORDINATION WITH ENERGY CREDIT.— Sec. 1502. Clean renewable energy bonds. Sec. 1550. Exemption for equipment for (A) IN GENERAL.—Section 45(e) (relating to Sec. 1503. Treatment of income of certain transporting bulk beds of farm definitions and special rules) is amended by electric cooperatives. crops from excise tax on retail adding at the end the following new para- Sec. 1504. Dispositions of transmission prop- sale of heavy trucks and trail- graph: erty to implement FERC re- ers. ‘‘(10) COORDINATION WITH ENERGY CREDIT.— structuring policy. Sec. 1551. National Academy of Sciences The term ‘qualified facility’ shall not in- Sec. 1505. Credit for production from ad- study and report. clude any property described in section vanced nuclear power facilities. Subtitle F—Revenue Raising Provisions 48(a)(3) the basis of which is taken into ac- Sec. 1506. Credit for investment in clean Sec. 1561. Treatment of kerosene for use in count by the taxpayer for purposes of deter- coal facilities. aviation. mining the energy credit under section 48.’’. Sec. 1507. Clean energy coal bonds. Sec. 1562. Repeal of ultimate vendor refund (B) CONFORMING AMENDMENT.—Section Subtitle B—Domestic Fossil Fuel Security claims with respect to farming. 45(d)(4) is amended by striking the last sen- Sec. 1511. Credit for investment in clean Sec. 1563. Refunds of excise taxes on exempt tence. coke/cogeneration manufac- sales of fuel by credit card. (d) EXPANSION OF QUALIFIED RESOURCES TO turing facilities. Sec. 1564. Additional requirement for ex- CERTAIN HYDROPOWER.— Sec. 1512. Temporary expensing for equip- empt purchases. (1) IN GENERAL.—Section 45(c)(1) (defining ment used in refining of liquid Sec. 1565. Reregistration in event of change qualified energy resources), as amended by fuels. in ownership. this Act, is amended by striking ‘‘and’’ at

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.066 S20PT1 S6838 CONGRESSIONAL RECORD — SENATE June 20, 2005 the end of subparagraph (G), by striking the placed in service after the date of the enact- ‘‘Subpart H—Nonrefundable Credit to period at the end of subparagraph (H) and in- ment of this paragraph and before January 1, Holders of Certain Bonds serting ‘‘, and’’, and by adding at the end the 2009, and ‘‘Sec. 54. Credit to holders of clean renew- following new subparagraph: ‘‘(B) any other facility placed in service able energy bonds. ‘‘(I) qualified hydropower production.’’. after the date of the enactment of this para- ‘‘SEC. 54. CREDIT TO HOLDERS OF CLEAN RENEW- (2) CREDIT RATE.—Section 45(b)(4)(A) (relat- graph and before January 1, 2009. ABLE ENERGY BONDS. ing to credit rate) is amended by striking ‘‘(C) CREDIT PERIOD.—In the case of a quali- ‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer ‘‘or (7)’’ and inserting ‘‘(7), or (10)’’. fied facility described in subparagraph (A), holds a clean renewable energy bond on 1 or (3) DEFINITION OF RESOURCES.—Section 45(c) the 10-year period referred to in subsection more credit allowance dates of the bond oc- (relating to qualified energy resources and (a) shall be treated as beginning on the date curring during any taxable year, there shall refined coal) is amended by adding at the end the efficiency improvements or additions to the following new paragraph: be allowed as a credit against the tax im- capacity are placed in service.’’. posed by this chapter for the taxable year an ‘‘(8) QUALIFIED HYDROPOWER PRODUCTION.— (e) TECHNICAL AMENDMENT RELATED TO amount equal to the sum of the credits de- ‘‘(A) IN GENERAL.—The term ‘qualified hy- dropower production’ means— TRASH COMBUSTION FACILITIES.—Section termined under subsection (b) with respect ‘‘(i) in the case of any hydroelectric dam 45(d)(7) (relating to trash combustion facili- to such dates. which was placed in service on or before the ties) is amended by adding at the end the fol- ‘‘(b) AMOUNT OF CREDIT.— date of the enactment of this paragraph, the lowing: ‘‘Such term shall include a new unit ‘‘(1) IN GENERAL.—The amount of the credit incremental hydropower production for the placed in service in connection with a facil- determined under this subsection with re- taxable year, and ity placed in service on or before the date of spect to any credit allowance date for a ‘‘(ii) in the case of any low-head hydro- the enactment of this paragraph, but only to clean renewable energy bond is 25 percent of electric facility or nonhydroelectric dam de- the extent of the increased amount of elec- the annual credit determined with respect to scribed in subparagraph (C), the hydropower tricity produced at the facility by reason of such bond. production from the facility for the taxable such new unit.’’. ‘‘(2) ANNUAL CREDIT.—The annual credit de- termined with respect to any clean renew- year. (f) ADDITIONAL TECHNICAL AMENDMENTS RE- able energy bond is the product of— ‘‘(B) DETERMINATION OF INCREMENTAL HY- LATED TO SECTION 710 OF THE AMERICAN JOBS ‘‘(A) the credit rate determined by the Sec- DROPOWER PRODUCTION.— CREATION ACT OF 2004.— ‘‘(i) IN GENERAL.—For purposes of subpara- (1) Clause (ii) of section 45(b)(4)(B) is retary under paragraph (3) for the day on graph (A), incremental hydropower produc- amended by striking ‘‘the date of the enact- which such bond was sold, multiplied by tion for any taxable year shall be equal to ment of this Act’’ and inserting ‘‘January 1, ‘‘(B) the outstanding face amount of the the percentage of average annual hydro- 2005,’’. bond. power production at the facility attributable (2) Clause (ii) of section 45(c)(3)(A) is ‘‘(3) DETERMINATION.—For purposes of para- to the efficiency improvements or additions amended by inserting ‘‘or any nonhazardous graph (2), with respect to any clean renew- of capacity placed in service after the date of lignin waste material’’ after ‘‘cellulosic able energy bond, the Secretary shall deter- the enactment of this paragraph, determined waste material’’. mine daily or cause to be determined daily a by using the same water flow information (3) Subsection (e) of section 45 is amended credit rate which shall apply to the first day used to determine an historic average annual by striking paragraph (6). on which there is a binding, written contract hydropower production baseline for such fa- (4)(A) Paragraph (9) of section 45(e) is for the sale or exchange of the bond. The cility. Such percentage and baseline shall be amended to read as follows: credit rate for any day is the credit rate which the Secretary or the Secretary’s des- certified by the Federal Energy Regulatory ‘‘(9) COORDINATION WITH CREDIT FOR PRO- ignee estimates will permit the issuance of Commission. DUCING FUEL FROM A NONCONVENTIONAL clean renewable energy bonds with a speci- ‘‘(ii) OPERATIONAL CHANGES DISREGARDED.— SOURCE.— fied maturity or redemption date without For purposes of clause (i), the determination ‘‘(A) IN GENERAL.—The term ‘qualified fa- of incremental hydropower production shall cility’ shall not include any facility which discount and without interest cost to the not be based on any operational changes at produces electricity from gas derived from qualified issuer. such facility not directly associated with the the biodegradation of municipal solid waste ‘‘(4) CREDIT ALLOWANCE DATE.—For pur- efficiency improvements or additions of ca- if such biodegradation occurred in a facility poses of this section, the term ‘credit allow- pacity. (within the meaning of section 29) the pro- ance date’ means— ‘‘(C) LOW-HEAD HYDROELECTRIC FACILITY OR duction from which is allowed as a credit ‘‘(A) March 15, NONHYDROELECTRIC DAM.—For purposes of under section 29 for the taxable year or any ‘‘(B) June 15, subparagraph (A), a facility is described in prior taxable year. ‘‘(C) September 15, and this subparagraph if— ‘‘(D) December 15. ‘‘(B) REFINED COAL FACILITIES.—The term ‘‘(i) the facility is licensed by the Federal ‘refined coal production facility’ shall not Such term also includes the last day on Energy Regulatory Commission and meets include any facility the production from which the bond is outstanding. all other applicable environmental, licens- which is allowed as a credit under section 29 ‘‘(5) SPECIAL RULE FOR ISSUANCE AND RE- ing, and regulatory requirements, for the taxable year or any prior taxable DEMPTION.—In the case of a bond which is ‘‘(ii) the facility did not produce hydro- year.’’. issued during the 3-month period ending on a electric power on the date of the enactment (B) Subparagraph (C) of section 45(e)(8) is credit allowance date, the amount of the of this paragraph, and amended by striking ‘‘and (9)’’. credit determined under this subsection with ‘‘(iii) turbines or other generating devices (5) Subclause (I) of section 168(e)(3)(B)(vi) respect to such credit allowance date shall are to be added to the facility after such date is amended to read as follows: be a ratable portion of the credit otherwise to produce hydroelectric power, but only if ‘‘(I) is described in subparagraph (A) of sec- determined based on the portion of the 3- the installation of the turbine or other gen- tion 48(a)(3) (or would be so described if month period during which the bond is out- erating device does not require any enlarge- ‘solar and wind’ were substituted for ‘solar’ standing. A similar rule shall apply when the ment of the diversion structure or the im- in clause (i) thereof and the last sentence of bond is redeemed or matures. poundment or any withholding of any addi- ‘‘(c) LIMITATION BASED ON AMOUNT OF such section did not apply to such subpara- tional water from the natural stream chan- TAX.—The credit allowed under subsection graph),’’. nel. (a) for any taxable year shall not exceed the (6) Paragraph (4) of section 710(g) of the ‘‘(D) LOW-HEAD HYDROELECTRIC FACILITY excess of— American Jobs Creation Act of 2004 is DEFINED.—For purposes of this paragraph, ‘‘(1) the sum of the regular tax liability (as amended by striking ‘‘January 1, 2004’’ and the term ‘low-head hydroelectric facility’ defined in section 26(b)) plus the tax imposed inserting ‘‘January 1, 2005’’. means a minor diversion structure which is by section 55, over less than 10 feet in height.’’. (g) EFFECTIVE DATES.— ‘‘(2) the sum of the credits allowable under (3) FACILITIES.—Section 45(d) (relating to (1) IN GENERAL.—Except as provided in this part (other than subpart C thereof (re- qualified facilities), as amended by this Act, paragraph (2), the amendments made by this lating to refundable credits) and this sub- is amended by adding at the end the fol- section shall take effect of the date of the part) and section 1397E. lowing new paragraph: enactment of this Act. ‘‘(d) CLEAN RENEWABLE ENERGY BOND.—For ‘‘(10) QUALIFIED HYDROPOWER FACILITY.—In (2) TECHNICAL AMENDMENTS.—The amend- purposes of this section— the case of a facility producing qualified hy- ments made by subsections (e) and (f) shall ‘‘(1) IN GENERAL.—The term ‘clean renew- droelectric production described in sub- take effect as if included in the amendments able energy bond’ means any bond issued as section (c)(8), the term ‘qualified facility’ made by section 710 of the American Jobs part of an issue if— means— Creation Act of 2004. ‘‘(A) the bond is issued by a qualified issuer ‘‘(A) in the case of any facility producing pursuant to an allocation by the Secretary SEC. 1502. CLEAN RENEWABLE ENERGY BONDS. incremental hydropower production, such fa- to such issuer of a portion of the national cility but only to the extent of its incre- (a) IN GENERAL.—Part IV of subchapter A clean renewable energy bond limitation mental hydropower production attributable of chapter 1 (relating to credits against tax) under subsection (f)(2), to efficiency improvements or additions to is amended by adding at the end the fol- ‘‘(B) 95 percent or more of the proceeds capacity described in subsection (c)(8)(B) lowing new subpart: from the sale of such issue are to be used for

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capital expenditures incurred by qualified ‘‘(1) NATIONAL LIMITATION.—There is a na- ‘‘(3) GOVERNMENTAL BODY.—The term ‘gov- borrowers for 1 or more qualified projects, tional clean renewable energy bond limita- ernmental body’ means any State, territory, ‘‘(C) the qualified issuer designates such tion of $1,000,000,000. possession of the United States, the District bond for purposes of this section and the ‘‘(2) ALLOCATION BY SECRETARY.—The Sec- of Columbia, Indian tribal government, and bond is in registered form, and retary shall allocate the amount described in any political subdivision thereof. ‘‘(D) the issue meets the requirements of paragraph (1) among qualified projects in ‘‘(4) QUALIFIED ISSUER.—The term ‘quali- subsection (h). such manner as the Secretary determines ap- fied issuer’ means— ‘‘(2) QUALIFIED PROJECT; SPECIAL USE propriate. ‘‘(A) a clean renewable energy bond lender, RULES.— ‘‘(g) CREDIT INCLUDED IN GROSS INCOME.— ‘‘(B) a cooperative electric company, ‘‘(A) IN GENERAL.—The term ‘qualified Gross income includes the amount of the ‘‘(C) a governmental body, or project’ means any qualified facility (as de- credit allowed to the taxpayer under this ‘‘(D) the Tennessee Valley Authority. termined under section 45(d) without regard section (determined without regard to sub- ‘‘(5) QUALIFIED BORROWER.—The term to any placed in service date) owned by a section (c)) and the amount so included shall ‘qualified borrower’ means— qualified borrower. be treated as interest income. ‘‘(A) a mutual or cooperative electric com- ‘‘(B) REFINANCING RULES.—For purposes of ‘‘(h) SPECIAL RULES RELATING TO EXPENDI- pany described in section 501(c)(12) or paragraph (1)(B), a qualified project may be TURES.— 1381(a)(2)(C), refinanced with proceeds of a clean renew- ‘‘(1) IN GENERAL.—An issue shall be treated ‘‘(B) a governmental body, or able energy bond only if the indebtedness as meeting the requirements of this sub- ‘‘(C) the Tennessee Valley Authority. being refinanced (including any obligation section if, as of the date of issuance, the ‘‘(k) SPECIAL RULES RELATING TO POOL directly or indirectly refinanced by such in- qualified issuer reasonably expects— BONDS.—No portion of a pooled financing debtedness) was originally incurred by a ‘‘(A) at least 95 percent of the proceeds bond may be allocable to any loan unless the qualified borrower after the date of the en- from the sale of the issue are to be spent for borrower has entered into a written loan actment of this section. 1 or more qualified projects within the 5-year commitment for such portion prior to the ‘‘(C) REIMBURSEMENT.—For purposes of period beginning on the date of issuance of issue date of such issue. ‘‘(l) OTHER DEFINITIONS AND SPECIAL paragraph (1)(B), a clean renewable energy the clean energy bond, bond may be issued to reimburse a qualified RULES.—For purposes of this section— ‘‘(B) a binding commitment with a third borrower for amounts paid after the date of ‘‘(1) BOND.—The term ‘bond’ includes any party to spend at least 10 percent of the pro- the enactment of this section with respect to obligation. ceeds from the sale of the issue will be in- a qualified project, but only if— ‘‘(2) POOLED FINANCING BOND.—The term curred within the 6-month period beginning ‘‘(i) prior to the payment of the original ‘pooled financing bond’ shall have the mean- on the date of issuance of the clean energy expenditure, the qualified borrower declared ing given such term by section 149(f)(4)(A). bond or, in the case of a clean energy bond its intent to reimburse such expenditure ‘‘(3) PARTNERSHIP; S CORPORATION; AND the proceeds of which are to be loaned to 2 or with the proceeds of a clean renewable en- OTHER PASS-THRU ENTITIES.— more qualified borrowers, such binding com- ergy bond, ‘‘(A) IN GENERAL.—Under regulations pre- mitment will be incurred within the 6-month ‘‘(ii) not later than 60 days after payment scribed by the Secretary, in the case of a period beginning on the date of the loan of of the original expenditure, the qualified partnership, trust, S corporation, or other such proceeds to a qualified borrower, and issuer adopts an official intent to reimburse pass-thru entity, rules similar to the rules of ‘‘(C) such projects will be completed with the original expenditure with such proceeds, section 41(g) shall apply with respect to the due diligence and the proceeds from the sale and credit allowable under subsection (a). of the issue will be spent with due diligence. ‘‘(iii) the reimbursement is made not later ‘‘(B) NO BASIS ADJUSTMENT.—Rules similar ‘‘(2) EXTENSION OF PERIOD.—Upon submis- than 18 months after the date the original to the rules under section 1397E(i)(2) shall sion of a request prior to the expiration of expenditure is paid. apply. the period described in paragraph (1)(A), the ‘‘(D) TREATMENT OF CHANGES IN USE.—For ‘‘(4) BONDS HELD BY REGULATED INVESTMENT Secretary may extend such period if the purposes of paragraph (1)(B), the proceeds of COMPANIES.—If any clean renewable energy qualified issuer establishes that the failure an issue shall not be treated as used for a bond is held by a regulated investment com- to satisfy the 5-year requirement is due to qualified project to the extent that a quali- pany, the credit determined under subsection reasonable cause and the related projects fied borrower takes any action within its (a) shall be allowed to shareholders of such will continue to proceed with due diligence. control which causes such proceeds not to be company under procedures prescribed by the ‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT OF used for a qualified project. The Secretary Secretary. BOND PROCEEDS WITHIN 5 YEARS.—To the ex- shall prescribe regulations specifying reme- ‘‘(5) TREATMENT FOR ESTIMATED TAX PUR- tent that less than 95 percent of the proceeds dial actions that may be taken (including POSES.—Solely for purposes of sections 6654 of such issue are expended by the close of the conditions to taking such remedial actions) and 6655, the credit allowed by this section 5-year period beginning on the date of to prevent an action described in the pre- to a taxpayer by reason of holding a clean re- issuance (or if an extension has been ob- ceding sentence from causing a bond to fail newable energy bond on a credit allowance tained under paragraph (2), by the close of to be a clean renewable energy bond. date shall be treated as if it were a payment the extended period), the qualified issuer ‘‘(e) MATURITY LIMITATIONS.— of estimated tax made by the taxpayer on shall redeem all of the nonqualified bonds ‘‘(1) DURATION OF TERM.—A bond shall not such date. within 90 days after the end of such period. be treated as a clean renewable energy bond ‘‘(6) REPORTING.—Issuers of clean renew- For purposes of this paragraph, the amount if the maturity of such bond exceeds the able energy bonds shall submit reports simi- of the nonqualified bonds required to be re- maximum term determined by the Secretary lar to the reports required under section deemed shall be determined in the same under paragraph (2) with respect to such 149(e). bond. manner as under section 142. ‘‘(m) TERMINATION.—This section shall not ‘‘(2) MAXIMUM TERM.—During each calendar ‘‘(i) SPECIAL RULES RELATING TO ARBI- apply with respect to any bond issued after month, the Secretary shall determine the TRAGE.—A bond which is part of an issue December 31, 2008.’’. maximum term permitted under this para- shall not be treated as a clean renewable en- (b) REPORTING.—Subsection (d) of section graph for bonds issued during the following ergy bond unless, with respect to the issue of 6049 (relating to returns regarding payments calendar month. Such maximum term shall which the bond is a part, the qualified issuer of interest) is amended by adding at the end be the term which the Secretary estimates satisfies the arbitrage requirements of sec- the following new paragraph: will result in the present value of the obliga- tion 148 with respect to proceeds of the issue. ‘‘(8) REPORTING OF CREDIT ON CLEAN RENEW- tion to repay the principal on the bond being ‘‘(j) COOPERATIVE ELECTRIC COMPANY; ABLE ENERGY BONDS.— equal to 50 percent of the face amount of QUALIFIED ENERGY TAX CREDIT BOND LENDER; ‘‘(A) IN GENERAL.—For purposes of sub- such bond. Such present value shall be deter- GOVERNMENTAL BODY; QUALIFIED BOR- section (a), the term ‘interest’ includes mined using as a discount rate the average ROWER.—For purposes of this section— amounts includible in gross income under annual interest rate of tax of tax-exempt ob- ‘‘(1) COOPERATIVE ELECTRIC COMPANY.—The section 54(g) and such amounts shall be ligations having a term of 10 years or more term ‘cooperative electric company’ means a treated as paid on the credit allowance date which are issued during the month. If the mutual or cooperative electric company de- (as defined in section 54(b)(4)). term as so determined is not a multiple of a scribed in section 501(c)(12) or section ‘‘(B) REPORTING TO CORPORATIONS, ETC.— whole year, such term shall be rounded to 1381(a)(2)(C), or a not-for-profit electric util- Except as otherwise provided in regulations, the next highest whole year. ity which has received a loan or loan guar- in the case of any interest described in sub- ‘‘(3) RATABLE PRINCIPAL AMORTIZATION RE- antee under the Rural Electrification Act. paragraph (A), subsection (b)(4) shall be ap- QUIRED.—A bond shall not be treated as a ‘‘(2) CLEAN RENEWABLE ENERGY BOND LEND- plied without regard to subparagraphs (A), clean renewable energy bond unless it is part ER.—The term ‘clean renewable energy bond (H), (I), (J), (K), and (L)(i) of such subsection. of an issue which provides for an equal lender’ means a lender which is a cooperative ‘‘(C) REGULATORY AUTHORITY.—The Sec- amount of principal to be paid by the quali- which is owned by, or has outstanding loans retary may prescribe such regulations as are fied issuer during each calendar year that to, 100 or more cooperative electric compa- necessary or appropriate to carry out the the issue is outstanding. nies and is in existence on February 1, 2002, purposes of this paragraph, including regula- ‘‘(f) LIMITATION ON AMOUNT OF BONDS DES- and shall include any affiliated entity which tions which require more frequent or more IGNATED.— is controlled by such lender. detailed reporting.’’.

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(c) CONFORMING AMENDMENTS.— ‘‘(B) the total megawatt nameplate capac- ‘‘(4) the qualifying gasification project (1) The table of subparts for part IV of sub- ity of such facility. credit.’’. chapter A of chapter 1 is amended by adding ‘‘(2) AMOUNT OF NATIONAL LIMITATION.—The (b) AMOUNT OF CREDITS.—Subpart E of part at the end the following new item: national megawatt capacity limitation shall IV of subchapter A of chapter 1 (relating to rules for computing investment credit) is ‘‘SUBPART H. NONREFUNDABLE CREDIT TO be 6,000 megawatts. amended by inserting after section 48 the fol- HOLDERS OF CERTAIN BONDS.’’. ‘‘(3) ALLOCATION OF LIMITATION.—The Sec- retary shall allocate the national megawatt lowing new sections: (2) Section 1397E(c)(2) is amended by in- capacity limitation in such manner as the ‘‘SEC. 48A. QUALIFYING ADVANCED COAL serting ‘‘and H’’ after ‘‘subpart C’’. Secretary may prescribe. PROJECT CREDIT. (3) Section 6401(b)(1) is amended by strik- ‘‘(4) REGULATIONS.—Not later than 6 ‘‘(a) IN GENERAL.—For purposes of section ing ‘‘and G’’ and inserting ‘‘G, and H’’. months after the date of the enactment of 46, the qualifying advanced coal project cred- (d) ISSUANCE OF REGULATIONS.—The Sec- this section, the Secretary shall prescribe it for any taxable year is an amount equal to retary of Treasury shall issue regulations re- such regulations as may be necessary or ap- 20 percent of the qualified investment for quired under section 54 of the Internal Rev- propriate to carry out the purposes of this such taxable year. enue Code of 1986 (as added by this section) ‘‘(b) QUALIFIED INVESTMENT.— subsection. Such regulations shall provide a not later than 120 days after the date of the ‘‘(1) IN GENERAL.—For purposes of sub- certification process under which the Sec- enactment of this Act. section (a), the qualified investment for any retary, after consultation with the Secretary (e) EFFECTIVE DATE.—The amendments taxable year is the basis of property placed of Energy, shall approve and allocate the na- made by this section shall apply to bonds in service by the taxpayer during such tax- tional megawatt capacity limitation. issued after December 31, 2005. able year which is part of a qualifying ad- ‘‘(c) OTHER LIMITATIONS.— SEC. 1503. TREATMENT OF INCOME OF CERTAIN vanced coal project— ‘‘(1) ANNUAL LIMITATION.—The amount of ELECTRIC COOPERATIVES. ‘‘(A)(i) the construction, reconstruction, or (a) ELIMINATION OF SUNSET ON TREATMENT the credit allowable under subsection (a) (after the application of subsection (b)) for erection of which is completed by the tax- OF INCOME FROM OPEN ACCESS AND NUCLEAR payer, or DECOMMISSIONING TRANSACTIONS.—Section any taxable year with respect to any facility shall not exceed an amount which bears the ‘‘(ii) which is acquired by the taxpayer if 501(c)(12)(C) is amended by striking the last the original use of such property commences sentence. same ratio to $125,000,000 as— ‘‘(A) the national megawatt capacity limi- with the taxpayer, and (b) ELIMINATION OF SUNSET ON TREATMENT ‘‘(B) with respect to which depreciation (or OF INCOME FROM LOAD LOSS TRANSACTIONS.— tation allocated under subsection (b) to the facility, bears to amortization in lieu of depreciation) is al- Section 501(c)(12)(H) is amended by striking lowable. clause (x). ‘‘(B) 1,000. ‘‘(2) APPLICABLE RULES.—For purposes of (c) EFFECTIVE DATE.—The amendments ‘‘(2) OTHER LIMITATIONS.—Rules similar to this section, rules similar to the rules of sub- made by this section shall take effect on the the rules of section 45(b)(1) shall apply for section (a)(4) and (b) of section 48 shall date of the enactment of this Act. purposes of this section. apply. SEC. 1504. DISPOSITIONS OF TRANSMISSION ‘‘(d) ADVANCED NUCLEAR POWER FACILITY.— ‘‘(c) DEFINITIONS.—For purposes of this sec- For purposes of this section— PROPERTY TO IMPLEMENT FERC RE- tion— STRUCTURING POLICY. ‘‘(1) IN GENERAL.—The term ‘advanced nu- ‘‘(1) QUALIFYING ADVANCED COAL PROJECT.— (a) IN GENERAL.—Section 451(i)(3) (defining clear power facility’ means any advanced nu- The term ‘qualifying advanced coal project’ qualifying electric transmission transaction) clear facility— means a project which meets the require- is amended by striking ‘‘2007’’ and inserting ‘‘(A) which is owned by the taxpayer and ments of subsection (e). ‘‘2008’’. which uses nuclear energy to produce elec- ‘‘(2) ADVANCED COAL-BASED GENERATION (b) TECHNICAL AMENDMENT RELATED TO tricity, and TECHNOLOGY.—The term ‘advanced coal-based SECTION 909 OF THE AMERICAN JOBS CREATION ‘‘(B) which is placed in service after the generation technology’ means a technology ACT OF 2004.—Clause (ii) of section 451(i)(4)(B) date of the enactment of this paragraph and which meets the requirements of subsection is amended by striking ‘‘the close of the pe- before January 1, 2021. (g). riod applicable under subsection (a)(2)(B) as ‘‘(2) ADVANCED NUCLEAR FACILITY.—For ‘‘(3) COAL.—The term ‘coal’ means any car- extended under paragraph (2)’’ and inserting purposes of paragraph (1), the term ‘ad- bonized or semicarbonized matter, including ‘‘December 31, 2007’’. vanced nuclear facility’ means any nuclear peat. (c) EFFECTIVE DATES.— facility the reactor design for which is ap- ‘‘(4) GREENHOUSE GAS CAPTURE CAPA- (1) IN GENERAL.—The amendment made by proved after December 31, 1993, by the Nu- BILITY.—The term ‘greenhouse gas capture subsection (a) shall apply to transactions oc- clear Regulatory Commission (and such de- capability’ means an integrated gasification curring after the date of the enactment of sign or a substantially similar design of com- combined cycle technology facility capable this Act. parable capacity was not approved on or be- of adding components which can capture, (2) TECHNICAL AMENDMENT.—The amend- fore such date). separate on a long-term basis, isolate, re- ment made by subsection (b) shall take ef- ‘‘(e) OTHER RULES TO APPLY.—Rules simi- fect as if included in the amendments made lar to the rules of paragraphs (1), (2), (3), (4), move, and sequester greenhouse gases which by section 909 of the American Jobs Creation and (5) of section 45(e) shall apply for pur- result from the generation of electricity. LECTRIC GENERATION UNIT.—The term Act of 2004. poses of this section.’’ ‘‘(5) E ‘electric generation unit’ means any facility SEC. 1505. CREDIT FOR PRODUCTION FROM AD- (b) CREDIT TREATED AS BUSINESS CREDIT.— VANCED NUCLEAR POWER FACILI- Section 38(b) is amended by striking ‘‘plus’’ at least 50 percent of the total annual net TIES. at the end of paragraph (18), by striking the output of which is electrical power, includ- (a) IN GENERAL.—Subpart D of part IV of period at the end of paragraph (19) and in- ing an otherwise eligible facility which is subchapter A of chapter 1 (relating to busi- serting ‘‘, plus’’, and by adding at the end the used in an industrial application. ness related credits) is amended by adding following: ‘‘(6) INTEGRATED GASIFICATION COMBINED after section 45I the following new section: ‘‘(20) the advanced nuclear power facility CYCLE.—The term ‘integrated gasification ‘‘SEC. 45J. CREDIT FOR PRODUCTION FROM AD- production credit determined under section combined cycle’ means an electric genera- VANCED NUCLEAR POWER FACILI- tion unit which produces electricity by con- TIES. 45J(a).’’. (c) CLERICAL AMENDMENT.—The table of verting coal to synthesis gas which is used to ‘‘(a) GENERAL RULE.—For purposes of sec- sections for subpart D of part IV of sub- fuel a combined-cycle plant which produces tion 38, the advanced nuclear power facility chapter A of chapter 1 is amended by adding electricity from both a combustion turbine production credit of any taxpayer for any at the end the following: (including a combustion turbine/fuel cell hy- taxable year is equal to the product of— brid) and a steam turbine. ‘‘(1) 1.8 cents, multiplied by ‘‘Sec. 45J. Credit for production from ad- ‘‘(d) QUALIFYING ADVANCED COAL PROJECT ‘‘(2) the kilowatt hours of electricity— vanced nuclear power facili- PROGRAM.— ‘‘(A) produced by the taxpayer at an ad- ties.’’. ‘‘(1) ESTABLISHMENT.—Not later than 180 vanced nuclear power facility during the 8- (d) EFFECTIVE DATE.—The amendments days after the date of enactment of this sec- year period beginning on the date the facil- made by this section shall apply to produc- tion, the Secretary, in consultation with the ity was originally placed in service, and tion in taxable years beginning after the Secretary of Energy, shall establish a quali- ‘‘(B) sold by the taxpayer to an unrelated date of the enactment of this Act. fying advanced coal project program for the person during the taxable year. SEC. 1506. CREDIT FOR INVESTMENT IN CLEAN deployment of advanced coal-based genera- ‘‘(b) NATIONAL LIMITATION.— COAL FACILITIES. tion technologies. ‘‘(1) IN GENERAL.—The amount of credit (a) IN GENERAL.—Section 46 (relating to ‘‘(2) CERTIFICATION.— which would (but for this subsection and sub- amount of credit) is amended by striking ‘‘(A) IN GENERAL.—The Secretary may cer- section (c)) be allowed with respect to any ‘‘and’’ at the end of paragraph (1), by strik- tify a qualifying advanced coal project as eli- facility for any taxable year shall not exceed ing the period at the end of paragraph (2), gible for a credit under this section. the amount which bears the same ratio to and by adding at the end the following new ‘‘(B) PERIOD OF ISSUANCE.—A certificate of such amount of credit as— paragraphs: eligibility under this paragraph may be ‘‘(A) the national megawatt capacity limi- ‘‘(3) the qualifying advanced coal project issued only during the 10-fiscal year period tation allocated to the facility, bears to credit, and beginning on October 1, 2005.

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‘‘(3) AGGREGATE GENERATING CAPACITY.— ‘‘(IV) any performance guarantees to be ‘‘(B) the vendor warrants that the unit is ‘‘(A) IN GENERAL.—The aggregate gener- provided by contractors and equipment ven- designed to meet the performance require- ating capacity of projects certified by the dors, and ments in the following table: Secretary under paragraph (2) may not ex- ‘‘(V) evidence of the availability of funds ceed 7,500 megawatts. to develop and construct the project, ‘‘(B) PARTICULAR PROJECTS.—Of the total ‘‘(D) the applicant demonstrates that the megawatts of capacity which the Secretary applicant has obtained— Performance char- Design level for is authorized to certify— ‘‘(i) approval by the appropriate regulatory acteristic: project: ‘‘(i) 4,125 megawatts shall be available only commission of the recovery of the cost of the SO2 (percent re- 99 percent for use for integrated gasification combined project, or moval). cycle projects, and ‘‘(ii) a power purchase agreement (or letter NOx (emissions) ..... 0.07 lbs/MMBTU ‘‘(ii) 3,375 megawatts shall be available of intent, subject to paragraph (3)) which has PM* (emissions) .... 0.015 lbs/MMBTU only for use for projects which use other ad- been approved by the board of directors of, Hg (percent re- 90 percent vanced coal-based generation technologies. and executed by, a creditworthy purchasing moval). ‘‘(C) DETERMINATION OF CAPACITY.—In de- party, ‘‘(2) DESIGN NET HEAT RATE.—For purposes termining capacity under this paragraph in ‘‘(E) except as provided in subsection (f)(2), of this subsection, design net heat rate with the case of a retrofitted or repowered plant, the applicant demonstrates that the appli- respect to an electric generation unit shall— capacity shall be determined based on total cant has, or will, obtain all project agree- ‘‘(A) be measured in Btu per kilowatt hour design capacity after the retrofit or ments and approvals, and (higher heating value), repowering of the existing facility is accom- ‘‘(F) the project will be located in the ‘‘(B) be based on the design annual heat plished. United States. input to the unit and the rated net electrical ‘‘(4) APPLICATIONS.—The Secretary shall ‘‘(2) PRIORITY FOR INTEGRATED GASIFICATION power, fuels, and chemicals output of the act on applications for certification as the COMBINED CYCLE PROJECTS.—In determining unit (determined without regard to the co- applications are received. which qualifying advanced coal projects to generation of steam by the unit), ‘‘(5) DETERMINATION.—In determining certify under subsection (d)(3)(B)(i), the Sec- ‘‘(C) be adjusted for the heat content of the whether to certify a qualifying advanced retary shall— design coal to be used by the unit— coal project, the Secretary shall take into ‘‘(A) certify capacity to— ‘‘(i) if the heat content is less than 13,500 account any written statement from the ‘‘(i) projects using bituminous coal as a Btu per pound, but greater than 7,000 Btu per Governor of the State in which the project is primary feedstock, pound, according to the following formula: to be sited that the construction and oper- ‘‘(ii) projects using subbituminous coal as design net heat rate = unit net heat rate x ation of the project is consistent with State a primary feedstock, and [1–{((13,500-design coal heat content, Btu per environmental and energy policy and re- ‘‘(iii) projects using lignite as a primary pound)/1,000)* 0.013}], and quirements. feedstock, and ‘‘(ii) if the heat content is less than or ‘‘(6) REVIEW AND REDISTRIBUTION.— ‘‘(B) give high priority to projects which equal to 7,000 Btu per pound, according to ‘‘(A) REVIEW.—Not later than 6 years after include, as determined by the Secretary— the following formula: design net heat rate = the date of enactment of this section, the ‘‘(i) greenhouse gas capture capability, unit net heat rate x [1–{((13,500-design coal Secretary shall review the projects certified ‘‘(ii) increased by-product utilization, and heat content, Btu per pound)/1,000)* 0.018}], and megawatts allocated under this section ‘‘(iii) other benefits. and as of the date which is 6 years after the date ‘‘(3) LETTER OF INTENT.—A letter of intent ‘‘(D) be corrected for the site reference of enactment of this section. described in paragraph (1)(D)(ii) shall be re- conditions of— ‘‘(B) REDISTRIBUTION.—The Secretary may placed by a binding contract before a certifi- ‘‘(i) elevation above sea level of 500 feet, reallocate the megawatts available under cate may be issued. clauses (i) and (ii) of paragraph (3)(B) if the ‘‘(ii) air pressure of 14.4 pounds per square Secretary determines that— ‘‘(f) PROJECT AGREEMENTS AND APPROV- inch absolute, ‘‘(i) capacity cannot be used because there ALS.— ‘‘(iii) temperature, dry bulb of 63/o/F, is an insufficient quantity of qualifying ap- ‘‘(1) DEFINITION OF PROJECT AGREEMENTS ‘‘(iv) temperature, wet bulb of 54/o/F, and plications for certification pending for any AND APPROVALS.—For purposes of this sub- ‘‘(v) relative humidity of 55 percent. available capacity at the time of the review, section, the term ‘project agreements and (3) EXISTING UNITS.—In the case of any or approvals’ means— electric generation unit in existence on the ‘‘(ii) any certification commitment made ‘‘(A) all necessary power purchase agree- date of the enactment of this section, such pursuant to subsection (e)(4)(B) has not been ments, and all other contracts, which the unit uses advanced coal-based generation revoked pursuant to subsection (f)(2)(B)(ii) Secretary determines are necessary to con- technology if, in lieu of the requirements because the project subject to the certifi- struct, finance, and operate a project, and under paragraph (1)(A)(ii), such unit achieves cation commitment has been delayed as a re- ‘‘(B) all authorizations by Federal, State, a minimum efficiency of 35 percent and an sult of third party opposition or litigation to and local agencies which are required to con- overall thermal design efficiency improve- the proposed project. struct, operate, and recover the cost of the ment, compared to the efficiency of the unit project. as operated, of not less than— ‘‘(e) QUALIFYING ADVANCED COAL ‘‘(2) CERTIFICATION COMMITMENT.— (A) 7 percentage points for coal of more PROJECTS.— ‘‘(A) IN GENERAL.—If the applicant has not than 9,000 Btu, ‘‘(1) REQUIREMENTS.—For purposes of sub- obtained all agreements and approvals prior (B) 6 percentage points for coal of 7,000 to section (c)(1), a project shall be considered a to application, the Secretary may issue a 9,000 Btu, or qualifying advanced coal project that the certification commitment. (C) 4 percentage points for coal of less than Secretary may certify under subsection ‘‘(B) REQUIREMENTS.— 7,000 Btu. (d)(2) if the Secretary determines that, at a ‘‘(i) IN GENERAL.—An applicant which re- minimum— ceives a certification commitment shall ob- ‘‘SEC. 48B. QUALIFYING GASIFICATION PROJECT ‘‘(A) the project uses an advanced coal- CREDIT. tain any remaining project agreements and based generation technology— approvals not later than 4 years after the ‘‘(a) IN GENERAL.—For purposes of section ‘‘(i) to power a new electric generation or issuance of the certification commitment. 46, the qualifying gasification project credit polygeneration unit, or ‘‘(ii) REVOCATION.—If all project agree- for any taxable year is an amount equal to 20 ‘‘(ii) to retrofit or repower an existing elec- ments and approvals are not obtained during percent of the qualified investment for such tric generation unit (including an existing the 4-year period described in clause (i), the natural gas-fired combined cycle unit), taxable year. certification commitment is terminated ‘‘(B) the fuel input for the project, when ‘‘(b) QUALIFIED INVESTMENT.— without any other action by the Secretary. completed, is at least 75 percent coal, ‘‘(1) IN GENERAL.—For purposes of sub- ‘‘(iii) FINAL CERTIFICATE.—No certificate ‘‘(C) the applicant provides an assurance section (a), the qualified investment for any may be issued until all project agreements satisfactory to the Secretary that— taxable year is the basis of property placed and approvals are obtained. ‘‘(i) the project is technologically feasible, in service by the taxpayer during such tax- and ‘‘(g) ADVANCED COAL-BASED GENERATION able year which is part of a qualifying gasifi- ‘‘(ii) the project is not financially feasible TECHNOLOGY.— cation project— without the Federal financial incentives, ‘‘(1) IN GENERAL.—For the purpose of this ‘‘(A)(i) the construction, reconstruction, or after taking into account— section, an electric generation unit uses ad- erection of which is completed by the tax- ‘‘(I) regulatory approvals or power pur- vanced coal-based generation technology if— payer, or chase contracts referred to in subparagraph ‘‘(A) the unit— ‘‘(ii) which is acquired by the taxpayer if (D), ‘‘(i) uses integrated gasification combined the original use of such property commences ‘‘(II) arrangements for the supply of fuel to cycle technology, or with the taxpayer, and the project, ‘‘(ii) except as provided in paragraph (3), ‘‘(B) with respect to which depreciation (or ‘‘(III) contracts or other arrangements for has a design net heat rate of 8530 Btu/kWh (40 amortization in lieu of depreciation) is al- construction of the project facilities, percent efficiency), and lowable.

