Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 108 CONGRESS, SECOND SESSION

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

Vol. 150 WASHINGTON, WEDNESDAY, APRIL 28, 2004 No. 56 Senate The Senate met at 9:30 a.m. and was have a period of morning business for AGRICULTURAL ISSUES FACING called to order by the President pro up to 60 minutes. The first 30 minutes THE COUNTRY tempore (Mr. STEVENS). of that time will be under the control Mr. DASCHLE. Mr. President, I want of the majority side, and the second 30 to talk today about several agricul- PRAYER minutes will be controlled by the mi- tural issues. The Chaplain, Dr. Barry C. Black, of- nority side of the aisle. Following First, last week, I met with John fered the following prayer: morning business, the Senate will re- Stewart and Bill Fielding. They run a Let us pray. sume consideration of S. 150, a bill re- company called Creekstone Farms that O Lord our God, we exalt Your Name, lating to taxation of Internet access. sells premium Black Angus beef cattle. for You are great and highly to be Yesterday, we made a little progress Creekstone had a good marketing praised. We praise You because Your on the bill by debating and disposing of idea: In the wake of the mad cow scare, power is unlimited and You are able to one amendment related to the defini- Creekstone thought that one way to re- do immeasurably more than we can tions in the bill. Unfortunately, fol- open the Japanese markets, which had imagine. You rule over the heavens and lowing the vote we were sidetracked accounted for 28 percent of our Na- the Earth and hold in Your power our with an amendment related to a com- tion’s beef exports, would be to pri- breath and our destiny. pletely different subject than Internet vately test all of their cattle for BSE, Thank You, Lord, for Your sov- access. or mad cow disease, at no cost to the ereignty over the days of our lives. Ex- Currently, we are scheduled for clo- taxpayers. ercise Your gracious authority over ture votes beginning Thursday on the The Japanese markets have been our Nation as You guide our law- Daschle energy-related first-degree closed for several months, but they have said that they would re-open their makers in the tasks of freedom. Give amendment to the underlying bill, the markets for Creekstone’s beef. them an awareness of Your presence Domenici second-degree amendment on Creekstone has built a top-notch lab- energy, and finally the McCain sub- and Your willingness to be an ever- oratory at their headquarters in Kan- stitute which is on the Internet access present help for life’s challenges. sas, and they have hired several full- tax subject. Help each of us to labor, not only for time animal health experts. But they The chairman of the committee will time, but also for eternity. Let our wanted to do this the right way, so be here shortly this morning, and I be- words and thoughts be acceptable in they asked USDA to support them in Your sight, for You are our strength lieve it will be his desire to try to their efforts. and our Redeemer. reach agreements to consider amend- The Department actually said ‘‘no.’’ Amen. ments relating to the underlying bill. They said Creekstone could not test. f Hopefully that will be possible and You see, USDA doesn’t want to set a therefore rollcall votes will occur on precedent that all beef needs to be test- PLEDGE OF ALLEGIANCE amendments today. ed. They suggest that large meat pack- The PRESIDENT pro tempore led the The PRESIDENT pro tempore. The ers might essentially be forced into Pledge of Allegiance, as follows: deputy minority leader. testing all animals. That, USDA con- I pledge allegiance to the Flag of the Mr. REID. Parliamentary inquiry: If tends, would be expensive and, well, in- United States of America, and to the Repub- I do not reserve the Democratic lead- convenient. lic for which it stands, one nation under God, er’s time, he can use that time But nobody is suggesting that the indivisible, with liberty and justice for all. throughout the day or do I need to re- Government mandate 100 percent test- f serve it? ing. If a meat packer wanted to test, LEADER TIME The PRESIDENT pro tempore. You however, it might be a good marketing may reserve it. tool for them. The PRESIDENT pro tempore. Under Mr. REID. The leader is here, so I But the packers say testing would be the previous order, there will now be a will not do that. too cumbersome, that consumers don’t period of leader time under the stand- want and don’t need testing informa- ing order. f tion. The Senator from Texas. All of those arguments ring very fa- f miliar and very hollow. Remember, the RECOGNITION OF THE MINORITY packers and the Bush administration SCHEDULE LEADER opposed another marketing tool—coun- Mr. CORNYN. Mr. President, on be- The PRESIDENT pro tempore. The try-of-origin labeling for those very half of the leader, this morning we will Democratic leader is recognized. same reasons.

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

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VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.000 S28PT1 S4446 CONGRESSIONAL RECORD — SENATE April 28, 2004 USDA says that mad cow disease, or ers. It is important for our export mar- agencies involved to develop a com- BSE, isn’t even a public health issue. kets and consumers of U.S. beef. prehensive legislative proposal to ad- They say it is only an animal health Another issue I want to discuss today dress weather-related natural disasters issue, but tell that to the more than 120 is what I see as an emerging drought in that impact our Nation’s farmers, people who died from the human form many parts of the country. The ranchers, and rural communities. of BSE in Britain. It was a food safety Drought Monitor—a government map If he does this now, and receives a re- issue for them. It is a public health that documents the ongoing extent of port back within 45 to 60 days, the Con- issue. drought—already shows some problem gress will still have time this summer Creekstone even acknowledges, and I areas. to enact meaningful disaster assist- agree, that the science does not now The yellow here—and you can see ance. suggest that all cattle need to be test- this on the map—denotes conditions In my letter to the President sent ed for BSE. They acknowledge that. across the Southeast, conditions which earlier today, I pledged that, once he Most experts do. have continued to deteriorate for most has provided Congress with such a pro- But consumers don’t always base of that region. Southern California, the posal, I will work with him and all of their purchasing preferences on area in Oklahoma, Arkansas, through my colleagues in a bipartisan fashion science. The Japanese, who, by the southern Missouri and into southern Il- to approve whatever disaster-related way, test all of their beef for BSE, linois, and up all the way through Indi- assistance is necessary to adequately want their imported beef tested, and ana and Ohio and Michigan. You can compensate producers and keep our na- Creekstone was willing to do so, but see that there is abnormal dryness oc- tion’s rural communities vibrant. USDA said ‘‘no.’’ curring in that area, even getting into We can prepare now for what looks Isn’t this the administration that the lower parts of the northern regions like another very bad year for agri- wants the free market to prosper? of Texas. culture. Yet, here we have a willing buyer, While there were some rains in parts Drought victims are no less deserving the Japanese, a willing seller, of the upper-Midwest recently, they of Federal assistance than those who Creekstone, and the Government says missed the western part of Minnesota. are impacted by a flood, tornado, or ‘‘no.’’ And you can see here this is where the hurricane. As Federal officials, we have Government is telling a U.S. business extraordinary conditions are now be- an obligation to respond more effec- what they can and can’t do to add coming even more adverse, creating tively than we have in the past. value to their product and create a what the Drought Monitor categorizes Working together, with the leader- market. as ‘‘severe drought’’ conditions, rep- ship of this administration, I hope we It is kind of like the Government resented of course in the areas here in can. telling automakers they can’t have the orange and darker areas. The dark- leather seats. Leather seats aren’t er the color, the more severe the f needed, but they add value to the cars drought. RESERVATION OF LEADER TIME and make the product more market- In my State of South Dakota, we Mr. CORNYN. Mr. President, I ask able. have been able to avoid some of the unanimous consent that the Repub- So I am hopeful that USDA will re- most severe parts, but you talk to lican leader’s time be reserved for his visit this issue. Creekstone and other ranchers and farmers today and it is use later in the day. companies want the ability to meet clear that this drought that we now see consumer demand, and the Government through almost the entire western part The PRESIDENT pro tempore. With- should not get in the way. of the United States is moving east. out objection, it is so ordered. If USDA wants to establish a testing South Dakota has now experienced a f protocol or some other structure for drought in each of the last 5 years. The MORNING BUSINESS the testing to ensure that it is done in experience has been daunting. But an appropriate manner and that we there is one thing we have learned in The PRESIDENT pro tempore. Under don’t get false positives, I think we can dealing with drought and other weath- the previous order, there will now be a all agree that such an approach would er-related natural disasters: Our na- period for the transaction of morning make some sense. But to deny pro- tional polices are wholly inadequate. business for up to 60 minutes with the ducers the ability to use another mar- By any legitimate standard, our poli- first half of the time under the control keting tool baffles me. I think USDA cies have failed. of the majority leader or his designee, could and should have done better, and In 2002 the Senate approved, on a bi- and the second half of the time under I urge them to re-examine the issue im- partisan basis, an amendment that I of- the control of the Democratic leader or mediately. fered to provide $6 billion in disaster his designee. It is also clear that some of the other assistance. Unfortunately, the adminis- The Senator from North Carolina is things that USDA has been doing need tration blocked its enactment. recognized. to be reassessed. For example, on Mon- But that was then, and today is, f day, U.S. District Court Judge Richard hopefully, a different story. Today, I FSC–ETI AND JOBS BILL Cebull granted a temporary restraining think we need to take a serious look at order prohibiting USDA from import- what more we can do this year. Mrs. DOLE. Mr. President, when I ing ground beef and bone-in beef from That is why today I am asking the came to the United States Senate last Canada. President again to re-examine this year, it was with great optimism—with The judge said, and I agree, that the issue, while we still have time. I am a mission to get real results accom- risk of BSE is simply too great for us urging him to take a fresh look at plished for my North Carolina con- to fail to ensure that we have taken a what we can do, through an inter- stituents and for our great Nation. thoughtful and deliberate approach to agency approach, to address what ap- During my tenure in the Department of resuming beef imports from Canada. pears to be another extreme drought Transportation, the Department of Both animal health and food safety this year—already extreme in some Labor, and the American Red Cross, I demand that we take a science-based parts of the country, and certainly was blessed with the opportunity to approach to the reopening of our bor- moving, as we have said, to the Great tackle some very important and chal- der with Canada. Producers are ex- Plains States as well. lenging issues—like the sale of Conrail, tremely concerned that USDA has not Although USDA should take the lead modernizing the American Red Cross, done so. in this effort, the SBA, the Economic settling a bitter coal strike, transfer- The judge has scheduled a May 11 Development Administration, and ring Dulles and National airports from hearing, at which time I hope there other agencies, including, but not lim- Federal control to ensure that Dulles’ will be a full examination of the proc- ited to, FEMA, can all play a role in capacity would be doubled and the ess USDA did or did not use in making finding a solution to this ongoing prob- gateway to the Nation’s capital would their decision to reopen the border. lem. be our beautiful new airport. These Ensuring that we get this right is not That is why I have requested that the issues required me to work with col- only important for our Nation’s ranch- President immediately ask the Federal leagues from both sides of the aisle at

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.003 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4447 every turn. If I had just tried to work tax relief with a tax deduction for do- As I said last week, I am troubled by with Republicans when tackling these mestic manufacturers. the partisanship and public posturing matters, you can bet that nothing At a time when America’s manufac- of some members of the 9/11 Commis- would have ever been accomplished. turing industries need immediate re- sion, both in the hearing room and in These success stories were achieved in lief, the benefits of this legislation are TV studios. a bipartisan and constructive manner. clear—and the necessity of its passage I am not the only one who is trou- I looked forward to the same experi- is obvious. However, Senate Democrats bled. The former National Security Ad- ence when entering this great body last are continuing to play petty political visor under President Clinton, Tony year; however, the pattern of obstruc- games and in so doing, are preventing Lake, has said the hearings are ‘‘a sad tionism occurring over the past few direct aid to our hurting manufactur- spectacle that has become so par- months is at a crossroads. ers. These partisan antics harm our tisan.’’ The opportunity to vote—to even American businesses directly—busi- And Max Holland, a former fellow at vote—on the following legislation has nesses run by men and women who de- the University of Virginia who is writ- been blocked: serve better from their elected offi- ing a history of the Warren Commis- Medical liability reform: After a cials. sion, notes that ‘‘in some respects’’ the comprehensive bipartisan bill was I am particularly focused on this proceedings of the commission are blocked last July, two additional tar- issue because North Carolina has areas ‘‘definitely a new low.’’ He added that geted attempts to protect access to that are severely affected by the loss of ‘‘this is a commission charged with es- ERs and OB–GYNs were blocked Feb- manufacturing jobs, mainly in textiles tablishing facts and the truth rather ruary 24 and April 7. and furniture. This past summer, than posturing for political gain. But A comprehensive Energy bill has North Carolina experienced the largest some of the hearings amounted to lec- been thwarted for 3 years—3 years. layoff in State history when textile turing and posturing.’’ Passage would not only create an esti- giant Pillowtex closed its doors for- Still others, like Professor Juliette mated 1 million American jobs but also ever. The result of Pillowtex’s closing Kayyem, of the Kennedy School of reduce our dependence on foreign oil. was 4,400 people losing their jobs in a Government at Harvard, who served on Energy tax relief that would have cre- single day—and eventually nearly 5,000 a congressional terrorism panel to in- ated an estimated 650,000 jobs was also being laid off. vestigate the 1998 African embassy blocked on April 7. In eastern North Caroline, layoffs bombings, have questioned why 9/11 Workforce Investment Act: This leg- and plant closures have resulted in commission members have granted so islation, projected to help more than more than 2,200 layoffs since last sum- many interviews. She notes that ‘‘they 940,000 dislocated workers obtain the mer. In just the past few months, the have become too public,’’ and that ‘‘tempts commissioners into making training they need to get good jobs was western region of North Carolina has assessments and conclusions pre- passed by both the House and Senate lost more than 1,500 jobs. And in Feb- but now my friends across the aisle maturely.’’ ruary, 22 of North Carolina’s 100 coun- My understanding of the 9/11 Com- refuse to even appoint conferees. ties had double-digit unemployment mission was that it was to impartially There are other examples of blocked rates. Now there are signs that the sit- legislation: Class action reform, Faith determine the facts and make non-par- uation is improving—initial data for tisan recommendations on how to go based/charities—the Care Act—welfare March unemployment in North Caro- forward. reform, and the Fair Act—Asbestos— lina shows that just four counties have So far, the 9/11 Commission’s descent but I want to highlight the legislation double-digit rates—but we must take into ‘‘gotcha’’ questioning has only that could directly benefit the econ- action to help our manufacturers and highlighted a tendency to fight each omy. And I use the word ‘‘could’’ be- to ensure upward trends will continue. other rather than the terrorists. Unfor- cause unfortunately none of this legis- Action can begin with final passage tunately, while American politicians lation can even get the courtesy of an of the JOBS bill. This is not the time are busy blaming each other, the ter- up or down vote. for political games. This is a time for rorists are busy plotting our doom. You cannot have it both ways. You doing what is right for the American This partisanship, unfortunately, is cannot come down to the Senate floor people—and providing our manufactur- not confined to the 9/11 Commission. and deride the administration’s eco- ers with legislation that will directly Clearly, the central front in the war nomic policies—then, in the same day, benefit their businesses. I urge my col- against terrorism has shifted to Iraq. vote to block job-creating legislation. leagues to allow the final vote on the Al Qaeda operatives and foreign terror- A piece of legislation that under- passage of S. 1637 to protect our compa- ists have flocked to Iraq to make a des- scores this point is S. 1637, the JOBS nies from undo tariffs and excessive perate final stand against American bill. Why in the world would we not be taxes. troops, and we must see to it that they passing this legislation? I really want Democrats say they want to find a lose. to know the answer so I can tell my way to rejuvenate our economy and On the issue of Iraq, the most impor- constituents, in a State that has been prevent more factories from shutting tant thing this body could do is to have hit especially hard by manufacturing down. If they are truly searching for an open and honest debate about how job losses. Why is there objection to re- such answers, then why don’t they step to build a moderate democracy in that moving tariffs from our companies? forward and allow for the solution to country. If Senator KERRY, in par- Why is there objection to cutting taxes reach final passage? I am hoping my ticular, believes he has a solution to on manufacturing companies when friends on the other side of the aisle the difficult challenges facing our they need it most? I must be missing will remember the American people troops and diplomats in Iraq, let him something. When a bill is passed out of who depend on Congress and put aside offer a plan, rather than simply guess- the Finance Committee 19–2—yes 19–2— partisan antics and pass good legisla- ing and criticizing. and it is blocked from coming to a vote tion. We need to put an end to this ob- Let me be clear: placing the UN in on two separate, that is simply out- struction and work together to get charge in Iraq is not a plan. It is a pure rageous. things done in the Senate. fantasy. Those of us on both sides of the aisle I yield the floor. America did the right thing by liber- recognize the need to deal with the in- The PRESIDENT pro tempore. The ating the Iraqi people from Saddam’s creasing concerns associated with the Senator from Kentucky. tyrannical regime, and by so doing, we current Extraterriorial Tax Regime f are making the American people safer. ETI. The World Trade Organizations Succeeding in our efforts to help the has determined that if not repealed, 9/11 COMMISSION AND IRAQ Iraqis replace one of the most repres- the current rules for exportation would Mr. MCCONNELL. Mr. President, I sive regimes on the planet with the sin- necessitate $4 billion in tariffs. If wish to talk about a couple of events gle most representative government in passed, the JOBS bill will not only that are in the news: the proceedings of the Arab World will dramatically alter eliminate the WTO’s exorbitant tariff the 9/11 Commission and the debate the political landscape of the Middle imposition; it will also replace ETI’s about the President’s policy in Iraq. East.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.001 S28PT1 S4448 CONGRESSIONAL RECORD — SENATE April 28, 2004 Only if the citizens of the Middle It is clear to this Senator that al- Bush a jobs bill, a jobs bill that will East experience the freedoms and op- Qaida wants us to fail in Iraq, just as it benefit manufacturing workers portunity of democratic reform can we wants us to fail in Afghanistan. Al- throughout the United States. hope to win the war against terrorism. Qaida terrorists and other foreign We must pass this JOBS bill to pro- We can kill terrorists one by one in Af- Jihadis are aligning themselves with tect America’s manufacturing base and ghanistan and Iraq, but until we violent Iraqi insurgents whose radical the manufacturing jobs of thousands of change the individual and personal cal- ideology has no place in a democratic our workers across the United States. culations of thousands of young men Iraq. These zealots want the United America’s workers are depending on us. who are taught to value death over life, States to appear in the Arab world as a Mr. President, I ask unanimous con- there will always be more terrorists weak horse. sent that a letter from me to Senator around every street corner. A free Iraq The terrorists are watching us close- KERRY dated April 28, 2004, be printed will be an oasis of liberty in the heart ly, and we must show our strength, not in the RECORD. of the Middle East and a source of our weaknesses, as we confront the se- There being no objection, the mate- democratic influence on its undemo- curity challenges in Iraq that lie be- rial was ordered to be printed in the cratic neighbors. tween despotism and democracy. RECORD, as follows: Bringing democratic reform to the I yield the floor. U.S. SENATE, Middle East is not a lofty hope but a The PRESIDING OFFICER (Mr. OFFICE OF THE MAJORITY LEADER, Washington, DC, April 28, 2004. necessary reality and a long-term GRAHAM of South Carolina). The major- Hon. JOHN KERRY, strategy. Citizens who can voice their ity leader. Russell Office Building, frustrations at the ballot box are less f Washington, DC. likely to do so by strapping bombs to EAR ENATOR ERRY JOBS BILL D S K : This week you are their bodies. campaigning in the Midwest to discuss ways It is no coincidence that democratic Mr. FRIST. Mr. President, this week to help create jobs for the American people. Muslim states such as Turkey and re- our colleague, Senator JOHN KERRY, is While I applaud your enthusiasm, I want to make certain you are aware that we have forming states such as Jordan, Egypt, traveling to the Midwest to discuss ways to help boost job creation. While scheduled a third floor debate on the JOBS and Morocco are not state supporters bill, S. 1637, to start next week. As you of terrorism, while oppressive states I applaud his intention on this issue, I know, this important legislation seeks to such as Syria and Iran provide aid and also want to make certain Senator protect more than a million high-quality succor to international terrorists. KERRY is aware we have scheduled a manufacturing jobs in the United States. President Bush’s multi-tiered ap- third floor debate on the JOBS bill— Unfortunately, your Democrat colleagues proach to combating terrorism is the that is the very important bill on man- in the Senate are waging a filibuster against ufacturing in this country, S. 1637—to the Jumpstart Our Business Strength bill right one. And it is improving. (JOBS), having twice voted to prevent us Likewise, our Nation’s efforts can be start next week. That important bill from completing action on this essential leg- improved upon if we conduct our de- seeks to protect more than a million islation. bates with the gravity and objectivity high-quality manufacturing jobs in the It is my hope that you will use your posi- required by the high stakes of the war United States. tion to help convince your Senate Democrat against terrorism, but forgive me for Unfortunately, Senator KERRY’s colleagues of the importance of this legisla- not being optimistic. Democrat colleagues in the Senate are tion and help us to move it quickly toward Until now, the critics have proposed waging a filibuster against this passage. After all, according to the National Foreign Trade Council, there are currently two alternatives to President Bush’s jumpstart our business strength bill, 147,200 jobs in Ohio that hinge on passage of plan to stay the course in Iraq. One al- the JOBS bill, having twice voted to the JOBS bill. In Michigan, some 150,100 jobs ternative is to cut and run or to cede prevent us from completing action on will be impacted by this ill-advised fili- control to the U.N., whose member this essential manufacturing legisla- buster. In Pennsylvania, nearly 142,000 jobs states by and large want America to tion. are tied to this legislation. It is my hope cut and run. I do ask Senator KERRY to use his that you will join with us in a bipartisan ef- Unless failure is our goal, these are new position as his party’s presumptive fort to end the Democrat filibuster and press not serious proposals. And they dis- nominee, but in all likelihood the for timely action on the JOBS measure. Since you were once a co-sponsor of this count the very simple fact that unless nominee, to help convince his col- bill and supported it in the Finance Com- America delivers on its commitment to leagues to abandon this filibuster and mittee, I know you appreciate how impor- eliminate havens for terrorists and move this legislation quickly toward tant it is that we approve this measure and support democracy in Iraq, Afghani- passage. repeal the European tariffs on at least 100 stan and elsewhere, we will embolden According to the National Foreign US-made products. This Euro-tax started at the terrorists who delight and attack Trade Council, there are currently $200 million in March, increased to $240 mil- when America wavers. 147,200 jobs in Ohio that hinge on pas- lion in April, will increase to $280 million How do I know this? Because Osama sage of this JOBS bill; in Michigan, this Saturday, and will continue to climb upward to $680 million by next year if we fail to bin Laden has told us. In his 1998 ‘‘Dec- some 150,000 jobs will be impacted by act. laration of War Against the Ameri- this ill-advised filibuster; and in Penn- We look forward to your support in passing cans’’ bin Laden noted, and I quote: sylvania, nearly 142,000 jobs are tied to a measure that is absolutely essential if we ‘‘When tens of your soldiers were killed this legislation. are to protect America’s manufacturing base in minor battles and one American We must repeal these European tar- and the manufacturing jobs of thousands of Pilot was dragged in the street of iffs on at least 100 U.S.-made products. our workers across the United States. Mogadishu, you left the area in dis- People say: What sort of products? Sincerely yours, They include safety glass. They include WILLIAM H. FRIST, MD, appointment, humiliation and defeat, Majority Leader, carrying your dead with you.’’ portable handheld tools. They include United States Senate. marine engines. They include alu- Former Secretary of Defense James Mr. FRIST. I yield the floor. Schlesinger recently noted that Bin minum wire, steel wire. They include The PRESIDING OFFICER. The mi- Laden also observed: ‘‘when people see printing paper. This Euro tax started nority leader. a strong horse and a weak horse, they at $200 million in March. It increased Mr. DASCHLE. Mr. President, I ask naturally gravitate toward the strong to $240 million in April. It will increase unanimous consent that I have 5 addi- horse.’’ again to $280 million this Saturday and tional minutes of leader time. The terrorists are watching us close- will continue to climb upward to $680 The PRESIDING OFFICER. Without ly, and we must show strength, not million next year if we fail to act. objection, it is so ordered. weakness. We must not allow Iraq to Senator KERRY was a cosponsor of f become another Somalia because going this bill and supported it in the Fi- home early is the surest way to em- nance Committee. I urge him to join us STAYING THE COURSE bolden the terrorists and ensure the in a bipartisan effort to end his fellow Mr. DASCHLE. Mr. President, I want failure of our efforts to bring peace and Democrats’ filibuster and agree to a to respond to the distinguished major- security to the Middle East. time to pass and send to President ity leader.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.004 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4449 Like him, I have come to the Senate finished, that we can stay then on the tion at fault for the events of 9/11 were floor on several occasions advocating FSC bill until it is finished, and wel- Osama bin Laden and al-Qaida. Regard- for passage of the FSC bill. Many of us fare reform until it is finished. less of our differences, especially in believe it may be the only opportunity We can accomplish a lot, but we have this election year where we are going we have to address, meaningfully, jobs to have greater attention to the work to select a President, I think we ought policy and the creation of new jobs in at hand and a willingness to stay with to make sure our enemies do not draw this country. it until it is done. That is the nature of any comfort from the debates we have His characterization of our position the Senate. That is the way we func- on the floor of the U.S. Senate or else- is unfortunate and inaccurate. We have tion. That is our institutional history. where that we somehow are redirecting no desire to filibuster the bill. We sim- We are prepared to work with our Re- the blame to others for political gain ply believe Senators ought to have a publican colleagues on these and other and to score political points. I think all right to offer amendments. That was bills in the months ahead to make that Members of the U.S. Senate—indeed, really the discussion and the debate happen. all Members of the U.S. Congress— earlier as the legislation was offered. I yield the floor. should be absolutely clear where the We had an amendment that simply pro- The PRESIDING OFFICER. The ma- blame lies. As I said, that lies with al- vided for protection for 8 million work- jority leader. Qaida and Osama bin Laden. ers who were not accorded overtime, f Indeed, after that terrible day there who the administration now acknowl- was an upswelling of bipartisan support FSC/ETI edges were prepared to take overtime in this country to try to make sure we as a part of their compensation pack- Mr. FRIST. Mr. President, very brief- did whatever we needed to do in order ages. We fought it. The administration ly, I know we are in morning business to make sure that the events of that has changed it, not to our satisfaction. and we are on other topics, but so our day would never occur again. Indeed, But had it not been for our fight, I colleagues will know, we are coming the Senate unanimously approved a doubt very much that overtime could back to the FSC/ETI bill. We have a resolution authorizing the use of all have been protected for the millions of general agreement and a framework. necessary and appropriate force workers who otherwise would see it as We are coming back to it. That was against the persons and organizations lost. really the purpose of my comments responsible for September 11. We also want to ensure that we have today. We are coming back to it next Indeed, in an unprecedented fashion, an opportunity to deal with the week. I hope we can work together. also, we saw that our allies in NATO, outsourcing problem. Outsourcing is a The American people deserve it. I do under article V of that treaty, declared very serious issue today. The President not believe either side will have 30 or 40 that an attack against the United has created a new program called High- or 50 amendments. I think we can do it States was, in effect, an attack against er Hour Workers. The acronym is HOW. if we start right now to put our heads all NATO nations. Well, that is our question. How? How together. The managers are working. Of course, this issue is as current as are you going to do it? What we have They have, I believe, an excellent today’s news because we know there seen so far from this administration glidepath to finish it as we go forward. are two cases that are going to be ar- falls far short of what we need to do if I appeal, in a strong, bipartisan way— gued before the U.S. Supreme Court, we are serious about meaningfully ad- we are going to have to have a bipar- the Hamdi and Padilla cases, which are dressing the problem of jobs in this tisan approach to finish that bill—that going to look at the limits of Presi- country. we do just that next week. The Amer- dential power under a declaration of This administration has lost 3 mil- ican people deserve it. Regardless of war, such as was authorized by the lion jobs. We have not seen an adminis- how we get there, next week we have Congress, by the Senate unanimously. tration like this in seven administra- this opportunity to address it. We abso- Of course, they are going to decide, and tions. We want to address the terrible lutely must do that. it seems obvious to me, but perhaps it and unfortunate record we have seen The PRESIDING OFFICER. The Sen- is not as obvious to others, that the ap- with regard to the economy over the ator from Texas. proval of all necessary and appropriate last 36 months. Mr. CORNYN. Mr. President, may I force must necessarily include the cap- So our hope is we can create a real inquire how much time we have re- ture and detention of enemy combat- opportunity to debate jobs, to debate maining in morning business? ants. But that is perhaps an issue for the way with which we can compete in The PRESIDING OFFICER. Eleven another time. the international markets. That is our minutes 18 seconds. Also, in the spirit of bipartisan sup- desire. Mr. CORNYN. I thank the Chair. port for using all necessary and appro- I went to Senator FRIST and offered f priate means to defend our country, him an agreement, after this cloture the Senate passed the USA PATRIOT THE 9/11 COMMISSION vote, and indicated that we would limit Act 98 to 1. Of course, this important our ourselves to 18 amendments. I pre- Mr. CORNYN. Mr. President, I want legislation provides law enforcement sented that to him. I was hoping we to talk a few minutes about the work with sorely needed tools to combat ter- could get a unanimous consent agree- of the 9/11 Commission. I know it has rorism. Unfortunately, we also recall ment. That was not done and, as a re- become popular—perhaps it has always that spirit of bipartisan unanimity did sult, time was lost. Now, as we under- been that way—for those who sit on not last very long. stand it, they have over 50 amendments commissions, those who engage in po- Once the Democratic Party began to pending to this bill. We have something litical debate about the great causes of choose its Democratic nominee, we like 30. So there is no filibuster going the day in Washington, DC, to try to heard a lot of disparaging remarks on. They have some difficulty on their find blame for various things that hap- made about the USA PATRIOT Act. In- side in trying to address this issue, and pen. That is no less true of the work of deed, in a misguided and perhaps ill-in- in an expeditious way. the 9/11 Commission in looking into formed way, there are 287 different mu- We will get through the amendments. both the causes of the terrible events nicipalities around the country that It is unfortunate we could not have of that day and also when it comes to have passed resolutions disparaging the agreed to the 18. We would be done coming up with recommendations USA PATRIOT Act. with it by now. But there has been a about what we might be able to do to It is amazing, in Washington, how practice on the Senate floor, over the make sure that sort of tragedy never events can turn on a dime. After we last several months—we get on a bill, occurs on our own soil again. heard testimony before the 9/11 Com- an amendment is offered, the bill is But I think we ought to be clear mission from Janet Reno, former FBI pulled; we move to another bill, we get about who is to blame for the terrible Director Louis Freeh, Attorney Gen- on that, an amendment is offered, the events of 9/11. It was not President eral John Ashcroft, FBI Director Rob- bill is pulled. We have to stay on a bill Clinton or his administration. It was ert Mueller, and others, a bipartisan to finish the bill. I am hopeful we can not President Bush or his administra- chorus said it was the USA PATRIOT stay on the Internet tax bill until it is tion. The individual and the organiza- Act which tore down the wall which