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‘‘(2) APPLICABLE RULES.—For purposes of award for qualified investment for credit eli- ‘‘(B) the outstanding face amount of the this section, rules similar to the rules of sub- gibility under this section unless the recipi- bond. section (a)(4) and (b) of section 48 shall ent has documented to the satisfaction of ‘‘(3) DETERMINATION.—For purposes of para- apply. the Secretary that— graph (2), with respect to any clean energy ‘‘(c) DEFINITIONS.—For purposes of this sec- ‘‘(A) the award recipient is financially via- coal bond, the Secretary shall determine tion— ble without the receipt of additional Federal daily or cause to be determined daily a cred- ‘‘(1) QUALIFYING GASIFICATION PROJECT.— funding associated with the proposed project, it rate which shall apply to the first day on The term ‘qualifying gasification project’ ‘‘(B) the recipient will provide sufficient which there is a binding, written contract means any project which— information to the Secretary for the Sec- for the sale or exchange of the bond. The ‘‘(A) employs gasification technology, retary to ensure that the qualified invest- credit rate for any day is the credit rate ‘‘(B) will be carried out by an eligible enti- ment is spent efficiently and effectively, which the Secretary or the Secretary’s des- ty, and ‘‘(C) a market exists for the products of the ignee estimates will permit the issuance of ‘‘(C) any portion of the qualified invest- proposed project as evidenced by contracts clean energy coal bonds with a specified ma- ment in which is certified under the quali- or written statements of intent from poten- turity or redemption date without discount fying gasification program as eligible for tial customers, and without interest cost to the qualified credit under this section in an amount (not ‘‘(D) the fuels identified with respect to the issuer. to exceed $1,000,000,000) determined by the gasification technology for such project will ‘‘(4) CREDIT ALLOWANCE DATE.—For pur- Secretary. comprise at least 90 percent of the fuels re- poses of this section, the term ‘credit allow- ‘‘(2) GASIFICATION TECHNOLOGY.—The term quired by the project for the production of ance date’ means— ‘gasification technology’ means any process chemical feedstocks, liquid transportation ‘‘(A) March 15, which converts a solid or liquid product from fuels, or coproduction of electricity, ‘‘(B) June 15, coal, petroleum residue, biomass, or other ‘‘(E) the award recipient’s project team is ‘‘(C) September 15, and materials which are recovered for their en- competent in the construction and operation ‘‘(D) December 15. ergy or feedstock value into a synthesis gas of the gasification technology proposed, with Such term also includes the last day on composed primarily of carbon monoxide and preference given to those recipients with ex- which the bond is outstanding. hydrogen for direct use or subsequent chem- perience which demonstrates successful and ‘‘(5) SPECIAL RULE FOR ISSUANCE AND RE- ical or physical conversion. reliable operations of the technology on do- DEMPTION.—In the case of a bond which is IOMASS.— ‘‘(3) B mestic fuels so identified, and issued during the 3-month period ending on a ‘‘(A) IN GENERAL.—The term ‘biomass’ ‘‘(F) the award recipient has met other cri- credit allowance date, the amount of the means any— teria established and published by the Sec- credit determined under this subsection with ‘‘(i) agricultural or plant waste, retary.’’. respect to such credit allowance date shall ‘‘(ii) byproduct of wood or paper mill oper- (c) CONFORMING AMENDMENTS.— be a ratable portion of the credit otherwise ations, including lignin in spent pulping liq- (1) Section 49(a)(1)(C) is amended by strik- determined based on the portion of the 3- uors, and ing ‘‘and’’ at the end of clause (ii), by strik- month period during which the bond is out- ‘‘(iii) other products of forestry mainte- ing clause (iii), and by adding after clause standing. A similar rule shall apply when the nance. (ii) the following new clauses: bond is redeemed or matures. ‘‘(B) EXCLUSION.—The term ‘biomass’ does ‘‘(iii) the basis of any property which is ‘‘(c) LIMITATION BASED ON AMOUNT OF not include paper which is commonly recy- part of a qualifying advanced coal project TAX.—The credit allowed under subsection cled. under section 48A, and (a) for any taxable year shall not exceed the ‘‘(4) CARBON CAPTURE CAPABILITY.—The ‘‘(iv) the basis of any property which is excess of— term ‘carbon capture capability’ means a part of a qualifying gasification project ‘‘(1) the sum of the regular tax liability (as gasification plant design which is deter- under section 48B.’’. defined in section 26(b)) plus the tax imposed mined by the Secretary to reflect reasonable (2) The table of sections for subpart E of by section 55, over consideration for, and be capable of, accom- part IV of subchapter A of chapter 1 is ‘‘(2) the sum of the credits allowable under modating the equipment likely to be nec- amended by inserting after the item relating this part (other than subpart C thereof (re- essary to capture carbon dioxide from the to section 48 the following new items: gaseous stream, for later use or sequestra- lating to refundable credits) and this sec- ‘‘48A. Qualifying advanced coal project cred- tion) and section 1397E. tion, which would otherwise be emitted in it. ‘‘(d) CLEAN ENERGY COAL BOND.—For pur- the flue gas from a project which uses a non- ‘‘48B. Qualifying gasification project cred- poses of this section— renewable fuel. it.’’. ‘‘(5) COAL.—The term ‘coal’ means any car- ‘‘(1) IN GENERAL.—The term ‘clean energy (e) EFFECTIVE DATE.—The amendments bonized or semicarbonized matter, including coal bond’ means any bond issued as part of made by this section shall apply to periods an issue if— peat. after the date of the enactment of this Act, ‘‘(A) the bond is issued by a qualified issuer ‘‘(6) ELIGIBLE ENTITY.—The term ‘eligible under rules similar to the rules of section pursuant to an allocation by the Secretary entity’ means any person whose application 48(m) of the Internal Revenue Code of 1986 to such issuer of a portion of the national for certification is principally intended for (as in effect on the day before the date of the clean energy coal bond limitation under sub- use in a domestic project which employs do- enactment of the Revenue Reconciliation mestic gasification applications related to— Act of 1990). section (f)(2), ‘‘(B) 95 percent or more of the proceeds ‘‘(A) chemicals, SEC. 1507. CLEAN ENERGY COAL BONDS. from the sale of such issue are to be used for ‘‘(B) fertilizers, (a) IN GENERAL.—Subpart H of part IV of capital expenditures incurred by qualified ‘‘(C) glass, subchapter A of chapter 1 (relating to credits ‘‘(D) steel, against tax), as added by this Act, is amend- borrowers for 1 or more qualified projects, ‘‘(E) petroleum residues, ed by adding at the end the following new ‘‘(C) the qualified issuer designates such ‘‘(F) forest products, and section: bond for purposes of this section and the bond is in registered form, and ‘‘(G) agriculture, including feedlots and ‘‘SEC. 54A. CREDIT TO HOLDERS OF CLEAN EN- dairy operations. ERGY COAL BONDS. ‘‘(D) the issue meets the requirements of ‘‘(7) PETROLEUM RESIDUE.—The term ‘petro- ‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer subsection (h). leum residue’ means the carbonized product holds a clean energy coal bond on 1 or more ‘‘(2) QUALIFIED PROJECT; SPECIAL USE of high-boiling hydrocarbon fractions ob- credit allowance dates of the bond occurring RULES.— tained in petroleum processing. during any taxable year, there shall be al- ‘‘(A) IN GENERAL.—The term ‘qualified ‘‘(d) QUALIFYING GASIFICATION PROJECT lowed as a credit against the tax imposed by project’ means a qualifying advanced coal PROGRAM.— this chapter for the taxable year an amount project (as defined in section 48A(c)(1)) ‘‘(1) IN GENERAL.—The Secretary, in con- equal to the sum of the credits determined placed in service by a qualified borrower. sultation with the Secretary of Energy, shall under subsection (b) with respect to such ‘‘(B) REFINANCING RULES.—For purposes of establish a qualifying gasification project dates. paragraph (1)(B), a qualified project may be program to consider and award certifications ‘‘(b) AMOUNT OF CREDIT.— refinanced with proceeds of a clean energy for qualified investment eligible for credits ‘‘(1) IN GENERAL.—The amount of the credit coal bond only if the indebtedness being refi- under this section to qualifying gasification determined under this subsection with re- nanced (including any obligation directly or project sponsors under this section. The spect to any credit allowance date for a indirectly refinanced by such indebtedness) total qualified investment which may be clean energy coal bond is 25 percent of the was originally incurred by a qualified bor- awarded eligibility for credit under the pro- annual credit determined with respect to rower after the date of the enactment of this gram shall not exceed $4,000,000,000. such bond. section. ‘‘(2) PERIOD OF ISSUANCE.—A certificate of ‘‘(2) ANNUAL CREDIT.—The annual credit de- ‘‘(C) REIMBURSEMENT.—For purposes of eligibility under paragraph (1) may be issued termined with respect to any clean energy paragraph (1)(B), a clean energy coal bond only during the 10-fiscal year period begin- coal bond is the product of— may be issued to reimburse a qualified bor- ning on October 1, 2005. ‘‘(A) the credit rate determined by the Sec- rower for amounts paid after the date of the ‘‘(3) SELECTION CRITERIA.—The Secretary retary under paragraph (3) for the day on enactment of this section with respect to a shall not make a competitive certification which such bond was sold, multiplied by qualified project, but only if—

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‘‘(i) prior to the payment of the original bond or, in the case of a clean energy bond ‘‘(3) PARTNERSHIP; S CORPORATION; AND expenditure, the qualified borrower declared the proceeds of which are to be loaned to 2 or OTHER PASS-THRU ENTITIES.— its intent to reimburse such expenditure more qualified borrowers, such binding com- ‘‘(A) IN GENERAL.—Under regulations pre- with the proceeds of a clean energy coal mitment will be incurred within the 6-month scribed by the Secretary, in the case of a bond, period beginning on the date of the loan of partnership, trust, S corporation, or other ‘‘(ii) not later than 60 days after payment such proceeds to a qualified borrower, and pass-thru entity, rules similar to the rules of of the original expenditure, the qualified ‘‘(C) such projects will be completed with section 41(g) shall apply with respect to the issuer adopts an official intent to reimburse due diligence and the proceeds from the sale credit allowable under subsection (a). the original expenditure with such proceeds, of the issue will be spent with due diligence. ‘‘(B) NO BASIS ADJUSTMENT.—Rules similar and ‘‘(2) EXTENSION OF PERIOD.—Upon submis- to the rules under section 1397E(i)(2) shall ‘‘(iii) the reimbursement is made not later sion of a request prior to the expiration of apply. than 18 months after the date the original the period described in paragraph (1)(A), the ‘‘(4) BONDS HELD BY REGULATED INVESTMENT expenditure is paid. Secretary may extend such period if the COMPANIES.—If any clean energy coal bond is ‘‘(D) TREATMENT OF CHANGES IN USE.—For qualified issuer establishes that the failure held by a regulated investment company, the purposes of paragraph (1)(B), the proceeds of to satisfy the 5-year requirement is due to credit determined under subsection (a) shall an issue shall not be treated as used for a reasonable cause and the related projects be allowed to shareholders of such company qualified project to the extent that a quali- will continue to proceed with due diligence. under procedures prescribed by the Sec- fied borrower takes any action within its ‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT OF retary. control which causes such proceeds not to be BOND PROCEEDS WITHIN 5 YEARS.—To the ex- ‘‘(5) TREATMENT FOR ESTIMATED TAX PUR- used for a qualified project. The Secretary tent that less than 95 percent of the proceeds POSES.—Solely for purposes of sections 6654 shall prescribe regulations specifying reme- of such issue are expended by the close of the and 6655, the credit allowed by this section dial actions that may be taken (including 5-year period beginning on the date of to a taxpayer by reason of holding a clean conditions to taking such remedial actions) issuance (or if an extension has been ob- energy coal bond on a credit allowance date to prevent an action described in the pre- tained under paragraph (2), by the close of shall be treated as if it were a payment of es- ceding sentence from causing a bond to fail the extended period), the qualified issuer timated tax made by the taxpayer on such to be a clean energy coal bond. shall redeem all of the nonqualified bonds date. ‘‘(e) MATURITY LIMITATIONS.— within 90 days after the end of such period. ‘‘(6) REPORTING.—Issuers of clean energy ‘‘(1) DURATION OF TERM.—A bond shall not For purposes of this paragraph, the amount coal bonds shall submit reports similar to be treated as a clean energy coal bond if the of the nonqualified bonds required to be re- the reports required under section 149(e). maturity of such bond exceeds the maximum deemed shall be determined in the same ‘‘(m) TERMINATION.—This section shall not term determined by the Secretary under manner as under section 142. apply with respect to any bond issued after paragraph (2) with respect to such bond. ‘‘(i) SPECIAL RULES RELATING TO ARBI- December 31, 2010.’’. ‘‘(2) MAXIMUM TERM.—During each calendar TRAGE.—A bond which is part of an issue (b) REPORTING.—Subsection (d) of section month, the Secretary shall determine the shall not be treated as a clean energy coal 6049 (relating to returns regarding payments maximum term permitted under this para- bond unless, with respect to the issue of of interest), as amended by this Act, is graph for bonds issued during the following which the bond is a part, the qualified issuer amended by adding at the end the following calendar month. Such maximum term shall satisfies the arbitrage requirements of sec- new paragraph: be the term which the Secretary estimates tion 148 with respect to proceeds of the issue. ‘‘(9) REPORTING OF CREDIT ON CLEAN ENERGY will result in the present value of the obliga- ‘‘(j) COOPERATIVE ELECTRIC COMPANY; COAL BONDS.— tion to repay the principal on the bond being QUALIFIED ENERGY TAX CREDIT BOND LENDER; ‘‘(A) IN GENERAL.—For purposes of sub- equal to 50 percent of the face amount of GOVERNMENTAL BODY; QUALIFIED BOR- section (a), the term ‘interest’ includes such bond. Such present value shall be deter- ROWER.—For purposes of this section— amounts includible in gross income under mined using as a discount rate the average ‘‘(1) COOPERATIVE ELECTRIC COMPANY.—The section 54A(g) and such amounts shall be annual interest rate of tax of tax-exempt ob- term ‘cooperative electric company’ means a treated as paid on the credit allowance date ligations having a term of 10 years or more mutual or cooperative electric company de- (as defined in section 54A(b)(4)). which are issued during the month. If the scribed in section 501(c)(12) or section ‘‘(B) REPORTING TO CORPORATIONS, ETC.— term as so determined is not a multiple of a 1381(a)(2)(C), or a not-for-profit electric util- Except as otherwise provided in regulations, whole year, such term shall be rounded to ity which has received a loan or loan guar- in the case of any interest described in sub- the next highest whole year. antee under the Rural Electrification Act. paragraph (A), subsection (b)(4) shall be ap- ‘‘(3) RATABLE PRINCIPAL AMORTIZATION RE- ‘‘(2) CLEAN ENERGY BOND LENDER.—The plied without regard to subparagraphs (A), QUIRED.—A bond shall not be treated as a term ‘clean energy bond lender’ means a (H), (I), (J), (K), and (L)(i) of such subsection. clean energy coal bond unless it is part of an lender which is a cooperative which is owned ‘‘(C) REGULATORY AUTHORITY.—The Sec- issue which provides for an equal amount of by, or has outstanding loans to, 100 or more retary may prescribe such regulations as are principal to be paid by the qualified issuer cooperative electric companies and is in ex- necessary or appropriate to carry out the during each calendar year that the issue is istence on February 1, 2002, and shall include purposes of this paragraph, including regula- outstanding. any affiliated entity which is controlled by tions which require more frequent or more ‘‘(f) LIMITATION ON AMOUNT OF BONDS DES- such lender. detailed reporting.’’. IGNATED.— ‘‘(3) GOVERNMENTAL BODY.—The term ‘gov- (c) CLERICAL AMENDMENT.—The table of ‘‘(1) NATIONAL LIMITATION.—There is a na- ernmental body’ means any State, territory, sections for subpart H of part IV of sub- tional clean energy coal bond limitation of possession of the United States, the District chapter A of chapter 1, as added by this Act, $1,000,000,000. of Columbia, Indian tribal government, and is amended by adding at the end the fol- ‘‘(2) ALLOCATION BY SECRETARY.—The Sec- any political subdivision thereof. lowing new item: retary shall allocate the amount described in ‘‘(4) QUALIFIED ISSUER.—The term ‘quali- ‘‘Sec. 54A. Credit to holders of clean energy paragraph (1) among qualified projects in fied issuer’ means— coal bonds.’’. such manner as the Secretary determines ap- ‘‘(A) a clean energy bond lender, (d) ISSUANCE OF REGULATIONS.—The Sec- propriate. ‘‘(B) a cooperative electric company, retary of Treasury shall issue regulations re- ‘‘(g) CREDIT INCLUDED IN GROSS INCOME.— ‘‘(C) a governmental body, or quired under section 54A of the Internal Rev- Gross income includes the amount of the ‘‘(D) the Tennessee Valley Authority. enue Code of 1986 (as added by this section) credit allowed to the taxpayer under this ‘‘(5) QUALIFIED BORROWER.—The term not later than 120 days after the date of the section (determined without regard to sub- ‘qualified borrower’ means— enactment of this Act. section (c)) and the amount so included shall ‘‘(A) a mutual or cooperative electric com- (e) EFFECTIVE DATE.—The amendments be treated as interest income. pany described in section 501(c)(12) or made by this section shall apply to bonds ‘‘(h) SPECIAL RULES RELATING TO EXPENDI- 1381(a)(2)(C), issued after December 31, 2005. TURES.— ‘‘(B) a governmental body, or ‘‘(1) IN GENERAL.—An issue shall be treated ‘‘(C) the Tennessee Valley Authority. Subtitle B—Domestic Fossil Fuel Security as meeting the requirements of this sub- ‘‘(k) SPECIAL RULES RELATING TO POOL SEC. 1511. CREDIT FOR INVESTMENT IN CLEAN section if, as of the date of issuance, the BONDS.—No portion of a pooled financing COKE/COGENERATION MANUFAC- qualified issuer reasonably expects— bond may be allocable to any loan unless the TURING FACILITIES. ‘‘(A) at least 95 percent of the proceeds borrower has entered into a written loan (a) ALLOWANCE OF CLEAN COKE/COGENERA- from the sale of the issue are to be spent for commitment for such portion prior to the TION MANUFACTURING FACILITIES CREDIT.— 1 or more qualified projects within the 5-year issue date of such issue. Section 46 (relating to amount of credit), as period beginning on the date of issuance of ‘‘(l) OTHER DEFINITIONS AND SPECIAL amended by this Act, is amended by striking the clean energy bond, RULES.—For purposes of this section— ‘‘and’’ at the end of paragraph (3), by strik- ‘‘(B) a binding commitment with a third ‘‘(1) BOND.—The term ‘bond’ includes any ing the period at the end of paragraph (4), party to spend at least 10 percent of the pro- obligation. and inserting ‘‘, and’’, and by adding at the ceeds from the sale of the issue will be in- ‘‘(2) POOLED FINANCING BOND.—The term end the following new paragraph: curred within the 6-month period beginning ‘pooled financing bond’ shall have the mean- ‘‘(5) the clean coke/cogeneration manufac- on the date of issuance of the clean energy ing given such term by section 149(f)(4)(A). turing facilities credit.’’.

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(b) AMOUNT OF CLEAN COKE/COGENERATION ‘‘SEC. 179C. ELECTION TO EXPENSE CERTAIN RE- for any taxable year unless such taxpayer MANUFACTURING FACILITIES CREDIT.—Subpart FINERIES. files with the Secretary a report containing E of part IV of subchapter A of chapter 1 (re- ‘‘(a) TREATMENT AS EXPENSES.—A taxpayer such information with respect to the oper- lating to rules for computing investment may elect to treat the cost of any qualified ation of the refineries of the taxpayer as the credit), as amended by this Act, is amended refinery property as an expense which is not Secretary shall require.’’. by inserting after section 48B the following chargeable to capital account. Any cost so (b) CONFORMING AMENDMENTS.— new section: treated shall be allowed as a deduction for (1) Section 1245(a) is amended by inserting the taxable year in which the qualified refin- ‘‘179C,’’ after ‘‘179B,’’ both places it appears ‘‘SEC. 48C. CLEAN COKE/COGENERATION MANU- ery is placed in service. FACTURING FACILITIES CREDIT. in paragraphs (2)(C) and (3)(C). ‘‘(b) ELECTION.— ‘‘(a) IN GENERAL.—For purposes of section (2) Section 263(a)(1) is amended by striking ‘‘(1) IN GENERAL.—An election under this ‘‘or’’ at the end of subparagraph (H), by 46, the clean coke/cogeneration manufac- section for any taxable year shall be made on turing facilities credit for any taxable year striking the period at the end of subpara- the taxpayer’s return of the tax imposed by graph (I) and inserting ‘‘, or’’, and by insert- is an amount equal to 20 percent of the quali- this chapter for the taxable year. Such elec- ing after subparagraph (I) the following new fied investment for such taxable year. tion shall be made in such manner as the subparagraph: ‘‘(b) QUALIFIED INVESTMENT.— Secretary may by regulations prescribe. ‘‘(J) expenditures for which a deduction is ‘‘(1) IN GENERAL.—For purposes of sub- ‘‘(2) ELECTION IRREVOCABLE.—Any election allowed under section 179C.’’. section (a), the qualified investment for any made under this section may not be revoked (3) Section 312(k)(3)(B) is amended by taxable year is the basis of each clean coke/ except with the consent of the Secretary. striking ‘‘179 179A, or 179B’’ each place it ap- cogeneration manufacturing facilities prop- ‘‘(c) QUALIFIED REFINERY PROPERTY.—The erty placed in service by the taxpayer during term ‘qualified refinery property’ means any pears in the heading and text and inserting such taxable year. refinery or portion of a refinery— ‘‘179, 179A, 179B, or 179C’’. ‘‘(2) CLEAN COKE/COGENERATION MANUFAC- ‘‘(1) the original use of which commences (4) The table of sections for part VI of sub- TURING FACILITIES PROPERTY.—For purposes with the taxpayer, chapter B of chapter 1 is amended by insert- of this section, the term ‘clean coke/cogen- ‘‘(2) the construction of which— ing after the item relating to section 179B eration manufacturing facilities property’ ‘‘(A) except as provided in subparagraph the following new item: means real and tangible personal property (B), is subject to a binding construction con- ‘‘Sec. 179C. Election to expense certain re- which— tract entered into after June 14, 2005, and be- fineries.’’. ‘‘(A) is depreciable under section 167, fore January 1, 2008, but only if there was no (c) EFFECTIVE DATE.— The amendments ‘‘(B) is located in the United States, written binding construction contract en- made by this section shall apply to prop- ‘‘(C) is used for the manufacture of met- tered into on or before June 14, 2005, or erties placed in service after the date of the allurgical coke or for the production of ‘‘(B) in the case of self-constructed prop- enactment of this Act. steam or electricity from waste heat gen- erty, began after June 14, 2005, SEC. 1513. PASS THROUGH TO PATRONS OF DE- erated during the production of metallur- ‘‘(3) which is placed in service by the tax- DUCTION FOR CAPITAL COSTS IN- gical coke, and payer after the date of the enactment of this CURRED BY SMALL REFINER CO- ‘‘(D) does not exceed any of the following section and before January 1, 2012, OPERATIVES IN COMPLYING WITH emission limitations— ENVIRONMENTAL PROTECTION ‘‘(4) in the case of any portion of a refin- AGENCY SULFUR REGULATIONS . ‘‘(i) 0.0 percent leaking for any coke oven ery, which meets the requirements of sub- (a) IN GENERAL.—Section 179B (relating to doors unless the operation of ovens is under section (d), and deduction for capital costs incurred in com- negative pressure, ‘‘(5) which meets all applicable environ- plying with Environmental Protection Agen- ‘‘(ii) 0.0 percent leaking for any topside mental laws in effect on the date such refin- cy sulfur regulations) is amended by adding port lids, ery or portion thereof was placed in service. at the end the following new subsection: A waiver under the Clean Air Act shall not ‘‘(iii) 0.0 percent leaking for any offtake ‘‘(e) ELECTION TO ALLOCATE DEDUCTION TO be taken into account in determining wheth- system, COOPERATIVE OWNER.—If— determined as provided for in section er the requirements of paragraph (5) are met. ‘‘(1) a small business refiner to which sub- ‘‘(d) PRODUCTION CAPACITY.—The require- 63.303(b)(1)(ii) or 63.309(d)(1) of title 40, Code section (a) applies is an organization to of Federal Regulations. ments of this subsection are met if the por- tion of the refinery— which part I of subchapter T applies, and ‘‘(c) TERMINATION.—This subsection shall ‘‘(2) one or more persons directly holding not apply to property for periods after De- ‘‘(1) increases the rated capacity of the ex- isting refinery by 5 percent or more over the an ownership interest in the refiner are orga- cember 31, 2009.’’. nizations to which part I of subchapter T (c) TECHNICAL AMENDMENT.—Section 50(c) capacity of such refinery as reported by the Energy Information Agency on January 1, apply, is amended by adding at the end the fol- the refiner may elect to allocate all or a por- 2005, or lowing new paragraph: tion of the deduction allowable under sub- ‘‘(2) enables the existing refinery to proc- ‘‘(6) SPECIAL RULE FOR COKE/COGENERATION section (a) to such persons. Such allocation ess qualified fuels (as defined in section 29(c)) FACILITIES.—Paragraphs (1) and (2) shall not shall be equal to the person’s ratable share at a rate which is equal to or greater than 25 apply to any property with respect to the of the total amount allocated, determined on percent of the total throughput of such refin- credit determined under section 48C.’’. the basis of the person’s ownership interest ery on an average daily basis. (d) CONFORMING AMENDMENTS.— in the taxpayer. The taxable income of the ‘‘(e) ELECTION TO ALLOCATE DEDUCTION TO (1) Section 49(a)(1)(C), as amended by this refiner shall not be reduced under section COOPERATIVE OWNER.—If— Act, is amended by striking ‘‘and’’ at the end ‘‘(1) a taxpayer to which subsection (a) ap- 1382 by reason of any amount to which the of clause (iii), by striking the period at the plies is an organization to which part I of preceding sentence applies.’’. end of clause (iv) and inserting ‘‘, and’’, and (b) EFFECTIVE DATE.—The amendment subchapter T applies, and by adding at the end the following new made by this section shall take effect as if ‘‘(2) one or more persons directly holding clause: included in the amendment made by section an ownership interest in the taxpayer are or- ‘‘(v) the basis of any clean coke/cogenera- 338(a) of the American Jobs Creation Act of ganizations to which part I of subchapter T tion manufacturing facilities property.’’ 2004. apply, (2) The table of sections for subpart E of the taxpayer may elect to allocate all or a SEC. 1514. MODIFICATIONS TO ENHANCED OIL part IV of subchapter A of chapter 1, as portion of the deduction allowable under RECOVERY CREDIT. amended by this Act, is amended by insert- subsection (a) to such persons. Such alloca- (a) ENHANCED CREDIT FOR CARBON DIOXIDE ing after the item relating to section 48B the tion shall be equal to the person’s ratable INJECTIONS.—Section 43 is amended by add- following new item: share of the total amount allocated, deter- ing at the end the following new subsection: mined on the basis of the person’s ownership ‘‘(f) ENHANCED CREDIT FOR PROJECTS USING ‘‘48C. Clean coke/cogeneration manufac- QUALIFIED CARBON DIOXIDE.— turing facilities credit.’’. interest in the taxpayer. The taxable income of the taxpayer shall not be reduced under ‘‘(1) IN GENERAL.—In the case of any quali- (e) EFFECTIVE DATE.—The amendments section 1382 by reason of any amount to fied enhanced oil recovery project described made by this section shall apply to periods which the preceding sentence applies. in paragraph (2), subsection (a) shall be ap- after the date of the enactment of this Act, ‘‘(f) INELIGIBLE REFINERIES.—No deduction plied by substituting ‘20 percent’ for ‘15 per- under rules similar to the rules of section shall be allowed under subsection (a) for any cent’. 48(m) of the Internal Revenue Code of 1986 qualified refinery property— ‘‘(2) SPECIFIED QUALIFIED ENHANCED OIL RE- (as in effect on the day before the date of the ‘‘(1) the primary purpose of which is for use COVERY PROJECT.— enactment of the Revenue Reconciliation as a topping plant, asphalt plant, lube oil fa- ‘‘(A) IN GENERAL.—A qualified enhanced oil Act of 1990). cility, crude or product terminal, or blending recovery project is described in this para- SEC. 1512. TEMPORARY EXPENSING FOR EQUIP- facility, or graph if— MENT USED IN REFINING OF LIQUID ‘‘(2) which is built solely to comply with ‘‘(i) the project begins or is substantially FUELS. Federally mandated projects or consent de- expanded after December 31, 2005, and (A) IN GENERAL.—Part VI of subchapter B crees. ‘‘(ii) the project uses qualified carbon diox- of chapter 1 is amended by inserting after ‘‘(g) REPORTING.—No deduction shall be al- ide in an oil recovery method which involves section 179B the following new section: lowed under subsection (a) to any taxpayer flooding or injection.

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‘‘(B) QUALIFIED CARBON DIOXIDE.—For pur- ‘‘SEC. 179D. ENERGY EFFICIENT COMMERCIAL of the 2005 California Nonresidential Alter- poses of this subsection, the term ‘qualified BUILDINGS DEDUCTION. native Calculation Method Approval Manual. carbon dioxide’ means carbon dioxide that ‘‘(a) IN GENERAL.—There shall be allowed ‘‘(3) COMPUTER SOFTWARE.— is— as a deduction an amount equal to the cost ‘‘(A) IN GENERAL.—Any calculation under ‘‘(i) from an industrial source, or of energy efficient commercial building prop- paragraph (2) shall be prepared by qualified ‘‘(ii) separated from natural gas and nat- erty placed in service during the taxable computer software. ural gas liquids at a natural gas processing year. ‘‘(B) QUALIFIED COMPUTER SOFTWARE.—For plant. ‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.—The purposes of this paragraph, the term ‘quali- ‘‘(3) TERMINATION.—This subsection shall deduction under subsection (a) with respect fied computer software’ means software— not apply to costs paid or incurred for any to any building for any taxable year shall ‘‘(i) for which the software designer has qualified enhanced oil recovery project after not exceed the excess (if any) of— certified that the software meets all proce- December 31, 2009.’’. ‘‘(1) the product of— dures and detailed methods for calculating (b) DEEP GAS WELL PROJECTS.—Section ‘‘(A) $2.25, and energy and power consumption and costs as 43(c) is amended by adding at the end the fol- ‘‘(B) the square footage of the building, required by the Secretary, lowing new paragraph: over ‘‘(ii) which provides such forms as required ‘‘(6) APPLICATION OF SECTION TO QUALIFIED ‘‘(2) the aggregate amount of the deduc- to be filed by the Secretary in connection DEEP GAS WELL PROJECTS.— tions under subsection (a) with respect to with energy efficiency of property and the ‘‘(A) IN GENERAL.—For purposes of this sec- the building for all prior taxable years. deduction allowed under this section, and ‘‘(iii) which provides a notice form which tion, the taxpayer’s qualified deep gas well ‘‘(c) DEFINITIONS.—For purposes of this sec- project costs for any taxable year shall be tion— documents the energy efficiency features of the building and its projected annual energy treated in the same manner as if they were ‘‘(1) ENERGY EFFICIENT COMMERCIAL BUILD- costs. qualified enhanced oil recovery costs. ING PROPERTY.—The term ‘energy efficient LLOCATION OF DEDUCTION FOR PUBLIC ‘‘(B) QUALIFIED DEEP GAS WELL PROJECT commercial building property’ means prop- ‘‘(4) A PROPERTY.—In the case of energy efficient COSTS.—For purposes of this paragraph, the erty— commercial building property installed on or term ‘qualified deep gas well project costs’ ‘‘(A) with respect to which depreciation (or in property owned by a Federal, State, or shall be the costs determined under para- amortization in lieu of depreciation) is al- local government or a political subdivision graph (1) by substituting ‘qualified deep gas lowable, thereof, the Secretary shall promulgate a well project’ for ‘qualified enhanced oil re- ‘‘(B) which is installed on or in any build- regulation to allow the allocation of the de- covery project’ each place it appears. ing which is— duction to the person primarily responsible ‘‘(C) QUALIFIED DEEP GAS WELL PROJECT.— ‘‘(i) located in the United States, and for designing the property in lieu of the For purposes of this paragraph, the term ‘‘(ii) within the scope of Standard 90.1-2001, owner of such property. Such person shall be ‘qualified deep gas well project’ means any ‘‘(C) which is installed as part of— treated as the taxpayer for purposes of this project— ‘‘(i) the interior lighting systems, section. ‘‘(i) which involves the production of nat- ‘‘(ii) the heating, cooling, ventilation, and ‘‘(5) NOTICE TO OWNER.—Each certification ural gas from onshore formations deeper hot water systems, or required under this section shall include an than 20,000 feet, and ‘‘(iii) the building envelope, and explanation to the building owner regarding ‘‘(ii) which is located in the United States. ‘‘(D) which is certified in accordance with the energy efficiency features of the building ‘‘(D) TERMINATION.—This paragraph shall subsection (d)(6) as being installed as part of and its projected annual energy costs as pro- not apply to qualified deep gas well project a plan designed to reduce the total annual vided in the notice under paragraph costs paid or incurred after December 31, energy and power costs with respect to the (3)(B)(iii). 2009.’’. interior lighting systems, heating, cooling, ‘‘(6) CERTIFICATION.— (c) EFFECTIVE DATE.—The amendments ventilation, and hot water systems of the ‘‘(A) IN GENERAL.—The Secretary shall pre- made by this section shall apply to costs building by 50 percent or more in comparison scribe the manner and method for the mak- paid or incurred in taxable years ending to a reference building which meets the min- ing of certifications under this section. after December 31, 2005. imum requirements of Standard 90.1–2001 ‘‘(B) PROCEDURES.—The Secretary shall in- using methods of calculation under sub- SEC. 1515. NATURAL GAS DISTRIBUTION LINES clude as part of the certification process pro- TREATED AS 15-YEAR PROPERTY. section (d)(2). cedures for inspection and testing by quali- (a) IN GENERAL.—Section 168(e)(3)(E) (de- ‘‘(2) STANDARD 90.1–2001.—The term ‘Stand- fied individuals described in subparagraph fining 15-year property) is amended by strik- ard 90.1–2001’ means Standard 90.1–2001 of the (C) to ensure compliance of buildings with ing ‘‘and’’ at the end of clause (v), by strik- American Society of Heating, Refrigerating, energy-savings plans and targets. Such pro- ing the period at the end of clause (vi) and by and Air Conditioning Engineers and the Illu- cedures shall be comparable, given the dif- inserting ‘‘, and’’, and by adding at the end minating Engineering Society of North ference between commercial and residential the following new clause: America (as in effect on April 2, 2003). buildings, to the requirements in the Mort- ‘‘(vii) any natural gas distribution line the ‘‘(d) SPECIAL RULES.— gage Industry National Accreditation Proce- original use of which commences with the ‘‘(1) PARTIAL ALLOWANCE.— dures for Home Energy Rating Systems. taxpayer and which is placed in service be- ‘‘(A) IN GENERAL.—Except as provided in ‘‘(C) QUALIFIED INDIVIDUALS.—Individuals fore January 1, 2008.’’. subsection (f), if— qualified to determine compliance shall be (b) ALTERNATIVE SYSTEM.—The table con- ‘‘(i) the requirement of subsection (c)(1)(D) only those individuals who are recognized by tained in section 168(g)(3)(B) (relating to spe- is not met, but an organization certified by the Secretary cial rule for certain property assigned to ‘‘(ii) there is a certification in accordance for such purposes. classes) is amended by adding after the item with paragraph (6) that any system referred ‘‘(e) BASIS REDUCTION.—For purposes of relating to subparagraph (E)(vi) the fol- to in subsection (c)(1)(C) satisfies the energy- this subtitle, if a deduction is allowed under lowing new item: savings targets established by the Secretary this section with respect to any energy effi- ‘‘(E)(vii) ...... 35’’. under subparagraph (B) with respect to such cient commercial building property, the system, (c) EFFECTIVE DATE.— basis of such property shall be reduced by then the requirement of subsection (c)(1)(D) (1) IN GENERAL.—The amendments made by the amount of the deduction so allowed. shall be treated as met with respect to such this section shall apply to property placed in ‘‘(f) INTERIM RULES FOR LIGHTING SYS- system, and the deduction under subsection service after the date of the enactment of TEMS.—Until such time as the Secretary (a) shall be allowed with respect to energy this Act. issues final regulations under subsection efficient commercial building property in- (d)(1)(B) with respect to property which is (2) EXCEPTION.—The amendments made by stalled as part of such system and as part of part of a lighting system— this section shall not apply to any property a plan to meet such targets, except that sub- ‘‘(1) IN GENERAL.—The lighting system tar- with respect to which the taxpayer or a re- section (b) shall be applied to such property get under subsection (d)(1)(A)(ii) shall be a lated party has entered into a binding con- by substituting ‘$.75’ for ‘$2.25’. reduction in lighting power density of 25 per- tract for the construction thereof on or be- ‘‘(B) REGULATIONS.—The Secretary, after cent (50 percent in the case of a warehouse) fore June 14, 2005, or, in the case of self-con- consultation with the Secretary of Energy, of the minimum requirements in Table 9.3.1.1 structed property, has started construction shall establish a target for each system de- or Table 9.3.1.2 (not including additional in- on or before such date. scribed in subsection (c)(1)(C) which, if such terior lighting power allowances) of Stand- Subtitle C—Conservation and Energy targets were met for all such systems, the ard 90.1–2001. Efficiency Provisions building would meet the requirements of ‘‘(2) REDUCTION IN DEDUCTION IF REDUCTION SEC. 1521. ENERGY EFFICIENT COMMERCIAL subsection (c)(1)(D). LESS THAN 40 PERCENT.— BUILDINGS DEDUCTION. ‘‘(2) METHODS OF CALCULATION.—The Sec- ‘‘(A) IN GENERAL.—If, with respect to the (a) IN GENERAL.—Part VI of subchapter B retary, after consultation with the Secretary lighting system of any building other than a of chapter 1 (relating to itemized deductions of Energy, shall promulgate regulations warehouse, the reduction in lighting power for individuals and corporations), as amend- which describe in detail methods for calcu- density of the lighting system is not at least ed by this Act, is amended by inserting after lating and verifying energy and power con- 40 percent, only the applicable percentage of section 179C the following new section: sumption and cost, based on the provisions the amount of deduction otherwise allowable

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00061 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.083 S20PT1 S6846 CONGRESSIONAL RECORD — SENATE June 20, 2005 under this section with respect to such prop- inserting after section 179C the following ‘‘(ii) for which the heating and cooling erty shall be allowed. new item: equipment efficiencies correspond to the ‘‘(B) APPLICABLE PERCENTAGE.—For pur- ‘‘Sec. 179D. Energy efficient commercial minimum allowed under the regulations es- poses of subparagraph (A), the applicable buildings deduction.’’. tablished by the Department of Energy pur- percentage is the number of percentage suant to the National Appliance Energy Con- points (not greater than 100) equal to the (d) EFFECTIVE DATE.—The amendments servation Act of 1987 and in effect at the sum of— made by this section shall apply to property time of construction, and ‘‘(i) 50, and placed in service after the date of the enact- ‘‘(B) to have building envelope component ment of this Act in taxable years ending 1 ‘‘(ii) the amount which bears the same improvements account for at least ⁄3 of such ratio to 50 as the excess of the reduction of after such date. 30 percent, lighting power density of the lighting system SEC. 1522. CREDIT FOR CONSTRUCTION OF NEW ‘‘(2) certified— over 25 percentage points bears to 15. ENERGY EFFICIENT HOMES. ‘‘(A) to have a level of annual heating and (a) IN GENERAL.—Subpart D of part IV of ‘‘(C) EXCEPTIONS.—This subsection shall cooling energy consumption which is at least subchapter A of chapter 1 (relating to busi- not apply to any system— 50 percent below such annual level, and ness related credits), as amended by this Act, ‘‘(i) the controls and circuiting of which do ‘‘(B) to have building envelope component is amended by adding at the end the fol- not comply fully with the mandatory and improvements account for at least 1⁄5 of such lowing new section: prescriptive requirements of Standard 90.1– 50 percent, 2001 and which do not include provision for ‘‘SEC. 45K. NEW ENERGY EFFICIENT HOME CRED- ‘‘(3) a manufactured home which conforms IT. bilevel switching in all occupancies except to Federal Manufactured Home Construction ‘‘(a) ALLOWANCE OF CREDIT.— hotel and motel guest rooms, store rooms, and Safety Standards (section 3280 of title 24, ‘‘(1) IN GENERAL.—For purposes of section restrooms, and public lobbies, or Code of Federal Regulations) and which— 38, in the case of an eligible contractor, the ‘‘(ii) which does not meet the minimum re- ‘‘(A) meets the requirements of clause (i), new energy efficient home credit for the tax- quirements for calculated lighting levels as or able year is the applicable amount for each set forth in the Illuminating Engineering So- ‘‘(B) meets the requirements established by qualified new energy efficient home which ciety of North America Lighting Handbook, the Administrator of the Environmental is— Performance and Application, Ninth Edition, Protection Agency under the Energy Star ‘‘(A) constructed by the eligible con- 2000. Labeled Homes program, or tractor, and ‘‘(g) COORDINATION WITH OTHER TAX BENE- ‘‘(4) a manufactured home which conforms ‘‘(B) acquired by a person from such eligi- FITS.—In any case in which a deduction to Federal Manufactured Home Construction under section 200 or a credit under section ble contractor for use as a residence during and Safety Standards (section 3280 of title 24, 25C has been allowed with respect to prop- the taxable year. Code of Federal Regulations) and which erty in connection with a building for which ‘‘(2) APPLICABLE AMOUNT.—For purposes of meets the requirements of clause (ii). a deduction is allowable under subsection paragraph (1), the applicable amount is an ‘‘(d) CERTIFICATION.— (a)— amount equal to— ‘‘(1) METHOD OF CERTIFICATION.—A certifi- ‘‘(1) the annual energy and power costs of ‘‘(i) in the case of a dwelling unit described cation described in paragraphs (1) and (2) of the reference building referred to in sub- in paragraph (1) or (3) of subsection (c), subsection (c) shall be made in accordance section (c)(1)(D) shall be determined assum- $1,000, and with guidance prescribed by the Secretary, ing such reference building contains the ‘‘(ii) in the case of a dwelling unit de- after consultation with the Secretary of En- property for which such deduction or credit scribed in paragraph (2) or (4) of subsection ergy. Such guidance shall specify procedures has been allowed, and (c), $2,000. and methods for calculating energy and cost ‘‘(2) any cost of such property taken into ‘‘(b) DEFINITIONS.—For purposes of this sec- savings. tion— account under such sections shall not be ‘‘(2) FORM.—Any certification described in taken into account under this section. ‘‘(1) ELIGIBLE CONTRACTOR.—The term ‘eli- subsection (c) shall be made in writing in a ‘‘(h) REGULATIONS.—The Secretary shall gible contractor’ means— manner which specifies in readily verifiable promulgate such regulations as necessary— ‘‘(A) the person who constructed the quali- fashion the energy efficient building enve- ‘‘(1) to take into account new technologies fied new energy efficient home, or lope components and energy efficient heat- regarding energy efficiency and renewable ‘‘(B) in the case of a qualified new energy ing or cooling equipment installed and their energy for purposes of determining energy efficient home which is a manufactured respective rated energy efficiency perform- efficiency and savings under this section, home, the manufactured home producer of ance. and such home. ‘‘(e) BASIS ADJUSTMENT.—For purposes of ‘‘(2) to provide for a recapture of the deduc- If more than 1 person is described in subpara- this subtitle, if a credit is allowed under this tion allowed under this section if the plan graph (A) or (B) with respect to any qualified section in connection with any expenditure described in subsection (c)(1)(D) or (d)(1)(A) new energy efficient home, such term means for any property, the increase in the basis of is not fully implemented. the person designated as such by the owner such property which would (but for this sub- ‘‘(i) TERMINATION.—This section shall not of such home. section) result from such expenditure shall apply with respect to property placed in ‘‘(2) QUALIFIED NEW ENERGY EFFICIENT be reduced by the amount of the credit so de- service after December 31, 2009.’’. HOME.—The term ‘qualified new energy effi- termined. (b) CONFORMING AMENDMENTS.— cient home’ means a dwelling unit— ‘‘(f) COORDINATION WITH OTHER CREDITS (1) Section 1016(a) is amended by striking ‘‘(A) located in the United States, AND DEDUCTIONS.— ‘‘and’’ at the end of paragraph (30), by strik- ‘‘(B) the construction of which is substan- ‘‘(1) SPECIAL RULE WITH RESPECT TO BUILD- ing the period at the end of paragraph (31) tially completed after the date of the enact- INGS WITH ENERGY EFFICIENT PROPERTY.—In and inserting ‘‘, and’’, and by adding at the ment of this section, and the case of property which is described in end the following new paragraph: ‘‘(C) which meets the energy saving re- section 200 which is installed in connection ‘‘(32) to the extent provided in section quirements of subsection (c). with a dwelling unit, the level of annual 179D(e).’’. ‘‘(3) CONSTRUCTION.—The term ‘construc- heating and cooling energy consumption of (2) Section 1245(a), as amended by this Act, tion’ includes substantial reconstruction and the comparable dwelling unit referred to in is amended by inserting ‘‘179D,’’ after rehabilitation. paragraphs (1) and (2) of subsection (c) shall ‘‘179C,’’ both places it appears in paragraphs ‘‘(4) ACQUIRE.—The term ‘acquire’ includes be determined assuming such comparable (2)(C) and (3)(C). purchase and, in the case of reconstruction dwelling unit contains the property for (3) Section 1250(b)(3) is amended by insert- and rehabilitation, such term includes a which such deduction or credit has been al- ing before the period at the end of the first binding written contract for such recon- lowed. sentence ‘‘or by section 179D’’. struction or rehabilitation. ‘‘(2) COORDINATION WITH INVESTMENT CRED- (4) Section 263(a)(1), as amended by this ‘‘(c) ENERGY SAVING REQUIREMENTS.—A IT.—For purposes of this section, expendi- Act, is amended by striking ‘‘or’’ at the end dwelling unit meets the energy saving re- tures taken into account under section 47 or of subparagraph (I), by striking the period at quirements of this subsection if such unit 48(a) shall not be taken into account under the end of subparagraph (J) and inserting ‘‘, is— this section. or’’, and by inserting after subparagraph (J) ‘‘(1) certified— ‘‘(g) APPLICATION OF SECTION.— the following new subparagraph: ‘‘(A) to have a level of annual heating and ‘‘(1) 50 PERCENT HOMES.—In the case of any ‘‘(K) expenditures for which a deduction is cooling energy consumption which is at least dwelling unit described in paragraph (2) or allowed under section 179D.’’. 30 percent below the annual level of heating (4) of subsection (c), subsection (a) shall (5) Section 312(k)(3)(B), as amended by this and cooling energy consumption of a com- apply to qualified new energy efficient Act, is amended by striking ‘‘179, 179A, 179B, parable dwelling unit— homes acquired during the period beginning or 179C’’ each place it appears in the heading ‘‘(i) which is constructed in accordance on the date of the enactment of this section and text and inserting ‘‘179, 179A, 179B, 179C, with the standards of chapter 4 of the 2003 and ending on December 31, 2009. or 179D’’. International Energy Conservation Code, as ‘‘(2) 30 PERCENT HOMES.—In the case of any (c) CLERICAL AMENDMENT.—The table of such Code (including supplements) is in ef- dwelling unit described in paragraph (1) or sections for part VI of subchapter B of chap- fect on the date of the enactment of this sec- (3) of subsection (c), subsection (a) shall ter 1, as amended by this Act, is amended by tion, and apply to qualified new energy efficient

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00062 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.083 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6847 homes acquired during the period beginning ‘‘(D) which meets the performance and which has an annual electricity use of no on the date of the enactment of this section quality standards, and the certification re- more than 2 percent of the total annual en- and ending on December 31, 2007.’’. quirements (if any), which— ergy use of the furnace (as determined in the (b) CREDIT MADE PART OF GENERAL BUSI- ‘‘(i) have been prescribed by the Secretary standard Department of Energy test proce- NESS CREDIT.—Section 38(b) (relating to cur- by regulations (after consultation with the dures). rent year business credit), as amended by Secretary of Energy or the Administrator of ‘‘(e) ENERGY EFFICIENT RESIDENTIAL RENT- this Act, is amended by striking ‘‘plus’’ at the Environmental Protection Agency, as AL BUILDING PROPERTY DEDUCTION.— the end of paragraph (19), by striking the pe- appropriate), ‘‘(1) DEDUCTION ALLOWED.—For purposes of riod at the end of paragraph (20) and insert- ‘‘(ii) in the case of the energy efficiency subsection (a)— ing ‘‘, plus’’, and by adding at the end the ratio (EER) for central air conditioners and ‘‘(A) IN GENERAL.—The energy efficient res- following new paragraph: electric heat pumps— idential rental building property deduction ‘‘(21) the new energy efficient home credit ‘‘(I) require measurements to be based on determined under this subsection is an determined under section 45K(a).’’. published data which is tested by manufac- amount equal to energy efficient residential (c) BASIS ADJUSTMENT.—Subsection (a) of turers at 95 degrees Fahrenheit, and rental building property expenditures made section 1016, as amended by this Act, is ‘‘(II) may be based on the certified data of by a taxpayer for the taxable year. amended by striking ‘‘and’’ at the end of the Air Conditioning and Refrigeration Insti- ‘‘(B) MAXIMUM AMOUNT OF DEDUCTION.—The paragraph (31), by striking the period at the tute that are prepared in partnership with amount of energy efficient residential rental end of paragraph (32) and inserting ‘‘, and’’, the Consortium for Energy Efficiency, building property expenditures taken into and by adding at the end the following new ‘‘(iii) in the case of geothermal heat account under subparagraph (A) with respect paragraph: pumps— to each dwelling unit shall not exceed— ‘‘(33) to the extent provided in section ‘‘(I) shall be based on testing under the ‘‘(i) $6,000 in the case of a percentage re- 45K(e), in the case of amounts with respect conditions of ARI/ISO Standard 13256–1 for duction of 50 percent or more as determined to which a credit has been allowed under sec- Water Source Heat Pumps or ARI 870 for Di- under paragraph (2)(B)(ii), and tion 45K.’’. rect Expansion GeoExchange Heat Pumps ‘‘(ii) $12,000 times the percentage reduction (d) DEDUCTION FOR CERTAIN UNUSED BUSI- (DX), as appropriate, and NESS CREDITS.—Section 196(c) (defining in the case of a percentage reduction which ‘‘(II) shall include evidence that water is less than 50 percent as determined under qualified business credits) is amended by heating services have been provided through striking ‘‘and’’ at the end of paragraph (11), paragraph (2)(B)(ii). a desuperheater or integrated water heating ‘‘(C) YEAR DEDUCTION ALLOWED.—The de- by striking the period at the end of para- system connected to the storage water heat- graph (12) and inserting ‘‘, and’’, and by add- duction under subparagraph (A) shall be al- er tank, and lowed in the taxable year in which the con- ing after paragraph (12) the following new ‘‘(iv) are in effect at the time of the acqui- paragraph: struction, reconstruction, erection, or reha- sition of the property, or at the time of the bilitation of the property is completed. ‘‘(13) the new energy efficient home credit completion of the construction, reconstruc- ‘‘(2) ENERGY EFFICIENT RESIDENTIAL RENTAL determined under section 45K(a).’’. tion, or erection of the property, as the case (e) CLERICAL AMENDMENT.—The table of BUILDING PROPERTY EXPENDITURES.—For pur- may be. sections for subpart D of part IV of sub- poses of this subsection— ‘‘(2) EXCEPTION.—Such term shall not in- chapter A of chapter 1, as amended by this ‘‘(A) IN GENERAL.—The term ‘energy effi- clude any property which is public utility Act, is amended by adding at the end the fol- cient residential rental building property ex- property (as defined in section 46(f)(5) as in lowing new item: penditures’ means an amount paid or in- effect on the day before the date of the en- curred for energy efficient residential rental ‘‘Sec. 45K. New energy efficient home cred- actment of the Revenue Reconciliation Act building property— it.’’. of 1990). ‘‘(i) in connection with construction, re- ‘‘(d) DEFINITIONS RELATING TO TYPES OF (f) EFFECTIVE DATE.—The amendments construction, erection, or rehabilitation of ENERGY PROPERTY.—For purposes of this sec- made by this section shall apply to taxable residential rental property (as defined in sec- years ending after the date of the enactment tion— ‘‘(1) ENERGY-EFFICIENT BUILDING PROP- tion 168(e)(2)(A)) other than property for of this Act. which a deduction is allowable under section SEC. 1523. DEDUCTION FOR BUSINESS ENERGY ERTY.—The term ‘energy-efficient building property’ means— 179D, PROPERTY. ‘‘(ii) for which depreciation is allowable (a) IN GENERAL.—Part VI of subchapter B ‘‘(A) an electric heat pump water heater under section 167, of chapter 1 is amended by adding at the end which yields an energy factor of at least 2.0 ‘‘(iii) which is located in the United States, the following new section: in the standard Department of Energy test procedure, and ‘‘SEC. 200. ENERGY PROPERTY DEDUCTION. ‘‘(iv) the construction, reconstruction, ‘‘(a) IN GENERAL.—There shall be allowed ‘‘(B) an electric heat pump which has a erection, or rehabilitation of which is com- as a deduction for the taxable year an heating seasonal performance factor (HSPF) pleted by the taxpayer. amount equal to the greater of— of at least 9, a seasonal energy efficiency ‘‘(1) the amount determined under sub- ratio (SEER) of at least 15, and an energy ef- Such term includes expenditures for labor section (b) for each energy property of the ficiency ratio (EER) of at least 13, costs properly allocable to the onsite prepa- taxpayer placed in service during such tax- ‘‘(C) a geothermal heat pump which— ration, assembly, or original installation of able year, or ‘‘(i) in the case of a closed loop product, the property. ‘‘(2) the energy efficient residential rental has an energy efficiency ratio (EER) of at ‘‘(B) ENERGY EFFICIENT RESIDENTIAL RENT- building property deduction determined least 14.1 and a heating coefficient of per- AL BUILDING PROPERTY.— under subsection (e). formance (COP) of at least 3.3, ‘‘(i) IN GENERAL.—The term ‘energy effi- ‘‘(b) AMOUNT FOR ENERGY PROPERTY.—The ‘‘(ii) in the case of an open loop product, cient residential rental building property’ amount determined under this subsection for has an energy efficiency ratio (EER) of at means any property which, individually or in the taxable year shall be— least 16.2 and a heating coefficient of per- combination with other property, reduces ‘‘(1) $150 for any advanced main air circu- formance (COP) of at least 3.6, and total annual energy and power costs with re- lating fan, ‘‘(iii) in the case of a direct expansion (DX) spect to heating and cooling of the building ‘‘(2) $450 for any qualified natural gas, pro- product, has an energy efficiency ratio (EER) by 20 percent or more when compared to— pane, or oil furnace or hot water boiler, and of at least 15 and a heating coefficient of per- ‘‘(I) in the case of an existing building, the ‘‘(2) $900 for any energy efficient building formance (COP) of at least 3.5, original condition of the building, and property. ‘‘(D) a central air conditioner which has a ‘‘(II) in the case of a new building, the ‘‘(c) ENERGY PROPERTY DEFINED.— seasonal energy efficiency ratio (SEER) of at standards for residential buildings of the ‘‘(1) IN GENERAL.—For purposes of this least 15 and an energy efficiency ratio (EER) same type which are built in compliance part, the term ‘energy property’ means any of at least 13, and with the applicable building construction property— ‘‘(E) a natural gas, propane, or oil water codes. ‘‘(A) which is— heater which has an energy factor of at least ‘‘(ii) PROCEDURES.— ‘‘(i) energy-efficient building property, 0.80. ‘‘(I) IN GENERAL.—For purposes of clause ‘‘(ii) a qualified natural gas, propane, or oil ‘‘(2) QUALIFIED NATURAL GAS, PROPANE, OR (i), energy usage and costs shall be dem- furnace or hot water boiler, or OIL FURNACE OR HOT WATER BOILER.—The onstrated by performance-based compliance ‘‘(iii) an advanced main air circulating fan, term ‘qualified natural gas, propane, or oil in accordance with the requirements of ‘‘(B)(i) the construction, reconstruction, or furnace or hot water boiler’ means a natural clause (iv). erection of which is completed by the tax- gas, propane, or oil furnace or hot water ‘‘(II) COMPUTER SOFTWARE.—Computer soft- payer, or boiler which achieves an annual fuel utiliza- ware shall be used in support of performance- ‘‘(ii) which is acquired by the taxpayer if tion efficiency rate of not less than 95. based compliance under subclause (I) and the original use of such property commences ‘‘(3) ADVANCED MAIN AIR CIRCULATING FAN.— such software shall meet all of the proce- with the taxpayer, The term ‘advanced main air circulating fan’ dures and methods for calculating energy ‘‘(C) with respect to which depreciation (or means a fan used in a natural gas, propane, savings reductions which are promulgated by amortization in lieu of depreciation) is al- or oil furnace originally placed in service by the Secretary of Energy. Such regulations on lowable, and the taxpayer during the taxable year and the specifications for software and

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00063 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.083 S20PT1 S6848 CONGRESSIONAL RECORD — SENATE June 20, 2005

verification protocols shall be based on the (b) CONFORMING AMENDMENT.—Section FURNACE OR HOT WATER BOILER; ADVANCED 2005 California Residential Alternative Cal- 1016(a), as amended by this Act, is amended MAIN AIR CIRCULATING FAN.—The terms ‘en- culation Method Approval Manual. by striking ‘‘and’’ at the end of paragraph ergy-efficient building property’, ‘qualified ‘‘(III) CALCULATION REQUIREMENTS.—In cal- (32), by striking the period at the end of natural gas, propane, or oil furnace or hot culating tradeoffs and energy performance, paragraph (33) and inserting ‘‘, and’’, and by water boiler’, and ‘advanced main air circu- the regulations prescribed under this clause inserting the following new paragraph: lating fan’ have the meanings given such shall prescribe for the taxable year the costs ‘‘(34) for amounts allowed as a deduction terms in section 200. per unit of energy and power, such as kilo- under section 200(a).’’. ‘‘(4) HIGHLY ENERGY-EFFICIENT PRINCIPAL watt hour, kilowatt, gallon of fuel oil, and (c) CLERICAL AMENDMENT.—The table of RESIDENCE.— cubic foot or Btu of natural gas, which may sections for part VI of subchapter B of chap- ‘‘(A) IN GENERAL.—A building is a highly be dependent on time of usage. If a State has ter 1 is amended by adding at the end the fol- energy-efficient principal residence if— developed annual energy usage and cost cal- lowing new item: ‘‘(i) such building is located in the United culation procedures based on time of usage ‘‘Sec. 200. Energy property deduction.’’. States, costs for use in the performance standards of ‘‘(ii) the building is used as a principal res- the State’s building energy code prior to the (d) EFFECTIVE DATE.—The amendments idence, effective date of this section, the State may made by this section shall apply to property ‘‘(iii) in the case of a new building, the use those annual energy usage and cost cal- placed in service after the date of the enact- building is not acquired from an eligible con- culation procedures in lieu of those adopted ment of this Act. tractor (within the meaning of section by the Secretary. SEC. 1524. CREDIT FOR CERTAIN NONBUSINESS 45K(b)(1)), and ENERGY PROPERTY. ‘‘(IV) APPROVAL OF SOFTWARE SUBMIS- ‘‘(iv) the building is certified in accordance (a) IN GENERAL.—Subpart A of part IV of SIONS.—The Secretary shall approve software with subparagraph (D) as meeting the re- subchapter A of chapter 1 (relating to non- submissions which comply with the require- quirements of subparagraph (C). refundable personal credits) is amended by ments of subclause (II). ‘‘(B) PRINCIPAL RESIDENCE.— inserting after section 25B the following new ‘‘(V) PROCEDURES FOR INSPECTION AND TEST- ‘‘(i) IN GENERAL.—The term ‘principal resi- section: ING OF HOMES.—The Secretary shall ensure dence’ has the same meaning as when used in that procedures for the inspection and test- ‘‘SEC. 25C. NONBUSINESS ENERGY PROPERTY. section 121, except that— ‘‘(a) ALLOWANCE OF CREDIT.— ing for compliance comply with the calcula- ‘‘(I) no ownership requirement shall be im- ‘‘(1) IN GENERAL.—In the case of an indi- tion requirements under subclause (III) of posed, and vidual, there shall be allowed as a credit this clause and clause (iv). ‘‘(II) the period for which a building is against the tax imposed by this chapter for ‘‘(iii) DETERMINATIONS OF COMPLIANCE.—A treated as used as a principal residence shall the taxable year an amount equal to the determination of compliance with respect to also include the 60-day period ending on the greater of— energy efficient residential rental building 1st day on which it would (but for this sub- ‘‘(A) the amount of residential energy property made for the purposes of this sub- paragraph) first be treated as used as a prin- property expenditures made by the taxpayer paragraph shall be filed with the Secretary cipal residence. during such taxable year, or not later than 1 year after the date of such ‘‘(ii) MANUFACTURED HOUSING.—The term ‘‘(B) the amount specified in paragraph (2) determination and shall include the TIN of ‘residence’ shall include a dwelling unit for any building owned by the taxpayer the certifier, the address of the building in which is a manufactured home conforming to which is certified as a highly energy-effi- compliance, and the identity of the person Federal Manufactured Home Construction cient principal residence during such taxable for whom such determination was performed. and Safety Standards (24 C.F.R. 3280). year. Determinations of compliance filed with the ‘‘(C) REQUIREMENTS.—The requirements of ‘‘(2) CREDIT AMOUNT.—For purposes of para- Secretary shall be available for inspection this subparagraph are met if the projected graph (1)(B), the credit amount with respect by the Secretary of Energy. heating and cooling energy usage of the to a highly energy-efficient principal resi- ‘‘(iv) COMPLIANCE.— building, measured in terms of average an- dence is— ‘‘(I) IN GENERAL.—The Secretary, after con- nual energy cost to taxpayer, is reduced by ‘‘(A) $2,000 in the case of a percentage re- sultation with the Secretary of Energy, shall 20 percent or more in comparison to— duction of 50 percent or more as determined establish requirements for certification and ‘‘(i) in the case of an existing building, the under subsection (c)(4)(C), and compliance procedures after examining the original condition of the building, and ‘‘(B) $4,000 times the percentage reduction requirements for energy consultants and ‘‘(ii) in the case of a new building, a com- in the case of a percentage reduction which home energy ratings providers specified by parable building— is 20 percent or more but less than 50 percent the Mortgage Industry National Home En- ‘‘(I) which is constructed in accordance as determined under subsection (c)(4)(C). with the standards of chapter 4 of the 2003 ergy Rating Standards. ‘‘(b) LIMITATION.—The amount of the credit International Energy Conservation Code, as ‘‘(II) INDIVIDUALS QUALIFIED TO DETERMINE allowed under this section by reason of sub- such Code (including supplements) is in ef- COMPLIANCE.—The determination of compli- section (a)(1)(A) shall not exceed— fect on the date of the enactment of this sec- ance may be provided by a local building reg- ‘‘(1) $50 for any advanced main air circu- tion, and ulatory authority, a utility, a manufactured lating fan, ‘‘(II) for which the heating and cooling home production inspection primary inspec- ‘‘(2) $150 for any qualified natural gas, pro- equipment efficiencies correspond to the tion agency (IPIA), or an accredited home pane, or oil furnace or hot water boiler, and minimum allowed under the regulations es- energy rating system provider. All providers ‘‘(2) $300 for any item of energy efficient tablished by the Department of Energy pur- shall be accredited, or otherwise authorized property. suant to the National Appliance Energy Con- to use approved energy performance meas- ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For servation Act of 1987 and in effect at the urement methods, by the Residential Energy purposes of this section— time of construction. Services Network (RESNET). ‘‘(1) RESIDENTIAL ENERGY PROPERTY EX- ‘‘(D) CERTIFICATION PROCEDURES.— ‘‘(C) ALLOCATION OF DEDUCTION FOR PUBLIC PENDITURES.—The term ‘residential energy ‘‘(i) IN GENERAL.—For purposes of subpara- PROPERTY.—In the case of energy efficient property expenditures’ means expenditures graph (A)(iv), energy usage shall be dem- residential rental building property which is made by the taxpayer for qualified energy onstrated by performance-based compliance property owned by a Federal, State, or local property installed on or in connection with a in accordance with the requirements of sub- government or a political subdivision there- dwelling unit which— section (d)(2). of, the Secretary shall promulgate a regula- ‘‘(A) is located in the United States, and ‘‘(ii) COMPUTER SOFTWARE.—Computer soft- tion to allow the allocation of the deduction ‘‘(B) is used as a principal residence. ware shall be used in support of performance- to the person primarily responsible for de- Such term includes expenditures for labor based compliance under clause (i) and such signing the improvements to the property in costs properly allocable to the onsite prepa- software shall meet all of the procedures and lieu of the owner of such property. Such per- ration, assembly, or original installation of methods for calculating energy savings re- son shall be treated as the taxpayer for pur- the property. ductions which are promulgated by the Sec- poses of this subsection. ‘‘(2) QUALIFIED ENERGY PROPERTY.— retary of Energy. Such regulations on the ‘‘(f) BASIS REDUCTION.—For purposes of this ‘‘(A) IN GENERAL.—The term ‘qualified en- specifications for software and verification subtitle, if a deduction is allowed under this section with respect to any property, the ergy property’ means— protocols shall be based on the 2005 Cali- basis of such property shall be reduced by ‘‘(i) energy-efficient building property, fornia Residential Alternative Calculation the amount of the deduction so allowed. ‘‘(ii) a qualified natural gas, propane, or oil Method Approval Manual. ‘‘(g) REGULATIONS.—The Secretary shall furnace or hot water boiler, or ‘‘(iii) CALCULATION REQUIREMENTS.—In cal- promulgate such regulations as necessary to ‘‘(iii) an advanced main air circulating fan. culating tradeoffs and energy performance, take into account new technologies regard- ‘‘(B) REQUIRED STANDARDS.—Property de- the regulations shall prescribe the costs per ing energy efficiency and renewable energy scribed under subparagraph (A) shall meet unit of energy and power, such as kilowatt for purposes of determining energy efficiency the performance and quality standards and hour, kilowatt, gallon of fuel oil, and cubic and savings under this section. certification standards of section foot or Btu of natural gas, which may be de- ‘‘(h) TERMINATION.—This section shall not 200(c)(1)(D). pendent on time of usage. If a State has de- apply with respect to any property placed in ‘‘(3) ENERGY-EFFICIENT BUILDING PROPERTY; veloped annual energy usage and cost cal- service after December 31, 2008.’’. QUALIFIED NATURAL GAS, PROPANE, OR OIL culation procedures based on time of usage

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00064 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.084 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6849 costs for use in the performance standards of condominium which he owns, such individual State tax credit, or grant under any State the State’s building energy code before the shall be treated as having made his propor- energy program. effective date of this section, the State may tionate share of any expenditures of such as- ‘‘(11) COORDINATION WITH SECTION 25D.—In use those annual energy usage and cost cal- sociation and any credit shall be allocated any case in which a credit under section 25D culation procedures in lieu of those adopted appropriately. has been allowed with respect to property in by the Secretary. ‘‘(B) CONDOMINIUM MANAGEMENT ASSOCIA- connection with a building for which a credit ‘‘(iv) APPROVAL OF SOFTWARE SUBMIS- TION.—For purposes of this paragraph, the is allowable under this section by reason of SIONS.—The Secretary shall approve software term ‘condominium management associa- subsection (a)(1)(B)— submissions which comply with the calcula- tion’ means an organization which meets the ‘‘(A) for purposes of subsection (c)(4)(C), tion requirements of clause (ii). requirements of paragraph (1) of section the average annual energy cost with respect ‘‘(v) PROCEDURES FOR INSPECTION AND TEST- 528(c) (other than subparagraph (E) thereof) to heating and cooling of— ING OF DWELLING UNITS.—The Secretary shall with respect to a condominium project sub- ‘‘(i) for purposes of subsection (c)(4)(C)(i), ensure that procedures for the inspection stantially all of the units of which are used the original condition of the building, and and testing for compliance comply with the as principal residences. ‘‘(ii) for purposes of subsection (c)(4)(C)(ii), calculation requirements under clause (iii) ‘‘(6) JOINT OWNERSHIP OF ENERGY ITEMS.— the comparable building, and subsection (d)(2). ‘‘(A) IN GENERAL.—Any expenditure other- shall be determined assuming such building ‘‘(d) SPECIAL RULES.—For purposes of this wise qualifying as an expenditure under this contains the property for which such credit section— section shall not be treated as failing to so has been allowed, and ‘‘(1) DETERMINATIONS OF COMPLIANCE.—A qualify merely because such expenditure was ‘‘(B) any cost of such property taken into determination of compliance made for the made with respect to 2 or more dwelling account under such section shall not be purposes of this section shall be filed with taken into account under this section. the Secretary within 1 year of the date of units. ‘‘(B) LIMITS APPLIED SEPARATELY.—In the ‘‘(e) BASIS ADJUSTMENTS.—For purposes of such determination and shall include the this subtitle, if a credit is allowed under this TIN of the certifier, the address of the build- case of any expenditure described in subpara- graph (A), the amount of the credit allowable section for any expenditure with respect to ing in compliance, and the identity of the any property, the increase in the basis of person for whom such determination was under subsection (a) shall (subject to para- graph (1)) be computed separately with re- such property which would (but for this sub- performed. Determinations of compliance section) result from such expenditure shall filed with the Secretary shall be available spect to the amount of the expenditure made for each dwelling unit. be reduced by the amount of the credit so al- for inspection by the Secretary of Energy. lowed. ‘‘(2) COMPLIANCE.— ‘‘(7) ALLOCATION IN CERTAIN CASES.—If less than 80 percent of the use of an item is for ‘‘(f) REGULATIONS.—The Secretary shall ‘‘(A) IN GENERAL.—The Secretary, after promulgate such regulations as necessary to consultation with the Secretary of Energy, nonbusiness purposes, only that portion of the expenditures for such item which is prop- take into account new technologies regard- shall establish requirements for certification ing energy efficiency and renewable energy and compliance procedures after examining erly allocable to use for nonbusiness pur- poses shall be taken into account. for purposes of determining energy efficiency the requirements for energy consultants and and savings under this section. ‘‘(8) YEAR CREDIT ALLOWED.—The credit home energy ratings providers specified by ‘‘(g) TERMINATION.—This section shall not under subsection (a)(2) shall be allowed in the Mortgage Industry National Home En- apply with respect to any property placed in the taxable year in which the percentage re- ergy Rating Standards. service after December 31, 2008.’’. duction with respect to the principal resi- ‘‘(B) INDIVIDUALS QUALIFIED TO DETERMINE (b) CONFORMING AMENDMENTS.— dence is certified. COMPLIANCE.—The determination of compli- (1) Subsection (a) of section 1016, as amend- ‘‘(9) WHEN EXPENDITURE MADE; AMOUNT OF ance may be provided by a local building reg- ed by this Act, is amended by striking ‘‘and’’ EXPENDITURE.— ulatory authority, a utility, a manufactured at the end of paragraph (33), by striking the ‘‘(A) IN GENERAL.—Except as provided in home production inspection primary inspec- period at the end of paragraph (34) and in- subparagraph (B), an expenditure with re- tion agency (IPIA), or an accredited home serting ‘‘, and’’, and by adding at the end the spect to an item shall be treated as made energy rating system provider. All providers following new paragraph: when the original installation of the item is shall be accredited, or otherwise authorized ‘‘(35) to the extent provided in section completed. to use approved energy performance meas- 25C(e), in the case of amounts with respect to ‘‘(B) EXPENDITURES PART OF BUILDING CON- urement methods, by the Residential Energy which a credit has been allowed under sec- STRUCTION.—In the case of an expenditure in Services Network (RESNET). tion 25C.’’. connection with the construction of a struc- ‘‘(3) DOLLAR AMOUNTS IN CASE OF JOINT OC- (2) The table of sections for subpart A of ture, such expenditure shall be treated as CUPANCY.—In the case of any dwelling unit part IV of subchapter A of chapter 1 is which is jointly occupied and used during made when the original use of the con- amended by inserting after the item relating any calendar year as a principal residence by structed structure by the taxpayer begins. to section 25B the following new item: 2 or more individuals, the following rules ‘‘(10) PROPERTY FINANCED BY SUBSIDIZED EN- shall apply: ERGY FINANCING.— ‘‘Sec. 25C. Nonbusiness energy property.’’. ‘‘(A) The amount of the credit allowable ‘‘(A) REDUCTION OF EXPENDITURES.— (c) EFFECTIVE DATES.—The amendments under subsection (a) by reason of expendi- ‘‘(i) IN GENERAL.—Except as provided in made by this section shall apply to property tures made during such calendar year by any subparagraph (C), for purposes of deter- placed in service after December 31, 2005. of such individuals with respect to such mining the amount of expenditures made by SEC. 1525. ENERGY CREDIT FOR COMBINED HEAT dwelling unit shall be determined by treat- any individual with respect to any dwelling AND POWER SYSTEM PROPERTY. ing all of such individuals as 1 taxpayer unit, there shall not be taken into account (a) IN GENERAL.—Section 48(a)(3)(A) (defin- whose taxable year is such calendar year. expenditures which are made from subsidized ing energy property) is by striking ‘‘or’’ at ‘‘(B) There shall be allowable with respect energy financing. the end of clause (i), by inserting ‘‘or’’ at the to such expenditures to each of such individ- ‘‘(ii) SUBSIDIZED ENERGY FINANCING.—For end of clause (ii), and by adding at the end uals, a credit under subsection (a) for the purposes of clause (i), the term ‘subsidized the following new clause: taxable year in which such calendar year energy financing’ has the same meaning ‘‘(iii) combined heat and power system ends in an amount which bears the same given such term in section 48(a)(4)(C). property,’’. ratio to the amount determined under sub- ‘‘(B) DOLLAR LIMITS REDUCED.—The dollar (b) COMBINED HEAT AND POWER SYSTEM paragraph (A) as the amount of such expend- amounts in subsection (b)(3) with respect to PROPERTY.—Section 48 (relating to energy itures made by such individual during such each property purchased for such dwelling credit; reforestation credit) is amended by calendar year bears to the aggregate of such unit for any taxable year of such taxpayer adding at the end the following new sub- expenditures made by all of such individuals shall be reduced proportionately by an section: during such calendar year. amount equal to the sum of— ‘‘(c) COMBINED HEAT AND POWER SYSTEM ‘‘(4) TENANT-STOCKHOLDER IN COOPERATIVE ‘‘(i) the amount of the expenditures made PROPERTY.—For purposes of subsection HOUSING CORPORATION.—In the case of an in- by the taxpayer during such taxable year (a)(3)(A)(iii)— dividual who is a tenant-stockholder (as de- with respect to such dwelling unit and not ‘‘(1) COMBINED HEAT AND POWER SYSTEM fined in section 216) in a cooperative housing taken into account by reason of subpara- PROPERTY.—The term ‘combined heat and corporation (as defined in such section), such graph (A), and power system property’ means property com- individual shall be treated as having made ‘‘(ii) the amount of any Federal, State, or prising a system— his tenant-stockholder’s proportionate share local grant received by the taxpayer during ‘‘(A) which uses the same energy source for (as defined in section 216(b)(3)) of any ex- such taxable year which is used to make res- the simultaneous or sequential generation of penditures of such corporation and such idential energy property expenditures with electrical power, mechanical shaft power, or credit shall be allocated pro rata to such in- respect to the dwelling unit and is not in- both, in combination with the generation of dividual. cluded in the gross income of such taxpayer. steam or other forms of useful thermal en- ‘‘(5) CONDOMINIUMS.— ‘‘(C) EXCEPTION FOR STATE PROGRAMS.— ergy (including heating and cooling applica- ‘‘(A) IN GENERAL.—In the case of an indi- Subparagraphs (A) and (B) shall not apply to tions), vidual who is a member of a condominium expenditures made with respect to property ‘‘(B) which has an electrical capacity of management association with respect to a for which the taxpayer has received a loan, not more than 15 megawatts or a mechanical