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.009 S28PT1 S4450 CONGRESSIONAL RECORD — SENATE April 28, 2004 previously precluded information shar- now been refused by the cochairs, out, I believe it is absolutely impera- ing between law enforcement and intel- Chairman Kean and Chairman Ham- tive that Ms. Gorelick offer to come ligence-gathering officials. We haven’t ilton. forward and give public testimony heard very much more about the pre- Simply put, this is a self-inflicted about what she knows about the erec- vious calls to either repeal or change wound on the credibility of the 9/11 tion of the ‘‘wall’’ barring the critical the PATRIOT Act because, indeed, it Commission. We have learned that she sharing of information that has subse- was the PATRIOT Act that tore down has provided testimony in camera or, quently now made America much safer. that wall and which has made America in English, in secret. In other words, I believe the credibility of the Com- safer. Perhaps the best evidence of that she has been interviewed by the 9/11 mission’s report depends on that public is not just my statement or anyone Commission and told apparently what testimony, and I urge the chairman of else’s. It is the fact we have, thank she knows out of the public eye. Obvi- the 9/11 Commission to reconsider, and God, avoided another 9/11 in the days ously, she has written an op-ed piece indeed Ms. Gorelick to consider her re- since that terrible day. explaining, without the benefit of fur- fusal to testify in public and avoid The spirit of bipartisanship that re- ther questions or followup, what it is what has, by all appearances, the sta- sulted in a resolution authorizing the she intended to do and the cir- tus of a self-inflicted wound on the use of necessary force against our en- cumstances leading up to that 1995 credibility of the Commission. emies who brought the war to us on 9/ memo. I yield the floor. 11 and the spirit of bipartisanship that If public testimony by persons with The PRESIDING OFFICER. The Sen- saw a 98-to-1 vote in favor of the USA knowledge of relevant facts ranging ator from Nevada is recognized. PATRIOT Act and tearing down that from Janet Reno to Louis Freeh to Mr. REID. Mr. President, I think that wall needs to continue to prevail on John Ashcroft to Bob Mueller and oth- in addition to having Ms. Gorelick re- the National Commission on Terrorist ers, if that testimony was important— assess her position, it would be good Attacks on the United States that was and indeed, I believe it was—then pub- for the President and administration to created by Congress and appointed by lic testimony by Ms. Gorelick is impor- reassess their positions and testify both the Congress and the President. tant to preserving the public credi- publicly, or at least separately, instead Of course, it is the job of that Commis- bility of the work product of the 9/11 of this appearance that they have in se- sion to find facts, to create a historical Commission. cret. Secret testimony will not cut it. In record of the events that led up to that fact, we need to know what it was that f date, and then come up with rec- led up to this policy and the reasons THE HIGHWAY BILL ommendations. It is absolutely critical for it in order to understand why it is that the work of the National Commis- Mr. REID. Mr. President, tomorrow, important never to go there again. As sion on Terrorist Attacks, the 9/11 in the White House, it is my under- I said, this policy is stated in that very Commission, not be undermined and standing from press accounts—and I same memo, which went well beyond that the public confidence be preserved have talked to various Senators and legal requirements. In other words, the in that Commission. one House Member who will attend the PATRIOT Act, once it was passed vir- That brings me to the testimony meeting—there is going to be a meet- tually unanimously in this body, dis- which I believe must be provided in an ing with the President to talk about mantled that wall in a way that made open forum by Commissioner Jamie the highway bill. I think it is impor- America safer. tant, therefore, that I, who have Gorelick. As Attorney General May I ask how much time I have re- Ashcroft revealed during his testi- worked on this most important bill— maining? and I have worked on several others in mony, when he declassified a key 1995 The PRESIDING OFFICER. Ten sec- years past—make some observations memorandum, dated actually March 4, onds. 1995, authored by Ms. Gorelick when Mr. CORNYN. I ask unanimous con- about what I think should take place she was Deputy Attorney General, it sent for 2 additional minutes and also at that meeting. was the policy of the Justice Depart- to extend the Democratic time by the Of course, it is a typical meeting that ment, under Ms. Reno and under Ms. same amount. takes place in this administration. It is Gorelick, during the Clinton adminis- The PRESIDING OFFICER. Without done in secret, with no Democrats tration, that went further than the law objection, it is so ordered. present, which is unusual; but that is required in establishing this wall which Mr. CORNYN. First, Ms. Gorelick in keeping with what this administra- prohibited information sharing be- claims in this Washington Post op-ed tion has done now for 31⁄2 years. Let me tween law enforcement officials and piece that she had no choice when she say, though, that I believe Senator JIM counterintelligence officials. Indeed, in penned the 1995 memo. It would be INHOFE, the chairman of the Environ- the days since Attorney General worth knowing why it is she thought ment and Public Works Committee, Ashcroft revealed the existence of this she had no choice. has been an exemplary legislator on memo, we have seen Ms. Gorelick re- Second, she claims this memo did the highway bill. He has been someone spond in a Washington Post op-ed piece nothing more than continue pre- that has been very fixed in his ideas. explaining her role. existing Justice Department policy He is someone, however, who is willing My point is, Ms. Gorelick, serving in first established in the 1980s. By the to work and, as legislators have to do, a high-level position in the Justice De- very terms of the memo, she states it compromise. I have had to do the same partment as Deputy Attorney General, is prudent to establish a set of instruc- thing. Senator JEFFORDS had to do the in effect the chief operating officer in tions that will clearly separate coun- same thing. Senator BOND has had to the Department of Justice under Attor- terintelligence investigations from do the same thing. The four of us have ney General Janet Reno, has special criminal investigations. It is appro- put this bill together. I think it is a knowledge of the facts and cir- priate to ask her if she thought she was good bill. cumstances leading up to that memo establishing a policy or continuing a I appreciate the tireless efforts of and the erection and buttressing of policy, as she stated in another place. Jim Inhofe on this most important leg- that wall barring the sharing of com- Finally, Ms. Gorelick appears to be islation. He has always understood the munications. shifting the blame for the policy—and importance of a highway bill. No one in I believe her testimony under ordi- we are not talking about blame for the this country can question the conserv- nary circumstances would be sort of a policy—to then-Deputy Attorney Gen- ative credentials of JIM INHOFE. No one no-brainer. The 9/11 Commission would eral Larry Thompson. At a minimum, could ever accuse him of trying to give say: This is a person with knowledge of it is not appropriate for one Justice things away. That is why it is a mys- relevant facts. Let’s bring her before Department official to attack her suc- tery to most of us what the adminis- the Commission and ask her to tell us cessor for failing to adequately correct tration is doing on this bill. what she knows. their own mistakes, as we now know Mr. President, first of all, understand That has been requested now, public that wall was a mistake. that the chairman of the Transpor- testimony by Ms. Gorelick, in letters So, Mr. President, in conclusion, let tation Committee in the House, Con- signed by a number of Senators, and me say because I know time is running gressman YOUNG from Alaska, believed

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.011 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4451 a bill of $300 billion just for highways ed as well. By the end of our bill, every protect one another; there were enough alone—he was unable to do this be- State will get at least 95 cents for of them to get the job done quickly and cause he could not get a proper rule in every dollar they pay in. This is a tre- effectively. the House. The administration was op- mendous improvement. We have some memories, and I posed to him, and my understanding is Mr. President, I hope at this meeting couldn’t agree more with the Demo- that several other leaders in the House tomorrow the Republicans who are cratic whip, my friend from Nevada, were opposed to him. meeting in secret to discuss this mat- about mistakes made and remembering Finally, they came with a bill of $275 ter will follow the lead of the Senate, ‘‘bring them on,’’ which I found so of- billion, which included transit. The and especially Senator INHOFE. This is fensive. legislation that we have passed in the a bill that we need to pass for the good This week is the anniversary of the Senate takes into consideration the of every State in the Union. photo on the bridge of the aircraft car- needs of this country. We have $318 bil- Mr. President, I am going to yield rier Abraham Lincoln. Photo on the lion over six years. This is a bill that the remaining time I have to the Sen- bridge—that is the memory that is includes transit. We have worked very ator from New Jersey, with this pref- going to be conveyed out there. This is hard on this. Keep in mind, there are ace. I say to my friend from New Jer- the photo on the bridge. Here is the no new taxes. The bill is paid for in a sey, who is going to discuss chicken aircraft carrier looking very splendid number of different ways, not the least hawk, I want the Senator to under- in a display of power, but the timing of which is highway trust fund moneys, stand that when the President held his was so far off and the statements were which are supposed to be used for high- last press conference and said he could so empty: ‘‘Mission accomplished.’’ ways. We have been told by all outside not think of a mistake he made—when Ask the 600 families who have lost organizations, by our own experts I was at home during the last break, I children; ask those 22 families of sons within the Federal Government—and reminded the people of Nevada that I and daughters in the State of New Jer- the outside organizations can be exem- could think of at least 2 mistakes he sey whether they think the mission plified and illustrated by the American made. One is when he climbed on the was accomplished May 1 a year ago. I Association of State Highway Trans- USS Lincoln, the big aircraft carrier, don’t think they would agree. portation Officials, AASHTO. They and had the big sign in celebration of Yesterday, I had an opportunity to say, as we all say, simply to maintain the ‘‘mission accomplished.’’ I think visit the World War II memorial that is our roads and bridges—not to have the second mistake was when he was going to be open to the public very some Cadillac version, but simply to asked the question whether there are shortly. I am a veteran of World War maintain our roads and bridges—the some people in Iraq who, maybe, are II, as are several other Members of the Federal Government must invest at going to cause some trouble, as you Senate. I came from a working-class least $40 billion a year. will remember, the President said, family. My 42-year-old father was on Unfortunately, a 6-year bill at $275 ‘‘bring them on.’’ I think those are two his deathbed from cancer when I en- billion that includes all the needs of mistakes—‘‘mission accomplished’’ and listed. My mother became a 36-year-old this country simply doesn’t do the ‘‘bring them on.’’ widow. I was 18 already. I did not enlist trick when we talk about highways and Since his statement, ‘‘bring them to be a hero. I simply wanted to do transit. This means, then, more con- on,’’ we have lost more than 600 Amer- whatever I could to help my country. gestion, less safety, and increased ican soldiers. That is only the number So when I looked at the memorial yes- maintenance and replacement costs. of those who were killed; that doesn’t terday, it brought back some very sig- The Senate bill is a good bill. It take into consideration the thousands nificant memories. passed by 76 Members voting for it. It who are missing limbs, eyes, who are I remember being in uniform. I re- would create a $42.7 billion average an- paralyzed, and in bad shape physically. member climbing telephone poles and nual highway investment. This is a So I think those are two mistakes, I re- putting up wire. Once again, I did what good bill. It would generate real im- mind the President. No. 1, the mission I was supposed to do because I was in provements in condition and perform- was not accomplished when he flew on the Signal Corps and responsible in ance. Let’s not forget, it would create the aircraft carrier in his borrowed part for getting communications be- more than a million high-paying jobs. jumpsuit; or, No. 2, when he said ‘‘bring tween those who are commanders and The spinoff from those direct jobs them on,’’ I think that was an intem- those who are in the field. would be many thousands more. perate remark, and I think he made a I had a fairly narrow perspective, but I cannot understand the President. mistake. one thing I did respect was those who He is the first President since Herbert I yield the remaining time to the received medals, those who had a Pur- Hoover who has not had a net increase Senator from New Jersey. ple Heart. They were my heroes, and of private sector jobs. It doesn’t matter The PRESIDING OFFICER. The Sen- we used to defer to them. Anyone who how many jobs are created in the next ator from New Jersey is recognized. got a Bronze Star or a Silver Star was 6 months, he will be the first President f thought to be someone special. That since Hoover to have a net loss of pri- was to those of us in uniform who were vate sector jobs. Yet he is threatening WAR RECORDS trying to bring America victory. That to veto this. It is wrong. Mr. LAUTENBERG. Mr. President, I is what happened. Not only is the bill good for the rea- thank my friend from Nevada. Nothing When you visit the Vietnam Memo- sons I have mentioned. That will allow could be more poignant, as we view rial here in Washington, it pulls at us to at least keep even with the pro- what has taken place in Iraq, than the your heartstrings to see 58,235 names grams that we need in this country— bravado that led us into the battle and on the wall and you are reminded of highways, bridges—but it also consoli- the boastful statements that were the gravity and the impact that con- dates all safety programs. It creates a made, such as ‘‘mission accomplished.’’ flict had on our Nation. But now we are very new program, with safe routes to What the mission accomplished was, in a different place. I do not believe, I school, which will allow children to was to get a picture that could be used must say, we should judge our politi- walk and ride bicycles to school. It cre- in an election campaign. That was the cians based on who served and who did ates a good program at our ports, mission that was accomplished. not serve. But when those who did not called a gateway program, which will People thought the President was serve attack the heroism of those who not only be one that will create a more talking about something else, and he did, I find it particularly offensive, and safe network of ports in our country, did say the worst is behind us. It is a I hope people across America will put but will be more efficient, and it will terrible memory for us to conjure up aside that criticism of Senator JOHN save lots of time. There will be a new while people are dying in quantities KERRY who received three Purple equity bonus program. hardly ever dreamed about, far more Hearts and a Silver Star, which is a We have tried in this legislation to casualties in this war where we have very high commendation for bravery. I have a fair bill, not just to add up the 130,000 people in Iraq than when we had find it offensive, and I hope every number of Senators who are for the bill 540,000 people in the first gulf war be- American and I hope every veteran will and run over those who don’t get treat- cause there were enough of them to say: No, no, you can’t talk like that,