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00065 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.084 S20PT1 S6850 CONGRESSIONAL RECORD — SENATE June 20, 2005 energy capacity of not more than 2,000 horse- ‘‘(B) the eligible production for such type. ‘‘(I) $10, and power or an equivalent combination of elec- ‘‘(b) APPLICABLE AMOUNT.— ‘‘(II) 100 multiplied by the energy and trical and mechanical energy capacities, ‘‘(1) IN GENERAL.—For purposes of sub- water savings percentage, or ‘‘(C) which produces— section (a)— ‘‘(ii) $200. ‘‘(i) at least 20 percent of its total useful ‘‘(A) DISHWASHERS.—The applicable ‘‘(B) ENERGY AND WATER SAVINGS PERCENT- energy in the form of thermal energy which amount is the energy savings amount in the AGE.—For purposes of subparagraph (A), the is not used to produce electrical or mechan- case of a dishwasher which— energy and water savings percentage is the ical power (or combination thereof), and ‘‘(i) is manufactured in calendar year 2006 average of the MEF savings percentage and ‘‘(ii) at least 20 percent of its total useful or 2007, and the WF savings percentage. energy in the form of electrical or mechan- ‘‘(ii) meets the requirements of the Energy ‘‘(C) MEF SAVINGS PERCENTAGE.—For pur- ical power (or combination thereof), Star program which are in effect for dish- poses of this paragraph, the MEF savings ‘‘(D) the energy efficiency percentage of washers in 2007. percentage is the ratio of— which exceeds 60 percent, and ‘‘(B) CLOTHES WASHERS.—The applicable ‘‘(i) the MEF required by the Energy Star ‘‘(E) which is placed in service before Janu- amount is— program for clothes washers in 2010 minus ary 1, 2008. ‘‘(i) $50, in the case of a clothes washer the MEF required by the Energy Star pro- ‘‘(2) SPECIAL RULES.— which— gram for clothes washers in 2007, to ‘‘(A) ENERGY EFFICIENCY PERCENTAGE.—For ‘‘(I) is manufactured in calendar year 2005, ‘‘(ii) the MEF required by the Energy Star purposes of this subsection, the energy effi- and program for clothes washers in 2010. ciency percentage of a system is the frac- ‘‘(II) has an MEF of at least 1.42, ‘‘(D) WF SAVINGS PERCENTAGE.—For pur- tion— ‘‘(ii) $100, in the case of a clothes washer poses of this paragraph, the WF savings per- ‘‘(i) the numerator of which is the total which— centage is the ratio of— useful electrical, thermal, and mechanical ‘‘(I) is manufactured in calendar year 2005, ‘‘(i) the WF required by the Energy Star power produced by the system at normal op- 2006, or 2007, and program for clothes washers in 2007 minus erating rates, and expected to be consumed ‘‘(II) meets the requirements of the Energy the WF required by the Energy Star program in its normal application, and Star program which are in effect for clothes for clothes washers in 2010, to ‘‘(ii) the denominator of which is the lower washers in 2007, and ‘‘(ii) the WF required by the Energy Star heating value of the fuel sources for the sys- ‘‘(iii) the energy and water savings program for clothes washers in 2007. tem. amount, in the case of a clothes washer ‘‘(c) ELIGIBLE PRODUCTION.— ‘‘(B) DETERMINATIONS MADE ON BTU BASIS.— which— ‘‘(1) IN GENERAL.—Except as provided in The energy efficiency percentage and the ‘‘(I) is manufactured in calendar year 2008, paragraphs (2) and (3), the eligible produc- percentages under paragraph (1)(C) shall be 2009, or 2010, and tion in a calendar year with respect to each determined on a Btu basis. ‘‘(II) meets the requirements of the Energy type of energy efficient appliance is the ex- ‘‘(C) INPUT AND OUTPUT PROPERTY NOT IN- Star program which are in effect for clothes cess of— CLUDED.—The term ‘combined heat and washers in 2010. ‘‘(A) the number of appliances of such type power system property’ does not include ‘‘(C) REFRIGERATORS.— which are produced by the taxpayer in the property used to transport the energy source ‘‘(i) 15 PERCENT SAVINGS.—The applicable United States during such calendar year, to the facility or to distribute energy pro- amount is $75 in the case of a refrigerator over duced by the facility. which— ‘‘(B) the average number of appliances of ‘‘(D) CERTAIN EXCEPTION NOT TO APPLY.— ‘‘(I) is manufactured in calendar year 2005 such type which were produced by the tax- The first sentence of the matter in sub- or 2006, and payer (or any predecessor) in the United section (a)(3) which follows subparagraph (D) ‘‘(II) consumes at least 15 percent but not States during the preceding 3-calendar year thereof shall not apply to combined heat and more than 20 percent less kilowatt hours per period. power system property. year than the 2001 energy conservation ‘‘(2) SPECIAL RULE FOR REFRIGERATORS.— standard. The eligible production in a calendar year ‘‘(3) SYSTEMS USING BAGASSE.—If a system PERCENT SAVINGS.—In the case of a is designed to use bagasse for at least 90 per- ‘‘(ii) 20 with respect to each type of refrigerator de- refrigerator which consumes at least 20 per- cent of the energy source— scribed in subsection (b)(1)(C) is the excess cent but not more than 25 percent less kilo- ‘‘(A) paragraph (1)(D) shall not apply, but of— watt hours per year than the 2001 energy ‘‘(B) the amount of credit determined ‘‘(A) the number of appliances of such type conservation standards, the applicable under subsection (a) with respect to such which are produced by the taxpayer in the amount is— system shall not exceed the amount which United States during such calendar year, ‘‘(I) $125 for a refrigerator which is manu- bears the same ratio to such amount of cred- over factured in calendar year 2005, 2006, or 2007, it (determined without regard to this para- ‘‘(B) 110 percent of the average number of and graph) as the energy efficiency percentage of appliances of such type which were produced ‘‘(II) $100 for a refrigerator which is manu- such system bears to 60 percent.’’. by the taxpayer (or any predecessor) in the factured in calendar year 2008. (c) EFFECTIVE DATE.—The amendments United States during the preceding 3-cal- made by this section shall apply to periods ‘‘(iii) 25 PERCENT SAVINGS.—In the case of a endar year period. after the date of the enactment of this Act, refrigerator which consumes at least 25 per- ‘‘(3) SPECIAL RULE FOR 2005 PRODUCTION.— in taxable years ending after such date, cent less kilowatt hours per year than the For purposes of determining eligible produc- under rules similar to the rules of section 2001 energy conservation standards, the ap- tion for calendar year 2005— 48(m) of the Internal Revenue Code of 1986 plicable amount is— ‘‘(A) only production after the date of en- (as in effect on the day before the date of the ‘‘(I) $175 for a refrigerator which is manu- actment of this section shall be taken into enactment of the Revenue Reconciliation factured in calendar year 2005, 2006, or 2007, account under paragraphs (1)(A) and (2)(A), Act of 1990). and and SEC. 1526. CREDIT FOR ENERGY EFFICIENT AP- ‘‘(II) $150 for a refrigerator which is manu- ‘‘(B) the amount taken into account under PLIANCES. factured in calendar year 2008, 2009, or 2010. paragraphs (1)(B) and (2)(B) shall be an (a) IN GENERAL.—Subpart D of part IV of ‘‘(2) ENERGY SAVINGS AMOUNT.—For pur- amount which bears the same ratio to the subchapter A of chapter 1 (relating to busi- poses of paragraph (1)(A)— amount which would (but for this paragraph) ness-related credits), as amended by this ‘‘(A) IN GENERAL.—The energy savings be taken into account under such paragraph Act, is amended by adding at the end the fol- amount is the lesser of— as— lowing new section: ‘‘(i) the product of— ‘‘(i) the number of days in calendar year ‘‘SEC. 45L. ENERGY EFFICIENT APPLIANCE CRED- ‘‘(I) $3, and 2005 after the date of enactment of this sec- IT. ‘‘(II) 100 multiplied by the energy savings tion, bears to ‘‘(a) GENERAL RULE.— percentage, or ‘‘(ii) 365. ‘‘(1) IN GENERAL.—For purposes of section ‘‘(ii) $100. ‘‘(d) TYPES OF ENERGY EFFICIENT APPLI- 38, the energy efficient appliance credit de- ‘‘(B) ENERGY SAVINGS PERCENTAGE.—For ANCE.—For purposes of this section, the termined under this section for any taxable purposes of subparagraph (A), the energy types of energy efficient appliances are— year is an amount equal to the sum of the savings percentage is the ratio of— ‘‘(1) dishwashers described in subsection credit amounts determined under paragraph ‘‘(i) the EF required by the Energy Star (b)(1)(A), (2) for each type of qualified energy efficient program for dishwashers in 2007 minus the ‘‘(2) clothes washers described in sub- appliance produced by the taxpayer during EF required by the Energy Star program for section (b)(1)(B)(i), the calendar year ending with or within the dishwashers in 2005, to ‘‘(3) clothes washers described in sub- taxable year. ‘‘(ii) the EF required by the Energy Star section (b)(1)(B)(ii), ‘‘(2) CREDIT AMOUNTS.—The credit amount program for dishwashers in 2007. ‘‘(4) clothes washers described in sub- determined for any type of qualified energy ‘‘(3) ENERGY AND WATER SAVINGS AMOUNT.— section (b)(1)(B)(iii), efficient appliance is— For purposes of paragraph (1)(B)(iii)— ‘‘(5) refrigerators described in subsection ‘‘(A) the applicable amount determined ‘‘(A) IN GENERAL.—The energy and water (b)(1)(C)(i), under subsection (b) with respect to such savings amount is the lesser of— ‘‘(6) refrigerators described in subsection type, multiplied by ‘‘(i) the product of— (b)(1)(C)(ii)(I),

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.084 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6851 ‘‘(7) refrigerators described in subsection ‘‘(5) MEF.—The term ‘MEF’ means the ‘‘(A) $2,000 for property described in para- (b)(1)(C)(ii)(II), modified energy factor established by the graph (1) or (2) of subsection (d), and ‘‘(8) refrigerators described in subsection Department of Energy for compliance with ‘‘(B) $500 for each 0.5 kilowatt of capacity (b)(1)(C)(iii)(I), and the Federal energy conservation standards. of property described in subsection (d)(4). ‘‘(9) refrigerators described in subsection ‘‘(6) EF.—The term ‘EF’ means the energy ‘‘(2) CERTIFICATIONS.—No credit shall be al- (b)(1)(C)(iii)(II). factor established by the Department of En- lowed under this section for an item of prop- ‘‘(e) LIMITATIONS.— ergy for compliance with the Federal energy erty unless— ‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— conservation standards. ‘‘(A) in the case of solar water heating The aggregate amount of credit allowed ‘‘(7) WF.—The term ‘WF’ means Water Fac- property, such property is certified for per- under subsection (a) with respect to a tax- tor (as determined by the Secretary of En- formance by the non-profit Solar Rating Cer- payer for any taxable year shall not exceed ergy). tification Corporation or a comparable enti- $75,000,000 reduced by the amount of the ‘‘(8) PRODUCED.—The term ‘produced’ in- ty endorsed by the government of the State credit allowed under subsection (a) to the cludes manufactured. in which such property is installed, and taxpayer (or any predecessor) for all prior ‘‘(9) 2001 ENERGY CONSERVATION STAND- ‘‘(B) in the case of a photovoltaic property taxable years. ARD.—The term ‘2001 energy conservation or a fuel cell property such property meets ‘‘(2) AMOUNT ALLOWED FOR CERTAIN APPLI- standard’ means the energy conservation appropriate fire and electric code require- ANCES.— standards promulgated by the Department of ments. ‘‘(A) IN GENERAL.—In the case of appliances Energy and effective July 1, 2001. ‘‘(c) CARRYFORWARD OF UNUSED CREDIT.—If described in subparagraph (C), the aggregate ‘‘(g) SPECIAL RULES.—For purposes of this the credit allowable under subsection (a) ex- amount of the credit allowed under sub- section— ceeds the limitation imposed by section 26(a) section (a) with respect to a taxpayer for any ‘‘(1) IN GENERAL.—Rules similar to the for such taxable year reduced by the sum of taxable year shall not exceed $20,000,000 re- rules of subsections (c), (d), and (e) of section the credits allowable under this subpart duced by the amount of the credit allowed 52 shall apply. (other than this section), such excess shall be carried to the succeeding taxable year and under subsection (a) to the taxpayer (or any ‘‘(2) CONTROLLED GROUP.— added to the credit allowable under sub- predecessor) for all prior taxable years with ‘‘(A) IN GENERAL.—All persons treated as a section (a) for such succeeding taxable year. respect to such appliances. single employer under subsection (a) or (b) of ‘‘(B) ELECTION TO INCREASE ALLOWABLE ‘‘(d) DEFINITIONS.—For purposes of this sec- section 52 or subsection (m) or (o) of section tion— CREDIT.—In the case of any taxpayer who 414 shall be treated as a single producer. makes an election under this subparagraph— ‘‘(1) QUALIFIED SOLAR WATER HEATING PROP- ‘‘(B) INCLUSION OF FOREIGN CORPORATIONS.— ERTY EXPENDITURE.—The term ‘qualified ‘‘(i) subparagraph (A) shall be applied by For purposes of subparagraph (A), in apply- substituting ‘$25,000,000’ for ‘$20,000,000’, and solar water heating property expenditure’ ing subsections (a) and (b) of section 52 to means an expenditure for property to heat ‘‘(ii) the aggregate amount of the credit al- this section, section 1563 shall be applied lowed under subsection (a) with respect to water for use in a dwelling unit located in without regard to subsection (b)(2)(C) there- such taxpayer for any taxable year for appli- the United States and used as a residence by of. ances described in subparagraph (C) and the the taxpayer if at least half of the energy ‘‘(3) VERIFICATION.—No amount shall be al- additional appliances described in subpara- used by such property for such purpose is de- lowed as a credit under subsection (a) with graph (D) shall not exceed $50,000,000 reduced rived from the sun. respect to which the taxpayer has not sub- by the amount of the credit allowed under ‘‘(2) QUALIFIED PHOTOVOLTAIC PROPERTY EX- mitted such information or certification as subsection (a) to the taxpayer (or any prede- PENDITURE.—The term ‘qualified photo- the Secretary, in consultation with the Sec- cessor) for all prior taxable years with re- voltaic property expenditure’ means an ex- retary of Energy, determines necessary.’’. spect to such appliances. penditure for property which uses solar en- (b) CONFORMING AMENDMENT.—Section 38(b) ‘‘(C) APPLIANCES DESCRIBED.—The appli- ergy to generate electricity for use in a (relating to general business credit), as ances described in this subparagraph are— dwelling unit located in the United States amended by this Act, is amended by striking ‘‘(i) clothes washers described in sub- and used as a residence by the taxpayer. ‘‘plus’’ at the end of paragraph (20), by strik- section (b)(1)(B)(i), and ‘‘(3) SOLAR PANELS.—No expenditure relat- ing the period at the end of paragraph (21) ‘‘(ii) refrigerators described in subsection ing to a solar panel or other property in- and inserting ‘‘, plus’’, and by adding at the (b)(1)(C)(i). stalled as a roof (or portion thereof) shall end the following new paragraph: ‘‘(D) ADDITIONAL APPLIANCES.—The addi- fail to be treated as property described in ‘‘(22) the energy efficient appliance credit tional appliances described in this subpara- paragraph (1) or (2) solely because it con- determined under section 45L(a).’’. graph are— stitutes a structural component of the struc- (c) CLERICAL AMENDMENT.—The table of ‘‘(i) refrigerators described in subsection ture on which it is installed. sections for subpart D of part IV of sub- (b)(1)(C)(ii)(I), and ‘‘(4) QUALIFIED FUEL CELL PROPERTY EX- chapter A of chapter 1, as amended by this ‘‘(ii) refrigerators described in subsection PENDITURE.—The term ‘qualified fuel cell Act, is amended by adding at the end the fol- (b)(1)(C)(ii)(II). property expenditure’ means an expenditure lowing new item: ‘‘(3) LIMITATION BASED ON GROSS RE- for qualified fuel cell property (as defined in CEIPTS.—The credit allowed under subsection ‘‘Sec. 45L. Energy efficient appliance section 48(d)(1)) installed on or in connection (a) with respect to a taxpayer for the taxable credit’’. with a dwelling unit located in the United year shall not exceed an amount equal to 2 (d) EFFECTIVE DATE.—The amendments States and used as a principal residence percent of the average annual gross receipts made by this section shall apply to appli- (within the meaning of section 121) by the of the taxpayer for the 3 taxable years pre- ances produced after the date of the enact- taxpayer. ceding the taxable year in which the credit is ment of this Act, in taxable years ending ‘‘(5) LABOR COSTS.—Expenditures for labor determined. after such date. costs properly allocable to the onsite prepa- ‘‘(4) GROSS RECEIPTS.—For purposes of this SEC. 1527. CREDIT FOR RESIDENTIAL ENERGY ration, assembly, or original installation of subsection, the rules of paragraphs (2) and (3) EFFICIENT PROPERTY. the property described in paragraph (1), (2), of section 448(c) shall apply. (a) IN GENERAL.—Subpart A of part IV of (4), (5), or (6) and for piping or wiring to ‘‘(f) DEFINITIONS.—For purposes of this sec- subchapter A of chapter 1 (relating to non- interconnect such property to the dwelling tion— refundable personal credits), as amended by unit shall be taken into account for purposes ‘‘(1) QUALIFIED ENERGY EFFICIENT APPLI- this Act, is amended by inserting after sec- of this section. ANCE.—The term ‘qualified energy efficient tion 25C the following new section: ‘‘(6) SWIMMING POOLS, ETC., USED AS STOR- appliance’ means— ‘‘SEC. 25D. RESIDENTIAL ENERGY EFFICIENT AGE MEDIUM.—Expenditures which are prop- ‘‘(A) any dishwasher described in sub- PROPERTY. erly allocable to a swimming pool, hot tub, section (b)(1)(A), ‘‘(a) ALLOWANCE OF CREDIT.—In the case of or any other energy storage medium which ‘‘(B) any clothes washer described in sub- an individual, there shall be allowed as a has a function other than the function of section (b)(1)(B), and credit against the tax imposed by this chap- such storage shall not be taken into account ‘‘(C) any refrigerator described in sub- ter for the taxable year an amount equal to for purposes of this section. section (b)(1)(C). the sum of— ‘‘(e) SPECIAL RULES.—For purposes of this ‘‘(2) DISHWASHER.—The term ‘dishwasher’ ‘‘(1) 30 percent of the qualified photo- section— means a residential dishwasher subject to voltaic property expenditures made by the ‘‘(1) DOLLAR AMOUNTS IN CASE OF JOINT OC- the energy conservation standards estab- taxpayer during such year, CUPANCY.—In the case of any dwelling unit lished by the Department of Energy. ‘‘(2) 30 percent of the qualified solar water which is jointly occupied and used during ‘‘(3) CLOTHES WASHER.—The term ‘clothes heating property expenditures made by the any calendar year as a residence by 2 or washer’ means a residential model clothes taxpayer during such year, more individuals the following rules shall washer, including a residential style coin op- ‘‘(3) 30 percent of the qualified fuel cell apply: erated washer. property expenditures made by the taxpayer ‘‘(A) The amount of the credit allowable, ‘‘(4) REFRIGERATOR.—The term ‘refrig- during such year, under subsection (a) by reason of expendi- erator’ means a residential model automatic ‘‘(b) LIMITATIONS.— tures (as the case may be) made during such defrost refrigerator-freezer which has an in- ‘‘(1) MAXIMUM CREDIT.—The credit allowed calendar year by any of such individuals ternal volume of at least 16.5 cubic feet. under subsection (a) shall not exceed— with respect to such dwelling unit shall be

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00067 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.084 S20PT1 S6852 CONGRESSIONAL RECORD — SENATE June 20, 2005 determined by treating all of such individ- and by adding at the end the following new with respect to such property shall not ex- uals as 1 taxpayer whose taxable year is such paragraph: ceed an amount equal $200 for each kilowatt calendar year. ‘‘(36) to the extent provided in section of capacity of such property. ‘‘(B) There shall be allowable, with respect 25D(f), in the case of amounts with respect to ‘‘(C) STATIONARY MICROTURBINE POWER to such expenditures to each of such individ- which a credit has been allowed under sec- PLANT.—The term ‘stationary microturbine uals, a credit under subsection (a) for the tion 25D.’’. power plant’ means an integrated system taxable year in which such calendar year (2) The table of sections for subpart A of comprised of a gas turbine engine, a com- ends in an amount which bears the same part IV of subchapter A of chapter 1, as bustor, a recuperator or regenerator, a gen- ratio to the amount determined under sub- amended by this Act, is amended by insert- erator or alternator, and associated balance paragraph (A) as the amount of such expend- ing after the item relating to section 25C the of plant components which converts a fuel itures made by such individual during such following new item: into electricity and thermal energy. Such calendar year bears to the aggregate of such ‘‘Sec. 25D. Residential energy efficient prop- term also includes all secondary components expenditures made by all of such individuals erty.’’. located between the existing infrastructure during such calendar year. for fuel delivery and the existing infrastruc- ‘‘(2) TENANT-STOCKHOLDER IN COOPERATIVE (c) EFFECTIVE DATES.—Except as provided ture for power distribution, including equip- HOUSING CORPORATION.—In the case of an in- by paragraph (2), the amendments made by ment and controls for meeting relevant dividual who is a tenant-stockholder (as de- this section shall apply to property placed in power standards, such as voltage, frequency, fined in section 216) in a cooperative housing service after December 31, 2005, in taxable and power factors. corporation (as defined in such section), such years ending after such date. ‘‘(D) SPECIAL RULE.—The first sentence of individual shall be treated as having made SEC. 1528. CREDIT FOR BUSINESS INSTALLATION the matter in subsection (a)(3) which follows his tenant-stockholder’s proportionate share OF QUALIFIED FUEL CELLS AND subparagraph (D) thereof shall not apply to (as defined in section 216(b)(3)) of any ex- STATIONARY MICROTURBINE qualified microturbine property which is POWER PLANTS. penditures of such corporation. used predominantly in the trade or business (a) IN GENERAL.—Section 48(a)(3)(A) (defin- ‘‘(3) CONDOMINIUMS.— ing energy property), as amended by this of the furnishing or sale of telephone service, ‘‘(A) IN GENERAL.—In the case of an indi- Act, is amended by striking ‘‘or’’ at the end telegraph service by means of domestic tele- vidual who is a member of a condominium of clause (ii), by adding ‘‘or’’ at the end of graph operations, or other telegraph services management association with respect to a clause (iii), and by inserting after clause (iii) (other than international telegraph serv- condominium which the individual owns, the following new clause: ices). such individual shall be treated as having ‘‘(iv) qualified fuel cell property or quali- ‘‘(E) TERMINATION.—The term ‘qualified made the individual’s proportionate share of fied microturbine property,’’. microturbine property’ shall not include any any expenditures of such association. (b) QUALIFIED FUEL CELL PROPERTY; QUALI- property for any period after December 31, ‘‘(B) CONDOMINIUM MANAGEMENT ASSOCIA- FIED MICROTURBINE PROPERTY.—Section 48 2008.’’. TION.—For purposes of this paragraph, the (relating to energy credit) is amended by (c) ENERGY PERCENTAGE.—Section term ‘condominium management associa- adding at the end the following new sub- 48(a)(2)(A) (relating to energy percentage) is tion’ means an organization which meets the section: amended to read as follows: requirements of paragraph (1) of section ‘‘(d) QUALIFIED FUEL CELL PROPERTY; ‘‘(A) IN GENERAL.—The energy percentage 528(c) (other than subparagraph (E) thereof) QUALIFIED MICROTURBINE PROPERTY.—For is— with respect to a condominium project sub- purposes of this subsection— ‘‘(i) in the case of qualified fuel cell prop- stantially all of the units of which are used ‘‘(1) QUALIFIED FUEL CELL PROPERTY.— erty, 30 percent, and as residences. ‘‘(A) IN GENERAL.—The term ‘qualified fuel ‘‘(ii) in the case of any other energy prop- ‘‘(4) ALLOCATION IN CERTAIN CASES.—If less cell property’ means a fuel cell power plant erty, 10 percent.’’. than 80 percent of the use of an item is for which— (d) CONFORMING AMENDMENT.— Section nonbusiness purposes, only that portion of ‘‘(i) has a nameplate capacity of at least 0.5 48(a)(1) is amended by inserting ‘‘except as the expenditures for such item which is prop- kilowatt of electricity using an electro- provided in paragraph (1)(B) or (2)(B) of sub- erly allocable to use for nonbusiness pur- chemical process, and section (d),’’ before ‘‘the energy’’. poses shall be taken into account. ‘‘(ii) has an electricity-only generation ef- (e) EFFECTIVE DATE.—The amendments ‘‘(5) WHEN EXPENDITURE MADE; AMOUNT OF ficiency greater than 30 percent. made by this section shall apply to periods EXPENDITURE.— ‘‘(B) LIMITATION.—In the case of qualified after December 31, 2005, in taxable years end- ‘‘(A) IN GENERAL.—Except as provided in fuel cell property placed in service during ing after such date, under rules similar to subparagraph (B), an expenditure with re- the taxable year, the credit otherwise deter- the rules of section 48(m) of the Internal spect to an item shall be treated as made mined under paragraph (1) for such year with Revenue Code of 1986 (as in effect on the day when the original installation of the item is respect to such property shall not exceed an before the date of the enactment of the Rev- completed. amount equal to $500 for each 0.5 kilowatt of enue Reconciliation Act of 1990). ‘‘(B) EXPENDITURES PART OF BUILDING CON- capacity of such property. SEC. 1529. BUSINESS SOLAR INVESTMENT TAX STRUCTION.—In the case of an expenditure in ‘‘(C) FUEL CELL POWER PLANT.—The term CREDIT. connection with the construction or recon- ‘fuel cell power plant’ means an integrated struction of a structure, such expenditure system comprised of a fuel cell stack assem- (a) INCREASE IN ENERGY PERCENTAGE.—Sec- shall be treated as made when the original bly and associated balance of plant compo- tion 48(a)(2)(A) (relating to energy percent- use of the constructed or reconstructed nents which converts a fuel into electricity age), as amended by this Act, is amended to structure by the taxpayer begins. using electrochemical means. read as follows: ‘‘(C) AMOUNT.—The amount of any expendi- ‘‘(D) SPECIAL RULE.—The first sentence of ‘‘(A) IN GENERAL.—The energy percentage ture shall be the cost thereof. the matter in subsection (a)(3) which follows is— ‘‘(6) PROPERTY FINANCED BY SUBSIDIZED EN- subparagraph (D) thereof shall not apply to ‘‘(i) in the case of energy property de- ERGY FINANCING.—For purposes of deter- qualified fuel cell property which is used pre- scribed in paragraph (3)(A)(i) and qualified mining the amount of expenditures made by dominantly in the trade or business of the fuel cell property, 30 percent, and any individual with respect to any dwelling furnishing or sale of telephone service, tele- ‘‘(ii) in the case of any other energy prop- unit, there shall not be taken into account graph service by means of domestic tele- erty, 10 percent.’’. expenditures which are made from subsidized graph operations, or other telegraph services (b) HYBRID SOLAR LIGHTING SYSTEMS.— energy financing (as defined in section (other than international telegraph serv- Clause (i) of section 48(a)(3)(A) is amended to 48(a)(4)(C)). ices). read as follows: ‘‘(f) BASIS ADJUSTMENTS.—For purposes of ‘‘(E) TERMINATION.—The term ‘qualified ‘‘(i) equipment which uses solar energy to this subtitle, if a credit is allowed under this fuel cell property’ shall not include any generate electricity for use in a structure, to section for any expenditure with respect to property for any period after December 31, heat or cool (or provide hot water for use in) any property, the increase in the basis of 2009. a structure, to illuminate the inside of a such property which would (but for this sub- ‘‘(2) QUALIFIED MICROTURBINE PROPERTY.— structure using fiber-optic distributed sun- section) result from such expenditure shall ‘‘(A) IN GENERAL.—The term ‘qualified light or to provide solar process heat, except- be reduced by the amount of the credit so al- microturbine property’ means a stationary ing property used to generate energy for the lowed. microturbine power plant which— purposes of heating a swimming pool,’’. ‘‘(g) TERMINATION.—The credit allowed ‘‘(i) has a nameplate capacity of less than (c) EFFECTIVE DATE.—The amendments under this section shall not apply to prop- 2,000 kilowatts, and made by this section shall apply to periods erty placed in service after December 31, ‘‘(ii) has an electricity-only generation ef- after December 31, 2005, in taxable years end- 2009.’’. ficiency of not less than 26 percent at Inter- ing after such date, and before January 1, (b) CONFORMING AMENDMENTS.— national Standard Organization conditions. 2010, under rules similar to the rules of sec- (1) Section 1016(a), as amended by this Act, ‘‘(B) LIMITATION.—In the case of qualified tion 48(m) of the Internal Revenue Code of is amended by striking ‘‘and’’ at the end of microturbine property placed in service dur- 1986 (as in effect on the day before the date paragraph (34), by striking the period at the ing the taxable year, the credit otherwise de- of the enactment of the Revenue Reconcili- end of paragraph (35) and inserting ‘‘, and’’, termined under paragraph (1) for such year ation Act of 1990).

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Subtitle D—Alternative Motor Vehicles and ‘‘If vehicle inertia The 2002 model year ‘‘(2) CREDIT AMOUNT FOR LIGHTER VEHI- Fuels Incentives weight class is: city fuel economy CLES.— SEC. 1531. ALTERNATIVE MOTOR VEHICLE CRED- is: ‘‘(A) IN GENERAL.—In the case of a new IT. 2,000 lbs ...... 39.6 mpg qualified hybrid motor vehicle which is a (a) IN GENERAL.—Subpart B of part IV of 2,250 lbs ...... 35.2 mpg passenger automobile, medium duty pas- subchapter A of chapter 1 (relating to foreign 2,500 lbs ...... 31.7 mpg senger vehicle, or light truck, the credit tax credit, etc.) is amended by adding at the 2,750 lbs ...... 28.8 mpg amount determined under this paragraph end the following new section: 3,000 lbs ...... 26.4 mpg shall be— ‘‘SEC. 30B. ALTERNATIVE MOTOR VEHICLE CRED- 3,500 lbs ...... 22.6 mpg ‘‘(i) $400, if such vehicle achieves at least IT. 4,000 lbs ...... 19.8 mpg 125 percent but less than 150 percent of the ‘‘(a) ALLOWANCE OF CREDIT.—There shall be 4,500 lbs ...... 17.6 mpg 2002 model year city fuel economy, allowed as a credit against the tax imposed 5,000 lbs ...... 15.9 mpg ‘‘(ii) $800, if such vehicle achieves at least by this chapter for the taxable year an 5,500 lbs ...... 14.4 mpg 150 percent but less than 175 percent of the amount equal to the sum of— 6,000 lbs ...... 13.2 mpg 2002 model year city fuel economy, ‘‘(1) the new qualified fuel cell motor vehi- 6,500 lbs ...... 12.2 mpg ‘‘(iii) $1,200, if such vehicle achieves at cle credit determined under subsection (b), 7,000 to 8,500 lbs ...... 11.3 mpg. least 175 percent but less than 200 percent of ‘‘(2) the new qualified hybrid motor vehicle ‘‘(ii) In the case of a light truck: the 2002 model year city fuel economy, credit determined under subsection (c), and ‘‘If vehicle inertia The 2002 model year ‘‘(iv) $1,600, if such vehicle achieves at ‘‘(3) the new qualified alternative fuel weight class is: city fuel economy least 200 percent but less than 225 percent of motor vehicle credit determined under sub- is: the 2002 model year city fuel economy, section (d). 1,500 or 1,750 lbs ...... 39.4 mpg ‘‘(v) $2,000, if such vehicle achieves at least ‘‘(b) NEW UALIFIED UEL ELL OTOR E Q F C M V - 2,000 lbs ...... 35.2 mpg 225 percent but less than 250 percent of the HICLE CREDIT.— 2,250 lbs ...... 31.8 mpg 2002 model year city fuel economy, and ‘‘(1) IN GENERAL.—For purposes of sub- 2,500 lbs ...... 29.0 mpg ‘‘(vi) $2,400, if such vehicle achieves at section (a), the new qualified fuel cell motor 2,750 lbs ...... 26.8 mpg least 250 percent of the 2002 model year city vehicle credit determined under this sub- 3,000 lbs ...... 24.9 mpg fuel economy. section with respect to a new qualified fuel 3,500 lbs ...... 21.8 mpg ‘‘(B) 2002 MODEL YEAR CITY FUEL ECONOMY.— cell motor vehicle placed in service by the 4,000 lbs ...... 19.4 mpg For purposes of subparagraph (A), the 2002 taxpayer during the taxable year is— 4,500 lbs ...... 17.6 mpg model year city fuel economy with respect to ‘‘(A) $8,000 ($4,000 in the case of a vehicle 5,000 lbs ...... 16.1 mpg a vehicle shall be determined on a gasoline placed in service after December 31, 2009), if 5,500 lbs ...... 14.8 mpg gallon equivalent basis as determined by the such vehicle has a gross vehicle weight rat- 6,000 lbs ...... 13.7 mpg Administrator of the Environmental Protec- ing of not more than 8,500 pounds, tion Agency using the tables provided in sub- ‘‘(B) $10,000, if such vehicle has a gross ve- 6,500 lbs ...... 12.8 mpg section (b)(2)(B) with respect to such vehicle. hicle weight rating of more than 8,500 pounds 7,000 to 8,500 lbs ...... 12.1 mpg. ‘‘(3) CREDIT AMOUNT FOR HEAVIER VEHI- but not more than 14,000 pounds, ‘‘(C) VEHICLE INERTIA WEIGHT CLASS.—For CLES.— ‘‘(C) $20,000, if such vehicle has a gross ve- purposes of subparagraph (B), the term ‘vehi- ‘‘(A) IN GENERAL.—In the case of a new hicle weight rating of more than 14,000 cle inertia weight class’ has the same mean- pounds but not more than 26,000 pounds, and ing as when defined in regulations prescribed qualified hybrid motor vehicle which is a ‘‘(D) $40,000, if such vehicle has a gross ve- by the Administrator of the Environmental heavy duty hybrid motor vehicle, the credit hicle weight rating of more than 26,000 Protection Agency for purposes of the ad- amount determined under this paragraph is pounds. ministration of title II of the Clean Air Act an amount equal to the applicable percent- age of the incremental cost of such vehicle ‘‘(2) INCREASE FOR FUEL EFFICIENCY.— (42 U.S.C. 7521 et seq.). placed in service by the taxpayer during the ‘‘(A) IN GENERAL.—The amount determined ‘‘(3) NEW QUALIFIED FUEL CELL MOTOR VEHI- under paragraph (1)(A) with respect to a new CLE.—For purposes of this subsection, the taxable year. qualified fuel cell motor vehicle which is a term ‘new qualified fuel cell motor vehicle’ ‘‘(B) INCREMENTAL COST.—For purposes of passenger automobile or light truck shall be means a motor vehicle— this paragraph, the incremental cost of any increased by— ‘‘(A) which is propelled by power derived heavy duty hybrid motor vehicle is equal to ‘‘(i) $1,000, if such vehicle achieves at least from 1 or more cells which convert chemical the amount of the excess of the manufactur- 150 percent but less than 175 percent of the energy directly into electricity by com- er’s suggested retail price for such vehicle 2002 model year city fuel economy, bining oxygen with hydrogen fuel which is over such price for a comparable gasoline or ‘‘(ii) $1,500, if such vehicle achieves at least stored on board the vehicle in any form and diesel fuel motor vehicle of the same model, 175 percent but less than 200 percent of the may or may not require reformation prior to to the extent such amount does not exceed— 2002 model year city fuel economy, use, ‘‘(i) $7,500, if such vehicle has a gross vehi- ‘‘(iii) $2,000, if such vehicle achieves at ‘‘(B) which, in the case of a passenger auto- cle weight rating of more than 8,500 pounds least 200 percent but less than 225 percent of mobile or light truck, has received on or but not more than 14,000 pounds, the 2002 model year city fuel economy, after the date of the enactment of this sec- ‘‘(ii) $15,000, if such vehicle has a gross ve- ‘‘(iv) $2,500, if such vehicle achieves at tion a certificate that such vehicle meets or hicle weight rating of more than 14,000 least 225 percent but less than 250 percent of exceeds the Bin 5 Tier II emission level es- pounds but not more than 26,000 pounds, and the 2002 model year city fuel economy, tablished in regulations prescribed by the ‘‘(iii) $30,000, if such vehicle has a gross ve- ‘‘(v) $3,000, if such vehicle achieves at least Administrator of the Environmental Protec- hicle weight rating of more than 26,000 250 percent but less than 275 percent of the tion Agency under section 202(i) of the Clean pounds. 2002 model year city fuel economy, Air Act for that make and model year vehi- ‘‘(C) APPLICABLE PERCENTAGE.—For pur- ‘‘(vi) $3,500, if such vehicle achieves at cle, poses of subparagraph (A), the applicable least 275 percent but less than 300 percent of ‘‘(C) the original use of which commences percentage shall be determined in accord- the 2002 model year city fuel economy, and with the taxpayer, ance with the following table: ‘‘(D) which is acquired for use or lease by ‘‘(vii) $4,000, if such vehicle achieves at ‘‘If percent increase The applicable the taxpayer and not for resale, and least 300 percent of the 2002 model year city in fuel economy of percentage is: ‘‘(E) which is made by a manufacturer. fuel economy. hybrid over com- ‘‘(c) NEW QUALIFIED HYBRID MOTOR VEHICLE ‘‘(B) 2002 MODEL YEAR CITY FUEL ECONOMY.— parable vehicle is: For purposes of subparagraph (A), the 2002 CREDIT.— model year city fuel economy with respect to ‘‘(1) IN GENERAL.—For purposes of sub- At least 30 but less than 40 a vehicle shall be determined in accordance section (a), the new qualified hybrid motor percent ...... 20 percent. with the following tables: vehicle credit determined under this sub- At least 40 but less than 50 ‘‘(i) In the case of a passenger automobile: section with respect to a new qualified hy- percent ...... 30 percent. ‘‘If vehicle inertia The 2002 model year brid motor vehicle placed in service by the weight class is: city fuel economy taxpayer during the taxable year is the cred- At least 50 percent ...... 40 percent. is: it amount determined under paragraph (2) or ‘‘(4) NEW QUALIFIED HYBRID MOTOR VEHI- 1,500 or 1,750 lbs ...... 45.2 mpg (3). CLE.—For purposes of this subsection—