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.013 S28PT1 S4452 CONGRESSIONAL RECORD — SENATE April 28, 2004 pretending this man is soft on defense. lives in Vietnam, and ask them what I do not think our soldiers are so He put his neck on the line, almost lost they think. happy about the President’s dangerous it, and saved someone else’s neck in a I heard someone—I think it was comment. very heroic deed. Karen Hughes—on the television the I served in Europe in World War II. That is what we are talking about: other night. Why are they talking The last thing I wanted to hear from heroism. Max Cleland lost three limbs about a 35-year-old war? A 35-year-old my Commander in Chief, or my local in Vietnam, and they shamed him so war? Ask those who served in Vietnam commander, is to dare the enemy to that he was pushed out of office be- whether they ever think it is a 35-year- launch attacks on us. cause he was portrayed as weak on de- old war. The President and his allies are fense. Where do they come off with Come on, America, face up to what charging Senator KERRY with being a that kind of stuff? I will never know, we are doing here. This is the ultimate flip-flopper, but is it not a more dan- but I hope the American public under- disgrace: Risk your life and then be gerous flip-flop to tell our enemies to stands what is being done. abused by those in the highest office in bring it on and invite attacks? Is it not We now have discovered a return of the country? The chicken hawk has no a flip-flop when one says they support the chicken hawk. We thought they idea what it means to have the courage the troops and then—I heard it directly flew the coop, but in the last week or to put your life at risk to defend this on our recent trip to Iraq when a cap- tain in one of the reserve units—no, he two, they have returned aplenty. If Nation. They are quick to disparage was full service—when I asked if there anyone is curious about what a chicken those who did sacrifice. I do not under- were any complaints, he said, Senator, hawk is, I have a definition right here stand how their conscience permits those flak jackets, the new ones, I have on this placard. We see the chicken in them to challenge Senator KERRY’s seen them on Spanish coalition mem- a uniform with medals. The definition commitment to our Nation’s defense. The reality is the chicken hawks in bers and I have seen them on other coa- obtained from the Internet goes as fol- lition members. We do not have them, lows: this administration are doing a lousy job of bolstering our Nation’s defense Senator. Chickenhawk, n.: A person enthusiastic He then pointed to his rifle. He said, about war, provided someone else does the and supporting the troops. Case in point: Mission accomplished. You know, there are smaller, more effi- fighting, particularly when that enthusiasm cient, and better sidings and better is undimmed by personal experience with I want to discuss this 1-year anniver- war; most emphatically when that lack of sary because I think it summarizes this sights on smaller, lighter weapons. We experience came in spite of ample oppor- flawed thinking and policy planning of do not have those. We need more ar- tunity in that person’s youth— the administration regarding its activi- mored Humvee vehicles. When I was in Iraq in March, soldiers I am extending it—to serve their ties in Iraq after the initial invasion. complained to me they are not receiv- country, unless you had a good excuse, We are all familiar with the imagery of ing the best equipment they could unless you had other priorities. May 1, 2003. My colleagues can see it on have. Chicken hawks shriek like a hawk, this placard. President Bush is dressed up in a flight suit—well, here he is What about the President’s flip-flop but they have the backbone of a chick- to military families? He is arbitrarily en. We know who the chicken hawks wearing civilian clothes—playing soldier that day. The theatrics that fol- extending tours of duties despite prom- are. They talk tough on national de- ises to families that loved ones would fense and military issues and cast as- lowed were a production carefully choreographed by the White House po- be returning home. persion on others. When it was their No, when it comes to supporting the litical unit. It was nothing more than a turn to serve, where were they? A-W-O- troops the President is a flip-flopper. L, that’s where they were. staged circus act. When the President switched to sub- He says one thing, does another. Sup- Now the chicken hawks are cackling porting the troops means careful plan- stance, it was almost more disturbing. about Senator JOHN KERRY. The lead ning of military operations, both pre- He declared that ‘‘major combat oper- chicken hawk against Senator KERRY and postinvasion. is the Vice President of the United ations are over.’’ We know the administration did not He was, unfortunately, wrong. He was States, Vice President CHENEY. He was want to hear any dissent about the un- certainly wrong over 600 times because in Missouri this week claiming Senator realistic assessment of what the Iraqi people died in that relatively peaceful KERRY is not up to the job of pro- operation would require. When General postwar period of time. tecting this Nation. What nerve. Where Since the President declared mission Shinseki, a distinguished military leader, said we need more troops, that was DICK CHENEY when that war was accomplished on May 1, 2003, we have over 300,000 troops would be required, going on where 58,235 young men died lost 585 American troops in Iraq. Before he got fired. Instead, we have 130,000 and many more wounded and many that day we had lost 139. That is a total troops in Iraq. That is what is favored with wounds that were never visible, of 724. In the first gulf war, with over by Secretary Rumsfeld. but you could see it in their emotional 500,000 troops abroad, we lost a total of structure and in their psychology? It Our excellent troops are fighting a 293 troops. treacherous insurgency launched by was a war everyone thinks in retro- When the President made his speech both Sunni and Shi’a elements. Combat spect was misguided. But JOHN KERRY on the May 1 mission, it was not ac- operations are not over. They are rag- volunteered for hazardous duty on a complished. Major combat operations swift boat going up a river with people ing. It is obvious the administration were not over. It was a naive mis- miscalculated and misunderstood what shooting at him all over the place. calculation. The troops on the ground Cowardly? What an insult. I plead with would happen after we deposed Sad- in Iraq knew trouble was brewing, even dam. In fact, the administration’s be- veterans across this country. Look at though they heard that declaration what they are saying about your serv- liefs bordered on the delusional. Ex- that the mission was accomplished. perts warned them at the time, but ice. Exemplified: Max Cleland lost They knew trouble was brewing as in- they refused to listen. three limbs. What a sacrifice he made, surgents were launching more and According to Bob Woodward’s ac- and they beat him in the election, beat more attacks. count, Secretary Powell was all but ex- him in the polls because they charac- When these attacks on our troops be- cluded from the war planning among terized him as soft on defense. Now came more frequent, what did the the key Cabinet officers. Colin Powell they want to take JOHN KERRY who President say last July? I could not be- is the only one who ever saw combat in served nobly and establish that he, too, lieve what I was hearing. He said, that group and they excluded him. is soft on defense. I don’t know where ‘‘Bring ’em on,’’ in this gesture of bra- George McGovern, a friend, a deco- they get it. vado, in this gesture of toughness, rated veteran, said this war was clearly He fought for our country. He still bring them on. But he was not brought planned by people who have never seen has shrapnel from the battlefield. Vice on. He was brought on to the deck of a battlefield. Look at what Vice Presi- President CHENEY said: At the time he the aircraft carrier but he was not dent CHENEY said on March 16, 2003: had other priorities in the sixties than brought on to the battlefield in Viet- We will, in fact, be greeted as liberators. military service. He ought to tell that nam when there was a chance to do . . . I think it will go relatively quickly . . . to the parents of those who lost their something. (in) weeks rather than months.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.016 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4453 February 23, Defense Secretary the intense partisanship and recent dis- wouldn’t particularly want to serve on Rumsfeld said the war ‘‘could last 6 cussions and charges and it, but let’s have a commission. days, 6 weeks. I doubt 6 months.’’ Now countercharges on talk shows and But in the meantime, don’t you it is over a year later and the war is cable television and radio all over think our focus and attention is mis- still going on. A total of 724 American America. I think it might be an inter- placed? We are talking about chicken troops have been killed, 585 of them esting and maybe sometimes enter- hawks. When the President of the after President Bush declared major taining exercise—the little drawing of United States is the one whose most combat operations had ended. the chicken hawk was kind of clever. I solemn responsibility is to be Com- We are in a quagmire that is the re- have to hand it to whoever the artist mander in Chief of our Armed Forces, sult of miscalculations and poor plan- is. and to prosecute a conflict that was ning by the administration, but for the But isn’t it a fact that we are now en- authorized by an overwhelming vote in sake of our troops it is time for the gaged in a war? Isn’t it a fact right now this body, and we are calling him a chicken hawks in this administration that, as we speak, our marines are at- chicken hawk—please. Is that the ap- to end the arrogance and the bravado tacking Falluja and I am sure incur- propriate time and place for this kind that has put us in the mess we are in ring casualties, these brave young of activity? right now. Americans? I do know some of my colleagues on If we want someone effectively to de- I don’t know if they get C–SPAN over the other side of the aisle don’t like fend our Nation and support our troops, in Iraq, but here they are with their this. I know my friend Senator I say let us look to someone who un- lives literally on the line, trying to LIEBERMAN proposed that we all join derstands what it really means to an- bring freedom or ensure the freedom of together to try to come up with a com- swer the call and defend your country. the Iraqi people. They get television— mon approach. I don’t know if that is I yield the floor. if not C–SPAN, I know they get Armed possible in this day and age, but it is The PRESIDING OFFICER. For the Forces Television in many of the bases certainly something worth consider- information of Members, there are still in Iraq—what do they see? They see us ation. But at least, could we declare 4 minutes 30 seconds remaining. Does attacking each other about service or that the Vietnam war is over and have the Senator wish to yield back the nonservice in a conflict that ended a cease-fire and agree that both can- time? more than 30 years ago. didates, the President of the United Mr. LAUTENBERG. I yield back all All of us who stand here—I haven’t States and Senator KERRY, served hon- the time, yes. known of an elected or nonelected poli- orably—end of story. Now let’s focus f tician who hasn’t said: We are all be- our attention on the conflict that is CONCLUSION OF MORNING hind the troops; we are behind the men taking place in Iraq, that is taking BUSINESS and women in the military; we support American lives as I speak on this floor. them 100 percent no matter what. What I don’t want to belabor the subject, The PRESIDING OFFICER. Morning are they supposed to think? Are we but I do want to expand on it a little business is closed. really supporting them and are we in- bit. It is a symptom of the extreme f terested in bringing about a successful partisanship that exists in this body INTERNET TAX conclusion to the Iraqi conflict? today on both sides of the aisle. NONDISCRIMINATION ACT Senator KERRY, the Democrat nomi- Mr. REID. Mr. President, could I ask nee, says we have to stay the course. the Senator to yield for a brief com- The PRESIDING OFFICER. Under He may have different views as to ex- ment? the previous order, the Senate will re- actly how to do that than the Presi- Mr. MCCAIN. I am glad to yield to sume consideration of S. 150, which the dent and the administration, but we my friend from Nevada. clerk will report. are in agreement. Meanwhile, what are Mr. REID. I had to step off the floor The assistant legislative clerk read we doing on the floor of the Senate? We for a phone call, and I apologize. But as follows: are attacking the President’s creden- what I wanted to say to the Senator A bill (S. 150) to make permanent the mor- tials because of his service or lack of from Arizona, the Senator from Ari- atorium on taxes on Internet access and multiple and discriminatory taxes on elec- service in a war that ended 30 years zona, in my opinion, is exemplary in tronic commerce imposed by the Internet ago, more than 30 years ago. his statements on the floor and off the Tax Freedom Act. I think that is wrong. I wish we floor about what has been going on be- Pending: would stop it. I wish we would just tween the two people who are going to McCain amendment No. 3048, in the nature stop, at least until the fighting in Iraq be running for President in November. of a substitute. is over. I believe the Senator from Arizona Daschle amendment No. 3050 (to the lan- Second, maybe we could devote some has defended the Democratic nominee, guage of the bill proposed to be stricken by of our time and effort and energy in his war record. amendment No. 3048), to eliminate methyl coming up with a bipartisan approach Mr. MCCAIN. And the President of tertiary butyl ether from the United States to this conflict. Yes, there are enor- the United States. fuel supply, to increase production and use of mous difficulties. No, things haven’t Mr. REID. That is right. I was going renewable fuel, to increase the Nation’s en- worked out as well as they should to say, and the President of the United ergy independence. Domenici amendment No. 3051 (to amend- have. Yes, I, myself, would have had States. We would be better off if every- ment No. 3050), to enhance energy conserva- different approaches to the challenge one in this very delicate Presidential tion and research and development and to in Iraq. But we are there. We are in a election would follow the lead of the provide for security and diversity in the en- very crucial moment. Why don’t we all Senator from Arizona. We do not need, ergy supply for the American people. join together and sit down and work in my opinion, to get into what went The PRESIDING OFFICER. The Sen- out, with the administration, both on in Vietnam. ator from Arizona. sides of the aisle, a common approach We are proud of what Senator KERRY Mr. MCCAIN. Mr. President, I came so we send a single message? Not that has done, and whatever President Bush to the floor to urge consideration of we are refighting the Vietnam war, but has done, he is Commander in Chief the Internet Tax Moratorium Act, the that we are committed to seeing this now. It would be better off for every- proposal, debate, and voting on ger- thing through in Iraq because we can- body, I repeat, for the second time, if mane amendments. As I came to the not afford to fail. We cannot afford to we followed the lead of the Senator floor, I heard this attack on the Presi- fail. from Arizona and not question what dent of the United States and the ad- There will be plenty of time after went on during those war years. ministration. It was pretty rough stuff, this conflict is over. We may even have I would say, though, to my friend calling people chicken hawks and talk- a commission. We have commissions from Arizona, I feel as if I am in high ing about service to the country or for everything else; why not have a school now—‘‘They started it,’’ that lack thereof. commission after we have democracy kind of thing. I think we need to get I am sure the statements just made in Iraq to find out where we failed in back to the real issues; that is, how we by the Senator from New Jersey reflect Iraq? That would be fine with me. I are going to finish the situation in

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.019 S28PT1 S4454 CONGRESSIONAL RECORD — SENATE April 28, 2004 Iraq, what we are going to do about the Yesterday, I was under the impres- agree we are basically gridlocked on al- economy, health care, the environ- sion that we were moving forward with most every issue that comes before us. ment, and all those other issues. a vigorous and spirited and passionate That is not what we are sent here to The third time: We would all be bet- debate on the issue of an Internet tax do. We are sent here to act as legisla- ter off if we followed the example of moratorium. tors and to address the issues that are the Senator from Arizona. That is basi- Why is this issue of importance? Be- important to the American people in- cally what I want to say. I apologize. cause the worst thing we can do to stead of partisan gridlock. This is a he-said, she-said, they-said. small and large businesses in America, I hope we can sit down on both sides My friend from New Jersey is a war around America, is to have an atmos- of the aisle and at least make people veteran himself. He has a right to phere of uncertainty. aware of what the agenda is. I have a speak, as we all know. But I am sure he I think most of my colleagues would very long relationship with both the would not have spoken had this not agree—this is probably the most par- Senator from Nevada and the Senator started some other place. But I appre- tisan environment I have seen in the 18 from South Dakota who are friends of ciate very much the Senator from Ari- years I have served in the Senate and mine. I would like to know what the zona yielding. the 4 years that I served in the House. agenda is. I don’t think it is a lot to What is happening—and I was a bit Mr. MCCAIN. I thank the Senator ask what I can expect in managing this from Nevada who is a good and dear sarcastic yesterday, I must admit—is bill. At least in that way I can try to friend of many years, who I also know we come to the floor with legislation accommodate the concerns of the agen- which is important. The Internet tax decries this. da of the other side of the aisle. Let me repeat one more time that I moratorium doesn’t lend itself to par- But to come out here and just spring tisanship. In fact, the two greatest op- believe that honorable service was per- an amendment I don’t think is quite ponents of this legislation—Senator formed by the President of the United fair, and I don’t think I would do that DORGAN opposes it with two Members States in the National Guard. Almost if I were in that position. on this side of the aisle. It is not one of I hope we can return to some kind of 40 percent of the forces that are in Iraq those that somehow is a Democrat phi- today are guardsmen and reservists. comity and that way perhaps decide losophy versus a Republican philos- how we are going to dispose of this bill. They are superb young men and ophy. One of the greatest supporters of women. I said only half sarcastically yester- the Internet tax moratorium is the day that if we are going to spend all of Obviously, I know the Senator from Senator from Oregon. Here we are with Nevada shares my view that service in our time in gridlock around here, some this issue which is really important to of us would like to go home. It is much the National Guard is honorable serv- American businesses. Most businesses, ice, as is service on Active Duty, as nicer in Arizona than in the Nation’s obviously, support a tax moratorium. Capital. Maybe we could leave a couple that performed by Senator KERRY, in But what they fear most of all is uncer- my view. But it is time to declare a of Senators on either side to propose tainty. They have to make plans for amendments, have quorum calls, and truce. their businesses and their futures. I would also say to my friend from be in gridlock. Some people would be What we are in danger of right now fooled that we are still working. But Nevada, there is nothing we can do as we speak is getting hung up on ex- about what talk show hosts do, or out- instead, it is now Wednesday. We are traneous issues, as we have on almost supposed to be out Thursday night, and side commentators. That is freedom of every piece of legislation that has we have addressed one amendment to speech. come before this body, on extraneous this legislation. I don’t think this is a I am sorry so much focus is on that, amendments. I understand the frustra- and I don’t pretend to say I could do fair way to legislate. tion of my colleagues on the other side I know my friend from North Dakota anything about that. But I hope Mem- of the aisle. I served in the minority is here and wants to say a few words, bers of this body could declare a truce for the first number of years that I was and my friend from Oregon and my on this issue, if I may use that word, here. Yet the majority sets the agenda. friend from Virginia. But I also urge and then we could move forward in ad- I have said to the Senator from North those who have amendments which are dressing the compelling issues of the Dakota, I want my issue raised, I want germane to please come to the floor so day. a vote on it, and I am ready to go. I we can debate them and vote on them I will be glad to hear the response of have never tried to tie up the Senate since I think it is important to do so. the Senator or, if he doesn’t mind—I on an issue. I have come down here for I yield the floor. yield to the Senator from Nevada. years and forced votes on line-item ve- The PRESIDING OFFICER. The Sen- Mr. REID. Mr. President, that would toes. But I said that I am willing to ator from North Dakota. be easy to do. I think we can get people have a time agreement and a debate on Mr. DORGAN. Mr. President, I know on this side to stop the discussion. If the issue of climate change. Senator my colleague from Oregon has been the administration wouldn’t be doing LIEBERMAN and I said: Look, we are not waiting to speak. The Senator from what they are doing with ads and going to tie up the Senate. We are not Virginia is in the Chamber as well. But things of that nature, we would all be going to impede everything from going if it might be appropriate, I wish to better off. forward. We had a vote. We got 43, I am make a couple of comments relative to I repeat that I am not questioning happy to say. my friend’s comments. If it is appro- someone’s military record. As the Sen- My point is, we shouldn’t block the priate, I would like to ask consent that ator knows, this is an ongoing issue. I passage of legislation. I think there is the Senator from Oregon be recognized can’t do anything about talk show peo- a careful balance between proposing an following my presentation. My under- ple, but we can do something about the amendment, getting a vote on it, and standing is he is going to speak for a two Presidential candidates—one sit- then allowing the legislation to move few moments. ting President and one sitting Sen- on rather than just overloading the The PRESIDING OFFICER. Without ator—and have them and their organi- legislation to the point where it has to objection, it is so ordered. zations not discuss this. I think it be withdrawn. Mr. DORGAN. Mr. President, let me doesn’t accomplish anything. Someone I hope we can get a vote on the clear up a couple of issues. might say: They started it; we are Democratic leader’s amendment on First, my colleague from Arizona is going to try to finish it. We should ethanol. I hope we can get a vote on straight with all the facts. We have no wash our hands of that and try to start many of these other issues, including disagreements about the facts. He indi- anew and not be talking about the minimum wage if necessary. But at cated I am opposed to the moratorium. service of either one. some point you cross a line between I am not opposed to the moratorium. I Mr. MCCAIN. Mr. President, I would trying to have your views and your have voted for an Internet tax morato- like to leave that particular subject, issues and your agenda addressed to rium. I hope before the end of this but say that segues in a very rational the point where we just end up in grid- week I can vote for another Internet way into what we are facing on the lock. tax moratorium. floor of the Senate in consideration of I think most observers, both inside Mr. MCCAIN. Mr. President, if the this bill. and outside of this institution, will Senator will yield, I appreciate the

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.022 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4455 Senator correcting the RECORD. I do other adjectives—in the pursuit of his is we can try to determine how we get not mean his opposition to a morato- passions and demands that he be heard, through this, have votes. rium but his opposition to the defini- it is the Senator from Arizona. I heard a presentation earlier this tion of Internet access. I expect others who have managed morning in the Senate saying the prob- Mr. DORGAN. That is correct. I don’t bills who have sat in that very chair lem with the Senate is we are being ob- support the specific definition of ac- have from time to time had to grit structed every time we turn around. cess. We need to work through that. their teeth in sufficient volume to have The obstruction is the minute some- But that doesn’t mean I don’t support people hear in the Russell Building body on our side offers an amendment, the moratorium on taxing the Internet. when Senator MCCAIN comes to the the place shuts down. I don’t under- I have supported that previously. I sup- Senate floor, wondering what amend- stand that. ported the previous moratorium that ment he will offer and what is its pur- There is a guy in my hometown who was in existence, and I support it now. pose. had a Model T. He got drunk one night, In fact, I will offer an amendment that The approach with which we legislate and when he was driving home he will demonstrate that support. I appre- in the Senate is not always the most turned the front wheels too sharp. The ciate clearing that up. efficient approach. The most efficient Model T’s were the only cars like the Second, the Senator twice yester- approach, I suppose, is the one used by red wagon: If you turn the wheel too day—I was going to correct him and I the other body in the House of Rep- tight, it tips over. He turned the Model did not—talked about the fact that the resentatives where they package up, T too tight and it tipped over. He Democrats have a retreat this weekend through the Rules Committee, the thought he saw chickens in the road, so on Friday. We Democrats don’t use the exact circumstance under which legis- he turned the wheels too tight and word ‘‘retreat.’’ We call it an ‘‘issues lation will be considered. They bring a tipped the Model T. conference.’’ We think ‘‘retreat’’ is a bill to the floor, they will allow these I was thinking of this in terms of get- more negative word. So we have an six amendments, and they will have 10 ting this moving. When somebody of- issues conference, as do the Republican minutes each. They package it up and fers an amendment, somebody sees members of the Republican caucus, I zip it real tight. The Senate does not some chickens in the road, so we just think, have a couple times a year. We work that way. George Washington was stop or tip over. We just do not move. have an issues conference. We will be happy it does not. So was Thomas Jef- Then somebody says, Well, we do not doing that beginning on Friday. ferson. I am as well. However, it is want to move anymore because the Let me also comment about the Sen- frustrating from time to time. Yester- other side has obstructed us. ator from South Dakota, the minority day was a frustrating day. I say—whether it is overtime, wheth- leader, Mr. DASCHLE. He offered his However, I would speak on behalf of er it is ethanol, or whether it is on amendment. I know the comments by the minority leader in saying that the minimum wage—they need not ob- Senator MCCAIN this morning reflect issue offered with respect to renewable struct anything. I believe all of those the right of Senator DASCHLE to offer fuels is a very important issue. Let’s who have offered those amendments that amendment. I understand that just move on that. Let’s get a vote on have agreed to a very short timeframe. when one is managing a bill, the last that. I expect I could ask him to come Have a vote and dispose of it, and then thing you want is an amendment that to the Senate floor, and I expect he move forward. Because the majority is off the particular subject. But Sen- would be willing to have a short time does not want to have that vote, they ator MCCAIN has correctly stated that agreement if he gets a vote on his essentially decide we are going to do the amendment offered by Senator amendment. Since he offered the nothing. We will keep the lights on, we DASCHLE was well within the rules of will make it look like we are working, the Senate. He has the right to offer amendment, Senator DOMENICI came but we are not going to move. that amendment. and offered a 900-page amendment deal- That is unfortunate because there is My guess is, as Senator MCCAIN de- ing with the entire Energy bill, rewrit- scribed his approach earlier in the Sen- ten so that is a different issue. not obstruction from this side. The ob- ate of offering an amendment, that My goal would be to try to move struction would be from those who might be extraneous for the purpose of through this legislation. I hope we can have decided once my colleague offered getting a vote on the amendment at find a way to vote on amendments that an overtime amendment we will no longer proceed with the corporate fi- some point. I think Senator DASCHLE are offered, have short time agree- would be very happy to—I can’t speak ments. nance bill; we will no longer proceed for him—come out here and say: I will Mr. REID. Will the Senator yield for because somebody offered an amend- withdraw that amendment in exchange a question? ment we do not like. Mr. DORGAN. I am happy to yield. With respect to this bill in the Sen- of Senator FRIST allowing me a vote on that amendment immediately fol- Mr. REID. Is the Senator aware on ate, the Internet Tax Freedom Act, my lowing the Internet tax moratorium. I this side we would be happy to agree to preference would be whatever some- set aside, temporarily, the pending body offers today, ask them, Will you am guessing Senator DASCHLE would be very happy to do that. amendment? For example, Senator accept a time agreement that is rea- In any event, because he felt a need KENNEDY wants to offer something on sonable—15 minutes, 30 minutes? If to offer that amendment on this bill, it minimum wage. He would take a very they say yes, we ought to have a dis- doesn’t mean he is trying to block this short time agreement on that: 15 min- cussion about it for that 15 minutes, bill. The only block is a mental block utes divided on each side. We would be call the roll, have a vote, and then among those who might not want to happy to allow the majority to offer an move on. We will exhaust that pretty proceed now. amendment either as it relates to this quickly. We will get to the amend- The fact is, I think Senator DASCHLE bill, as the Senator from Arizona wants ments that are at the center of this would be willing to come out here and to do, or whatever else they might feel bill, find out what the sentiment of the say: Let us have a 15-minute time is appropriate. We would look at that Senate is on that, and then, I hope, agreement or 30-minute time agree- and see if we could agree to a short pass this legislation. ment, have a vote, and we will dispose time agreement. I hope at the end of the day I will of this amendment—however it is dis- Even though we are in this par- vote in favor of this, as I have done on posed of. Let us do that. I am sure he liamentary quagmire with three votes previous pieces of legislation dealing would say: I don’t intend to block this scheduled for tomorrow, three separate with the Internet tax freedom or the bill but I just intend to exercise my cloture votes, today we would be happy moratorium on taxing the Internet. My right to get a vote on my amendment, to work our way through this, doing hope is we can find a solution to this which I think is the same approach the one amendment per one amendment. Is definition. I think we are working on Senator from Arizona has used very ef- the Senator aware of that? one so that we can vote for it. I want fectively, I might add, over many Mr. DORGAN. I am. I was trying to this to pass. years. make the point that those who have a I have taken longer than I intended If anybody on the floor of this Senate right to offer amendments do not in- to say something I should have said is relentless—and some might use tend to block the legislation. My hope with greater brevity, but my hope is we

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.025 S28PT1 S4456 CONGRESSIONAL RECORD — SENATE April 28, 2004 can just proceed. We are now at parade suggested—get this done as we have have a traditional landline, we have a rest again, as is the case with every done on several occasions. wireless dial-up in DSL, and, of course, bill, with people saying, Your side is With respect to the hiding of taxes, it satellites. obstructing. We are not obstructing. comes in the overall bill the consumer The Alexander proposal says that We can have a 15-minute debate on the receives. We already see this in juris- DSL is not Internet access but a tele- Daschle amendment and then vote for dictions, for example, that tax DSL. communications service, and, in effect, it. I am for that. I think Senator REID Right now, I believe we are discrimi- we would then see DSL further taxed. I would be for that. Let’s do that. Then nating against the future. Right now think that would eliminate the com- we do not have a worry about the cabling, in effect, gets a free ride. DSL petitive playing field that has always Democratic leader offering an amend- gets taxed in a number of jurisdictions. been the point of this exercise for now ment. He offers it and the Senate has This has special impact for my friend 8 years. To me, to just force people, an opportunity to vote on it. from North Dakota and me because particularly in rural areas—in the The place where we should be round- DSL, of course, is the way we will get rural areas I care about and the Sen- ly criticized is if we offered an amend- broadband into rural areas. The way ator from North Dakota cares about— ment and said, By the way, we do not that tax shows up, of course, is in the to face this discrimination against want to vote on this; we want to talk overall bill. It is just in the overall broadband is particularly troubling. about it for 2 or 3 days. No one I am bill. So I know this is exceptionally com- aware of is in the position of doing So unless we get equity for DSL rel- plicated material, and Senators have that. That is not our intention. We ative to cable, what is going to happen been barraged by all sides on this over simply want to vote on the Daschle in America is the Internet tax will be the last few days. I have tried to out- amendment. hidden in the overall kind of bill, and line how the revenue projections we I know my colleague from Oregon is the consumer will just see, in Oregon have discussed over the last 8 years, waiting to talk about the very thing and North Dakota and everywhere else, with the States and localities saying that represents the difference on this a higher bill for broadband than they they were going to lose vast amounts moratorium issue, and that is the defi- would see right now for cable, and that of revenue, have not come true. I have nition. would be continued. talked about how this is an effort, in I yield the floor. So we absolutely, in the area of defi- this iteration of the Internet tax free- The PRESIDING OFFICER. The Sen- nitions, have to have technological dom bill, to essentially update our ator from Oregon. neutrality. That is what we began with original law with respect to tech- Mr. WYDEN. First, Mr. President, I 8 years ago when we said everything nology. But it is, as the Senator from say to the Senator from North Dakota that happens online is the same thing North Dakota has correctly said, a I very much support what the Senator that is going to happen offline. To get question of definitions. So this con- is trying to do in terms of procedure. It the technological neutrality this time, cept, as I have outlined with respect to is time to vote. As the Senator has we have to say that DSL does not get the Alexander language, in terms of said, whether 15 minutes or half an hammered and cable gets a free ride. how you would connect the purchaser hour, people ought to get on to the Here is an example. I want to offer of Internet access—without that being task of voting. this to my colleagues because I think defined means you can expose jurisdic- After 8 years of discussing this eye- it also highlights again our concern tions to multiple forms of taxation. glazing subject of Internet taxes, we al- with respect to the definitions in the Then there is the question of hiding ways cringe at the prospect of wading Alexander language and how it opens the Internet tax, which is what the Al- once more into this incredibly arcane the opportunity for additional taxes. exander proposal will do, because com- area, so I will take a few minutes to The Alexander language stipulates panies do not eat these costs; the com- talk about the definitions question there be no tax on services used to panies end up passing them to the con- with respect to Internet access. This is ‘‘connect the purchaser of Internet ac- sumer. clearly the big hangup. cess to the Internet access provider.’’ So what will happen, all over this The Senator from North Dakota is But nowhere in that language is the country—in North Dakota and Oregon here. He has been exceptionally cooper- term ‘‘connect’’ defined. and across the country—is that people ative, even though we have had dif- Does it mean that Internet access who order broadband, who essentially ferent views on the subject over the ends where a computer hooks into the look to DSL for their broadband serv- last 8 years. I will take a couple of phoneline? Does it mean where the ices, will just get a higher bill. They minutes to describe what the central phoneline reaches the central office or will get a higher bill than people who concerns are with respect to working where the line makes its first point of order broadband through cable. That is out the definition of the Internet ac- presence on the Net? So the term ‘‘con- regrettable. It certainly violates the cess. nect’’ without any definition is simply principle of technological neutrality. The concern on my part is, as the Al- uncharted territory, and it would I repeat, I think the Senator from exander language is written today, in again, in my view, allow States and North Dakota has been very construc- effect it will hide taxes on Internet ac- cities to tax Internet access, again, tive on this issue. We have gone cess, No. 1; and, No. 2, it opens the door through a kind of hidden approach that through this water torture exercise to multiple State and city taxes on the is going to keep the consumer from now since late 1996, and I am very individual component parts the Amer- doing what I and the Senator from much prepared to do this once again. ican people think of as Internet access. North Dakota have always tried to do But clearly, with respect to these defi- No Senator wants to do this. There is in the consumer protection area: give nitions, we have some major issues no Member of the Senate who gets up consumers access to information and that have to be worked through. in the morning and says, I want to make sure there is truth in billing so I also point out, as the chairman of have thousands of new Internet taxes. they can actually choose between var- the Commerce Committee did yester- However, the way the definition of the ious technologies that best assist day and Senator ALLEN has as well, in Alexander language is written today, it them. 10 separate areas, as we worked even will, in fact, open up the opportunity With respect to the question of the for the managers’ amendment, we have to tax wireless Blackberry services, Alexander legislation opening up the made efforts to compromise on the spam-filtering systems, Web hosting, door to multiple State and city taxes definitions question. We have exempted and the like. on the individual components people a whole host of areas all of the spon- I will take a minute to touch on both think of as Internet access, we now sors felt should not be subjected to tax- of these concepts, the question of hid- have 391 separate taxes on tele- ation. With respect particularly to ing the Internet taxes and the question communications administered in 10,000 voice over, the exciting area where of opening the entire Net to taxing the jurisdictions. The fact is, States tax phone calls are going to be made over individual components. We will have to different technology platforms for the Internet, we have made it clear in work through those two in order to do Internet access in different ways. So this legislation, in the substitute the as the Senator from North Dakota has we have a cable modem platform, we chairman of the Commerce Committee