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‘‘(A) IN GENERAL.—The term ‘new qualified ‘‘(i) has received a certificate of con- ‘‘(ii) either— hybrid motor vehicle’ means a motor vehi- formity under the Clean Air Act and meets ‘‘(I) has received a certificate of con- cle— or exceeds the most stringent standard avail- formity under the Clean Air Act, or ‘‘(i) which draws propulsion energy from able for certification under the Clean Air Act ‘‘(II) has received an order certifying the onboard sources of stored energy which are for that make and model year vehicle (other vehicle as meeting the same requirements as both— than a zero emission standard), or vehicles which may be sold or leased in Cali- ‘‘(I) an internal combustion or heat engine ‘‘(ii) has received an order certifying the fornia and meets or exceeds the low emission using consumable fuel, and vehicle as meeting the same requirements as vehicle standard under section 88.105–94 of ‘‘(II) a rechargeable energy storage system, vehicles which may be sold or leased in Cali- title 40, Code of Federal Regulations, for ‘‘(ii) which, in the case of a passenger auto- fornia and meets or exceeds the most strin- that make and model year vehicle, mobile, medium duty passenger vehicle, or gent standard available for certification ‘‘(iii) the original use of which commences light truck— under the State laws of California (enacted with the taxpayer, ‘‘(I) has received a certificate that such ve- in accordance with a waiver granted under ‘‘(iv) which is acquired by the taxpayer for hicle meets or exceeds the Bin 5 Tier II emis- section 209(b) of the Clean Air Act) for that use or lease, but not for resale, and sion level established in regulations pre- make and model year vehicle (other than a ‘‘(v) which is made by a manufacturer. scribed by the Administrator of the Environ- zero emission standard). ‘‘(C) 75/25 MIXED-FUEL VEHICLE.—For pur- mental Protection Agency under section For purposes of the preceding sentence, in poses of this subsection, the term ‘75/25 202(i) of the Clean Air Act for that make and the case of any new qualified alternative fuel mixed-fuel vehicle’ means a mixed-fuel vehi- model year vehicle, and motor vehicle which weighs more than 14,000 cle which operates using at least 75 percent ‘‘(II) has a maximum available power of at pounds gross vehicle weight rating, the most alternative fuel and not more than 25 per- least 5 percent, stringent standard available shall be such cent petroleum-based fuel. ‘‘(iii) which, in the case of a heavy duty standard available for certification on the ‘‘(D) 90/10 MIXED-FUEL VEHICLE.—For pur- hybrid motor vehicle— date of the enactment of the Energy Tax In- poses of this subsection, the term ‘90/10 ‘‘(I) which has a gross vehicle weight rat- centives Act. mixed-fuel vehicle’ means a mixed-fuel vehi- ing of more than 8,500 but not more than ‘‘(3) INCREMENTAL COST.—For purposes of cle which operates using at least 90 percent 14,000 pounds, has a maximum available this subsection, the incremental cost of any alternative fuel and not more than 10 per- power of at least 10 percent, and new qualified alternative fuel motor vehicle cent petroleum-based fuel. ‘‘(II) which has a gross vehicle weight rat- is equal to the amount of the excess of the ‘‘(e) APPLICATION WITH OTHER CREDITS.— ing of more than 14,000 pounds, has a max- manufacturer’s suggested retail price for imum available power of at least 15 percent, such vehicle over such price for a gasoline or The credit allowed under subsection (a) for ‘‘(iv) the original use of which commences diesel fuel motor vehicle of the same model, any taxable year shall not exceed the excess with the taxpayer, to the extent such amount does not exceed— (if any) of— ‘‘(v) which is acquired for use or lease by ‘‘(A) $5,000, if such vehicle has a gross vehi- ‘‘(1) the regular tax for the taxable year re- the taxpayer and not for resale, and cle weight rating of not more than 8,500 duced by the sum of the credits allowable ‘‘(vi) which is made by a manufacturer. pounds, under subpart A and sections 27, 29, and 30, ‘‘(B) CONSUMABLE FUEL.—For purposes of ‘‘(B) $10,000, if such vehicle has a gross ve- over subparagraph (A)(i)(I), the term ‘consumable hicle weight rating of more than 8,500 pounds ‘‘(2) the tentative minimum tax for the fuel’ means any solid, liquid, or gaseous mat- but not more than 14,000 pounds, taxable year. ter which releases energy when consumed by ‘‘(C) $25,000, if such vehicle has a gross ve- ‘‘(f) OTHER DEFINITIONS AND SPECIAL an auxiliary power unit. hicle weight rating of more than 14,000 RULES.—For purposes of this section— ‘‘(C) MAXIMUM AVAILABLE POWER.— pounds but not more than 26,000 pounds, and ‘‘(1) MOTOR VEHICLE.—The term ‘motor ve- ‘‘(i) PASSENGER AUTOMOBILE, MEDIUM DUTY ‘‘(D) $40,000, if such vehicle has a gross ve- hicle’ has the meaning given such term by PASSENGER VEHICLE, OR LIGHT TRUCK.—For hicle weight rating of more than 26,000 section 30(c)(2). purposes of subparagraph (A)(ii)(II), the term pounds. ‘‘(2) CITY FUEL ECONOMY.—The city fuel ‘maximum available power’ means the max- ‘‘(4) NEW QUALIFIED ALTERNATIVE FUEL economy with respect to any vehicle shall be imum power available from the rechargeable MOTOR VEHICLE.—For purposes of this sub- energy storage system, during a standard 10 section— measured in a manner which is substantially similar to the manner city fuel economy is second pulse power or equivalent test, di- ‘‘(A) IN GENERAL.—The term ‘new qualified vided by such maximum power and the SAE alternative fuel motor vehicle’ means any measured in accordance with procedures net power of the heat engine. motor vehicle— under part 600 of subchapter Q of chapter I of ‘‘(ii) HEAVY DUTY HYBRID MOTOR VEHICLE.— ‘‘(i) which is only capable of operating on title 40, Code of Federal Regulations, as in For purposes of subparagraph (A)(iii), the an alternative fuel, effect on the date of the enactment of this term ‘maximum available power’ means the ‘‘(ii) the original use of which commences section. maximum power available from the re- with the taxpayer, ‘‘(3) OTHER TERMS.—The terms ‘auto- chargeable energy storage system, during a ‘‘(iii) which is acquired by the taxpayer for mobile’, ‘passenger automobile’, ‘medium standard 10 second pulse power or equivalent use or lease, but not for resale, and duty passenger vehicle’, ‘light truck’, and test, divided by the vehicle’s total traction ‘‘(iv) which is made by a manufacturer. ‘manufacturer’ have the meanings given power. The term ‘total traction power’ ‘‘(B) ALTERNATIVE FUEL.—The term ‘alter- such terms in regulations prescribed by the means the sum of the peak power from the native fuel’ means compressed natural gas, Administrator of the Environmental Protec- rechargeable energy storage system and the liquefied natural gas, liquefied petroleum tion Agency for purposes of the administra- heat engine peak power of the vehicle, ex- gas, hydrogen, and any liquid at least 85 per- tion of title II of the Clean Air Act (42 U.S.C. cept that if such storage system is the sole cent of the volume of which consists of 7521 et seq.). means by which the vehicle can be driven, methanol. ‘‘(4) REDUCTION IN BASIS.—For purposes of the total traction power is the peak power of ‘‘(5) CREDIT FOR MIXED-FUEL VEHICLES.— this subtitle, the basis of any property for such storage system. ‘‘(A) IN GENERAL.—In the case of a mixed- which a credit is allowable under subsection ‘‘(4) HEAVY DUTY HYBRID MOTOR VEHICLE.— fuel vehicle placed in service by the taxpayer (a) shall be reduced by the amount of such For purposes of this subsection, the term during the taxable year, the credit deter- credit so allowed (determined without regard ‘heavy duty hybrid motor vehicle’ means a mined under this subsection is an amount to subsection (e)). new qualified hybrid motor vehicle which equal to— ‘‘(5) NO DOUBLE BENEFIT.—The amount of has a gross vehicle weight rating of more ‘‘(i) in the case of a 75/25 mixed-fuel vehi- any deduction or other credit allowable than 8,500 pounds. Such term does not in- cle, 70 percent of the credit which would under this chapter— clude a medium duty passenger vehicle. have been allowed under this subsection if ‘‘(A) for any incremental cost taken into ‘‘(d) NEW QUALIFIED ALTERNATIVE FUEL such vehicle was a qualified alternative fuel account in computing the amount of the MOTOR VEHICLE CREDIT.— motor vehicle, and credit determined under subsection (d) shall ‘‘(1) ALLOWANCE OF CREDIT.—Except as pro- ‘‘(ii) in the case of a 90/10 mixed-fuel vehi- be reduced by the amount of such credit at- vided in paragraph (5), the new qualified al- cle, 90 percent of the credit which would tributable to such cost, and ternative fuel motor vehicle credit deter- have been allowed under this subsection if ‘‘(B) with respect to a vehicle described mined under this subsection is an amount such vehicle was a qualified alternative fuel under subsection (b) or (c), shall be reduced equal to the applicable percentage of the in- motor vehicle. by the amount of credit allowed under sub- cremental cost of any new qualified alter- ‘‘(B) MIXED-FUEL VEHICLE.—For purposes of section (a) for such vehicle for the taxable native fuel motor vehicle placed in service this subsection, the term ‘mixed-fuel vehicle’ year. by the taxpayer during the taxable year. means any motor vehicle described in sub- ‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTI- ‘‘(2) APPLICABLE PERCENTAGE.—For pur- paragraph (C) or (D) of paragraph (3), TY.—In the case of a vehicle whose use is de- poses of paragraph (1), the applicable per- which— scribed in paragraph (3) or (4) of section 50(b) centage with respect to any new qualified al- ‘‘(i) is certified by the manufacturer as and which is not subject to a lease, the per- ternative fuel motor vehicle is— being able to perform efficiently in normal son who sold such vehicle to the person or ‘‘(A) 50 percent, plus operation on a combination of an alternative entity using such vehicle shall be treated as ‘‘(B) 30 percent, if such vehicle— fuel and a petroleum-based fuel, the taxpayer that placed such vehicle in

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(2) LEASED VEHICLES.—Section 30(c)(1)(C) is under subsection (a) with respect to such ve- (b) CONFORMING AMENDMENTS.— amended by inserting ‘‘or lease’’ after ‘‘use’’. hicle (determined without regard to sub- (1) Section 1016(a), as amended by this Act, (3) CONFORMING AMENDMENTS.— section (e)). is amended by striking ‘‘and’’ at the end of (A) Subsections (a), (b)(2), and (c) of sec- ‘‘(7) PROPERTY USED OUTSIDE UNITED paragraph (35), by striking the period at the tion 30 are each amended by inserting ‘‘bat- STATES, ETC., NOT QUALIFIED.—No credit shall end of paragraph (36) and inserting ‘‘, and’’, tery’’ after ‘‘qualified’’ each place it appears. be allowable under subsection (a) with re- and by adding at the end the following new (B) The heading of subsection (c) of section spect to any property referred to in section paragraph: 30 is amended by inserting ‘‘BATTERY’’ after 50(b)(1) or with respect to the portion of the ‘‘(37) to the extent provided in section ‘‘QUALIFIED’’. cost of any property taken into account 30B(f)(4).’’. (C) The heading of section 30 is amended by under section 179. (2) Section 55(c)(2), as amended by this Act, inserting ‘‘BATTERY’’ after ‘‘QUALIFIED’’. ‘‘(8) RECAPTURE.—The Secretary shall, by is amended by inserting ‘‘30B(e),’’ after (D) The item relating to section 30 in the regulations, provide for recapturing the ben- ‘‘30(b)(2),’’. table of sections for subpart B of part IV of efit of any credit allowable under subsection (3) Section 6501(m) is amended by inserting subchapter A of chapter 1 is amended by in- (a) with respect to any property which ceases ‘‘30B(f)(9),’’ after ‘‘30(d)(4),’’. serting ‘‘battery’’ after ‘‘qualified’’. to be property eligible for such credit (in- (4) The table of sections for subpart B of (E) Section 179A(c)(3) is amended by insert- cluding recapture in the case of a lease pe- part IV of subchapter A of chapter 1 is ing ‘‘battery’’ before ‘‘electric’’. riod of less than the economic life of a vehi- amended by inserting after the item relating (F) The heading of paragraph (3) of section cle). to section 30A the following new item: 179A(c) is amended by inserting ‘‘BATTERY’’ before ‘‘ELECTRIC’’. ‘‘(9) ELECTION TO NOT TAKE CREDIT.—No ‘‘Sec. 30B. Alternative motor vehicle (c) ADDITIONAL SPECIAL RULES.— credit shall be allowed under subsection (a) credit.’’. (1) IN GENERAL.—Section 30(d) (relating to for any vehicle if the taxpayer elects to not (c) EFFECTIVE DATE.—The amendments special rules) is amended by adding at the have this section apply to such vehicle. made by this section shall apply to property end the following new paragraphs: ‘‘(10) CARRYBACK AND CARRYFORWARD AL- placed in service after the date of the enact- ‘‘(5) NO DOUBLE BENEFIT.—The amount of LOWED.— ment of this Act, in taxable years ending any deduction or other credit allowable ‘‘(A) IN GENERAL.—If the credit allowable after such date. under this chapter for any cost taken into under subsection (a) for a taxable year ex- SEC. 1532. MODIFICATION OF CREDIT FOR QUALI- account in computing the amount of the ceeds the amount of the limitation under FIED ELECTRIC VEHICLES. credit determined under subsection (a) shall subsection (e) for such taxable year (in this (a) AMOUNT OF CREDIT.— be reduced by the amount of such credit at- paragraph referred to as the ‘unused credit (1) IN GENERAL.—Section 30(a) (relating to tributable to such cost. year’), such excess shall be a credit allowance of credit) is amended by striking ‘‘(6) PROPERTY USED BY TAX-EXEMPT ENTI- carryback to each of the 3 taxable years pre- ‘‘10 percent of’’. TY.—In the case of a vehicle whose use is de- ceding the unused credit year and a credit (2) LIMITATION OF CREDIT ACCORDING TO scribed in paragraph (3) or (4) of section 50(b) carryforward to each of the 20 taxable years TYPE OF VEHICLE.—Paragraph (1) of section and which is not subject to a lease, the per- following the unused credit year, except that 30(b) (relating to limitations) is amended to son who sold such vehicle to the person or no excess may be carried to a taxable year read as follows: entity using such vehicle shall be treated as beginning before the date of the enactment ‘‘(1) LIMITATION ACCORDING TO TYPE OF VE- the taxpayer that placed such vehicle in of this section. The preceding sentence shall HICLE.—The amount of the credit allowed service, but only if such person clearly dis- not apply to any credit carryback if such under subsection (a) for any vehicle shall not closes to such person or entity in a docu- credit carryback is attributable to property exceed the greatest of the following amounts ment the amount of any credit allowable for which a deduction for depreciation is not applicable to such vehicle: under subsection (a) with respect to such ve- allowable. ‘‘(A) In the case of a vehicle with a gross hicle (determined without regard to sub- ‘‘(B) RULES.—Rules similar to the rules of vehicle weight rating not exceeding 8,500 section (b)(3)). section 39 shall apply with respect to the pounds— ‘‘(7) CARRYBACK AND CARRYFORWARD AL- credit carryback and credit carryforward ‘‘(i) except as provided in clause (ii) or (iii), LOWED.— under subparagraph (A). $4,000, ‘‘(A) IN GENERAL.—If the credit allowable ‘‘(11) INTERACTION WITH AIR QUALITY AND ‘‘(ii) $6,000, if such vehicle is— under subsection (a) for a taxable year ex- MOTOR VEHICLE SAFETY STANDARDS.—Unless ‘‘(I) capable of a driving range of at least ceeds the amount of the limitation under otherwise provided in this section, a motor 100 miles on a single charge of the vehicle’s subsection (b)(2) for such taxable year (in vehicle shall not be considered eligible for a rechargeable batteries as measured pursuant this paragraph referred to as the ‘unused credit under this section unless such vehicle to the urban dynamometer schedules under credit year’), such excess shall be a credit is in compliance with— appendix I to part 86 of title 40, Code of Fed- carryback to each of the 3 taxable years pre- ‘‘(A) the applicable provisions of the Clean eral Regulations, or ceding the unused credit year and a credit Air Act for the applicable make and model ‘‘(II) capable of a payload capacity of at carryforward to each of the 20 taxable years year of the vehicle (or applicable air quality least 1,000 pounds, and following the unused credit year, except that provisions of State law in the case of a State ‘‘(iii) if such vehicle is a low-speed vehicle no excess may be carried to a taxable year which has adopted such provision under a which conforms to Standard 500 prescribed beginning before the date of the enactment waiver under section 209(b) of the Clean Air by the Secretary of Transportation (49 of this paragraph. The preceding sentence Act), and C.F.R. 571.500), as in effect on the date of the shall not apply to any credit carryback if ‘‘(B) the motor vehicle safety provisions of enactment of the Energy Tax Incentives Act, such credit carryback is attributable to sections 30101 through 30169 of title 49, the lesser of— property for which a deduction for deprecia- United States Code. ‘‘(I) 10 percent of the manufacturer’s sug- tion is not allowable. gested retail price of the vehicle, or ‘‘(g) REGULATIONS.— ‘‘(B) RULES.—Rules similar to the rules of ‘‘(II) $1,500. ‘‘(1) IN GENERAL.—Except as provided in section 39 shall apply with respect to the paragraph (2), the Secretary shall promul- ‘‘(B) In the case of a vehicle with a gross credit carryback and credit carryforward gate such regulations as necessary to carry vehicle weight rating exceeding 8,500 but not under subparagraph (A).’’. exceeding 14,000 pounds, $10,000. out the provisions of this section. (2) CONFORMING AMENDMENTS.—Section ‘‘(C) In the case of a vehicle with a gross ‘‘(2) COORDINATION IN PRESCRIPTION OF CER- 30(d)(3) is amended— vehicle weight rating exceeding 14,000 but TAIN REGULATIONS.—The Secretary of the (A) by striking ‘‘section 50(b)’’ and insert- Treasury, in coordination with the Secretary not exceeding 26,000 pounds, $20,000. ing ‘‘section 50(b)(1)’’, and ‘‘(D) In the case of a vehicle with a gross of Transportation and the Administrator of (B) by striking ‘‘, ETC.,’’ in the heading the Environmental Protection Agency, shall vehicle weight rating exceeding 26,000 thereof. pounds, $40,000.’’. prescribe such regulations as necessary to (d) TERMINATION.—Section 30(e) (relating (b) QUALIFIED BATTERY ELECTRIC VEHI- determine whether a motor vehicle meets to termination) is amended by striking CLE.— the requirements to be eligible for a credit ‘‘2006’’ and inserting ‘‘2009’’. (1) IN GENERAL.—Section 30(c)(1)(A) (defin- under this section. (e) EFFECTIVE DATE.—The amendments ing qualified electric vehicle) is amended to made by this section shall apply to property ‘‘(h) TERMINATION.—This section shall not read as follows: placed in service after the date of the enact- apply to any property purchased after— ‘‘(A) which is— ment of this Act, in taxable years ending ‘‘(1) in the case of a new qualified fuel cell ‘‘(i) operated solely by use of a battery or after such date. motor vehicle (as described in subsection battery pack, or SEC. 1533. CREDIT FOR INSTALLATION OF ALTER- (b)), December 31, 2014, ‘‘(ii) powered primarily through the use of NATIVE FUELING STATIONS. ‘‘(2) in the case of a new qualified hybrid an electric battery or battery pack using a (a) IN GENERAL.—Subpart B of part IV of motor vehicle (as described in subsection flywheel or capacitor which stores energy subchapter A of chapter 1 (relating to other (c)), December 31, 2009, and produced by an electric motor through re- credits), as amended by this Act, is amended

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by adding at the end the following new sec- ‘‘(5) ELECTION NOT TO TAKE CREDIT.—No ‘‘(2) against the tax imposed by section tion: credit shall be allowed under subsection (a) 4041 an amount equal to the sum of the cred- ‘‘SEC. 30C. ALTERNATIVE FUEL VEHICLE REFUEL- for any property if the taxpayer elects not to its described in subsection (d). ING PROPERTY CREDIT. have this section apply to such property. No credit shall be allowed in the case of the ‘‘(a) CREDIT ALLOWED.—There shall be al- ‘‘(6) RECAPTURE RULES.—Rules similar to credits described in subsections (d) and (e) lowed as a credit against the tax imposed by the rules of section 179A(e)(4) shall apply. unless the taxpayer is registered under sec- this chapter for the taxable year an amount ‘‘(g) REGULATIONS.—The Secretary shall tion 4101. equal to 50 percent of the cost of any quali- prescribe such regulations as necessary to (2) ALTERNATIVE FUEL AND ALTERNATIVE fied alternative fuel vehicle refueling prop- carry out the provisions of this section. FUEL MIXTURE CREDIT.—Section 6426 (relating erty placed in service by the taxpayer during ‘‘(h) TERMINATION.—This section shall not to credit for alcohol fuel and biodiesel mix- the taxable year. apply to any property placed in service— tures) is amended by redesignating sub- ‘‘(b) LIMITATION.—The credit allowed under ‘‘(1) in the case of property relating to hy- sections (d) and (e) as subsections (f) and (g) subsection (a) with respect to any alter- drogen, after December 31, 2014, and and by inserting after subsection (c) the fol- native fuel vehicle refueling property shall ‘‘(2) in the case of any other property, after lowing new subsections: not exceed— December 31, 2009.’’. ‘‘(d) ALTERNATIVE FUEL CREDIT.— ‘‘(1) $30,000 in the case of a property of a ‘‘(1) IN GENERAL.—For purposes of this sec- (b) CONFORMING AMENDMENTS.— character subject to an allowance for depre- (1) Section 1016(a), as amended by this Act, tion, the alternative fuel credit is the prod- ciation, and is amended by striking ‘‘and’’ at the end of uct of 50 cents and the number of gallons of ‘‘(2) $1,000 in any other case. paragraph (36), by striking the period at the an alternative fuel or gasoline gallon equiva- ‘‘(c) QUALIFIED ALTERNATIVE FUEL VEHICLE lents of a nonliquid alternative fuel sold by REFUELING PROPERTY.— end of paragraph (37) and inserting ‘‘, and’’, and by adding at the end the following new the taxpayer for use as a fuel in a motor ve- ‘‘(1) IN GENERAL.—Except as provided in hicle or motorboat, or so used by the tax- paragraph: paragraph (2), the term ‘qualified alternative payer. ‘‘(38) to the extent provided in section fuel vehicle refueling property’ has the ‘‘(2) ALTERNATIVE FUEL.—For purposes of 30C(f).’’. meaning given to such term by section this section, the term ‘alternative fuel’ (2) Section 55(c)(2), as amended by this Act, 179A(d), but only with respect to any fuel at means— is amended by inserting ‘‘30C(e),’’ after least 85 percent of the volume of which con- ‘‘(A) liquefied petroleum gas, ‘‘30B(e),’’. sists of ethanol, natural gas, compressed nat- ‘‘(B) P Series Fuels (as defined by the Sec- (3) Section 6501(m) is amended by inserting ural gas, liquefied natural gas, liquefied pe- retary of Energy under section 13211(2) of ‘‘30C(f)(5),’’ after ‘‘30B(f)(9),’’. troleum gas, and hydrogen. title 42, United States Code), (4) The table of sections for subpart B of ‘‘(2) RESIDENTIAL PROPERTY.—In the case of ‘‘(C) compressed or liquefied natural gas, any property installed on property which is part IV of subchapter A of chapter 1, as ‘‘(D) hydrogen, used as the principal residence (within the amended by this Act, is amended by insert- ‘‘(E) any liquid fuel derived from coal (in- meaning of section 121) of the taxpayer, ing after the item relating to section 30B the cluding peat) through the Fischer-Tropsch paragraph (1) of section 179A(d) shall not following new item: process, apply. ‘‘Sec. 30C. Clean-fuel vehicle refueling ‘‘(F) liquid hydrocarbons derived from bio- ‘‘(d) APPLICATION WITH OTHER CREDITS.— property credit.’’. mass (as defined in section 29(c)(3)). The credit allowed under subsection (a) for (e) EFFECTIVE DATE.—The amendments Such term does not include ethanol, meth- any taxable year shall not exceed the excess made by this section shall apply to property anol, or biodiesel. (if any) of— placed in service after December 31, 2005, in ‘‘(3) GASOLINE GALLON EQUIVALENT.—For ‘‘(1) the regular tax for the taxable year re- taxable years ending after such date. purposes of this subsection, the term ‘gaso- duced by the sum of the credits allowable line gallon equivalent’ means, with respect under subpart A and sections 27, 29, 30, and SEC. 1534. VOLUMETRIC EXCISE TAX CREDIT FOR ALTERNATIVE FUELS. to any nonliquid alternative fuel, the 30B, over amount of such fuel having a Btu content of (a) IMPOSITION OF TAX.— ‘‘(2) the tentative minimum tax for the 124,800 (higher heating value). taxable year. (1) IN GENERAL.—Section 4041(a)(2)(B) (re- lating to rate of tax) is amended— ‘‘(4) TERMINATION.—This subsection shall ‘‘(e) CARRYFORWARD ALLOWED.— not apply to any sale, use, or removal for ‘‘(1) IN GENERAL.—If the credit amount al- (A) by adding ‘‘and’’ at the end of clause (i), any period after September 30, 2009. lowable under subsection (a) for a taxable ‘‘(e) ALTERNATIVE FUEL MIXTURE CREDIT.— (B) by striking clauses (ii) and (iii), year exceeds the amount of the limitation ‘‘(1) IN GENERAL.—For purposes of this sec- (C) by striking the last sentence, and under subsection (d) for such taxable year, tion, the alternative fuel mixture credit is such excess shall be allowed as a credit (D) by adding after clause (i) the following the product of 50 cents and the number of carryforward for each of the 20 taxable years new clause: gallons of alternative fuel used by the tax- following the unused credit year. ‘‘(ii) in the case of liquefied natural gas, payer in producing any alternative fuel mix- ‘‘(2) RULES.—Rules similar to the rules of any liquid fuel (other than ethanol and ture for sale or use in a trade or business of section 39 shall apply with respect to the methanol) derived from coal (including the taxpayer. peat), and liquid hydrocarbons derived from credit carryforward under paragraph (1). ‘‘(2) ALTERNATIVE FUEL MIXTURE.—For pur- ‘‘(f) SPECIAL RULES.—For purposes of this biomass (as defined in section 29(c)(3)), 24.3 poses of this section, the term ‘alternative section— cents per gallon.’’. fuel mixture’ means a mixture of alternative ‘‘(1) BASIS REDUCTION.—The basis of any (2) TREATMENT OF COMPRESSED NATURAL fuel and taxable fuel (as defined in subpara- property shall be reduced by the portion of GAS.—Section 4041(a)(3) (relating to com- graph (A), (B), or (C) of section 4083(a)(1)) the cost of such property taken into account pressed natural gas) is amended— which— under subsection (a). (A) by striking ‘‘48.54 cents per MCF (de- ‘‘(A) is sold by the taxpayer producing such ‘‘(2) NO DOUBLE BENEFIT.—No deduction termined at standard temperature and pres- mixture to any person for use as fuel, or shall be allowed under section 179A with re- sure)’’ in subparagraph (A) and inserting ‘‘(B) is used as a fuel by the taxpayer pro- spect to any property with respect to which ‘‘18.3 cents per energy equivalent of a gallon ducing such mixture. a credit is allowed under subsection (a). of gasoline’’, and ‘‘(3) TERMINATION.—This subsection shall ‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTI- (B) by striking ‘‘MCF’’ in subparagraph (C) not apply to any sale, use, or removal for TY.—In the case of any qualified alternative and inserting ‘‘energy equivalent of a gallon any period after September 30, 2009.’’. fuel vehicle refueling property the use of of gasoline’’. (3) CONFORMING AMENDMENTS.— which is described in paragraph (3) or (4) of (3) ZERO RATE FOR HYDROGEN.—Section (A) The section heading for section 6426 is section 50(b) and which is not subject to a 4041(a)(2)(A) is amended by inserting ‘‘lique- amended by striking ‘‘ALCOHOL FUEL AND lease, the person who sold such property to fied hydrogen,’’ after ‘‘fuel oil,’’. BIODIESEL’’ and inserting ‘‘ALCOHOL the person or entity using such property (4) NEW REFERENCE.—The heading for para- FUEL, BIODIESEL, AND ALTERNATIVE shall be treated as the taxpayer that placed graph (2) of section 4041(a) is amended by FUEL’’. such property in service, but only if such striking ‘‘SPECIAL MOTOR FUELS’’ and insert- (B) The table of sections for subchapter B person clearly discloses to such person or en- ing ‘‘ALTERNATIVE FUELS’’. of chapter 65 is amended by striking ‘‘alcohol tity in a document the amount of any credit (b) CREDIT FOR ALTERNATIVE FUEL AND AL- fuel and biodiesel’’ in the item relating to allowable under subsection (a) with respect TERNATIVE FUEL MIXTURES.— section 6426 and inserting ‘‘alcohol fuel, bio- to such property (determined without regard (1) IN GENERAL.—Section 6426(a) (relating diesel, and alternative fuel’’. to subsection (d)). to allowance of credits) is amended to read (C) Section 6427(e) is amended— ‘‘(4) PROPERTY USED OUTSIDE UNITED STATES as follows: (i) by inserting ‘‘or the alternative fuel NOT QUALIFIED.—No credit shall be allowable ‘‘(a) ALLOWANCE OF CREDITS.—There shall mixture credit’’ after ‘‘biodiesel mixture under subsection (a) with respect to any be allowed as a credit— credit’’ in paragraph (1), property referred to in section 50(b)(1) or ‘‘(1) against the tax imposed by section (ii) by redesignating paragraph (2) as para- with respect to the portion of the cost of any 4081 an amount equal to the sum of the cred- graph (3) and paragraph (4) as paragraph (5), property taken into account under section its described in subsections (b), (c), and (e), (iii) by inserting after paragraph (1) the 179. and following new paragraph:

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‘‘(2) ALTERNATIVE FUEL.—If any person ‘‘(B) CUSHION GAS.—The term ‘cushion gas’ (within the meaning of section 318) 50 per- sells or uses an alternative fuel (as defined in means the minimum volume of natural gas cent or more of— section 6426(d)(2)) for a purpose described in necessary to provide the pressure to facili- ‘‘(I) in the case of a corporation, the out- section 6426(d)(1) in such person’s trade or tate the flow of natural gas from a storage standing stock of the corporation (either by business, the Secretary shall pay (without reservoir, aquifer, or cavern to a pipeline.’’. vote or value), and interest) to such person an amount equal to (c) EFFECTIVE DATE.—The amendments ‘‘(II) in the case of a small business which the alternative fuel credit with respect to made by this section shall apply to property is not a corporation, the capital and profits such fuel.’’, placed in service after the date of the enact- interests of the small business. (iv) by striking ‘‘under paragraph (1) with ment of this Act. ‘‘(iii) SMALL BUSINESS.—For purposes of respect to any mixture’’ in paragraph (3) (as SEC. 1542. EXPANSION OF RESEARCH CREDIT. this subparagraph— redesignated by clause (ii)) and inserting (a) CREDIT FOR EXPENSES ATTRIBUTABLE TO ‘‘(I) IN GENERAL.—The term ‘small busi- ‘‘under paragraph (1) or (2) with respect to CERTAIN COLLABORATIVE ENERGY RESEARCH ness’ means, with respect to any calendar any mixture or alternative fuel’’, CONSORTIA.— year, any person if the annual average num- (v) by inserting after paragraph (3) (as so (1) IN GENERAL.—Section 41(a) (relating to ber of employees employed by such person redesignated) the following new paragraph: credit for increasing research activities) is during either of the 2 preceding calendar ‘‘(4) REGISTRATION REQUIREMENT FOR AL- amended by striking ‘‘and’’ at the end of years was 500 or fewer. For purposes of the TERNATIVE FUELS.—The Secretary shall not paragraph (1), by striking the period at the preceding sentence, a preceding calendar make any payment under this subsection to end of paragraph (2) and inserting ‘‘, and’’, year may be taken into account only if the any person with respect to any alternative and by adding at the end the following new person was in existence throughout the year. fuel credit or alternative fuel mixture credit paragraph: ‘‘(II) STARTUPS, CONTROLLED GROUPS, AND unless the person is registered under section ‘‘(3) 20 percent of the amounts paid or in- PREDECESSORS.—Rules similar to the rules of 4101.’’, curred by the taxpayer in carrying on any subparagraphs (B) and (D) of section 220(c)(4) (vi) by striking ‘‘and’’ at the end of para- trade or business of the taxpayer during the shall apply for purposes of this clause. graph (5)(A) (as redesignated by clause (ii)), taxable year (including as contributions) to ‘‘(iv) FEDERAL LABORATORY.—For purposes (vii) by striking the period at the end of an energy research consortium.’’. of this subparagraph, the term ‘Federal lab- paragraph (5)(B) (as so redesignated) and in- (2) ENERGY RESEARCH CONSORTIUM DE- oratory’ has the meaning given such term by serting a comma, FINED.—Section 41(f) (relating to special section 4(6) of the Stevenson-Wydler Tech- (viii) by adding at the end of paragraph (4) rules) is amended by adding at the end the nology Innovation Act of 1980 (15 U.S.C. (as so redesignated) the following new sub- following new paragraph: 3703(6)), as in effect on the date of the enact- paragraphs: ‘‘(6) ENERGY RESEARCH CONSORTIUM.— ment of the Energy Tax Incentives Act.’’. ‘‘(C) except as provided in subparagraph ‘‘(A) IN GENERAL.—The term ‘energy re- (c) EFFECTIVE DATE.—The amendments (D), any alternative fuel or alternative fuel search consortium’ means any organiza- made by this section shall apply to amounts mixture (as defined in section 6426 (d)(2) or tion— paid or incurred after the date of the enact- (e)(3)) sold or used after September 30, 2009, ‘‘(i) which is— ment of this Act, in taxable years ending and ‘‘(I) described in section 501(c)(3) and is ex- after such date. ‘‘(D) any alternative fuel or alternative empt from tax under section 501(a) and is or- SEC. 1543. SMALL AGRI-BIODIESEL PRODUCER fuel mixture (as so defined) involving hydro- ganized and operated primarily to conduct CREDIT. gen sold or used after December 31, 2014.’’, energy research, or (a) IN GENERAL.—Subsection (a) of section and ‘‘(II) organized and operated primarily to 40A (relating to biodiesel used as a fuel) is (ix) by striking ‘‘OR BIODIESEL USED TO conduct energy research in the public inter- amended to read as follows: ‘‘(a) GENERAL RULE.—For purposes of sec- PRODUCE ALCOHOL FUEL AND BIODIESEL MIX- est (within the meaning of section 501(c)(3)), tion 38, the biodiesel fuels credit determined TURES’’ in the heading and inserting ‘‘, BIO- ‘‘(ii) which is not a private foundation, under this section for the taxable year is an DIESEL, OR ALTERNATIVE FUEL’’. ‘‘(iii) to which at least 5 unrelated persons amount equal to the sum of— (c) ADDITIONAL REGISTRATION REQUIRE- paid or incurred during the calendar year in ‘‘(1) the biodiesel mixture credit, plus MENTS.—Section 4101(a)(1) (relating to reg- which the taxable year of the organization ‘‘(2) the biodiesel credit, plus istration) is amended— begins amounts (including as contributions) ‘‘(3) in the case of an eligible small agri- (1) by striking ‘‘4041(a)(1)’’ and inserting to such organization for energy research, and biodiesel producer, the small agri-biodiesel ‘‘4041(a)’’, and ‘‘(iv) to which no single person paid or in- (2) by inserting ‘‘or hydrogen’’ before producer credit.’’. curred (including as contributions) during MALL AGRI-BIODIESEL PRODUCER CRED- ‘‘shall register’’. (b) S such calendar year an amount equal to more IT DEFINED.—Section 40A(b) (relating to defi- (d) EFFECTIVE DATE.—The amendments than 50 percent of the total amounts re- made by this section shall apply to any sale, nition of biodiesel mixture credit and bio- ceived by such organization during such cal- diesel credit) is amended by adding at the use, or removal for any period after Sep- endar year for energy research. tember 30, 2006. end the following new paragraph: ‘‘(B) TREATMENT OF PERSONS.—All persons ‘‘(5) SMALL AGRI-BIODIESEL PRODUCER CRED- SEC. 1535. EXTENSION OF EXCISE TAX PROVI- treated as a single employer under sub- IT.— SIONS AND INCOME TAX CREDIT section (a) or (b) of section 52 shall be treat- FOR BIODIESEL. ‘‘(A) IN GENERAL.—The small agri-biodiesel ed as related persons for purposes of subpara- (a) IN GENERAL.—Sections 40A(e), 6426(c)(6), producer credit of any eligible small agri- graph (A)(iii) and as a single person for pur- and 6427(e)(4)(B) are each amended by strik- biodiesel producer for any taxable year is 10 ing ‘‘2006’’ and inserting ‘‘2010’’. poses of subparagraph (A)(iv).’’. cents for each gallon of qualified agri-bio- (b) EFFECTIVE DATE.—The amendments (3) CONFORMING AMENDMENT.—Section diesel production of such producer. made by this section shall take effect on the 41(b)(3)(C) is amended by inserting ‘‘(other ‘‘(B) QUALIFIED AGRI-BIODIESEL PRODUC- date of the enactment of this Act. than an energy research consortium)’’ after TION.—For purposes of this paragraph, the ‘‘organization’’. Subtitle E—Additional Energy Tax Incentives term ‘qualified agri-biodiesel production’ (b) REPEAL OF LIMITATION ON CONTRACT RE- means any agri-biodiesel which is produced SEC. 1541. TEN-YEAR RECOVERY PERIOD FOR UN- SEARCH EXPENSES PAID TO SMALL BUSI- DERGROUND NATURAL GAS STOR- by an eligible small agri-biodiesel producer, NESSES, UNIVERSITIES, AND FEDERAL LABORA- AGE FACILITY PROPERTY. and which during the taxable year— TORIES.—Section 41(b)(3) (relating to con- (a) IN GENERAL.—Subparagraph (D) of sec- ‘‘(i) is sold by such producer to another tion 168(e)(3) (relating to 10-year property) is tract research expenses) is amended by add- person— amended by striking ‘‘and’’ at the end of ing at the end the following new subpara- ‘‘(I) for use by such other person in the pro- clause (i), by striking the period at the end graph: duction of a qualified biodiesel mixture in of clause (ii) and inserting ‘‘, and’’, and by ‘‘(D) AMOUNTS PAID TO ELIGIBLE SMALL such other person’s trade or business (other adding at the end the following new clause: BUSINESSES, UNIVERSITIES, AND FEDERAL LAB- than casual off-farm production), ‘‘(iii) any qualified underground natural ORATORIES.— ‘‘(II) for use by such other person as a fuel gas storage facility property.’’. ‘‘(i) IN GENERAL.—In the case of amounts in a trade or business, or (b) DEFINITION.—Section 168(i) (relating to paid by the taxpayer to— ‘‘(III) who sells such agri-biodiesel at retail definitions and special rules) is amended by ‘‘(I) an eligible small business, to another person and places such agri-bio- adding at the end the following new para- ‘‘(II) an institution of higher education (as diesel in the fuel tank of such other person, graph: defined in section 3304(f)), or or ‘‘(17) QUALIFIED UNDERGROUND NATURAL GAS ‘‘(III) an organization which is a Federal ‘‘(ii) is used or sold by such producer for STORAGE FACILITY PROPERTY.— laboratory, any purpose described in clause (i). ‘‘(A) IN GENERAL.—The term ‘qualified un- for qualified research which is energy re- ‘‘(C) LIMITATION.—The qualified agri-bio- derground natural gas storage facility prop- search, subparagraph (A) shall be applied by diesel production of any producer for any erty’ means any underground natural gas substituting ‘100 percent’ for ‘65 percent’. taxable year shall not exceed 15,000,000 gal- storage facility and any equipment related ‘‘(ii) ELIGIBLE SMALL BUSINESS.—For pur- lons.’’. to such facility, including any nonrecover- poses of this subparagraph, the term ‘eligible (c) DEFINITIONS AND SPECIAL RULES.—Sec- able cushion gas, the original use of which small business’ means a small business with tion 40A is amended by redesignating sub- commences with the taxpayer. respect to which the taxpayer does not own section (e) as subsection (f) and by inserting