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.027 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4457 is offering, that we would not change ice, that, I think, represents a defini- May I mention one other point here the status quo. tion that most of us agree with. that is important. To all of these State I have heard from California and oth- I am just trying to understand a bit, Governors, the National Governors As- ers that somehow this is going to dra- and perhaps the Senator from Oregon sociation, who keep saying, ‘‘We are matically change the question of tax- can describe an answer to those ques- losing all this revenue; why don’t you ation for phone calls over the Internet. tions so I understand it better. stop spending so much,’’ revenues have The McCain language clearly stipu- Mr. WYDEN. Mr. President, with re- increased in literally every State in lates—clearly stipulates—that in that spect to the architecture the Senator America in the last couple of years. In- area California and others have been so from North Dakota has described, peo- stead they are spending more. For concerned about, there are no changes. ple have already paid once. So this them to tax DSL at a time when it, in So I look forward to working with question of what is going to be done the view of almost everyone, is critical the Senator from North Dakota. I com- with respect to various aspects of the to the United States maintaining its mend him for taking yet another architecture is an interesting discus- technological lead and the growth of crack, as he has done for 8 years with sion for us to be pursuing in the Sen- business, communications, and poli- me, on this subject that I have been ate, and all of these various compo- tics, is outrageous. It is insulting. It is comparing to sort of prolonged root nents and pieces of equipment, but peo- disgraceful these greedy Governors are canal work. But we are going to get ple have already paid once. And with so greedy they don’t understand the this done, and hopefully it will be this respect to Internet access, about which impact of taxation of DSL, which is week. we have been concerned, it is almost still only in 28 percent of our urban and Mr. DORGAN. Mr. President, will the like a carton of milk: You paid for the suburban residences and 10 percent of Senator from Oregon yield for a ques- carton of milk once; you should not rural America. Talk about tunnel vi- tion? pay again if you are going to pour it on sion. Mr. WYDEN. Of course. your cereal or something else. They and their acolytes come over Mr. DORGAN. The Senator from Or- The Senator from North Dakota has here and start talking about how im- egon has outlined, I think, the center raised a question about funding for portant it is that they be able to keep of the discussion and the controversy. what is called the backbone of the com- taxing and that many of them—as Sen- To demonstrate the complexity of this munications system. But at the end of ator ALLEN points out in his column, issue, when we talk about someone the day, the bottom line is, people have they say: We are not going to tax ham- connecting to broadband from their already paid once. What we want to do burgers, so they tax the meat and not home computer, they are connecting, with this legislation is to say, on the the bun—have started to tax DSL. It is perhaps, through their telephone sys- question of Internet access, nothing spreading. Even in our bill, we are tem. So it goes from the computer to about sales taxes and the like. The going to allow them to continue to do the telephone wire, back to, I guess— Senator from North Dakota knows so. We are going to allow them, even through, perhaps—a D-SLAM, up to an once we get over this, we will have the though they are not in violation of the letter of the law, but certainly the in- ISP, Internet service provider. So you next issue, which is the question of the tent of the law by taxing DSL. Now have a series of things that are hap- streamlining of sales taxes. But with they want to tax it more. Every wit- pening with respect to the connection. respect to the architecture the Senator Some would say the connection is be- from North Dakota has raised, the con- ness before our committee—we had the tween the computer and the telephone sumer has already paid once with re- Cato Institute and the Brookings Insti- tute; we had representatives across the service that is going to be provided at spect to Internet access. spectrum of thought in America—said: a cost of, let’s say, $40 a month, and Mr. MCCAIN. Mr. President, will the You have to increase DSL. You have to that shall be tax exempt. I agree with Senator yield for a question? Mr. WYDEN. I am happy to yield. increase broadband access. You are that. That connection shall not bear Mr. MCCAIN. I don’t know if the Sen- falling behind every other nation in the the burden of a tax. I think that is ator from Oregon had a chance to see world. what the Senator is talking about with the article by Senator ALLEN this So what do the Governors want to respect to part of the definition. morning in the Wall Street Journal. I do? They want to tax them. We are So then the question goes beyond commend it to all. It is funny because going to have them come over here and that. Well, what about the architecture Senator ALLEN’s piece in the Wall talk about unfunded mandates and un- that goes back up through the local Street Journal dovetails with the in- fairness and fairness. The fact is, if we phone system to the D-SLAM, to the formation we received in the Com- allow every State in America and every Internet service provider? What if they merce Committee in the last 2 years municipality in America to start tax- are buying a part for the facility that about revisiting the 1996 Telecommuni- ing DSL, it is absolutely inevitable allows them to move DSL out to the cations Act and what we need to do in that we will see a slowing of the neighborhood? That is part of the DSL the future. growth of broadband access. It is obvi- stream, but it is upstream in the archi- The issue that came up with all the ous if you lay another burden on it. tecture of getting the DSL to the witnesses this morning and came up There are a number of areas, includ- home. So is that part of what the ar- yesterday morning was the United ing overregulation and other things. chitecture is? States is falling dangerously behind all Mr. Notebaert of Qwest pointed out One of the difficulties for me is to try other nations on DSL. We are now yesterday that in order for his corpora- to understand what the Senator from ranked 11th in the view of some, 20th in tion to provide DSL to a home, to have Oregon describes as the connection. Is the view of others. If you would have permission to do so required $130,000 in it all the way up to the Internet serv- told me 10 years ago we would rank be- expenditure and X number of days. I ice provider in every purchase—every hind South Korea on almost any tech- think he said something like 24 days. part, every piece, or every bit of con- nology, as intelligent and hard working But if a cable company wants to pro- struction that exists between the com- and industrious as they are, I would vide exactly that same service, they puter and the Internet service provider have said: We have a problem. can provide it in less than 24 hours. Ob- downstream through the architecture? As the Senator from Virginia points viously there is something fundamen- If that is the case, we are talking about out in his piece, they are trying to tax tally and terribly wrong in the regu- a substantial amount of economic ac- DSL. Some States are taxing DSL. I latory regime, and it needs to be fixed. tivity, almost all of which is now am not saying it is taxation of DSL I am not blaming our falling behind taxed, incidentally, not just for tele- that has caused the serious problem we other nations on DSL and broadband phone service but similarly for the have fallen behind at least 10—in the access simply on taxation. But I am cable system, which would not then be view of some, 19—other nations in saying that increases in taxation—and taxed in the future and would affect broadband access. But I am saying, it would be widespread if we opened the the revenue base of State and local why in the world would we want to lay door—will have a substantial chilling governments. But if the definition of taxes on them at a time when we need effect in the reduction of what should the ‘‘connection’’ is some $40 a month to expand it dramatically rather than be one of our Nation’s highest prior- that one might pay for the DSL serv- lay a tax on it. ities, as the President of the United

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.030 S28PT1 S4458 CONGRESSIONAL RECORD — SENATE April 28, 2004 States said in his speech the day before for them. But that was regulation. We ought to bring them to the floor of yesterday, to provide broadband access That was the Government saying you the Senate and go over it in some de- to all Americans no matter where they have to make your dark fiber available tail. It would take a few days. That are. to the incumbent providers. They have would be the ultimate obstruction, try- I again congratulate my colleague approached this in different ways. ing to read your personal telephone from Virginia for an excellent piece in Also, we in this Government, right bill. It is so god-awful complicated, no- the Wall Street Journal. I recommend now, have, I understand, over $2 billion body can understand it. There is a myr- it to my colleagues. of loan guarantees and loan authority iad of charges, fees, and taxes. Mr. WYDEN. Mr. President, I still in the U.S. for the buildout of For that reason, I am sympathetic to have the floor. I know the Senator broadband. I know that because I of- the notion of a moratorium, not be- from North Dakota wants to talk more fered the amendment which allowed cause I think it unleashes the forces of about the architecture. The point that that to happen. the buildout of broadband; I think it is is being made with respect to Senator BURNS and I and others a reasonable thing to do. broadband and that Senator MCCAIN worked on this for a long while. Yet I have not read the submission of the has touched on is if we now say the Al- that money has sat down at the USDA Wall Street Journal printed by the exander definitions go forward, and they are not doing much with it. Senator from Virginia today, but I will broadband through DSL is going to be We met with the Secretary of Agri- do that when I have the opportunity. I taxed. That is discrimination against culture to say: Let’s move, let’s am interested now that it has been the future. It is particularly burden- incentivize and develop the buildout of raised. I think what we should do is the some for rural areas, the kind of areas broadband. right thing, and we ought to do it the I and the Senators from North Dakota You have resources, substantial re- right way. So you don’t find opposition and South Carolina represent. The fact sources. I believe the resources used in from me with respect to the objective is, you are not going to get broadband Japan were $1 billion in loan guaran- here. I hope we can reach this defini- into small areas through cable. It is tees. We have more than that avail- tion as we move upstream beyond the not economically efficient to do it. You able; it has been available, appro- immediate connection of DSL, for ex- are going to get broadband to rural priated, and ready, and it is not being ample, and that we can define what areas through DSL. used. While I appreciate the President’s moving upstream means, and exactly I am prepared—once we make sure speech, I say to the President that we what it is we are preventing from ever DSL is not singled out for discrimina- have appropriated money for this. Let’s being taxed by State and local govern- tory treatment, as it has been in a get USDA to move on it. ments, which they may now tax. number of jurisdictions in the past—to I wish to make the point that there Once we describe and understand work with the Senator from North Da- are a couple of things that reflect what that, I think we can easily find a bill kota and others to get this matter re- has happened in Japan, South Korea, that should get 95 votes in the Senate, solved. and other countries, I might add, that to say we subscribe to the basic prin- Broadband through DSL is going to has dramatically accelerated their ciple that we should not tax access to create a tremendous number of jobs. buildout of broadband. We ought to be the Internet. That is a principle I sup- Brookings has said there are going to concerned about that. In my judgment, port, and I hope at the end of the week be hundreds of millions of dollars we ought to have regulatory authority, I will be able to manifest my support worth of investment that come about and we ought to have the ability to use by voting for the legislation. through broadband DSL. The Senator what is already appropriated for loan Mr. MCCAIN. Mr. President, I know from Arizona is correct in saying we guarantees. We ought to have a na- the Senator from Virginia has been pa- don’t have the problem now with re- tional will and a national determina- tient. Briefly, I point out that in the spect to broadband exclusively because tion to have a broadband buildout that hearing this morning, yes, one witness of taxes. But I can assure my col- is aggressive. That is going to happen from Brookings said it would have very leagues we will in the future see this when our Government says this is a little, or not much, effect. The other problem compounded if broadband se- significant priority for us. five witnesses said it would have great cured through DSL is singled out for Attendant to that, I would say, is effect. All six witnesses said they special treatment. Under the Alexander passage of a moratorium bill. I will strongly supported an Internet tax definition, that would be the case. That support that at the end of the week, moratorium, including DSL, with vary- is unfortunate. provided we can reach this solution on ing degrees of enthusiasm, including I yield the floor. definition. I don’t want to describe the one who said there was very little Mr. DORGAN. Mr. President, I have that as some nirvana that is going to effect. The other witnesses strongly fa- just a couple of thoughts. First, my be the event that unleashes some mas- vored it and thought that a tax, par- colleague from Arizona was also at the sive, new program of the buildout of ticularly on DSL, would have a signifi- hearing this morning when the ques- broadband. cant impact. tion to one of the witnesses elicited the I agree with the fellow from Brook- I think we ought to reflect in the answer that taxes really are incon- ings who said this isn’t particularly RECORD the view of all of the witnesses. sequential or have almost no impact on consequential. It is not the tax issue Mr. DORGAN. If the Senator will the movement and deployment of that is impeding the buildout of yield on that point, this is like being broadband. I happen to agree with that broadband. witness to an accident. We all see dif- assessment. Having said that, we have previously ferent things, apparently. But it is ab- What has happened with respect to decided, as a matter of public policy, solutely true that all of the witnesses Japan and South Korea, as an example, that we did not want to tax Internet at the hearing we just attended sup- where they have had this robust, ag- service, connection to the Internet. I ported a moratorium on the issue of gressive development of broadband, it supported that. That moratorium ex- taxing the Internet. No question. I is a result of a couple things. They had isted in Federal law, and then it ex- didn’t hear from all these witnesses a national will, a program, and a deter- pired last fall. I prefer at the end of that it would have ‘‘great’’ effect. I mination to make that happen, includ- this process, this week, I hope, that we didn’t hear that term. Nonetheless, I ing loan guarantees, among other will have passed another piece of legis- believe they feel, as I do, and as Sen- things—also, including regulation. lation that represents a moratorium. ator MCCAIN does, that we ought to What was the regulation? It was that Why? Well, I think incrementally it is have a moratorium. their Government said incumbent pro- the right policy. I don’t know. We have Mr. MCCAIN. I thank my friend. viders must make their facilities avail- some people on the floor who have law I point out again, there are a lot of able to other competitors; their dark degrees. I guess most of us have ad- reasons why we are falling behind, fiber must be made available to other vance degrees of some type. I will bet probably for the first time I know of in competitors. They created robust, ag- there is not one person on the floor of a major high-technology capability. gressive competition and, therefore, a the Senate at the moment who can un- Maybe during the 1970s there was a massive buildout of broadband. Good derstand their telephone bill—not one. time we fell behind the Japanese in