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00073 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.085 S20PT1 S6858 CONGRESSIONAL RECORD — SENATE June 20, 2005 after subsection (d) the following new sub- notice from the cooperative of the apportion- ing or processing residential and commercial section: ment. qualified recyclable materials for the pur- ‘‘(e) DEFINITIONS AND SPECIAL RULES FOR ‘‘(iii) SPECIAL RULES FOR DECREASE IN CRED- pose of converting such materials for use in SMALL AGRI-BIODIESEL PRODUCER CREDIT.— ITS FOR TAXABLE YEAR.—If the amount of the manufacturing tangible consumer products, For purposes of this section— credit of the organization determined under including packaging. Such term includes ‘‘(1) ELIGIBLE SMALL AGRI-BIODIESEL PRO- such subsection for a taxable year is less equipment which is utilized at commercial DUCER.—The term ‘eligible small agri-bio- than the amount of such credit shown on the or public venues, including recycling collec- diesel producer’ means a person who, at all return of the organization for such year, an tion centers, where the equipment is utilized times during the taxable year, has a produc- amount equal to the excess of— to sort or process qualified recyclable mate- tive capacity for agri-biodiesel not in excess ‘‘(I) such reduction, over rials for such purpose. of 60,000,000 gallons. ‘‘(II) the amount not apportioned to such ‘‘(B) EXCLUSION.—Such term does not in- clude rolling stock or other equipment used ‘‘(2) AGGREGATION RULE.—For purposes of patrons under subparagraph (A) for the tax- the 15,000,000 gallon limitation under sub- able year, to transport recyclable materials. section (b)(5)(C) and the 60,000,000 gallon lim- shall be treated as an increase in tax im- ‘‘(2) QUALIFIED RECYCLABLE MATERIALS.— itation under paragraph (1), all members of posed by this chapter on the organization. The term ‘qualified recyclable materials’ means any packaging or printed material the same controlled group of corporations Such increase shall not be treated as tax im- which is glass, paper, plastic, steel, or alu- (within the meaning of section 267(f)) and all posed by this chapter for purposes of deter- minum generated by an individual or busi- persons under common control (within the mining the amount of any credit under this ness and which has been separated from solid meaning of section 52(b) but determined by chapter or for purposes of section 55.’’. waste for the purposes of collection and recy- treating an interest of more than 50 percent (d) CONFORMING AMENDMENTS.— cling. as a controlling interest) shall be treated as (1) Paragraph (4) of section 40A(b) is ‘‘(3) PROCESSING.—The term ‘processing’ 1 person. amended by striking ‘‘this section’’ and in- means the preparation of qualified recycla- ‘‘(3) PARTNERSHIP, S CORPORATION, AND serting ‘‘paragraph (1) or (2) of subsection ble materials into feedstock for use in manu- OTHER PASS-THRU ENTITIES.—In the case of a (a)’’. facturing tangible consumer products. partnership, trust, S corporation, or other (2) The heading of subsection (b) of section ‘‘(d) AMOUNT PAID OR INCURRED.—For pur- pass-thru entity, the limitations contained 40A is amended by striking ‘‘AND BIODIESEL poses of this section— in subsection (b)(5)(C) and paragraph (1) shall CREDIT’’ and inserting ‘‘, BIODIESEL CREDIT, ‘‘(1) IN GENERAL.—The term ‘amount paid be applied at the entity level and at the part- AND SMALL AGRI-BIODIESEL PRODUCER CRED- or incurred’ includes installation costs. ner or similar level. IT’’. ‘‘(2) LEASE PAYMENTS.—In the case of the ‘‘(4) ALLOCATION.—For purposes of this sub- (3) Paragraph (3) of section 40A(d) is leasing of qualified recycling equipment by section, in the case of a facility in which amended by redesignating subparagraph (C) the taxpayer, the term ‘amount paid or in- more than 1 person has an interest, produc- as subparagraph (D) and by inserting after curred’ means the amount of the lease pay- tive capacity shall be allocated among such subparagraph (B) the following new subpara- ments due to be paid during the term of the persons in such manner as the Secretary graph: lease occurring during the taxable year other may prescribe. ‘‘(C) PRODUCER CREDIT.—If— than such portion of such lease payments at- ‘‘(5) REGULATIONS.—The Secretary may ‘‘(i) any credit was determined under sub- tributable to interest, insurance, and taxes. prescribe such regulations as may be nec- section (a)(3), and ‘‘(3) GRANTS, ETC. EXCLUDED.—The term essary— ‘‘(ii) any person does not use such fuel for ‘amount paid or incurred’ shall not include ‘‘(A) to prevent the credit provided for in a purpose described in subsection (b)(5)(B), any amount to the extent such amount is subsection (a)(3) from directly or indirectly then there is hereby imposed on such person funded by any grant, contract, or otherwise benefiting any person with a direct or indi- a tax equal to 10 cents a gallon for each gal- by another person (or any governmental en- rect productive capacity of more than lon of such agri-biodiesel.’’. tity). 60,000,000 gallons of agri-biodiesel during the (e) EFFECTIVE DATE.—The amendments ‘‘(e) OTHER TAX DEDUCTIONS AND CREDITS taxable year, or made by this section shall apply to taxable AVAILABLE FOR PORTION OF COST NOT TAKEN ‘‘(B) to prevent any person from directly or years ending after the date of the enactment INTO ACCOUNT FOR CREDIT UNDER THIS SEC- indirectly benefiting with respect to more of this Act. TION.—No deduction or other credit under than 15,000,000 gallons during the taxable SEC. 1544. IMPROVEMENTS TO SMALL ETHANOL this chapter shall be allowed with respect to year. PRODUCER CREDIT. the amount of the credit determined under ‘‘(6) ALLOCATION OF SMALL AGRI-BIODIESEL (a) DEFINITION OF SMALL ETHANOL PRO- this section. CREDIT TO PATRONS OF COOPERATIVE.— DUCER.—Section 40(g) (relating to definitions ‘‘(f) BASIS ADJUSTMENTS.—For purposes of ‘‘(A) ELECTION TO ALLOCATE.— and special rules for eligible small ethanol this subtitle, if a credit is allowed under this ‘‘(i) IN GENERAL.—In the case of a coopera- producer credit) is amended by striking section for any amount paid or incurred with tive organization described in section 1381(a), ‘‘30,000,000’’ each place it appears and insert- respect to any property, the increase in the any portion of the credit determined under ing ‘‘60,000,000’’. basis of such property which would (but for subsection (a)(3) for the taxable year may, at (b) EFFECTIVE DATE.—The amendments this subsection) result from such expenditure the election of the organization, be appor- made by this section shall apply to taxable shall be reduced by the amount of the credit tioned pro rata among patrons of the organi- years ending after the date of the enactment so allowed.’’. zation on the basis of the quantity or value of this Act. (b) CONFORMING AMENDMENTS.— (1) CREDIT MADE PART OF GENERAL BUSINESS of business done with or for such patrons for SEC. 1545. CREDIT FOR EQUIPMENT FOR PROC- the taxable year. ESSING OR SORTING MATERIALS CREDIT.—Subsection (b) of section 38, as ‘‘(ii) FORM AND EFFECT OF ELECTION.—An GATHERED THROUGH RECYCLING. amended by this Act, is amended by striking election under clause (i) for any taxable year (a) IN GENERAL.—Subpart D of part IV of ‘‘plus’’ at the end of paragraph (21), by strik- shall be made on a timely filed return for subchapter A of chapter 1 (relating to busi- ing the period at the end of paragraph (22) such year. Such election, once made, shall be ness-related credits), as amended by this and inserting ‘‘, plus’’, and by adding at the irrevocable for such taxable year. Such elec- Act, is amended by adding at the end the fol- end the following new paragraph: tion shall not take effect unless the organi- lowing new section: ‘‘(23) the qualified recycling equipment credit determined under section 45M(a).’’. zation designates the apportionment as such ‘‘SEC. 45M. CREDIT FOR QUALIFIED RECYCLING in a written notice mailed to its patrons dur- EQUIPMENT. (2) Subsection (a) of section 1016, as amend- ing the payment period described in section ‘‘(a) ALLOWANCE OF CREDIT.—For purposes ed by this Act, is amended by striking ‘‘and’’ 1382(d). of section 38, the qualified recycling equip- at the end of paragraph (37), by striking the ‘‘(B) TREATMENT OF ORGANIZATIONS AND PA- ment credit determined under this section period at the end of paragraph (38) and in- TRONS.— for the taxable year is an amount equal to serting ‘‘; and’’, and by adding at the end the ‘‘(i) ORGANIZATIONS.—The amount of the the amount paid or incurred during the tax- following new paragraph: credit not apportioned to patrons pursuant able year for the cost of qualified recycling ‘‘(39) to the extent provided in section to subparagraph (A) shall be included in the equipment placed in service or leased by the 45M(f), in the case of amounts with respect amount determined under subsection (a)(3) taxpayer. to which a credit has been allowed under sec- for the taxable year of the organization. ‘‘(b) LIMITATION.—The amount allowable as tion 45M.’’. ‘‘(ii) PATRONS.—The amount of the credit a credit under subsection (a) with respect to (3) The table of sections for subpart D of apportioned to patrons pursuant to subpara- any qualified recycling equipment shall not part IV of subchapter A of chapter 1, as graph (A) shall be included in the amount de- exceed 15 percent of the cost of such quali- amended by this Act, is amended by insert- termined under such subsection for the first fied recycling equipment. ing after the item relating to section 45L the taxable year of each patron ending on or ‘‘(c) DEFINITIONS.—For purposes of this sec- following new item: after the last day of the payment period (as tion— ‘‘Sec. 45M. Credit for qualified recycling defined in section 1382(d)) for the taxable ‘‘(1) QUALIFIED RECYCLING EQUIPMENT.— equipment.’’. year of the organization or, if earlier, for the ‘‘(A) IN GENERAL.—The term ‘qualified re- (c) EFFECTIVE DATE.—The amendments taxable year of each patron ending on or cycling equipment’ means equipment, in- made by this section shall apply to taxable after the date on which the patron receives cluding connecting piping, employed in sort- years beginning after December 31, 2005.

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00074 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.085 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6859

SEC. 1546. 5-YEAR NET OPERATING LOSS CARRY- (b) AMOUNT OF QUALIFYING POLLUTION CON- after the date of the enactment of this Act, OVER IF ANY RESULTING REFUND IS TROL EQUIPMENT CREDIT.—Subpart E of part in taxable years ending after such date, USED FOR ELECTRIC TRANSMISSION IV of subchapter A of chapter 1 (relating to under rules similar to the rules of section EQUIPMENT. rules for computing investment credit), as 48(m) of the Internal Revenue Code of 1986 (a) IN GENERAL.—Paragraph (1) of section amended by this Act, is amended by insert- (as in effect on the day before the date of the 172(b) (relating to net operating loss carrybacks and carryovers) is amended by ing after section 48C the following new sec- enactment of the Revenue Reconciliation adding at the end the following new subpara- tion: Act of 1990). graph: ‘‘SEC. 48D. QUALIFYING POLLUTION CONTROL SEC. 1548. CREDIT FOR PRODUCTION OF COAL EQUIPMENT CREDIT. ‘‘(I) TRANSMISSION PROPERTY INVESTMENT.— OWNED BY INDIAN TRIBES. ‘‘(a) IN GENERAL.—For purposes of section ‘‘(i) IN GENERAL.—In the case of a net oper- (a) IN GENERAL.—Subpart D of part IV of 46, the qualifying pollution control equip- ating loss in a taxable year ending after De- subchapter A of chapter 1 (relating to busi- ment credit for any taxable year is an cember 31, 2002, and before January 1, 2006, ness-related credits), as amended by this amount equal to 15 percent of the basis of there shall be a net operating loss carryback Act, is amended by adding at the end the fol- the qualifying pollution control equipment to each of the 5 years preceding the taxable lowing new section: year of such loss to the extent that any re- placed in service at a qualifying facility dur- fund resulting from such carryback is used ing such taxable year. ‘‘SEC. 45N. CREDIT FOR PRODUCTION OF COAL OWNED BY INDIAN TRIBES. for electric transmission property capital ex- ‘‘(b) QUALIFYING POLLUTION CONTROL penditures or pollution control facility cap- EQUIPMENT.—For purposes of this section, ‘‘(a) ALLOWANCE OF CREDIT.—For purposes ital expenditures. the term ‘qualifying pollution control equip- of section 38, the Indian coal production ‘‘(ii) REFUND CLAIM.—Any refund resulting ment’ means any technology installed in or credit determined under this section for the from the application of clause (i) may be on a qualifying facility to reduce air emis- taxable year is an amount equal to the prod- claimed by the taxpayer for any taxable year sions of any pollutant regulated by the Envi- uct of— ending after December 31, 2005, and before ronmental Protection Agency under the ‘‘(1) the applicable dollar amount for the January 1, 2009, except that the portion of Clean Air Act, including thermal oxidizers, calendar year in which the taxable year be- such refund which may be claimed during regenerative thermal oxidizers, scrubber sys- gins, and any taxable year shall not exceed the sum of tems, evaporative control systems, vapor re- ‘‘(2) the number of tons of Indian coal— the taxpayer’s electric transmission prop- covery systems, flair systems, bag houses, ‘‘(A) the production of which is attrib- erty capital expenditures and pollution con- cyclones, continuous emissions monitoring utable to the taxpayer (determined under trol facility capital expenditures made in the systems, and low nitric oxide burners. rules similar to the rules under section preceding taxable year. ‘‘(c) QUALIFYING FACILITY.—For purposes of 29(d)(3)), and ‘‘(iii) CARRYOVER OF EXCESS REFUNDS.—Any this section, the term ‘qualifying facility’ ‘‘(B) which is sold by the taxpayer to an portion of such refund that exceeds the sum means any facility which produces not less unrelated person during the taxable year. of the taxpayer’s electric transmission prop- than 1,000,000 gallons of ethanol during the ‘‘(b) INDIAN COAL.—For purposes of this erty capital expenditures and pollution con- taxable year. section— trol facility capital expenditures made dur- ‘‘(d) SPECIAL RULE FOR CERTAIN SUBSIDIZED ‘‘(1) IN GENERAL.—The term ‘Indian coal’ ing the preceding taxable year shall, subject PROPERTY.—Rules similar to section 48(a)(4) means coal which is produced from coal re- to clause (ii), be considered a refund due to shall apply for purposes of this section. serves which, on June 14, 2005— the taxpayer and claimed in the succeeding ‘‘(e) CERTAIN QUALIFIED PROGRESS EXPEND- ‘‘(A) were owned by an Indian tribe, or taxable year if such taxable year begins be- ITURES RULES MADE APPLICABLE.—Rules ‘‘(B) were held in trust by the United fore January 1, 2009. similar to the rules of subsections (c)(4) and States for the benefit of an Indian tribe or ‘‘(iv) DEFINITIONS.—For purposes of this (d) of section 46 (as in effect on the day be- its members. subparagraph— fore the enactment of the Revenue Rec- ‘‘(2) INDIAN TRIBE.—For purposes of this ‘‘(I) ELECTRIC TRANSMISSION PROPERTY CAP- onciliation Act of 1990) shall apply for pur- subsection, the term ‘Indian tribe’ has the ITAL EXPENDITURES.—The term ‘electric poses of this subsection.’’. meaning given such term by section transmission property capital expenditures’ (c) RECAPTURE OF CREDIT WHERE EMISSIONS 7871(c)(3)(E)(ii). means any expenditure, chargeable to cap- REDUCTION OFFSET IS SOLD.—Paragraph (1) of ‘‘(c) OTHER TERMS.—For purposes of this ital account, made by the taxpayer which is section 50(a) is amended by redesignating section— attributable to electric transmission prop- subparagraph (B) as subparagraph (C) and by ‘‘(1) APPLICABLE DOLLAR AMOUNT.— erty used in the transmission at 69 or more inserting after subparagraph (A) the fol- ‘‘(A) IN GENERAL.—The term ‘applicable kilovolts of electricity for sale. lowing new subparagraph: dollar amount’ means— ‘‘(II) POLLUTION CONTROL FACILITY CAPITAL ‘‘(B) SPECIAL RULE FOR QUALIFYING POLLU- ‘‘(i) $1.50 in the case of calendar years 2006 EXPENDITURES.—The term ‘pollution control TION CONTROL EQUIPMENT.—For purposes of through 2009, and facility capital expenditures’ means any ex- subparagraph (A), any investment property ‘‘(ii) $2.00 in the case of calendar years be- penditure, chargeable to capital account, which is qualifying pollution control equip- ginning after 2009. made by an electric utility company (as de- ment (as defined in section 48D(b)) shall ‘‘(B) INFLATION ADJUSTMENT.—In the case fined in section 2(3) of the Public Utility cease to be investment credit property with of any calendar year after 2006, each of the Holding Company Act (15 U.S.C. 79b(3)) respect to a taxpayer if such taxpayer re- dollar amounts under subparagraph (A) shall which is attributable to a facility which will ceives a payment in exchange for a credit for be equal to the product of such dollar qualifiy as a certified pollution control facil- emission reductions attributable to such amount and the inflation adjustment factor ity as determined under section 169(d)(1) by qualifying pollution control equipment for determined under section 45(e)(2)(B) for the striking ‘before January 1, 1976,’ and by sub- purposes of an offset requirement under part calendar year, except that such section shall stituting ‘an identifiable’ for ‘a new identifi- D of title I of the Clean Air Act.’’. be applied by substituting ‘2005’ for ‘1992’. able’.’’ (d) SPECIAL RULE FOR BASIS REDUCTION; ‘‘(2) UNRELATED PERSON.—The term ‘unre- (b) ELECTION TO DISREGARD CARRYBACK.— RECAPTURE OF CREDIT.—Paragraph (3) of sec- Section 172(j) (relating to disregard 5-year tion 50(c) (relating to basis adjustment to in- lated person’ has the same meaning as when carryback for certain net operating losses) is vestment credit property), as amended by such term is used in section 45. amended by inserting ‘‘or (b)(1)(I)’’ after this Act, is amended by inserting ‘‘or quali- ‘‘(d) TERMINATION.—This section shall not ‘‘(b)(1)(H)’’ both places it appears. fying pollution control equipment credit’’ apply to sales after December 31, 2012.’’ (c) APPLICATION.—In the case of a net oper- after ‘‘energy credit’’. (b) CREDIT MADE PART OF GENERAL BUSI- ating loss described in section 172(b)(1)(I) of (e) CONFORMING AMENDMENTS.— NESS CREDIT.—Subsection (b) of section 38, as the Internal Revenue Code of 1986 (as added (1) Section 49(a)(1)(C), as amended by this amended by this Act, is amended by striking by subsection (a)) for a taxable year ending Act, is amended by striking ‘‘and’’ at the end ‘‘plus’’ at the end of paragraph (22), by strik- in 2003, 2004, or 2005, any election made under of clause (iv), by striking the period at the ing the period at the end of paragraph (23) section 172(j) of such Code (as amended by end of clause (v) and inserting ‘‘, and’’, and and inserting ‘‘, plus’’, and by adding at the subsection (b)) shall be treated as timely by adding at the end the following new end the following new paragraph: made if made before January 1, 2009. clause: ‘‘(24) the Indian coal production credit de- SEC. 1547. CREDIT FOR QUALIFYING POLLUTION ‘‘(vi) the basis of any qualifying pollution termined under section 45N(a).’’. CONTROL EQUIPMENT. control equipment.’’ (c) ALLOWANCE AGAINST MINIMUM TAX.— (a) ALLOWANCE OF QUALIFYING POLLUTION (2) The table of sections for subpart E of CONTROL EQUIPMENT CREDIT.—Section 46 (re- Section 38(c)(4) (relating to specified credits) part IV of subchapter A of chapter 1, as is amended by striking the period at the end lating to amount of credit), as amended by amended by this Act, is amended by insert- this Act, is amended by striking ‘‘and’’ at of clause (ii) and inserting ‘‘, or’’ and by add- ing after the item relating to section 48C the the end of paragraph (4), by striking the pe- ing at the end the following: following new item: riod at the end of paragraph (5) and inserting ‘‘(iii) the credit determined under section ‘‘, and’’, and by adding at the end the fol- ‘‘48D. Qualifying pollution control equip- 45N.’’. lowing new paragraph: ment.’’. (d) EFFECTIVE DATE.—The amendments ‘‘(6) the qualifying pollution control equip- (f) EFFECTIVE DATE.—The amendments made by this section shall apply to sales ment credit.’’. made by this section shall apply to periods after December 31, 2005.

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00075 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.086 S20PT1 S6860 CONGRESSIONAL RECORD — SENATE June 20, 2005

SEC. 1549. CREDIT FOR REPLACEMENT STOVES SEC. 1550. EXEMPTION FOR EQUIPMENT FOR ‘‘(C) TAXES IMPOSED ON FUEL USED IN AVIA- MEETING ENVIRONMENTAL STAND- TRANSPORTING BULK BEDS OF TION.—In the case of kerosene which is re- ARDS IN NON-ATTAINMENT AREAS. FARM CROPS FROM EXCISE TAX ON moved from any refinery or terminal di- (a) IN GENERAL.—Subpart A of part IV of RETAIL SALE OF HEAVY TRUCKS rectly into the fuel tank of an aircraft for AND TRAILERS. subchapter A of chapter 1 (relating to non- use in aviation, the rate of tax under sub- (a) IN GENERAL.—Section 4053 of the Inter- refundable personal credits), as amended by paragraph (A)(iii) shall be— nal Revenue Code of 1986 (relating to exemp- this Act, is amended by inserting after sec- ‘‘(i) in the case of use for commercial avia- tions) is amended by adding at the end the tion 25D the following new section: tion by a person registered for such use following new paragraph: ‘‘SEC. 25E. REPLACEMENT STOVES IN AREAS under section 4101, 4.3 cents per gallon, and ‘‘(9) BULK BEDS FOR TRANSPORTING FARM WITH POOR AIR QUALITY. ‘‘(ii) in the case of use for aviation not de- CROPS.—Any box, container, receptacle, bin, ‘‘(a) ALLOWANCE OF CREDIT.—In the case of scribed in clause (i), 21.8 cents per gallon.’’. or other similar article the length of which an individual, there shall be allowed as a (3) APPLICABLE RATE IN CASE OF CERTAIN RE- does not exceed 26 feet, which is mounted or credit against the tax imposed by this chap- FUELER TRUCKS, TANKERS, AND TANK WAG- placed on an automobile truck, and which is ter for the taxable year an amount equal to ONS.—Section 4081(a)(3) (relating to certain the lesser— sold to a person who certifies to the seller refueler trucks, tankers, and tank wagons ‘‘(1) the qualified stove replacement ex- that— treated as terminals) is amended— penditures of the taxpayer for the taxable ‘‘(A) such person is actively engaged in the (A) by striking ‘‘a secured area of’’ in sub- year, or trade or business of farming, and paragraph (A)(i), and ‘‘(2) $500 multiplied by the number of non- ‘‘(B) the primary use of the article is to (B) by adding at the end the following new compliant wood stoves replaced by the tax- haul to farms (and on farms) farm crops subparagraph: payer during the taxable year. grown in connection with such trade or busi- ‘‘(D) APPLICABLE RATE.—For purposes of ‘‘(b) QUALIFIED STOVE REPLACEMENT EX- ness.’’. paragraph (2)(C), in the case of any kerosene PENDITURES.—For purposes of this section— (b) RECAPTURE OF TAX UPON RESALE OR treated as removed from a terminal by rea- ‘‘(1) IN GENERAL.—The term ‘qualified stove NONEXEMPT USE.—Section 4052 (relating to son of this paragraph— replacement expenditures’ means expendi- definitions and special rules) is amended by ‘‘(i) the rate of tax specified in paragraph tures made by the taxpayer for the installa- redesignating subsection (g) as subsection (2)(C)(i) in the case of use described in such tion of a compliant stove which— (h) and by inserting after subsection (f) the paragraph shall apply if such terminal is lo- ‘‘(A) is installed in a dwelling unit which— following new subsection: cated within a secured area of an airport, ‘‘(i) is located in the United States in an ‘‘(g) IMPOSITION OF TAX ON SALES, ETC., and area which, at the time of the installation, is WITHIN 2 YEARS OF BULK BEDS FOR TRANS- ‘‘(ii) the rate of tax specified in paragraph designated by the Environmental Protection PORTING FARM CROPS PURCHASED TAX-FREE.— (2)(C)(ii) shall apply in all other cases.’’. ‘‘(1) IN GENERAL.—If— Agency as a non-attainment area for partic- (4) CONFORMING AMENDMENTS.— ulate matter less than 2.5 micrometers in di- ‘‘(A) no tax was imposed under section 4051 (A) Sections 4081(a)(3)(A) and 4082(b) are ameter or a non-attainment area for particu- on the first retail sale of any article de- amended by striking ‘‘aviation-grade’’ each late matter less than 10 micrometers in di- scribed in section 4053(9) by reason of its ex- place it appears. ameter, and empt use, and (B) Section 4081(a)(4) is amended by strik- ‘‘(ii) is used as a residence, and ‘‘(B) within 2 years after the date of such ing ‘‘paragraph (2)(C)’’ and inserting ‘‘para- ‘‘(B) replaces a noncompliant wood stove first retail sale, such article is resold by the graph (2)(C)(i)’’. used in the dwelling unit. purchaser or such purchaser makes a sub- (C) The heading for paragraph (4) of section stantial nonexempt use of such article, then Such term includes expenditures for labor 4081(a) is amended by striking ‘‘AVIATION- such sale or use of such article by such pur- GRADE’’. costs properly allocable to the onsite prepa- chaser shall be treated as the first retail sale ration, assembly, or original installation of (D) Section 4081(d)(2) is amended by strik- of such article for a price equal to its fair ing so much as precedes subparagraph (A) the compliant stove. market value at the time of such sale or use. ‘‘(2) COMPLIANT STOVE.—The term ‘compli- and inserting the following: ‘‘(2) EXEMPT USE.—For purposes of this sub- ant stove’ means a solid fuel burning stove ‘‘(2) AVIATION FUELS.—The rates of tax section, the term ‘exempt use’ means any specified in subsections (a)(2)(A)(ii) and which meets the requirements set forth in use of an article described in section 4053(9) the ‘Standards of Performance for Residen- (a)(2)(C)(ii) shall be 4.3 cents per gallon—’’. if the first retail sale of such article is not (E) Subsection (e) of section 4082 is amend- tial Wood Heaters’ issued by the Environ- taxable under section 4051 by reason of such mental Protection Agency. ed— use.’’. (i) by striking ‘‘aviation-grade’’, ‘‘(3) NONCOMPLIANT WOOD STOVE.—The term (b) EFFECTIVE DATE.—The amendments (ii) by striking ‘‘section 4081(a)(2)(A)(iv)’’ ‘noncompliant wood stove’ means any wood made by this section shall apply to sales and inserting ‘‘section 4081(a)(2)(A)(iii)’’, and stove other than a compliant stove. after September 30, 2005. (iii) by striking ‘‘Aviation-Grade Ker- ‘‘(c) OTHER RULES.—Rules similar to the SEC. 1551. NATIONAL ACADEMY OF SCIENCES osene’’ in the heading thereof and inserting rules of paragraphs (3) and (4) of section STUDY AND REPORT. 25C(d) shall apply for purposes of this sec- ‘‘Kerosene Removed Into an Aircraft’’. (a) STUDY.—Not later than 60 days after (b) REDUCED RATE FOR USE OF CERTAIN LIQ- tion. the date of the enactment of this Act, the UIDS IN AVIATION.— ‘‘(d) BASIS ADJUSTMENT.—If an expenditure Secretary of the Treasury shall enter into an (1) IN GENERAL.—Subsection (c) of section to which this section applies results in an in- agreement with the National Academy of crease in basis in any property, the increase 4041 (relating to imposition of tax) is amend- Sciences under which the National Academy ed— shall be reduced by the amount of the credit of Sciences shall conduct a study to define allowed under this section with respect to (A) by striking ‘‘aviation-grade kerosene’’ and evaluate the health, environmental, se- in paragraph (1) and inserting ‘‘any liquid for the expenditure. curity, and infrastructure external costs and ‘‘(e) TERMINATION.—This section shall not use as a fuel other than aviation gasoline’’, benefits associated with the production and apply to expenditures made after December (B) by striking ‘‘aviation-grade kerosene’’ consumption of energy that are not or may 31, 2008.’’ in paragraph (2) and inserting ‘‘liquid for use not be fully incorporated into the market (b) CONFORMING AMENDMENTS.— as a fuel other than aviation gasoline’’, (1) Subsection (a) of section 1016, as amend- price of such energy, or into the Federal tax (C) by striking paragraph (3) and inserting ed by this Act, is amended by striking ‘‘and’’ or fee or other applicable revenue measure the following new paragraph: at the end of paragraph (38), by striking the related to such production or consumption. ‘‘(3) RATE OF TAX.—The rate of tax imposed (b) REPORT.—Not later than 2 years after period at the end of paragraph (39) and in- by this subsection shall be 21.8 cents per gal- the date on which the agreement under sub- serting ‘‘, and’’, and by adding at the end the lon (4.3 cents per gallon with respect to any section (a) is entered into, the National following new paragraph: sale or use for commercial aviation).’’, and Academy of Sciences shall submit to Con- ‘‘(40) to the extent provided in section (D) by striking ‘‘Aviation-Grade Kerosene’’ gress a report on the study conducted under 25E(e), in the case of amounts with respect in the heading thereof and inserting ‘‘Cer- subsection (a). to which a credit has been allowed under sec- tain Liquids Used as a Fuel in Aviation’’. tion 25E.’’. Subtitle F—Revenue Raising Provisions (2) PARTIAL REFUND OF FULL RATE.— (2) The table of sections for subpart A of SEC. 1561. TREATMENT OF KEROSENE FOR USE (A) IN GENERAL.—Paragraph (2) of section part IV of subchapter A of chapter 1, as IN AVIATION. 6427(l) (relating to nontaxable uses of diesel amended by this Act, is amended by insert- (a) ALL KEROSENE TAXED AT HIGHEST fuel, kerosene and aviation fuel) is amended ing after the item relating to section 25D the RATE.— to read as follows: following new item: (1) IN GENERAL.—Section 4081(a)(2)(A) (re- ‘‘(2) NONTAXABLE USE.—For purposes of this lating to rates of tax) is amended by adding subsection, the term ‘nontaxable use’ means ‘‘Sec. 25E. Replacement stoves in areas with ‘‘and’’ at the end of clause (ii), by striking ‘‘, any use which is exempt from the tax im- poor air quality.’’. and’’ at the end of clause (iii) and inserting posed by section 4041(a)(1) other than by rea- (c) EFFECTIVE DATES.—The amendments a period, and by striking clause (iv). son of a prior imposition of tax.’’. made by this section shall apply to expendi- (2) EXCEPTION FOR USE IN AVIATION.—Sub- (B) REFUNDS FOR NONCOMMERCIAL AVIA- tures for stoves purchased after the date of paragraph (C) of section 4081(a)(2) is amended TION.—Section 6427(l) (relating to nontaxable the enactment of this Act. to read as follows: uses of diesel fuel, kerosene and aviation

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00076 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.086 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6861 fuel) is amended by redesignating paragraph retary, and proper adjustments shall be the ultimate vendor) is made by means of a (5) as paragraph (6) and by inserting after made in the amounts subsequently trans- credit card issued to the ultimate purchaser, paragraph (4) the following new paragraph: ferred to the extent prior estimates were in paragraph (1) shall not apply and the person ‘‘(5) REFUNDS FOR KEROSENE USED IN NON- excess of or less than the amounts required extending the credit to the ultimate pur- COMMERCIAL AVIATION.— to be transferred.’’. chaser shall be treated as the person (and the ‘‘(A) IN GENERAL.—In the case of kerosene (2) CONFORMING AMENDMENTS.— only person) who paid the tax, but only if used in aviation not described in paragraph (A) Section 9502(a) is amended by striking such person— (4)(A) (other than any use which is exempt ‘‘appropriated or credited to the Airport and ‘‘(i) is registered under section 4101(a)(4), from the tax imposed by section 4041(c) other Airway Trust Fund as provided in this sec- and than by reason of a prior imposition of tax), tion or section 9602(b)’’ and inserting ‘‘appro- ‘‘(ii) has established, under regulations paragraph (1) shall not apply to so much of priated, credited, or paid into the Airport prescribed by the Secretary, that such per- the tax imposed by section 4081 as is attrib- and Airway Trust Fund as provided in this son— utable to— section, section 9503(c)(7), or section 9602(b)’’. ‘‘(I) has not collected the amount of the ‘‘(i) the Leaking Underground Storage (B) Section 9502(b)(1) is amended— tax from the person who purchased such arti- Tank Trust Fund financing rate imposed by (i) by striking ‘‘subsections (c) and (e) of cle, or such section, and section 4041’’ in subparagraph (A) and insert- ‘‘(II) has obtained the written consent from ‘‘(ii) so much of the rate of tax specified in ing ‘‘section 4041(c)’’, and the ultimate purchaser to the allowance of section 4081(a)(2)(A)(iii) as does not exceed (ii) by striking ‘‘and aviation-grade ker- the credit or refund, and the rate specified in section 4081(a)(2)(C)(ii). osene’’ in subparagraph (C) and inserting ‘‘(iii) has so established that such person— ‘‘(B) PAYMENT TO ULTIMATE, REGISTERED ‘‘and kerosene to the extent attributable to ‘‘(I) has repaid or agreed to repay the VENDOR.—The amount which would be paid the rate specified in section 4081(a)(2)(C)’’. amount of the tax to the ultimate vendor, under paragraph (1) with respect to any ker- (C) Section 9503(b) is amended by striking ‘‘(II) has obtained the written consent of osene shall be paid only to the ultimate ven- paragraph (3). the ultimate vendor to the allowance of the dor of such kerosene. A payment shall be (d) CERTAIN REFUNDS NOT TRANSFERRED credit or refund, or made to such vendor if such vendor— FROM AIRPORT AND AIRWAY TRUST FUND.— ‘‘(III) has otherwise made arrangements ‘‘(i) is registered under section 4101, and Section 9502(d)(2) (relating to transfers from which directly or indirectly assure the ulti- ‘‘(ii) meets the requirements of subpara- Airport and Airway Trust Fund on account mate vendor of reimbursement of such tax. graph (A), (B), or (D) of section 6416(a)(1).’’. of certain refunds) is amended by inserting If clause (i), (ii), or (iii) is not met by such (3) CONFORMING AMENDMENTS.— ‘‘(other than subsections (l)(4) and (l)(5) person extending the credit to the ultimate (A) Section 4041(a)(1)(B) is amended by thereof)’’ after ‘‘or 6427 (relating to fuels not purchaser, then such person shall collect an striking the last sentence. used for taxable purposes)’’. amount equal to the tax from the ultimate (B) The heading for subsection (l) of sec- (e) EFFECTIVE DATE.—The amendments purchaser and only such ultimate purchaser tion 6427 is amended by striking ‘‘, Kerosene made by this section shall apply to fuels or may claim such credit or refund.’’, and Aviation Fuel’’ and inserting ‘‘and Ker- liquids removed, entered, or sold after Sep- (C) by striking ‘‘subparagraph (A)’’ in sub- osene’’. tember 30, 2005. paragraph (C), as redesignated by paragraph (C) Section 4082(d)(2)(B) is amended by SEC. 1562. REPEAL OF ULTIMATE VENDOR RE- (2), and inserting ‘‘subparagraph (A) or (B)’’, striking ‘‘section 6427(l)(5)(B)’’ and inserting FUND CLAIMS WITH RESPECT TO (D) by inserting ‘‘or credit card issuer’’ ‘‘section 6427(l)(6)(B)’’. FARMING. after ‘‘vendor’’ in subparagraph (C), as so re- (D) Section 6427(i)(4)(A) is amended— (a) IN GENERAL.—Subparagraph (A) of sec- designated, and (i) by striking ‘‘paragraph (4)(B) or (5)’’ tion 6427(l)(6) (relating to registered vendors (E) by inserting ‘‘OR CREDIT CARD ISSUER’’ both places it appears and inserting ‘‘para- to administer claims for refund of diesel fuel after ‘‘VENDOR’’ in the heading thereof. graph (4)(B), (5), or (6)’’, and or kerosene sold to farmers and State and (2) CONFORMING AMENDMENT.—Section (ii) by striking ‘‘subsection (b)(4) and sub- local governments), as redesignated by sec- 6416(b)(2) is amended by adding at the end section (l)(5)’’ in the last sentence and in- tion 1561, is amended to read as follows: the following new sentence: ‘‘Subparagraphs serting ‘‘subsections (b)(4), (l)(5), and (l)(6)’’. ‘‘(A) IN GENERAL.—Paragraph (1) shall not (C) and (D) shall not apply in the case of any (E) Paragraph (4) of section 6427(l) is apply to diesel fuel or kerosene used by a tax imposed on gasoline under section 4081 if amended— State or local government.’’. the requirements of subsection (a)(4) are not (b) CONFORMING AMENDMENT.—The heading (i) by striking ‘‘aviation-grade’’ in sub- met.’’ of paragraph (6) of section 6427(l), as so redes- (c) DIESEL FUEL OR KEROSENE.—Paragraph paragraph (A), ignated, is amended by striking ‘‘FARMERS (6) of section 6427(l) (relating to nontaxable (ii) by striking ‘‘section 4081(a)(2)(A)(iv)’’ AND’’. uses of diesel fuel and kerosene), as redesig- and inserting ‘‘section 4081(a)(2)(iii)’’, (c) EFFECTIVE DATE.—The amendments nated by section 1561, is amended— (iii) by striking ‘‘aviation-grade kerosene’’ made by this section shall apply to sales (1) by striking ‘‘The amount’’ in subpara- in subparagraph (B) and inserting ‘‘kerosene after September 30, 2005. graph (C) and inserting ‘‘Except as provided used in commercial aviation as described in in subparagraph (D), the amount’’, and subparagraph (A)’’, and SEC. 1563. REFUNDS OF EXCISE TAXES ON EX- EMPT SALES OF FUEL BY CREDIT (2) by adding at the end the following new (iv) by striking ‘‘AVIATION-GRADE KER- CARD. subparagraph: OSENE’’ in the heading thereof and inserting (a) REGISTRATION OF PERSON EXTENDING ‘‘(D) CREDIT CARD ISSUER.—For purposes of ‘‘KEROSENE USED IN COMMERCIAL AVIATION’’. CREDIT ON CERTAIN EXEMPT SALES OF FUEL.— this paragraph, if the purchase of any fuel (F) Section 6427(l)(6)(B), as redesignated by Section 4101(a) (relating to registration) is described in subparagraph (A) (determined paragraph (2)(B), is amended by striking amended by adding at the end the following without regard to the registration status of ‘‘aviation-grade kerosene’’ and inserting new paragraph: the ultimate vendor) is made by means of a ‘‘kerosene used in aviation’’. ‘‘(4) REGISTRATION OF PERSONS EXTENDING credit card issued to the ultimate purchaser, (c) TRANSFERS FROM HIGHWAY TRUST FUND CREDIT ON CERTAIN EXEMPT SALES OF FUEL.— the Secretary shall pay to the person extend- OF TAXES ON FUELS USED IN AVIATION TO AIR- The Secretary shall require registration by ing the credit to the ultimate purchaser the PORT AND AIRWAY TRUST FUND.— any person which— amount which would have been paid under (1) IN GENERAL.—Section 9503(c) (relating ‘‘(A) extends credit by credit card to any paragraph (1) (but for subparagraph (A)), but to expenditures from Highway Trust Fund) is ultimate purchaser described in subpara- only if such person meets the requirements amended by adding at the end the following graph (C) or (D) of section 6416(b)(2) for the of clauses (i), (ii), and (iii) of section new paragraph: purchase of taxable fuel upon which tax has 6416(a)(4)(B). If such clause (i), (ii), or (iii) is ‘‘(7) TRANSFERS FROM THE TRUST FUND FOR been imposed under section 4041 or 4081, and not met by such person extending the credit CERTAIN AVIATION FUEL TAXES.—The Sec- ‘‘(B) does not collect the amount of such to the ultimate purchaser, then such person retary shall pay at least monthly from the tax from such ultimate purchaser.’’. shall collect an amount equal to the tax Highway Trust Fund into the Airport and (b) REFUNDS OF TAX ON GASOLINE.— from the ultimate purchaser and only such Airway Trust Fund amounts (as determined (1) IN GENERAL.—Paragraph (4) of section ultimate purchaser may claim such by the Secretary) equivalent to the taxes re- 6416(a) (relating to condition to allowance) is amount.’’. ceived on or after October 1, 2005, and before amended— (d) CONFORMING PENALTY AMENDMENTS.— October 1, 2011, under section 4081 with re- (A) by inserting ‘‘except as provided in sub- (1) Section 6206 (relating to special rules spect to so much of the rate of tax as does paragraph (B),’’ after ‘‘For purposes of this applicable to excessive claims under sections not exceed— subsection,’’ in subparagraph (A), 6420, 6421, and 6427) is amended— ‘‘(A) 4.3 cents per gallon of kerosene with (B) by redesignating subparagraph (B) as (A) by striking ‘‘Any portion’’ in the first respect to which a payment has been made subparagraph (C) and by inserting after sub- sentence and inserting ‘‘Any portion of a re- by the Secretary under section 6427(l)(4), and paragraph (A) the following new subpara- fund made under section 6416(a)(4) and any ‘‘(B) 21.8 cents per gallon of kerosene with graph: portion’’, respect to which a payment has been made ‘‘(B) CREDIT CARD ISSUER.—For purposes of (B) by striking ‘‘payments under sections by the Secretary under section 6427(l)(5). this subsection, if the purchase of gasoline 6420’’ in the first sentence and inserting ‘‘re- Transfers under the preceding sentence shall described in subparagraph (A) (determined funds under section 6416(a)(4) and payments be made on the basis of estimates by the Sec- without regard to the registration status of under sections 6420’’,

VerDate Aug 04 2004 04:57 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00077 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.086 S20PT1 S6862 CONGRESSIONAL RECORD — SENATE June 20, 2005 (C) by striking ‘‘section 6420’’ in the second (A) by inserting ‘‘or reregister’’ after ‘‘reg- States Customs and Border Protection shall sentence and inserting ‘‘section 6416(a)(4), ister’’ each place it appears, transmit to the Internal Revenue Service in- 6420’’, and (B) by inserting ‘‘OR REREGISTER’’ after formation pertaining to cargoes of any tax- (D) by striking ‘‘SECTIONS 6420, 6421, and ‘‘REGISTER’’ in the heading for subsection able fuel (as defined in section 4083 of the In- 6427’’ in the heading thereof and inserting (a), and ternal Revenue Code of 1986) that the United ‘‘CERTAIN SECTIONS’’. (C) by inserting ‘‘OR REREGISTER’’ after States Customs and Border Protection has (2) Section 6675(a) is amended by inserting ‘‘REGISTER’’ in the heading thereof. obtained electronically under its regulations ‘‘section 6416(a)(4) (relating to certain sales (2) CRIMINAL PENALTY.—Section 7232 (relat- adopted in accordance with paragraph (1). of gasoline),’’ after ‘‘made under’’. ing to failure to register under section 4101, For this purpose, not later than 1 year after (3) Section 6675(b)(1) is amended by insert- false representations of registration status, the date of enactment of this paragraph, all ing ‘‘6416(a)(4),’’ after ‘‘under section’’. etc.) is amended— filers of required cargo information for such (4) The item relating to section 6206 in the (A) by inserting ‘‘or reregister’’ after ‘‘reg- taxable fuels (as so defined) must provide table of sections for subchapter A of chapter ister’’, such information to the United States Cus- 63 is amended by striking ‘‘sections 6420, (B) by inserting ‘‘or reregistration’’ after toms and Border Protection through such 6421, and 6427’’ and inserting ‘‘certain sec- ‘‘registration’’, and electronic data interchange system.’’. tions’’. (C) by inserting ‘‘OR REREGISTER’’ after (b) EFFECTIVE DATE.—The amendment (e) EFFECTIVE DATE.—The amendments ‘‘REGISTER’’ in the heading thereof. made by this section shall take effect on the made by this section shall apply to sales (3) ADDITIONAL CIVIL PENALTY.—Section date of the enactment of this Act. after December 31, 2005. 7272 (relating to penalty for failure to reg- SEC. 1568. TAXATION OF GASOLINE SEC. 1564. ADDITIONAL REQUIREMENT FOR EX- ister) is amended— BLENDSTOCKS AND KEROSENE. EMPT PURCHASES. (A) by inserting ‘‘or reregister’’ after ‘‘fail- With respect to fuel entered or removed (a) STATE AND LOCAL GOVERNMENTS.— ure to register’’ in subsection (a), after September 30, 2005, the Secretary of the (1) Subparagraph (C) of section 6416(b)(2) (B) by inserting ‘‘1OR REREGISTER’’ after Treasury shall, in applying section 4083 of (relating to specified uses and resales) is ‘‘REGISTER’’ in the heading thereof. the Internal Revenue Code of 1986— amended to read as follows: (3) CLERICAL AMENDMENTS.—The item relat- (1) prohibit the nonbulk entry or removal ‘‘(C) sold to a State or local government ing to section 6719 in the table of sections for of any gasoline blend stock without the im- for the exclusive use of a State or local gov- part I of subchapter B of chapter 68, the item position of tax under section 4081 of such ernment (as defined in section 4221(d)(4) and relating to section 7232 in the table of sec- Code, and certified as such by the State) or sold to a tions for part II of subchapter A of chapter (2) shall not exclude mineral spirits from qualified volunteer fire department (as de- 75, and the item relating to section 7272 in the definition of kerosene. fined in section 150(e)(2) and certified as such the table of sections for subchapter B of SEC. 1569. NONAPPLICATION OF EXPORT EXEMP- by the State) for its exclusive use;’’. chapter 75 are each amended by inserting ‘‘or TION TO DELIVERY OF FUEL TO (2) Section 4041(g)(2) (relating to other ex- reregister’’ after ‘‘register’’. MOTOR VEHICLES REMOVED FROM UNITED STATES. emptions) is amended by striking ‘‘or the (c) EFFECTIVE DATE.—The amendments (a) IN GENERAL.—Section 4221(d)(2) (defin- District of Columbia’’ and inserting ‘‘the made by this section shall apply to actions, ing export) is amended by adding at the end District of Columbia, or a qualified volun- or failures to act, after the date of the enact- the following new sentence: ‘‘Such term does teer fire department (as defined in section ment of this Act. not include the delivery of a taxable fuel (as 150(e)(2)) (and certified as such by the State SEC. 1566. TREATMENT OF DEEP-DRAFT VESSELS. defined in section 4083(a)(1)) into a fuel tank or the District of Columbia)’’. (a) IN GENERAL.—On and after the date of of a motor vehicle which is shipped or driven (b) NONPROFIT EDUCATIONAL ORGANIZA- the enactment of this Act, the Secretary of out of the United States.’’. TIONS.— the Treasury shall require that a vessel de- (b) CONFORMING AMENDMENTS.— (1) Section 6416(b)(2)(D) is amended by in- scribed in section 4042(c)(1) of the Internal (1) Section 4041(g) (relating to other ex- serting ‘‘(as defined in section 4221(d)(5) and Revenue Code of 1986 be considered a vessel emptions) is amended by adding at the end certified to be in good standing by the State for purposes of the registration of the oper- the following new sentence: ‘‘Paragraph (3) in which such organization is providing edu- ator of such vessel under section 4101 of such shall not apply to the sale of a liquid for de- cational services)’’ after ‘‘organization’’. Code, unless such operator uses such vessel livery into a fuel tank of a motor vehicle (2) Section 4041(g)(4) is amended— exclusively for purposes of the entry of tax- which is shipped or driven out of the United (A) by inserting ‘‘(certified to be in good able fuel. States.’’. standing by the State in which such organi- (b) EXEMPTION FOR DOMESTIC BULK TRANS- (2) Clause (iv) of section 4081(a)(1)(A) (re- zation is providing educational services)’’ FERS BY DEEP-DRAFT VESSELS.— lating to tax on removal, entry, or sale) is after ‘‘organization’’ the first place it ap- (1) IN GENERAL.—Subparagraph (B) of sec- amended by inserting ‘‘or at a duty-free sales pears, and tion 4081(a)(1) (relating to tax on removal, enterprise (as defined in section 555(b)(8) of (B) by striking ‘‘use by a’’ and inserting entry, or sale) is amended to read as follows: the Tariff Act of 1930)’’ after ‘‘section 4101’’. ‘‘use by such a’’. ‘‘(B) EXEMPTION FOR BULK TRANSFERS TO (c) EFFECTIVE DATE.—The amendments (c) NONAPPLICATION OF CERTIFICATION RE- REGISTERED TERMINALS OR REFINERIES.— made by this section shall apply to sales or QUIREMENTS FOR THE REFUND OF CERTAIN ‘‘(i) IN GENERAL.—The tax imposed by this deliveries made after the date of the enact- TAXES.—Section 6416(b)(2) is amended by add- paragraph shall not apply to any removal or ment of this Act. ing at the end the following new sentence: entry of a taxable fuel transferred in bulk by SEC. 1570. PENALTY WITH RESPECT TO CERTAIN ‘‘With respect to any tax paid under sub- pipeline or vessel to a terminal or refinery if ADULTERATED FUELS. chapter D of chapter 32, the certification re- the person removing or entering the taxable (a) IN GENERAL.—Part I of subchapter B of quirements under subparagraphs (C) and (D) fuel, the operator of such pipeline or vessel chapter 68 (relating to assessable penalties) shall not apply.’’. (except as provided in clause (ii)), and the is amended by adding at the end the fol- (d) EFFECTIVE DATE.—The amendments operator of such terminal or refinery are reg- lowing new section: made by this section shall apply to sales istered under section 4101. ‘‘SEC. 6720A. PENALTY WITH RESPECT TO CER- after December 31, 2005. ‘‘(ii) NONAPPLICATION OF REGISTRATION TO TAIN ADULTERATED FUELS. SEC. 1565. REREGISTRATION IN EVENT OF VESSEL OPERATORS ENTERING BY DEEP-DRAFT ‘‘(a) IN GENERAL.—Any person who know- CHANGE IN OWNERSHIP. VESSEL.—For purposes of clause (i), a vessel ingly transfers for resale, sells for resale, or (a) IN GENERAL.—Section 4101(a) (relating operator is not required to be registered with holds out for resale any liquid for use in a to registration) is amended by adding at the respect to the entry of a taxable fuel trans- diesel-powered highway vehicle or a diesel- end the following new paragraph: ferred in bulk by a vessel described in sec- powered train which does not meet applica- ‘‘(4) REREGISTRATION IN EVENT OF CHANGE IN tion 4042(c)(1).’’. ble EPA regulations (as defined in section OWNERSHIP.—Under regulations prescribed by (2) EFFECTIVE DATE.—The amendment 45H(c)(3)), shall pay a penalty of $10,000 for the Secretary, a person (other than a cor- made by this subsection shall take effect on each such transfer, sale, or holding out for poration the stock of which is regularly the date of the enactment of this Act. resale, in addition to the tax on such liquid traded on an established securities market) SEC. 1567. RECONCILIATION OF ON-LOADED (if any). shall be required to reregister under this sec- CARGO TO ENTERED CARGO. ‘‘(b) PENALTY IN THE CASE OF RETAILERS.— tion if after a transaction (or series of re- (a) IN GENERAL.—Subsection (a) of section Any person who knowingly holds out for sale lated transactions) more than 50 percent of 343 of the Trade Act of 2002 is amended by in- (other than for resale) any liquid described ownership interests in, or assets of, such per- serting at the end the following new para- in subsection (a), shall pay a penalty of son are held by persons other than persons graph: $10,000 for each such holding out for sale, in (or persons related thereto) who held more ‘‘(4) TRANSMISSION OF DATA.—Pursuant to addition to the tax on such liquid (if any).’’. than 50 percent of such interests or assets paragraph (2), not later than 1 year after the (b) DEDICATION OF REVENUE.—Paragraph (5) before the transaction (or series of related date of enactment of this paragraph, the Sec- of section 9503(b) (relating to certain pen- transactions).’’. retary of Homeland Security, after consulta- alties) is amended by inserting ‘‘6720A,’’ (b) CONFORMING AMENDMENTS.— tion with the Secretary of the Treasury, after ‘‘6719,’’. (1) CIVIL PENALTY.—Section 6719 (relating shall establish an electronic data inter- (c) CLERICAL AMENDMENT.—The table of to failure to register) is amended— change system through which the United sections for part I of subchapter B of chapter

VerDate Aug 04 2004 05:55 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00078 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.086 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6863 68 is amended by adding at the end the fol- to the bill H.R. 6, Reserved; which was amount and the number of gallons of such lowing new item: ordered to lie on the table; as follows: renewable liquid. ‘‘(2) APPLICABLE LAWS.—All provisions of ‘‘Sec. 6720A. Penalty with respect to certain At the end of subtitle E of title XV (relat- law, including penalties, shall, insofar as ap- adulterated fuels.’’. ing to energy policy tax incentives) add the following: plicable and not inconsistent with this sec- (d) EFFECTIVE DATE.—The amendments tion, apply in respect of any tax imposed made by this section shall apply to any SEC. ll. RENEWABLE LIQUID FUELS EXCISE TAX CREDIT. under paragraph (1) as if such tax were im- transfer, sale, or holding out for sale or re- (a) IN GENERAL.—Subchapter B of chapter posed by section 4081 and not by this section. sale occurring after the date of the enact- 65 (relating to rules of special application) is ‘‘(f) COORDINATION WITH EXEMPTION FROM ment of this Act. amended by inserting after section 6426 the EXCISE TAX.—Rules similar to the rules SEC. 1571. OIL SPILL LIABILITY TRUST FUND FI- following new section: under section 40 (c) shall apply for purposes NANCING RATE. ‘‘SEC. 6426A. CREDIT FOR RENEWABLE LIQUID of this section. Section 4611(f) (relating to application of FUELS. ‘‘(g) TERMINATION.—This section shall not oil spill liability trust fund financing rate) is ‘‘(a) ALLOWANCE OF CREDITS.—There shall apply to any sale, use, or removal for any pe- amended to read as follows: be allowed as a credit against the tax im- riod after December 31, 2010.’’. ‘‘(f) APPLICATION OF OIL SPILL LIABILITY posed by section 4081 an amount equal to the (b) REGISTRATION REQUIREMENT.—Section TRUST FUND FINANCING RATE.— renewable liquid mixture credit. 4101(a)(1) (relating to registration), as ‘‘(1) IN GENERAL.—Except as provided in ‘‘(b) RENEWABLE LIQUID MIXTURE CREDIT.— amended by this Act, is amended by insert- paragraphs (2) and (3), the Oil Spill Liability ‘‘(1) IN GENERAL.—For purposes of this sec- ing ‘‘and every person producing or import- Trust Fund financing rate under subsection tion, the renewable liquid mixture credit is ing renewable liquid as defined in section (c) shall apply on and after April 1, 2007, or the product of the applicable amount and the 6426A(c)(1)’’ before ‘‘shall register with the if later, the date which is 30 days after the number of gallons of renewable liquid used Secretary’’. last day of any calendar quarter for which by the taxpayer in producing any renewable (c) PAYMENTS.—Section 6427 is amended by the Secretary estimates that, as of the close liquid mixture for sale or use in a trade or inserting after subsection (f) the following of that quarter, the unobligated balance in business of the taxpayer. new subsection: the Oil Spill Liability Trust Fund is less ‘‘(2) APPLICABLE AMOUNT.—For purposes of ‘‘(g) RENEWABLE LIQUID USED TO PRODUCE than $2,000,000,000. this section, the applicable amount is $1.00. MIXTURE.— ‘‘(2) FUND BALANCE.—The Oil Spill Liabil- ‘‘(3) RENEWABLE LIQUID MIXTURE.—For pur- ‘‘(1) USED TO PRODUCE A MIXTURE.—If any ity Trust Fund financing rate shall not apply poses of this section, the term ‘renewable person produces a mixture described in sec- during a calendar quarter if the Secretary liquid mixture’ means a mixture of renew- tion 6426A in such person’s trade or business, estimates that, as of the close of the pre- able liquid and taxable fuel which— the Secretary shall pay (without interest) to ceding calendar quarter, the unobligated bal- ‘‘(A) is sold by the taxpayer producing such such person an amount equal to the renew- ance in the Oil Spill Liability Trust Fund ex- mixture to any person for use as a fuel or able liquid mixture credit with respect to ceeds $3,000,000,000. feedstock, or such mixture. ‘‘(3) TERMINATION.—The Oil Spill Liability ‘‘(B) is used as a fuel or feedstock by the ‘‘(2) COORDINATION WITH OTHER REPAYMENT Trust Fund financing rate shall not apply taxpayer producing such mixture. PROVISIONS.—No amount shall be payable after December 31, 2014.’’. For purposes of subparagraph (A), a mixture under paragraph (1) with respect to any mix- SEC. 1572. EXTENSION OF LEAKING UNDER- produced by any person at a refinery prior to ture with respect to which an amount is al- GROUND STORAGE TANK TRUST a taxable event which includes renewable lowed as a credit under section 6426A. FUND FINANCING RATE. liquid shall be treated as sold at the time of ‘‘(3) TERMINATION.—This subsection shall (a) IN GENERAL.—Paragraph (3) of section its removal from the refinery (and only at not apply with respect to any renewable liq- 4081(d) (relating to Leaking Underground such time) or sold to another person for use uid fuel mixture (as defined in section Storage Tank Trust Fund financing rate) is as a fuel or feedstock. 6426A(b)(3) sold or used after December 31, amended by striking ‘‘2005’’ and inserting ‘‘(c) OTHER DEFINITIONS.—For purposes of 2010.’’. ‘‘2011’’. this subsection: (d) CONFORMING AMENDMENT.—The last sen- (b) APPLICATION OF TAX ON DYED FUEL.— ‘‘(1) RENEWABLE LIQUID.—The term ‘renew- tence of section 9503(b)(1) is amended by (1) IN GENERAL.—Section 4082(a) (relating able liquid’ means liquid fuels derived from striking ‘‘section 6426’’ and inserting ‘‘sec- to exemptions for diesel fuel and kerosene) is waste and byproduct streams including; agri- tions 6426 and 6426A’’. amended by inserting ‘‘(other than such tax cultural byproducts and wastes, aqua-culture (e) CLERICAL AMENDMENT.—The table of at the Leaking Underground Storage Tank products produced from waste streams, food sections for subchapter B of chapter 65 is Trust Fund financing rate)’’ after ‘‘section processing plant byproducts, municipal solid amended by inserting after the item relating 4081’’. and semi-solid waste streams, industrial to section 6426 the following new item: (2) NO REFUND.—Section 6427(l)(1) is amend- waste streams, automotive scrap waste ‘‘Sec. 6426A. Credit for renewable liquid ed by adding at the end the following new streams, and as further provided by regula- fuels.’’. tions. sentence: ‘‘The preceding sentence shall not (f) EFFECTIVE DATES.— ‘‘(2) TAXABLE FUEL.—The term ‘taxable apply to so much of the tax imposed by sec- (1) IN GENERAL.—Except as otherwise pro- fuel’ has the meaning given such term by tion 4081 on dyed fuel described in section vided in this subsection, the amendments section 4083(a)(1). 4082(a) as is attributable to the Leaking Un- made by this section shall apply to fuel sold ‘‘(3) FEEDSTOCK.—The term ‘feedstock’ derground Storage Tank Trust Fund financ- or used on or after January 1, 2005. means any precursor material subject to fur- ing rate imposed by such section.’’. (2) REGISTRATION REQUIREMENT.—The ther processing to make a petrochemical, (c) CERTAIN REFUNDS AND CREDITS NOT amendment made by subsection (b) shall solvent, or other fuel which has the effect of CHARGED TO LUST TRUST FUND.—Subsection take effect on the date of the enactment of (c) of section 9508 (relating to Leaking Un- displacing conventional fuels, or products produced from conventional fuels. this Act. derground Storage Tank Trust Fund) is SEC. ll. RENEWABLE LIQUID INCOME TAX amended to read as follows: ‘‘(4) ADDITIONAL DEFINITIONS.—Any term used in this section which is also used in sec- CREDIT. ‘‘(c) EXPENDITURES.—Amounts in the Leak- tion 40B shall have the meaning given such (a) IN GENERAL.—Subpart D of part IV of ing Underground Storage Tank Trust Fund subchapter A of chapter 1 (relating to busi- shall be available, as provided in appropria- term by section 40B. ‘‘(d) CERTIFICATION FOR RENEWABLE LIQUID ness related credits) is amended by inserting tion Acts, only for purposes of making ex- FUEL.—No credit shall be allowed under this after section 40A the following new section: penditures to carry out section 9003(h) of the section unless the taxpayer obtains a certifi- ‘‘SEC. 40B. RENEWABLE LIQUID USED AS FUEL. Solid Waste Disposal Act as in effect on the cation (in such form and manner as pre- ‘‘(a) GENERAL RULE.—For purposes of sec- date of the enactment of the Superfund scribed by the Secretary) from the producer tion 38, the renewable liquid credit deter- Amendments and Reauthorization Act of of the renewable liquid fuel, which identifies mined under this section for the taxable year 1986.’’. the product produced. is an amount equal to the sum of— FFECTIVE DATES.— (d) E ‘‘(e) MIXTURE NOT USED AS FUEL, ETC.— ‘‘(1) the renewable liquid mixture credit, (1) IN GENERAL.—Except as provided in ‘‘(1) IMPOSITION OF TAX.—If— plus paragraph (2), the amendments made by this ‘‘(A) any credit was determined under this ‘‘(2) the renewable liquid credit. section shall take effect on October 1, 2005. section with respect to renewable liquid used ‘‘(b) DEFINITION OF RENEWABLE LIQUID MIX- (2) APPLICATION OF TAX ON DYED FUEL.—The in the production of any renewable liquid TURE CREDIT AND RENEWABLE LIQUID CRED- amendment made by subsection (b) shall mixture, and IT.—For purposes of this section— apply to fuel entered, removed, or sold after ‘‘(B) any person— ‘‘(1) RENEWABLE LIQUID MIXTURE CREDIT.— December 31, 2005. ‘‘(i) separates the renewable liquid from ‘‘(A) IN GENERAL.—The renewable liquid the mixture, or mixture credit of any taxpayer for any tax- SA 801. Mrs. LINCOLN submitted an ‘‘(ii) without separation, uses the mixture able year is $1.00 for each gallon of renewable amendment intended to be proposed to other than as a fuel, liquid fuel used by the taxpayer in the pro- amendment SA 800 submitted by Mr. then there is hereby imposed on such person duction of a qualified renewable liquid fuel GRASSLEY (for himself and Mr. BAUCUS) a tax equal to the product of the applicable mixture.

VerDate Aug 04 2004 06:02 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00079 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.086 S20PT1 S6864 CONGRESSIONAL RECORD — SENATE June 20, 2005

‘‘(B) QUALIFIED RENEWABLE LIQUID MIX- such person a tax equal to the product of the agreement with the holder of the lease, ease- TURE.—The term ‘qualified renewable liquid rate applicable under subsection (b)(2)(A) ment, right-of-way, license, or permit. mixture’ means a mixture of renewable liq- and the number of gallons of such renewable ‘‘(B) In establishing a form of, or schedule uid and taxable fuel (as defined in section liquid. relating to, a payment under subparagraph 4083(a)(1)), which— ‘‘(3) APPLICABLE LAWS.—All provisions of (A), the Secretary shall take into consider- ‘‘(i) is sold by the taxpayer producing such law, including penalties, shall, insofar as ap- ation the economic viability of a proposed a mixture to any person for use as a fuel or plicable and not inconsistent with this sec- activity. feedstock, or tion, apply in respect of any tax imposed ‘‘(C) The Secretary may, by rule, provide ‘‘(ii) is used as a fuel or feedstock by the under subparagraph (A) or (B) as if such tax for relief from or reduction of a payment taxpayer producing such mixture. were imposed by section 4081 and not by this under subparagraph (A)— ‘‘(C) SALE OR USE MUST BE IN TRADE OR chapter. ‘‘(i) if, without the relief or reduction, an BUSINESS, ETC.—Renewable liquid used in the ‘‘(g) PASS-THRU IN THE CASE OF ESTATES activity relating to a lease, easement, right- production of a qualified renewable liquid AND TRUSTS.—Under regulations prescribed of-way, license, or permit under this sub- fuel mixture shall be taken into account— by the Secretary, rules similar to the rules section would be uneconomical; ‘‘(i) only if the sale or use described in sub- of subsection (d) of section 52 shall apply. ‘‘(ii) to encourage a particular activity; or paragraph (B) is in a trade or business of the ‘‘(h) TERMINATION.—This section shall not ‘‘(iii) for another reason, as the Secretary taxpayer, and apply to any sale or use after December 31, determines to be appropriate. ‘‘(ii) for the taxable year in which such 2010.’’. ‘‘(D) If the holder of a lease, easement, right-of-way, license, or permit under this sale or use occurs. (b) CREDIT TREATED AS PART OF GENERAL subsection fails to make a payment by the ‘‘(2) RENEWABLE LIQUID CREDIT.— BUSINESS CREDIT.—Section 38(b) of the Inter- date required under a rule or term of the ‘‘(A) IN GENERAL.—The renewable liquid nal Revenue Code of 1986 (relating to current credit of any taxpayer for any taxable year year business credit), as amended by this lease, easement, right-of-way, license, or permit, the Secretary may require the holder is $1.00 for each gallon of renewable liquid Act, is amended by striking ‘‘plus’’ at the to pay interest on the payment in accord- which is not in a mixture with taxable fuel end of paragraph (23), by striking the period ance with the underpayment rate established and which during the taxable year— at the end of paragraph (24), and inserting ‘‘, under section 6621(a)(2) of the Internal Rev- ‘‘(i) is used by the taxpayer as a fuel or plus’’, and by inserting after paragraph (24) enue Code of 1986, for the period— feedstock in a trade or business, or the following new paragraph: ‘‘(i) beginning on the date on which the ‘‘(ii) is sold by the taxpayer at retail to a ‘‘(25) The renewable liquid credit deter- payment was due; and person and placed in the fuel tank of such mined under section 40B.’’. ‘‘(ii) ending on the date on which the pay- person’s vehicle. (c) CLERICAL AMENDMENT.—The table of ment is made. sections for subpart D of part IV of sub- ‘‘(B) USER CREDIT NOT TO APPLY TO RENEW- ‘‘(E)(i) The Secretary may allow a credit in chapter A of chapter I of the Internal Rev- ABLE LIQUID SOLD AT RETAIL.—No credit shall the amount of any excess payment made by be allowed under subparagraph (A)(i) with re- enue Code of 1986 is amended by inserting the holder of a lease, easement, right-of-way, spect to any renewable liquid which was sold after the item relating to section 40A the fol- license, or permit under this subsection or in a retail sale described in subparagraph lowing new item: provide a refund in the amount of the excess (A)(ii). ‘‘Sec. 40B. Renewable liquid used as fuel.’’. payment from the account to or in which the ‘‘(c) CERTIFICATION FOR RENEWABLE LIQ- (d) EFFECTIVE DATE.—The amendments excess payment was paid or deposited. UID.—No credit shall be allowed under this made by this section shall apply to fuel pro- ‘‘(ii) The Secretary shall pay, or allow the section unless the taxpayer obtains a certifi- duced, and sold as used, on or after January holder of a lease, easement, right-of-way, li- cation (in such form and manner as pre- 1, 2005. cense, or permit under this subsection a scribed by the Secretary) from the producer credit in the amount of, any interest on an or importer of the renewable liquid fuel Mr. VITTER submitted an amount refunded or credited under clause (i) which identifies the product produced and SA 802. amendment intended to be proposed by in accordance with the overpayment rate es- percentage of renewable liquid fuel in the tablished under section 6621(a)(1) of the In- product. him to the bill H.R. 6, Reserved; which ternal Revenue Code of 1986, for the period— ‘‘(d) COORDINATION WITH CREDIT AGAINST was ordered to lie on the table; as fol- ‘‘(I) beginning on the date on which the EXCISE TAX.—The amount of the credit de- lows: Secretary received the excess payment; and termined under this section with respect to Beginning on page 245, strike line 7 and all ‘‘(II) ending on the date on which the re- any renewable liquid fuel shall be properly that follows through page 250, line 11, and in- fund or credit is provided. reduced to take into account any benefit sert the following: ‘‘(F)(i) The Secretary, in coordination with provided with respect to such renewable liq- (a) AMENDMENT.— the Administrator of the National Oceanic uid fuel solely by reason of the application of (1) IN GENERAL.—Section 8 of the Outer and Atmospheric Administration, may estab- section 6426A or 6427(g). Continental Shelf Lands Act (43 U.S.C. 1337) lish reasonable forms of payment, as deter- ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For is amended by adding at the end the fol- mined by the Secretary, for a license issued purposes of this section, the term ‘renewable lowing: under the Ocean Thermal Energy Conversion liquid’ means liquid fuels derived from waste ‘‘(p)(1) The Secretary, in consultation with Act of 1980 (42 U.S.C. 9101 et seq.), including and byproduct streams including; agricul- the Secretary of the Department in which a royalty, fee, rental, bonus, or other pay- tural byproducts and wastes, agriculture ma- the Coast Guard is operating and other rel- ment, as the Secretary determines to be ap- terials produced from waste streams, food evant departments and agencies of the Fed- propriate, in addition to the administrative processing plant byproducts, municipal solid eral Government, may grant a lease, ease- fee under section 102(h) of that Act (42 U.S.C. and semi-solid waste streams, industrial ment, right-of-way, license, or permit on the 9112(h)). ‘‘(ii) A form of payment under clause (i) waste streams, automotive scrap waste outer Continental Shelf for activities not may be established by rule or by agreement streams, as further provided by regulations. otherwise authorized under this Act, the with the holder of the lease, easement, right- ‘‘(f) MIXTURE OR RENEWABLE LIQUID NOT Deepwater Port Act of 1974 (33 U.S.C. 1501 et of-way, license, or permit. USED AS A FUEL, ETC.— seq.), the Ocean Thermal Energy Conversion ‘‘(1) MIXTURES.—If— ‘‘(3)(A) Any funds received by the Sec- Act of 1980 (42 U.S.C. 9101 et seq.), or other retary from a holder of a lease, easement, ‘‘(A) any credit was determined under this applicable law, if those activities support or section with respect to renewable liquid used right-of-way, license, or permit under this promote— subsection shall be distributed in accordance in the production of any qualified renewable ‘‘(A) exploration, development, production, liquid mixture, and with this paragraph. transportation, or storage of oil, natural gas, ‘‘(B)(i) If a lease, easement, right-of-way, ‘‘(B) any person— or other minerals; license, or permit under this subsection cov- ‘‘(i) separates the renewable liquid from ‘‘(B) production, transportation, or trans- ers a specific tract of, or regards a facility the mixture, or mission of energy from sources other than located on, the outer Continental Shelf and ‘‘(ii) without separation, uses the mixture oil and gas; or is not an easement or right-of-way for trans- other than as a fuel, ‘‘(C) use, for energy-related or marine-re- mission or transportation of energy, min- then there is hereby imposed on such person lated purposes, of facilities in use on or be- erals, or other natural resources, the Sec- a tax equal to the product of the rate appli- fore the date of enactment of this subsection retary shall pay 50 percent of any amount re- cable under subsection (b)(1)(A) and the for activities authorized under this Act. ceived from the holder of the lease, ease- number of gallons of such renewable liquid in ‘‘(2)(A)(i) Subject to paragraph (3), the Sec- ment, right-of-way, license, or permit to the such mixture. retary shall establish reasonable forms of State off the shore of which the geographic ‘‘(2) RENEWABLE LIQUID.—If— payment for any lease, easement, right-of- center of the area covered by the lease, ease- ‘‘(A) any credit was determined under this way, license, or permit under this sub- ment, right-of-way, license, permit, or facil- section with respect to the retail sale of any section, including a royalty, fee, rental, ity is located, in accordance with Federal renewable liquid, and bonus, or other payment, as the Secretary law determining the seaward lateral bound- ‘‘(B) any person mixes such renewable liq- determines to be appropriate. aries of the coastal States. uid or uses such renewable liquid other than ‘‘(ii) The Secretary may establish a form of ‘‘(ii) Not later than the last day of the as a fuel, then there is hereby imposed on payment described in clause (i) by rule or by month after the month during which the