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.033 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4459 certain areas. But this should be of give incentives to companies to invest would like to see done if we had a mor- concern to all of us. We should remove hundreds of millions of dollars to get atorium is have your Internet access any impediment or burden. I think the broadband high-speed Internet access bill be the way it is now. Whatever Senator from North Dakota and the to southwest Virginia or eastern Or- that amount is, it is simple. This chart Senators from Oregon and Virginia egon or northern Arizona, but we are shows your monthly bill of $23.90. If it agree that we have to change the regu- going to have to give even greater in- is broadband, the amount is probably latory scheme which has clearly not centives because we are going to have going to be in the thirties or forties. Of conformed with these advances in tech- to offset the taxes that are going to be course, we like to make sure there is nology. imposed on those ultimate consumers. competition whether it is wireless, I point out again, when Dick It is illogical and counterproductive to DSL, satellite, and a variety of other Notebaert said it costs him $124,000 and have taxes imposed on Internet access. areas. The Carper-Alexander approach X number of days to install a DSL line, For folks who are watching at home, would want that to be taxed. and a cable company can do it in 24 you may think you send e-mails across Guess what it would look like. The hours, something is wrong. Either one this country and those messages are Senator from North Dakota talked is wrong or the other. traveling over the Internet. Guess about how can we figure out these tele- But I argue that if I were a small what. You are right; they are. Here is phone bills, as there are multiple local businessperson and I saw looming the problem with our opponents’ pro- taxes, State taxes, Federal taxes. This ahead of me significant taxes on the posal. By the way, I wish the folks who chart shows a Verizon bill. Here we way I was conducting my business, I are on the side of taxing the Internet have gross receipts surcharge, relay would obviously give pause. Small were in the Chamber. Let’s vote on the center surcharge, such and such—all businesspeople have small margins. We amendments. The Senator from Texas, sorts of different taxes, Federal and all know that. That is always a factor Mrs. HUTCHISON, had an amendment State. in the decisions that are made. I think yesterday. We debated it, and we voted From the simplicity of your bill with we ought to remove that impediment on it. no added taxes, taxes on average 17 per- or certainly that cloud of concern that We had a cloture vote, and 11 people cent, they want to get into this situa- small business in America is consid- did not want to go to this bill. I wish tion. I say to my friends and anybody ering today. they were in this Chamber debating watching, there was a similar debate, I I thank my friend from Virginia for and advocating their ideas and let the suppose, 105 years ago, in this Senate. his patience. I yield the floor. Senators vote on them rather than de- They needed this money because we The PRESIDING OFFICER. The Sen- laying, dawdling, and freezing up this were in the midst of the Spanish-Amer- ator from Virginia is recognized. bill. ican War. They said: We need to put a Mr. ALLEN. Mr. President, it is an Our opponents say e-mails are not luxury tax on this newfangled idea interesting discussion we are having. Internet services, they are telephone called the telephone. So a luxury tax Actually, I think it is very important services because what they want to do was put on telephone service. for folks to understand the context of is apply telephone taxes to your Inter- Guess what. Whether you are in Vir- this and how important it is in our ef- net communications. ginia, North Dakota, Oregon, Hawaii, forts—Senator MCCAIN’s Senator The protax view is, if you happen to or anywhere in between in this coun- WYDEN’s, mine, and others. choose DSL for your Internet service, try, Americans, well over 100 years This debate is about protecting con- and you are unlucky enough to fall after that Spanish-American War, are sumers from taxes, taxes that would be into one of these taxing grandfathered still paying that Spanish-American burdensome and harmful. It is keeping, States, then the entire network from War luxury tax on telephone service. not taking necessarily, revenues away your computer to your friend’s e-mail The reason I say that is it gives us an from any State or local government, inbox on the other side of the country idea of how many different taxes there but making sure we don’t have them is taxable. are, but also a history lesson of how putting on additional taxes and costs, Telephone tax rates can run very hard it is and nearly impossible to ever thereby making access to the Internet, high. Here are some examples. This is remove a tax once a tax is imposed. and more particularly broadband, in not a proud moment for the Common- That is why it is so important that rural areas and small towns less afford- wealth of Virginia. Richmond, VA, 29, we act on this moratorium and prevent able. Everyone understands that if you almost 30-percent taxes on a telephone new States, additional States, local- tax something or something has a bill in Virginia. Texas has high taxes, ities, counties, and tax districts from higher cost, fewer people can afford it. too, 28.5 percent. This is the top 10. coming up with new taxes because if We are talking about bridging eco- Georgia is 19 percent. I am sure the you ever try to take them off, you will nomic digital divides. We are talking Presiding Officer is glad to see South hear all sorts of bleating and whining: about what Japan, South Korea, Singa- Carolina is not in the top 10. South Oh, gosh, you can’t take it off. Again, pore, Denmark, Sweden are doing, and Carolina actually ought to be ap- the prime example is this Spanish- how the U.S. is falling behind. plauded. South Carolina was one of the American War tax that still is on our One of the reasons the Internet has grandfathered States, allowing them to telephone bills. This is what Senator grown in this country is because the tax Internet access, but they said, no, MCCAIN, Senator WYDEN, and those of national policy for the last 6 years has it is harmful to South Carolina’s abil- us who are on the side of the con- been, don’t tax it. It is simple. A fourth ity to attract business, and they re- sumers and against taxing the Internet grader will understand the basic eco- moved that tax, as did Iowa, the Dis- are advocating. nomics that more people will be able to trict of Columbia, and Connecticut. Re- If you happen to choose a dial-up afford something if it doesn’t cost as gardless, this is the amount of taxes service, whether it is cable modem, or much. that are put on telephone services. however you get your Internet access, So the first rule of a national policy The opponents will say they are wor- our opponents will say you should be in making broadband available to all ried about telecommunications migrat- protected from taxation from, they people everywhere in this country is ing. They worry about telecommuni- say, ‘‘the last mile’’ leading up to your don’t tax it. That is simple and that is cations, telephone calls, migrating to house. But then say the Internet back- the basic effort of the leadership on the Internet with voice over IP. Sen- bone still should be taxable. this issue. ator MCCAIN’s amendment makes sure Let’s examine what this means. Let’s You can talk about incentives, and that issue is not disposed of in this bill. assume you live on Capitol Hill in the Senator from North Dakota talked The reality is, what they are advo- Washington, DC. I know for some about incentives. I have been in favor cating is having telephone taxes mi- watching on TV that would not be an of many of these incentives, and I grate onto your Internet access bill. appealing thought. Nonetheless, let’s think the Senator from Oregon has, the The Senator from North Dakota assume you do. Let’s assume you want- chairman of the Commerce Committee mentioned bills and how we try to fig- ed to send an e-mail to a friend in Los as well. But the point is, it seems so ure out these bills. What Senator Angeles, CA. Because of the way the counterproductive. We are going to WYDEN and Senator MCCAIN and I Internet operates, that e-mail message

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.036 S28PT1 S4460 CONGRESSIONAL RECORD — SENATE April 28, 2004 will be broken into various packets of in every local taxing jurisdiction, plus Yes, I yield to the Senator from data sent via various routes all across taxes directly will be on the consumer North Dakota. this country. in more than 20 States. The Alexander- The PRESIDING OFFICER (Ms. MUR- Let’s say one piece of your e-mail Carper amendment would create a KOWSKI). The Senator from North Da- goes from Washington, DC. It will prob- nightmare scenario our Founders kota. ably go into Loudoun County, VA, be- sought to avoid when they wrote the Mr. DORGAN. Madam President, I cause there is a good server there. It is Commerce clause of our Constitution agree with the last statement. I think going to go to Chicago, because in Chi- where every town and State would tax we ought to proceed and vote on issues cago they have a big Internet hub, then commercial traffic moving through its that are before us. I would like to get to Austin, TX, then to northern Cali- borders. to the conclusion of the bill, so I sup- fornia because they also have a huge We have 7,600 taxing jurisdictions in port that. hub there, and then on down to south- the United States. Not a single one of Looking at the Senator’s chart and ern California. those 7,600 taxing jurisdictions would listening to his discussion, we are not You begin to get a sense of all the ju- be prohibited from taxing the Internet so far apart on all of this. I do not dis- risdictions this e-mail passes through backbone under the Alexander-Carper agree with that which he has said with and the chaos that will result if they, proposal. In fact, the bill makes clear respect to much of his desire to prevent the tax proponents, claim to have au- America’s 7,600 taxing authorities can institutions of Government from com- thority over your e-mail. Obviously, tax e-mail in every jurisdiction in ing in and taking pieces of this and DC and Virginia would have an oppor- America as long as they present the taxing it, but I used an example last tunity to tax it, or maybe Loudoun bill to the Internet service provider in- year I want to use again to describe my County would tax it, going through stead of directly to the customer. In need to understand exactly what will parts of Ohio and Indiana, through Mis- the 20 to 30 States, depending on inter- be covered by the moratorium. souri, Arkansas, Oklahoma, Texas, and pretations of the new grandfather For example, if we decided to exempt probably, if you are assuming all these clauses, they can tax the consumer di- from taxation a loaf of bread because are direct lines, it may, for all you rectly. we decided bread is important to life know, go on up to Idaho and Oregon. Figure what is going to happen. If and we do not believe bread ever ought Regardless, all of those would claim ju- there is a 17-percent tax on this, who to be taxed, so we want to exempt a risdiction and authority over that e- knows, Ohio might have the 17-percent loaf of bread, we could have a morato- mail. tax, Illinois would have a 12-percent rium on the taxation of a loaf of bread This is a classic example of inter- tax, Texas would have 25 percent, New forever. The question will be, does that state commerce. Our Founders had a Mexico 12, Arizona, under the great in- extend then to the grocery store that concern about multiple burdens im- fluence of the senior Senator from Ari- buys the shelf to display the bread, be- posed by multiple governments and zona, would have 1 percent, Nevada cause they are probably going to have that is why our Founders put the Com- being a very free State in many re- to pay a use tax to the company they merce clause in the Constitution giving spects, and libertarian, would have buy the shelf from, and that use tax Congress, not unelected bureaucrats, zero. Then we get to California and San goes to the State and local govern- the authority and responsibility to Francisco which would have a high tax, ment. They are going to make the case make sure interstate commerce and say 28 percent, and then as it gets to there is a moratorium on the taxation the interests of all of the people are de- Los Angeles, it is back to 17-percent of bread. We actually pay a tax on the fended against potentially harmful bur- tax. shelves we are purchasing and that has dens imposed by State and local gov- The point is, every single one of to be passed along in the price of bread ernments to taxation. these would be able to tax it. So the so we believe the purchase of the Now, according to our opponents, the opponents will say we ought to be able shelves ought to be tax exempt as part folks who are advocating taxing the to tax this, but if one takes an airplane of this moratorium. backbone, which of the jurisdictions from Dulles Airport to Long Beach, say I am asking that question only to try would be free from taxation on this they flew Jet Blue from Dulles Airport to understand what the moratorium re- Internet backbone? None. None would to Long Beach, the Federal Govern- fers to with respect to the electronic be prohibited. All would be free to tax ment says a person is not going to be transmission. The electronic trans- interstate communications. Every sin- taxed as they fly over the country, but mission the Senator describes I under- gle State, every single city, county, that electronic message will be taxed if stand should be exempt. The question town, and municipality on this red line the Alexander-Carper amendment is, if that facility in Los Angeles the would have authority to tax; not just passes. Senator describes, or southern Cali- DC, not just Illinois, not just Texas, Indeed, if we want to use that anal- fornia, which is a facility that is an not just California, but all of them. ogy going from Dulles Airport in Internet hub and reroutes the e-mail Remember, our opponents have northern Virginia to Long Beach, CA, that is moving along the system, if promised everyone tax freedom for the the Federal Government recognized they are purchasing desks and things so-called last mile, which is the last that is interstate commerce. Decades in that facility for the purpose of fur- mile right here, which means people ago, the Federal Government said you thering this Internet transmission, may enjoy no taxation on the last mile cannot tax not only when you fly over should they be exempt? Will they be so they will have tax freedom there, a State but you cannot tax as you are exempt? Is that what the Senator in- but they have 3,000 miles of taxes if the leaving and you cannot tax those pas- tends with this definition? Alexander-Carper proposal is success- sengers at their destination when they I think as soon as we fully under- ful. I do not know if that sounds like arrive, either. stand all of this definition issue that is an Internet tax moratorium to my col- I ask my colleagues to say no to 3,000 being raised, the sooner we can move leagues. It certainly does not to me, miles of taxes, and say yes to a true forward and construct an appropriate because State and local governments, and accurate Internet tax moratorium. moratorium, which I will support. So I while they cannot tax the very begin- Mr. DORGAN. Will the Senator yield ask those questions of the Senator ning or the very end of an electronic for a question? from Virginia. connection, can tax everywhere in be- Mr. ALLEN. I ask my colleagues to Mr. ALLEN. I thank the Senator tween. They can tax from the end of act. I ask those who have amendments from North Dakota for his question. the beginning to the middle to the end to go forward with their amendments, We are not talking about a loaf of of the end before you get to the final let us debate them, let us decide today bread, and if we were talking about a end. The point is, they can tax every so we are not delayed, frozen up as it loaf of bread we would have a lot of other part of this 3,000-mile electronic happens from time to time in the Sen- people saying, gee, we rely on all the journey. ate with not enough time tomorrow taxes. If one looks at the cost of a loaf The Alexander-Carper alternative night because folks are scattering to go of bread—and I know the wheat farm- would allow for taxes on the Internet to various events and political func- ers in North Dakota say, Here is the backbone services in all 50 States and tions. price I get for wheat and think of what