VerDate Aug 04 2004 05:55 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00080 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.087 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6865 Secretary receives a payment from the hold- ‘‘(8) The Secretary shall require the holder fined and governed by section 8(g) (or lying er of a lease, easement, right-of-way, license, of a lease, easement, right-of-way, license, or within that zone but to which section 8(g) or permit described in clause (i), the Sec- permit under this subsection to— does not apply), including bonus bids, rents, retary shall make payments in accordance ‘‘(A) submit to the Secretary a surety bond royalties (including payments for royalties with clause (i). or other form of security, as determined by taken in kind and sold), net profit share pay- ‘‘(C)(i) The Secretary shall deposit 20 per- the Secretary; and ments, and related interest. cent of the funds described in subparagraph ‘‘(B) comply with any other requirement ‘‘(9) The term ‘Secretary’ means the Sec- (A) to a special account maintained and ad- the Secretary determines to be necessary to retary of the Interior. ministered by the Secretary to provide re- protect the interests of the United States. ‘‘(b)(1)(A) There is established in the Treas- search and development grants for improving ‘‘(9) Nothing in this subsection displaces, ury of the United States a separate account energy technologies. supersedes, limits, or modifies the jurisdic- to be known as the ‘Secure Energy Reinvest- ‘‘(ii) An amount deposited under clause (i) tion, responsibility, or authority of any Fed- ment Fund’. shall remain available until expended, with- eral or State agency under any other Federal ‘‘(B) The Fund shall consist of— out further appropriation. ‘‘(i) any amount deposited under paragraph law. ‘‘(D) The Secretary shall credit 5 percent of (2); and ‘‘(10) This subsection does not apply to any the funds described in subparagraph (A) to ‘‘(ii) any other amounts that are appro- area on the outer Continental Shelf des- the annual operating appropriation of the priated to the Fund. Minerals Management Service. ignated as a National Marine Sanctuary.’’. ‘‘(2) For each fiscal year 2006 through 2009, ‘‘(E) The Secretary shall deposit any funds (2) CONFORMING AMENDMENT.—Section 8 of the Secretary of the Treasury shall deposit described in subparagraph (A) that are not the Outer Continental Shelf Lands Act (43 into the Fund $300,000,000. deposited or credited under subparagraphs U.S.C. 1337) is amended in the section head- ‘‘(B) All repayments made under sub- (B) through (D) in the general fund of the ing by striking ‘‘LEASING’’ and all that fol- section (f). Treasury. lows and inserting ‘‘LEASES, EASEMENTS, ‘‘(3) For each of fiscal years 2006 through ‘‘(F) This paragraph does not apply to any AND RIGHTS-OF-WAY ON THE OUTER CON- 2020, in addition to the amounts deposited amount received by the Secretary under sec- TINENTAL SHELF.’’. into the Fund under paragraph (2), there are tion 9701 of title 31, United States Code, or (3) SAVINGS PROVISION.—Nothing in the authorized to be appropriated to the Fund an any other law (including regulations) under amendment made by paragraph (1) requires amount equal to 27 percent of the qualified which the Secretary may recover the costs of any resubmission of documents previously outer Continental Shelf revenues received by administering this subsection. submitted or any reauthorization of actions the United Stated during the preceding fiscal ‘‘(4) Before carrying out this subsection, previously authorized with respect to any year. the Secretary shall consult with the Sec- project— ‘‘(c)(1)(A) The Secretary shall use any retary of Defense and other appropriate Fed- (A) for which offshore test facilities have amount remaining in the Fund after the ap- eral agencies regarding the effect of this sub- been constructed before the date of enact- plication of subsection (h) to pay to each section on national security and naviga- ment of this Act; or coastal energy State, and any coastal polit- tional obstruction. (B) for which a request for proposals has ical subdivision of a State, the secure energy ‘‘(5)(A) The Secretary may issue a lease, been issued by a public authority. reinvestment plan of which is approved by easement, right-of-way, license, or permit the Secretary under this section, the amount under paragraph (1) on a competitive or non- SA 803. Mr. VITTER submitted an allocated to the State or coastal political competitive basis. amendment intended to be proposed by subdivision, respectively, under this sub- ‘‘(B) In determining whether a lease, ease- section. ment right-of-way, license, or permit shall him to the bill H.R. 6, Reserved; which was ordered to lie on the table; as fol- ‘‘(B) During December 2006, and each De- be granted competitively or noncompeti- cember thereafter, the Secretary shall make tively, the Secretary shall consider factors lows: any payment under this paragraph from rev- including— SECTION 1. DOMESTIC OFFSHORE ENERGY REIN- enues received in the Fund by the United ‘‘(i) prevention of waste and conservation VESTMENT. States during the preceding fiscal year. of natural resources; (a) IN GENERAL.—The Outer Continental ‘‘(2) The Secretary shall allocate any ‘‘(ii) the economic viability of a project; Shelf Lands Act (43 U.S.C. 1331 et seq.) is amount deposited into the Fund for a fiscal ‘‘(iii) protection of the environment; amended by adding at the end the following: year, and any other amount determined by ‘‘(iv) the national interest and national se- ‘‘SEC. 32. COASTAL IMPACT ASSISTANCE PRO- the Secretary to be available, among coastal curity; GRAM. energy States, and coastal political subdivi- ‘‘(v) human safety; ‘‘(a) In this section: sions of those States, that have a plan ap- ‘‘(vi) protection of correlative rights; and ‘‘( 1) The term ‘approved plan’ means a se- proved by the Secretary under this section ‘‘(vii) the potential return of the lease, cure energy reinvestment plan approved by as follows: easement, right-of-way, license, or permit. the Secretary under this section. ‘‘(A)(i) Of the amounts made available for ‘‘(6) The Secretary, in consultation with ‘‘(2) The term ‘coastal energy State’ means each fical year for which amounts are avail- the Secretary of the Department in which a coastal State off the coastline of which, able for allocation under this paragraph, the the Coast Guard is operating, other relevant within the seaward lateral boundary, an allocation for each coastal energy State Federal agencies, and affected States, as the outer Continental Shelf bonus bid or royalty shall be calculated based on qualified Outer Secretary determines appropriate, shall pro- is generated. Continental Shelf revenues from each leased mulgate any regulation the Secretary deter- ‘‘(3) The term ‘coastal political subdivi- tract or portion of a leased tract the geo- mines to be necessary to administer this sub- sion’ means a county, parish, or other equiv- graphic center of which is within a distance section to achieve the goals of— alent subdivision of a coastal energy State, (to the nearest whole mile) of 200 miles from ‘‘(A) ensuring public safety; all or part of which, on the date of the enact- the coastline of the State and shall be in- ‘‘(B) protecting the environment; ment of this section, lies wthin the bound- versely proportional to the distance between ‘‘(C) preventing waste; aries of the coastal zone of the State, as point nearest point on the coastline of such ‘‘(D) conserving the natural resources of, identified in the coastal zone management coastal energy State and the geographic cen- and protecting correlative rights in, the program of the State approved under the ter of each such leased tract or portion of a outer Continental Shelf; Coastal Zone Management Act of 1972 (16 leased tract, as determined by the Secretary. ‘‘(E) protecting national security interests; U.S.C. 1451 et seq.). ‘‘(ii) For the purposes of this subparagraph, ‘‘(F) auditing and reconciling payments ‘‘(4) The term ‘coastal population’ means qualified outer Continental Shelf revenues made and owed by each holder of a lease, the population of a coastal political subdivi- shall be considered to be generate off the easement, right-of-way, license, or permit sion, as determined by the most recent offi- coastline of a coastal energy State if the ge- under this subsection to ensure a correct ac- cial data of the Census Bureau. ographic center of the lease tract from which counting and collection of the payments; and ‘‘(5) The term ‘coastline’ has the meaning the revenues are generated is located within ‘‘(G) requiring each holder of a lease, ease- given the term ‘coast line’ in section 2(c) of the area formed by the extension of the sea- ment, right-of-way, license, or permit under the Submerged Lands Act (43 U.S.C. 1301(c)). ward lateral boundaries of the State, cal- this subsection to— ‘‘(6) The term ‘Fund’ means the Secure En- culated using the conventions established to ‘‘(i) establish such records as the Secretary ergy Reinvestment Fund established by sub- delimit international lateral boundaries determines to be necessary; section (b)(1). under the Law of the Sea. ‘‘(ii) retain all records relating to an activ- ‘‘(7) The term ‘leased tract’ means a tract ‘‘(B) 35 percent of the allocable share of ity under a lease, easement, right-of-way, li- maintained under section 6 or leased under each coastal energy State, as determined cense, or permit under this subsection for section 8 for the purpose of drilling for, de- under subparagraph (A), shall be allocated such period as the Secretary may prescribe; veloping, and producing oil and natural gas among and paid directly to the coastal polit- and resources. ical subdivisions of the State by the Sec- ‘‘(iii) produce the records on receipt of a ‘‘(8) The term ‘qualified outer Continental retary based on the following formula: request from the Secretary. Shelf revenues’ means all amounts received ‘‘(i) 25 percent shall be allocated based on ‘‘(7) Section 22 shall apply to any activity by the United States on or after October 1, the ratio that— relating to a lease, easement, right-of-way, 2005, from each leased tract or portion of a ‘‘(I) the coastal population of each coastal license, or permit under this subsection. leased tract lying seaward of the zone de- political subdivision; bears to

VerDate Aug 04 2004 05:55 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00081 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.087 S20PT1 S6866 CONGRESSIONAL RECORD — SENATE June 20, 2005 ‘‘(II) the coastal population of all coastal ‘‘(C) In the development of the State plan, ‘‘(3) to implement a federally approved political subdivisions of the coastal energy the Governor and the coastal political sub- plan or program for— State. division shall— ‘‘(A) marine, coastal, subsidence, or con- ‘‘(ii)(I) 25 percent shall be allocated based ‘‘(i) solicit local input; servation management; or on the ratio that— ‘‘(ii) provide for public participation; and ‘‘(B) protection of resources from natural ‘‘(aa) the length, in miles, of the coastal of ‘‘(iii) in describing the planned expendi- disasters; and each coastal political subdivision; bears to tures, include only uses of funds described in ‘‘(4) to mitigate the effect of an outer Con- ‘‘(bb) the length, in miles, of the coastline subsection (e). tinental Shelf activity by addressing im- of all coastal political subdivisions of the ‘‘(2)(A)(i) The Secretary shall not disburse pacts identified in an environmental impact State.— funds to a State or coastal political subdivi- statement as of the date of enactment of this ‘‘(II) For purposes of this clause, in the sion under this section before the date on section required under the National Environ- case of a coastal political subdivision in Lou- which the plan of the State is approved mental Policy Act of 1969 (42 V.S.C. 432 et isiana without a coastline, the coastline of under this subsection. seq.) for lease sales under this Act. the political subdivision shall be considered ‘‘(ii) The Secretary shall approve a plan ‘‘(f) If the Secretary determines that an ex- 1 as ⁄3 the average length of the coastline of submitted by a State under paragraph (1) if penditure made by a coastal energy State or the other coastal political subdivisions of the Secretary determines that— coastal political subdivision is not in accord- the State. ‘‘(I) each expenditures provided for in the ance with the approved plan of the State (in- (III) EXCEPTION FOR THE STATE OF ALAS- plan is an authorized use under subsection cluding any plan of a coastal political KA.— For the purposes of carrying out sub- (e); and subdivisionl included in the plan of the paragraph (c)(2)(B) in the State of Alaska, ‘‘(II) the plan contains— State), the Secretary shall not disburse any the amounts allocated shall be divided equal- ‘‘(aa) the name of the State agency that additional amount under this section to that ly among the 2 coastal political subdivisions will have the authority to represent and act coastal energy State or coastal political sub- that are closest to the geographic center of for the State in dealing with the Secretary division until— a leased tract. for purposes of this section; ‘‘(iii) 50 percent shall be allocated based on ‘‘(1) the amount of the expenditure is re- ‘‘(bb) goals including improving the envi- a formula that allocates— paid to the Secretary; or ‘‘(I) 75 percent of the funds based on the ronment and addressing the impacts of oil ‘‘(2) the Secretary approves an amendment relative distance of the coastal political sub- and gas production from the outer Conti- to the plan that authorizes the expenditure. division from any leased tract used to cal- nental Shelf; ‘‘(g) The Secretary may require, as a condi- culate the allocation to that State; and ‘‘(cc) a description of how the State and tion of any payment under this section, that ‘‘(II) 25 percent of the funds based on the coastal political subdivisions of the State a State or coastal political subdivision shall relative level of outer Continental Shelf oil will evaluate the effectiveness of the plan; submit to arbitration— and gas activities in a coastal political sub- ‘‘(dd) a certification by the Governor that ‘‘(1) any dispute between the State or division to the level of outer Continental ample opportunity has been accorded for coastal political subdivision and the Sec- Shelf oil and gas activities in all coastal po- public participation in the development and retary regarding implementation of this sec- litical subdivisions in the State, as deter- revision of the plan; tion and mined by the Secretary. ‘‘(ee) measures for taking into account ‘‘(2) any dispute between the State and po- ‘‘(3) Any amount allocated to a coastal en- other relevant Federal resources and pro- litical subdivision regarding implementation ergy State or coastal political subdivision grams; of this section, including any failure to in- that is not disbursed because of a failure of ‘‘(ff) assurance that the plan is correlated clude in the plan submitted by the State a Coastal energy State to have an approved as much as practicable with other State, re- under subsection (d) any spending plan of the plan shall be reallocated by the Secretary gional, and local plans; coastal political subdivision. among all other coastal energy States in a ‘‘(gg) for any State for which the ratio de- ‘‘(h) The Secretary may use not more than manner consistent with this subsection, ex- termined under clause (i) or (ii) of subsection 1⁄2 of 1 percent of the amount in the Fund cept that the Secretary— (c)(2)(A), expressed as a percentage, exceeds during a fiscal year to pay the administra- ‘‘(A) shall hold the amount in escrow with- 25 percent, a plan to spend not less than 30 tive costs of implementing this section. in the Fund until the earlier of— percent of the total funds provided to that ‘‘(i) A coastal energy State or coastal po- ‘‘(i) the end of the next fiscal year during State and appropriate coastal political sub- litical subdivision may use funds provided to Which the allocation is made; or divisions under this section during any fiscal that State or coastal political subdivision ‘‘(ii) the date on which a final resolution of year to address the socioeconomic or envi- under this section for any payment that is an appeal regarding the disapproval of a plan ronmental impacts identified in the plan eligible to be made with funds provided to submitted by the State under this section is that remain significant or progressive after States under section 35 of the Mineral Leas- filed; and implementation of mitigation measures ing Act (30 U.S.C. 191) to carry out approved ‘‘(B) shall continue to hold the amount in identified in the most current environmental plan activities under subsection (e). escrow until the end of the subsequent fiscal impact statement as of the date of enact- ‘‘(j)(1) The Governor of a coastal energy year, if the Secretary determines that a ment of this section required under the Na- State, in coordination with the coastal polit- State is making a good faith effort to de- tional Environmental Policy Act of 1969 (42 ical subdivisions of that State, shall account velop and submit, or update, a secure energy U.S.C. 4321 et seq.) for lease sales under his for all funds received under this section dur- reinvestment plan under subsection (d). Act; and ing the previous fiscal year in a written re- ‘‘(4) Notwithstanding any other provision ‘‘(hh) a plan to use at least 1⁄2 of the funds port to the Secretary. of this subsection, the amount allocated provided pursuant to subsection (c)(2)(B), ‘‘(2) The report shall include, in accordance under this subsection to each coastal energy and a portion of other funds provided to a with regulations prescribed by the Sec- State during a fiscal year shall be not less State under this section, on programs or retary, a description of all projects and ac- than 5 percent of the total amount available projects that are coordinated and conducted tivities that received funds under this sec- for that fiscal year for allocation under this by a partnership between the State and a tion. subsection to coastal energy States. ‘‘(3) The report may incorporate by ref- ‘‘(5) If the allocation to 1 or more coastal coastal political subdivision. ‘‘(B) Not later than 90 days after a plan of energy States under paragraph (4) during erence any other report required to be sub- a State is submitted under this subsection, any fiscal year is greater than the amount mitted under another provision of law. ‘‘(k) The Secretary shall require, as a con- that would be allocated to those States the Secretary shall approve or disapprove under this subsection if paragraph (4) did not the Plan. dition of any allocation of funds provided apply, the allocations under this subsection ‘‘(3) Any amendment to or revision of a under this section, that a State or coastal to all other coastal energy States shall be— plan approved under this section shall be— political subdivision shall include on any ‘‘(A) paid from the amount remaining after ‘‘(A) prepared and submitted in accordance sign installed at a site at or near an entrance the amounts allocated under paragraph (4) with the requirements of this paragraph; and or public use area for which funds provided are deducted; and ‘‘(B) approved or disapproved by the Sec- under this section are used a statement that ‘‘(B) reduced on a pro rata basis by the sum retary in accordance with paragraph (2)(B). the existence or development of the site is a of the allocations under paragraph (4) so that ‘‘(e) A coastal energy State, and a coastal product of those funds.’’. not more than 100 percent of the funds avail- political subdivision, shall use any amount able in the Fund for allocation with respect paid under this section (including any SA 804. Mr. VITTER submitted an to that fiscal year is allocated. amounts deposited into a trust fund adminis- amendment intended to be proposed by ‘‘(d)(1)(A) The Governor of a State seeking tered by the State or coastal political sub- him to the bill H.R. 6, Reserved; which to receive funds under this section shall pre- division consistent with this subsection), was ordered to lie on the table; as fol- consistent with Federal and State law and pare, and submit to the Secretary, a secure lows: energy reinvestment plan describing planned the approved plan of the State— expenditures of funds received under this ‘‘(1) to carry out a project or activity for At the end of subtitle B of title III, add the section. the conservation, protection, or restoration following: ‘‘(B) The Governor shall include in the of coastal areas including wetlands; SEC. 3ll. SEAWARD BOUNDARY EXTENSION. State plan any plan prepared by a coastal po- ‘‘(2) to mitigate damage to, or protect, (a) PURPOSES.—The purposes of this section litical subdivision of the State. fish, wildlife, or natural resources; are—

VerDate Aug 04 2004 05:55 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00082 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.091 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6867 (1) to provide equity to the States of Lou- terms of any existing interest, subject to the interest in the expanded submerged land isiana, Mississippi, and Alabama with re- requirement that the State and the officers that a State issues or grants after the date of spect to the seaward boundaries of the of the State may not exercise the powers to conveyance of the expanded submerged land States in the Gulf of Mexico by extending impose any burden or requirement on any in- to the State under subsection (b)(1). the seaward boundaries from 3 geographical terest owner that is more onerous or strict ‘‘(e) LIABILITY.— miles to 3 marine leagues if the State meets than the burdens or requirements imposed ‘‘(1) IN GENERAL.—By accepting conveyance certain conditions not later than 5 years under applicable Federal law (including reg- of the expanded submerged land, the State after the date of enactment of this Act; ulations) on owners or holders of the same agrees to indemnify the United States for (2) to convey to the States of Louisiana, type of lease, easement, right-of-use, or any liability to any interest owner for the Mississippi, and Alabama the interest of the right-of-way on the outer Continental Shelf taking of any property interest or breach of United States in the submerged land of the seaward of the expanded submerged land; and contract from— outer Continental Shelf that is located in ‘‘(ii) the State shall not impose any admin- ‘‘(A) the conveyance of the expanded sub- the extended seaward boundaries of the istrative or judicial penalty or sanction on merged land to the State; or States; any interest owner that is more severe than ‘‘(B) the State’s administration of any ex- (3) to provide that any mineral leases, the penalty or sanction under Federal law isting interest under subsection (b)(2)(A)(i). easements, rights-of-use, and rights-of-way (including regulations) applicable to owners ‘‘(2) DEDUCTION FROM OIL AND GAS LEASING issued by the Secretary of the Interior with or holders of leases, easements, rights-of-use, REVENUES.—The Secretary may deduct from respect to the submerged land to be con- or rights-of-way on the outer Continental the amounts otherwise payable to the State veyed shall remain in full force and effect; Shelf seaward of the expanded submerged under section 8(g)(2) of the Outer Conti- and lands for the same act, omission, or viola- nental Shelf Lands Act (43 U.S.C. 1337(g)(2)) (4) in conveying the submerged land, to en- tion; the amount of any final nonappealable judg- sure that the rights of lessees, operators, and ‘‘(B) not later than 10 years after the date ment for a taking or breach of contract de- holders of easements, rights-of-use, and of enactment of this section— scribed in paragraph (1).’’. rights-of-way on the submerged land are pro- ‘‘(i) the State shall enact laws or promul- (c) CONFORMING AMENDMENT.—Section 2(b) tected. gate regulations with respect to the environ- of the Submerged Lands Act (43 U.S.C. (b) EXTENSION.—Title II of the Submerged mental protection, safety, and operations of 1301(b)) is amended by striking ‘‘section 4 Lands Act (43 U.S.C. 1311 et seq.) is amend- any platform pipeline in existence on the hereof’’ and inserting ‘‘section 4 or 11’’. ed— date of conveyance to the State under para- (1) by redesignating section 11 as section graph (1) that is affixed to or above the ex- 12; and panded submerged land that impose the same SA. 805. Mr. SCHUMER proposed an (2) by inserting after section 10 the fol- requirements as Federal law (including regu- amendment to the bill H.R. 6, Re- lowing: lations) applicable to a platform pipeline on served; as follows: ‘‘SEC. 11. EXTENSION OF SEAWARD BOUNDARIES the outer Continental Shelf seaward of the OF THE STATES OF LOUISIANA, MIS- expanded submerged land; and On page 208, after line 24, add the fol- SISSIPPI, AND ALABAMA. ‘‘(ii) the State shall enact laws or promul- lowing: ‘‘(a) DEFINITIONS.—In this section: gate regulations for determining the value of SEC. 303. SENSE OF THE SENATE REGARDING ‘‘(1) EXISTING INTEREST.—The term ‘exist- oil, gas, or other mineral production from MANAGEMENT OF SPR. ing interest’ means any lease, easement, existing interests for royalty purposes that (a) FINDINGS.—Congress finds that— right-of-use, or right-of-way on, or for any establish the same requirements as the re- (1) the prices of gasoline and crude oil have natural resource or minerals underlying, the quirements under Federal law (including reg- a direct and substantial impact on the finan- expanded submerged land that is in existence ulations) applicable to Federal leases for the cial well-being of families of the United on the date of the conveyance of the ex- same minerals on the outer Continental States, the potential for national economic panded submerged land to the State under Shelf seaward of the expanded submerged recovery, and the economic security of the subsection (b)(1). land; and United States; ‘‘(2) EXPANDED SEAWARD BOUNDARY.—The ‘‘(C) the State laws and regulations en- (2) on June 13, 2005, crude oil prices closed term ‘expanded seaward boundary’ means acted or promulgated under subparagraph at the exceedingly high level of $55.62 per the seaward boundary of the State that is 3 (B) shall provide that if Federal law (includ- barrel, the price of crude oil has remained marine leagues seaward of the coast line of ing regulations) applicable to leases, ease- above $50 per barrel since May 25, 2005, and the State as of the day before the date of en- ments, rights-of-use, or rights-of-way on the the price of crude oil has exceeded $50 per actment of this section. outer Continental Shelf seaward of the ex- barrel for approximately 1⁄3 of calendar year ‘‘(3) EXPANDED SUBMERGED LAND.—The panded submerged land are modified after 2005; term ‘expanded submerged land’ means the the date on which the State laws and regula- (3) on June 6, 2005, the Energy Information area of the outer Continental Shelf that is tions are enacted or promulgated, the State Administration announced that the national located between 3 geographical miles and 3 laws and regulations applicable to existing price of gasoline, at $2.12 per gallon, could marine leagues seaward of the coast line of interests will be modified to reflect the reach even higher levels in the near future; the State as of the day before the date of en- change in Federal laws (including regula- (4) despite the severely high, sustained actment of this section. tions). price of crude oil— ‘‘(4) INTEREST OWNER.—The term ‘interest ‘‘(c) EXCEPTIONS.— (A) the Organization of Petroleum Export- owner’ means any person that owns or holds ‘‘(1) MINERAL LEASE OR UNIT DIVIDED.— ing Countries (referred to in this section as an existing interest in the expanded sub- ‘‘(A) IN GENERAL.—If any existing Federal ‘‘OPEC’’) has refused to adequately increase merged land or portion of an existing inter- oil and gas or other mineral lease or unit production to calm global oil markets and est in the expanded submerged land. would be divided by the expanded seaward officially abandoned its $22–$28 price target; ‘‘(5) SECRETARY.—The term ‘Secretary’ boundary of a State, the interest of the and means the Secretary of the Interior. United States in the leased minerals under- (B) officials of OPEC member nations have ‘‘(6) STATE.—The term ‘State’ means each lying the portion of the lease or unit that publicly indicated support for maintaining of the States of Louisiana, Mississippi, and lies within the expanded submerged bound- oil prices of $40–$50 per barrel; Alabama. ary shall not be considered to be conveyed to (5) the Strategic Petroleum Reserve (re- ‘‘(b) CONVEYANCE OF EXPANDED SUBMERGED the State until the date on which the lease ferred to in this section as ‘‘SPR’’) was cre- LAND.— or unit expires or is relinquished by the ated to enhance the physical and economic ‘‘(1) IN GENERAL.—Effective beginning on United States. security of the United States; the date that is 10 years after the date of en- ‘‘(B) APPLICABILITY FOR OTHER PURPOSES.— (6) the law allows the SPR to be used to actment of the Energy Policy Act of 2005, if Notwithstanding subparagraph (A), the ex- provide relief when oil and gasoline supply a State demonstrates to the satisfaction of panded seaward boundary of a State shall be shortages cause economic hardship; the Secretary that the conditions described the seaward boundary of the State for all (7) the proper management of the resources in paragraph (2) will be met, the Secretary other purposes, including the distribution of of the SPR could provide gasoline price relief shall, subject to valid existing rights and revenues under section 8(g)(2) of the Outer to families of the United States and provide subsection (c), convey to the State the inter- Continental Shelf Lands Act (43 U.S.C. the United States with a tool to counter- est of the United States in the expanded sub- 1337(g)(2)). balance OPEC supply management policies; merged land of the State. ‘‘(2) LAWS AND REGULATIONS NOT SUFFI- (8) the Administration’s policy of filling ‘‘(2) CONDITIONS.—A conveyance under CIENT.—If the Secretary determines that any the SPR despite the fact that the SPR is paragraph (1) shall be subject to the condi- law or regulation enacted or promulgated by nearly full has exacerbated the rising price tion that— a State under subparagraph (B) of subsection of crude oil and record high retail price of ‘‘(A) on conveyance of the interest of the (b)(2) does not meet the requirements of that gasoline; United States in the expanded submerged subparagraph, the Secretary shall not con- (9) in order to combat high gasoline prices land to the State under paragraph (1)— vey the expanded submerged land to the during the summer and fall of 2000, President ‘‘(i) the Governor of the State (or a dele- State. Clinton released 30,000,000 barrels of oil from gate of the Governor) shall exercise the pow- ‘‘(d) INTEREST ISSUED OR GRANTED BY THE the SPR, stabilizing the retail price of gaso- ers and duties of the Secretary under the STATE.—This section does not apply to any line;

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(10) increasing vertical integration has al- (2) affiliated with a major land-grant uni- (c) GASIFICATION PRODUCTS TEST CENTER.— lowed— versity; and In conjunction with the activities described (A) the 5 largest oil companies in the (3) certified by a State board of higher edu- in subsections (a) and (b), the Secretary shall United States to control almost as much cation. construct a test center to evaluate and con- crude oil production as the Middle Eastern (c) GRANTS.— firm liquid and gas products from syngas ca- members of OPEC, over 1⁄2 of domestic re- (1) IN GENERAL.—In carrying out the pro- talysis in order that the system has an out- finer capacity, and over 60 percent of the re- gram, the Secretary shall provide, in accord- put of at least 500 gallons of Fischer-Tropsch tail gasoline market; and ance with the guidelines established under transportation fuel per day in a 24-hour oper- (B) Exxon/Mobil, BP, Royal Dutch Shell paragraph (2), grants to eligible entities from ation. Group, Conoco/Philips, and Chevron/Texaco the industrial sector to pay the Federal (d) MILESTONES.— to increase first quarter profits of 2005 over share of the costs of eligible projects to re- (1) SELECTION OF PROCESSES.—Not later first quarter profits of 2004 by 36 percent, for duce natural gas usage by implementing en- than 180 days after the date of enactment of total first quarter profits of over ergy efficiency improvements. this Act, the Secretary shall select processes $25,000,000,000; (2) REQUIREMENTS.—Grants shall be pro- for evaluating the commercial and technical (11) the Administration has failed to man- vided under paragraph (1) on a competitive viability of different processes of producing age the SPR in a manner that would provide basis, in accordance with guidelines estab- Fischer-Tropsch transportation fuels, and gasoline price relief to working families; and lished by the program coordinator. other transportation fuels, from Illinois (12) the Administration has failed to ade- (3) ELIGIBLE ENERGY EFFICIENCY IMPROVE- basin coal. quately demand that OPEC immediately in- MENTS.—A project for which assistance may (2) AGREEMENTS.—Not later than 1 year crease oil production in order to lower crude be provided a grant under this subsection in- after the date of enactment of this Act, the oil prices and safeguard the world economy. cludes a project for— Secretary shall offer to enter into agree- (b) SENSE OF CONGRESS.—It is the sense of (A) steam production and distribution; ments— Congress that the President should— (B) efficiency upgrades and heat recovery (A) to carry out the activities described in (1) directly confront OPEC and challenge for process heating and cooling project; this section, at the facilities described in OPEC to immediately increase oil produc- (C) compressed air technologies; subsection (b); and tion; and (D) combined heat and power applications; (B) for the capital modifications or con- (2) direct the Federal Trade Commission and struction of the facilities at the locations de- and Attorney General to exercise vigorous (E) improvements in motor technologies. scribed in subsection (b). oversight over the oil markets to protect the (4) FEDERAL SHARE.—The Federal share of (3) EVALUATIONS.—Not later than 3 years people of the United States from price the cost of carrying out a project under this after the date of enactment of the Act, the gouging and unfair practices at the gasoline subsection shall be not more than 30 percent. Secretary shall begin, at the facilities de- pump. (d) EDUCATION.—In carrying out the pro- scribed in subsection (b), evaluation of the (c) RELEASE OF OIL FROM SPR.— gram, the Secretary and the program coordi- technical and commercial viability of dif- (1) IN GENERAL.—For the period beginning nator shall make available to industries in- ferent processes of producing Fischer- on the date of enactment of this Act and formation on energy-efficient technologies Tropsch transportation fuels, and other ending on the date that is 30 days after the that reduce industrial natural gas usage to transportation fuels, from Illinois basin coal. date of enactment of this Act, 1,000,000 bar- encourage industries to invest in the energy- (4) CONSTRUCTION OF FACILITIES.— rels of oil per day shall be released from the efficient technologies. (A) IN GENERAL.—The Secretary shall con- SPR. (e) REPORT.—On completion of the pro- struct the facilities described in subsection (2) ADDITIONAL RELEASE.—If necessary to gram, the program coordinator shall submit (b) at the lowest cost practicable. lower the burden of gasoline prices on the to Congress a report that— (B) GRANTS OR AGREEMENTS.—The Sec- economy of the United States and to cir- (1) describes the results and successes of retary may make grants or enter into agree- cumvent the efforts of OPEC to reap windfall the program; and ments or contracts with the institutions of crude oil profits, 1,000,000 barrels of oil per (2) makes recommendations for any appro- higher education described in subsection (b). day shall be released from the Strategic Pe- priate actions that would encourage indus- (e) COST SHARING.—The cost of making troleum Reserve for an additional 30 days. trial energy-efficiency investments. grants under this section shall be shared in (f) AUTHORIZATION OF APPROPRIATIONS.— accordance with section 1002. There is authorized to be appropriated to (f) AUTHORIZATION OF APPROPRIATIONS.— SA 806. Mrs. HUTCHISON submitted carry out this section $10,000,000 for the pe- There is authorized to be appropriated to an amendment intended to be proposed riod of fiscal years 2006 through 2008, of carry out this section $85,000,000 for the pe- by her to the bill H.R. 6, Reserved; which $8,000,000 shall be made available to riod of fiscal years 2006 through 2010. carry out subsection (c). which was ordered to lie on the table; f as follows: NOTICES OF HEARINGS/MEETINGS On page 767, between lines 21 and 22, insert SA 808. Mr. OBAMA (for himself and the following: Mr. LUGAR) submitted an amendment SUBCOMMITTEE ON WATER AND POWER (3) PETROLEUM COKE GASIFICATION intended to be proposed by him to the Ms. MURKOWSKI. Mr. President, I PROJECTS.—At least 5 petroleum coke gasifi- would like to announce for the infor- cation projects. bill H.R. 6, Reserved; which was or- dered to lie on the table; as follows: mation of the Senate and the public On page 346, between lines 9 and 10, insert that a hearing has been scheduled be- SA 807. Mr. OBAMA submitted an the following: fore the Subcommittee on Water and amendment intended to be proposed by SEC. 4ll. DEPARTMENT OF ENERGY TRANSPOR- Power of the Committee on Energy and him to the bill H.R. 6, Reserved; which TATION FUELS FROM ILLINOIS Natural Resources. BASIN COAL. The hearing will be held on Tuesday, was ordered to lie on the table; as fol- (a) IN GENERAL.—The Secretary shall carry lows: out a program to evaluate the commercial June 28, 2005 at 3 p.m. in Room SD–366 On page 37, between the matter following and technical viability of advanced tech- of the Dirksen Senate Office Building. line 12 and line 13, insert the following: nologies for the production of Fischer- The purpose of the hearing is to re- SEC. 109. INDUSTRIAL NATURAL GAS EFFICIENCY Tropsch transportation fuels, and other ceive testimony on the water supply PILOT PROGRAM. transportation fuels, manufactured from Illi- status in the Pacific Northwest and its (a) IN GENERAL.—The Secretary shall es- nois basin coal, including the capital modi- impact on power production, as well as tablish a 2–year pilot program (referred to in fication of existing facilities and the con- to receive testimony on S. 648, to this section as the ‘‘program’’) to dem- struction of testing facilities under sub- amend the Reclamation States Emer- onstrate the effectiveness of energy effi- section (b). gency Drought Relief Act of 1991 to ex- ciency improvements that reduce natural (b) FACILITIES.—For the purpose of evalu- gas usage in the industrial sector. ating the commercial and technical viability tend the authority for drought assist- (b) PROGRAM COORDINATOR.— of different processes for producing Fischer- ance. (1) IN GENERAL.—The program shall be ad- Tropsch transportation fuels, and other Because of the limited time available ministered by a program coordinator, to be transportation fuels, from Illinois basin coal, for the hearing, witnesses may testify designated by the Secretary in accordance the Secretary shall support the use and cap- by invitation only. However, those with paragraph (2). ital modification of existing facilities and wishing to submit written testimony (2) DESIGNATION.—As soon as practicable the construction of new facilities at— for the hearing record should send two after the date of enactment this Act, the (1) Southern Illinois University Coal Re- Secretary shall designate as program coordi- search Center; copies of their testimony to the Com- nator an energy resource center that is— (2) University of Kentucky Center for Ap- mittee on Energy and Natural Re- (1) located in the midwestern United plied Energy Research; and sources, United States Senate, Wash- States; (3) Energy Center at Purdue University. ington, DC 20510–6150.

VerDate Aug 04 2004 05:55 Jun 21, 2005 Jkt 039060 PO 00000 Frm 00084 Fmt 0624 Sfmt 0634 E:\CR\FM\A20JN6.088 S20PT1 June 20, 2005 CONGRESSIONAL RECORD — SENATE S6869 UNITED STATES-EUROPEAN UNION Whereas although disagreements between BINGAMAN, and DOMENICI each in con- SUMMIT the United States and the European Union trol of 10 minutes, the two leaders or have existed on a variety of issues, the trans- Mr. DOMENICI. On behalf of the their designees in control of 10 minutes atlantic relationship remains strong and each; provided that following that leader, I ask unanimous consent that continues to improve: Now, therefore, be it the Senate now proceed to the consid- Resolved, That the Senate— time, the Senate proceed to a vote in eration of S. Res. 178, which was sub- (1) welcomes the leadership of the Euro- relation to the amendment with no sec- mitted earlier today. pean Union to the 2005 United States-Euro- ond degrees in order prior to the vote. The PRESIDING OFFICER. Without pean Union Summit to be held in Wash- I further ask consent that the Senate objection, it is so ordered. The clerk ington, DC, on June 20, 2005; recess until from 11:30 a.m. until 2:15 will report the resolution by title. (2) highlights the importance of the United p.m. for the weekly party luncheons. The assistant legislative clerk read States and the European Union working to- The PRESIDING OFFICER. Without gether to address global challenges; objection, it is so ordered. as follows: (3) recommends— A resolution (S. Res. 178) expressing the (A) expanded political dialogue between f sense of the Senate regarding the United Congress and the European Parliament; and States-European Union Summit. (B) that the 2005 United States-European PROGRAM There being no objection, the Senate Union Summit focus on both short and long- proceeded to consider the resolution. term measures that will allow for vigorous Mr. DOMENICI. Tomorrow, the Sen- Mr. DOMENICI. I ask unanimous and active expansion of the transatlantic re- ate will resume consideration of the consent that the resolution be agreed lationship; Energy bill under the previous order, (4) encourages— to, the preamble be agreed to, and the and there will be up to 80 minutes of (A) the adoption of practical measures to debate on the pending Martinez amend- motion to reconsider be laid upon the expand the United States-European Union table. ment on OCS inventory. Following the economic relationship by reducing obstacles debate, the Senate will proceed to a The PRESIDING OFFICER. Without that inhibit economic integration; and objection, it is so ordered. (B) encourages continued strong and ex- vote in relation to the amendment. The resolution (S. Res. 178) was panded cooperation between Congress and Therefore, the first vote of tomorrow’s agreed to. the European Parliament on global security session will occur at 11 a.m. The preamble was agreed to. issues. For the remainder of the day, we will The resolution, with its preamble, f continue working through the remain- ing amendments to the bill. We have a reads as follows: MEASURE READ THE FIRST couple of amendments pending, includ- S. RES. 178 TIME—H.R. 2745 Whereas over the past 55 years the United ing the Voinovich diesel emission States and the European Union have built a Mr. DOMENICI. I understand there is amendment. It is my hope that we can strong transatlantic partnership based upon a bill at the desk, and I ask for its first lock in time agreements on those the common values of freedom, democracy, reading. amendments tomorrow afternoon. rule of law, human rights, security, and eco- The PRESIDING OFFICER. The I also remind my colleagues that we nomic development; clerk will report. will complete action on this bill this Whereas working together to promote The assistant legislative clerk read week. This is the statement of the these values globally will serve the mutual as follows: political, economic, and security interests of leader. In an effort to move this proc- the United States and the European Union; A bill (H.R. 2745) to reform the United Na- ess forward, we may file cloture on the Whereas cooperation between the United tions, and for other purposes. bill tomorrow; therefore, Senators who States and the European Union on global se- Mr. DOMENICI. I now ask for a sec- have amendments should contact the curity issues such as terrorism, the Middle ond reading in order to place the bill bill managers as soon as possible. East peace process, the proliferation of weap- on the calendar under the provisions of ons of mass destruction, ballistic missile rule XIV. I object to my own request. f technology, and the nuclear activities of The PRESIDING OFFICER. The ob- rogue nations is important for promoting ADJOURNMENT UNTIL 9:45 A.M. international peace and security; jection is heard. TOMORROW Whereas the common efforts of the United f Mr. DOMENICI. If there is no further States and the European Union have sup- ORDERS FOR TUESDAY, JUNE 21, ported freedom in countries such as Leb- business to come before the Senate, I anon, Ukraine, Kyrgyzstan, Georgia, 2005 ask unanimous consent that the Sen- Moldova, Belarus, and Uzbekistan; Mr. DOMENICI. I ask unanimous ate stand in adjournment under the Whereas through coordination and co- consent that when the Senate com- previous order. operation during emergencies such as the pletes its business today, it stand in There being no objection, the Senate, 2004 Indian Ocean tsunami disaster, the adjournment until 9:45 a.m. on Tues- at 7:59 p.m., adjourned until Tuesday, AIDS pandemic in Africa, and the ongoing June 21, 2005, at 9:45 a.m. situation in Darfur, the United States and day, June 21. I further ask that fol- the European Union have mitigated the ef- lowing the prayer and the pledge, the f fects of humanitarian disasters across the morning hour be deemed expired, the globe; Journal of proceedings be approved to NOMINATIONS Whereas economic cooperation such as re- date, the time of the two leaders be re- Executive nominations received by moving impediments to transatlantic trade served, and the Senate then resume the Senate June 20, 2005: and investment, expanding regulatory dia- consideration of H.R. 6, the Energy logues and exchanges, integrating capitol bill; provided further that the Senate DEPARTMENT OF JUSTICE markets, and ensuring the safe and secure resume consideration of Martinez TIMOTHY ELLIOTT FLANIGAN, OF VIRGINIA, TO BE movement of people and goods across the At- DEPUTY ATTORNEY GENERAL, VICE JAMES B. COMEY, lantic will increase prosperity and strength- amendment No. 783 and there be 80 RESIGNED. minutes of debate with Senators MAR- SUE ELLEN WOOLDRIDGE, OF VIRGINIA, TO BE AN AS- en the partnership between the United SISTANT ATTORNEY GENERAL, VICE THOMAS L. States and the European Union; and TINEZ, NELSON, CORZINE, LANDRIEU, SANSONETI, RESIGNED.

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