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.039 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4461 the cost of it is, it is 3 cents out of the body has to get this routed electroni- water. Somehow, in this big chal- loaf of bread, and by the time everyone cally. So that routing of that elec- lenging Earth of ours, we ended up else does different things in packaging tronic e-mail, so to speak, or those right here right now. What a remark- and transport, there are all sorts of bits, should not be taxed. able thing for us. It is our time and our taxes on it, and it ends up being who It is looking at this message as being responsibility to nurture and protect knows what, $1.50 for a loaf of bread, or a car, an automobile. You could drive this democracy of ours. There is no maybe 79 cents if one is lucky and it is across this whole country on an inter- other democracy like it on the face of a few weeks old. Regardless, all of state that is a freeway. The Alexander- this Earth. At a time when our country those component parts increase the Carper amendment would turn that faces challenges, this country somehow cost of the loaf of bread to someone into a toll road. So you wouldn’t go provides leadership. who wants to put peanut butter and this way unless you were lost or taking The McCullough book about John jam on a sandwich for their young son some scenic route. But if you were Adams is interesting to me. John or daughter going to school. driving from Virginia to Tennessee, Adams traveled a lot, because he rep- So that economic argument applies you would take Interstate 40 probably, resented this new country they were to why we do not want to have a lot of across 81, but you can probably drive trying to put together, both in England taxes in between. The simple answer is that whole route, as I have and others and in France. He represented our in- we do not want the bandwidth being have, and not pay a toll. terests, and he would write back to taxed. Internet service providers have But if you have the Alexander-Carper Abigail. As he would write to Abigail, desks. Internet service providers have a amendment, that turns this whole he would lament in his letters to her: physical facility that is subject to thing into something akin to the New Who will provide leadership to put this property taxes and they have personal Jersey Turnpike, a toll road. Obvi- country of ours together? Where will property taxes on some of the acces- ously, once you get there it is going to leaders come from? Who will be lead- sories in that building. They have to cost you a whole lot more to get that ers? pay the corporate taxes as that cor- packet, that automobile, from Wash- Then he would plaintively say in his poration. If they are an Internet serv- ington, DC, to Los Angeles. letter: There is only us. There is just ice provider, if they have an income, I thank the Senator from North Da- only us. There is me. There is Jeffer- they have to pay a tax in that par- kota for his interest, his probing ques- son. There is George Washington. ticular State. The point is, though, tions that allowed me to clarify what There is Ben Franklin. There is Mason. that for the bandwidth, the actual we are trying to do. There is Madison. There is only us. In the rearview mirror of history, the transport, that should not be taxed. I conclude by saying to the oppo- I thank the Senator from North Da- nents, come forward; let’s get moving; ‘‘only us’’ represents some of the great- kota. I also recognize that while we do let’s get acting. I think it is vitally im- est talent ever gathered on the face of this Earth. not necessarily agree on this issue at portant to protect consumers from Thomas Jefferson: Have we seen an- this moment, I do appreciate that at these taxes. I think it is vitally impor- other? I don’t think so. George Wash- least when we wanted to proceed to tant to those who are looking to invest ington was a remarkable person. this measure you voted to proceed, un- in rural areas that they know what the So the questions John Adams asked— like the 11 who wanted to continue to policies of this country are, to recog- where will leadership come from, who freeze it. nize in what kind of market they will be the leaders—have been asked of Mr. DORGAN. If the Senator will might be in small towns and rural every generation. Somehow, through yield further for a question, I think I areas, and let’s get about expanding time, this country has been blessed by understand a bit more. I think I would economic opportunity, jobs, and pros- leaders who stepped forward and said, want to see a greater refinement of it. perity for all Americans everywhere in Let it be me. Let it be us. This country If the Senator is now saying the defini- this country. has been blessed with remarkable lead- tion that he believes is appropriate for I yield the floor. ership. this moratorium deals with the band- The PRESIDING OFFICER. The Sen- You can take over 200 years a period width or the spectrum that is used—es- ator from Georgia. of 5 years or 10 years in which you can sentially the bandwidth that moves Mr. MILLER. I ask unanimous con- suggest perhaps the leadership was less that packet of ones and zeros across sent I be allowed to speak up to 12 min- than it should have been at that time. the country in the form of an e-mail, utes as in morning time. But somehow the calling of this great but he is not talking about things The PRESIDING OFFICER. Without democracy to ordinary Americans who other than that—is that correct? objection, it is so ordered. have the capability to do extraordinary Mr. ALLEN. Right. There were a (The remarks of Mr. MILLER per- things has produced that leadership. It great deal of concerns, I think the Sen- taining to the introduction of S.J. Res. will, in my judgment, again also ator from North Dakota might recol- 35 are printed in today’s RECORD under strengthen and nurture our country. lect, in the Commerce Committee ‘‘Statements on Introduced Bills and I like the original thinking of those about what was exempt or what was Joint Resolutions.’’) who wrote our Constitution. I love the prohibited from taxation or what did The PRESIDING OFFICER. The Sen- Constitution. I think it is one of the the moratorium prohibit taxation ator from North Dakota. greatest documents ever written which upon. There were many concerns. They Mr. DORGAN. Madam President, I establishes the basis of our freedom— were generally handled, in my view, am prompted to comment on the inter- we the people. We have people here who adequately by the managers’ amend- esting, provocative, and controversial think it is a rough draft. I think we are ment that Senator MCCAIN had, that comments by my colleague from Geor- going to vote on three amendments to came out of the Finance Committee. gia. He knows I have long respected the Constitution in next couple of That made sure what was to be taxable him and was pleased when he arrived months in the Senate. It has only been and what was not taxable because here in the Senate. I have enjoyed amended 17 times in 2 centuries. Do there were concerns that somehow per- working with him. But I must say I you know why? Because there are not sonal property taxes, real estate taxes, don’t have quite so hopeless a notion many people who can improve upon the corporate taxes, income taxes, and so about our country or its future. I don’t work of George Washington, Ben forth, would be prohibited on compa- despair about what is happening in this Franklin, and Thomas Jefferson’s con- nies that are involved in providing country. I think we have incredible tribution to the Bill of Rights, for ex- Internet service. challenges to meet, and we must. We ample. Outside of the 10 amendments Our concern is making sure that have a big globe with 6 billion people called the Bill of Rights, we have whomever your Internet service pro- on it. One-half of them have never amended the Constitution only 17 vider is in Washington, DC, when you made a telephone call. One-half of times in 200 years. Yet we will, I guess, get to, say, Los Angeles and there is a them live on less than $2 a day. One vote on three of them here in just a slew of other Internet service providers hundred fifty million kids are not in matter of time because people think it there with a lot of competition, in be- school. One and one-half billion people is a rough draft and something that is tween they don’t own all of this. Some- don’t have access to clean, potable easily changed and easily improved.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.042 S28PT1 S4462 CONGRESSIONAL RECORD — SENATE April 28, 2004 It is the case I think which perhaps oppression of nazism and defeated Ad- Let me come back to where I started. causes some of the despair in some olph Hitler. We have done so much. We The only reason I was provoked to say quarters in this country, that there is built the atom. We spliced genes. We these things is my colleague gave a a kind of a crescendo of noise from cor- invented the silicon chip, plastics, speech this morning about something ners of America that aren’t very ap- radar, the telephone computer, the tel- which, as I sat and listened to it—look, pealing. evision set. We build airplanes; we fly I have great respect for my colleague I can tell a story which describes a them; we build rockets; we go to the from Georgia. His public service is ex- country in great trouble. I can tell that moon; and we are hardly out of breath. traordinary. I first knew about him story easily. We have roughly 10 mil- We cure smallpox. We cure polio. What when he was Governor of Georgia and lion Americans who do not have a job a remarkable place this is. We have he was talking about scholarships for today. They desperately want a job and two little vehicles crawling around the kids. I thought, what a great idea. Our their country’s economy hasn’t pro- surface of Mars analyzing rocks. Isn’t future is not people who wear dark vided them a job. There are 10 million that something? I must say, the pic- suits and suspenders who some people people who are out of work, and 30 mil- tures they got look very much like a consider windbags in the Senate; our lion to 40 million people are on food place 5 miles south of my hometown, future is kids. That is who will run this stamps. We are the murder capital of but apparently this is high science and country. I have great respect for the the world. We consume one-half the pretty remarkable. This is really a Senator from Georgia. world’s cocaine. What an ugly place. Or very special place. I wanted to say this: At a time when I can take up some person’s dysfunc- Is it the case that we face some pret- there is so much lament about Amer- tional behavior and hold it up to a ty big, daunting challenges? You bet ica, I have a great reservoir of hope for light, and say, Isn’t this ugly, and run your life we do. We have a fiscal policy the future of this country. This coun- it through about 10 talk show programs that is way out of whack. A few years try will prevail. I know, as I have trav- and have it on every morning show, ago everyone thought we would have eled around parts of the world, one ex- and say, Isn’t this ugly? Yes, it is ugly, surpluses forever. Now it looks like we ample comes to mind. I was on an but it is not America. It is not Amer- will have deficits forever. We have to Army helicopter once that ran out of ica. It is somebody’s ability and desire fix that. We cannot leave that to some- gas. I learned one of the immutable to try to entertain people with somebody else. That is our job. That is on laws of flying: When you are out of gas one else’s dysfunctional behavior. I can our shoulders. This President and this in a flying machine, you will land soon. give that speech and I hear it from Congress need to fix that. We landed in an area between Nica- time to time. Iraq, Afghanistan—this country rep- ragua and Honduras. I was with two However, there is another side to this resents the beacon of opportunity and other Members of Congress. When we country that gives me cause for great freedom around the world. We are in- landed, we were out of contact with hope and does not lead me to the con- volved. We got involved in Afghanistan anybody else. We landed in a clearing clusion that we ought to take away the because we are tracking al-Qaida and in kind of a jungle area between Nica- right of the American people to vote dealing with people who killed inno- ragua and Honduras, and campesinos for public officials. Let me describe cent Americans, and we need to deal from all around came to the helicopter. that, if I might. with that. We have American troops We were waiting to get rescued. We got There was a man named Stanley there, fighting and dying. We do not rescued in 4 or 5 hours. The campesinos Newberg who died in New York City. have a lot of options. We have to pre- had come up and I got to talking to Stanley Newberg is someone I did not vail and persevere and support those some people who had never seen any- know. I saw a paragraph, maybe two troops. We will. This is not the darkest one from our country. I was asking paragraphs about him in the New York of hours for our country. This is a questions. We had an interpreter with Times. It simply said this man had died great, strong, resilient country—within us. and then described something he had my judgment, a foundation of goodness Do you know what all of them said done. I asked my staff if we could find people around the world understand. they would like to do? They would like out a little more about him. Let me For a long, long time, if anything hap- to come to the United States of Amer- tell you about Stanley Newberg. pens around the world, who is there ica—all of them. We asked, What would He came to America with nothing, to first? Which country can be looked to you like? I would like to come to the escape the persecution of the Jews by to provide help, to say, you are not United States of America. I would like Nazis. His dad had nothing. He began to alone? This country. This country that for me, for my kids. We find that peddle fish on the Lower East Side of tackles issues other countries do not all over the world. Why? Because they New York. Stanley, beside his dad, even want to acknowledge. see this country as something unusual walked along the Lower East Side ped- We had women chaining themselves on the face of this Earth, something dling fish in New York City. They to the White House gate because they very unusual. That did not happen just made some money and did fairly well. were not allowed the right to vote. by accident. Stanley went to school, went to col- They said: We demand the right to I come to this Senate floor not be- lege. He got his college degree and vote. We dealt with that issue. The list cause I have a political pedigree or be- went to work for an aluminum com- is endless. We grapple with them. It is cause I come from a big reservoir of pany. He did so well he rose up to man- not easy. But we are the example of wealth; I come here because a Nor- age the company. He did so well man- representative self-government in this wegian immigrant came to this coun- aging, he decided to buy the company. world that works. It is messy. The try with her husband, and her husband He did very well, and then later he noise of democracy is annoying some- had a heart attack shortly thereafter. died. When Stanley died they opened times, but it works. She was left alone with six kids. She his will. In his will, this man left $5.7 Going back to John Adams’ lament took her six kids to a small rural area million, his estate, to the United to Abigail: where is the leadership, in in southwestern North Dakota and States of America. He said: With grati- my judgment, every generation of started a farm. She pitched a tent, she tude for the privilege of living in this Americans has seen leadership emerge built a house, raised a family, and ran great country, with gratitude for the and develop to lead this great country a family farm in Hettinger County, ND. privilege of living in this great country in times of trouble. That will always be She had a son who had a daughter who of ours. I thought, what a wonderful the case because this is a special coun- had me. That is how I got here. And thing, to understand what others see. try, and we do have people who are virtually everyone here has a similar If we did not have immigration laws, willing and able. Right now, there is story about perseverance, strength, this place would be full, just plain full. someone running for the Senate some- faith, and hope—almost always about We have folks from all around the place in this country whose name I per- hope. world who want to come and live in haps do not know who likely will be a Let me conclude by saying while we this country. Why? It is a beacon of President some day. Why? Because face many challenges, I have great hope and opportunity. they have a passion in their heart and hope that, yes, the talents of the Sen- We survived the Civil War. We beat their gut to serve this country and ator from Georgia—unique talents, ex- back a depression. We beat back the want to do right by this country. traordinary talents—and the talents of

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.044 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4463 so many others with whom I have had the Third Circuit for a number of to the McCain amendment. Senator the ability to serve in this Chamber years, now retired, in his seventies, a MCCAIN has sought to find a com- and in the House of Representatives, fellow whose health is apparently not promise on the Internet tax legislation. and also other venues of public service good. I probably should not say this. He Let me back up for a moment and in this country, give this country a takes chemotherapy, so I think his talk about it, if I can. When Senator better opportunity for a better future. health is not good. But he is in his sev- VOINOVICH and I were Governors of our I have had several other opportuni- enties and an age where he is retired respective States, we worked with the ties to work in different environments. and he does not have to work. But he Congress—House and Senate Demo- I don’t know that I have ever worked has been drawn, by Senator SPECTER, crats and Republicans—and encouraged with a more talented group of people into trying to mediate the differences then-President Clinton to sign legisla- than the men and women, Republicans between organized labor and the trial tion that said the Federal Government and Democrats, with whom I have bar and the insurance companies and ought not tell the States to spend served in the Senate. They are extraor- the defendant companies to see if we money on something and not provide dinary people who come to the call for cannot come up with a better way to that money. The Federal Government public service. I salute them and say I make sure people who are sick and should not undercut the revenue base have great reservoir of hope for the fu- dying from asbestos exposure get the of State and local governments with- ture of this country. help they need, and to make sure peo- out making up the difference. In 1998, the Congress passed a little I yield the floor. ple who are not sick but have been ex- bitty unfunded mandate that said The PRESIDING OFFICER. The Sen- posed—but they get sick—that we help States could not tax access to the ator from Delaware. them, too; and for folks who are not Internet. If you were already doing it, Mr. CARPER. Madam President, I sick, who have exposure, to make sure you could continue to derive your tax, was watching the debate earlier that they get their medical costs paid and if you are a State or local government, dealt with the Internet tax, and I felt try to reduce outlays from the settle- it important to explain clearly where and tax access to the Internet. But the ments that occur so the money goes to States could not have multiple taxes; Senators ALEXANDER, VOINOVICH, ENZI, the people who need the help, not nec- they could not have discriminatory Senator DORGAN, and I are on this essarily to their attorneys. taxes on the Internet. That was the issue. Judge Becker is here today in Wash- legislation passed in 1998 and extended Before I do that, I am compelled to ington. He lives in Pennsylvania, but in 2001, and that moratorium lapsed comment on a bit of what Senator DOR- he is here today. He was here yester- last fall, as we know. GAN has said. I missed most of my col- day. He was here the day before. He is Since that time, States have not league ZELL MILLER’s comments, but I leading a mediation that has been jumped in to pass new taxes on access heard all of what Senator DORGAN said. anointed, embraced by our leaders— to the Internet. They have not passed I am one of those guys who are prob- Bill Frist on the Republican side, the discriminatory taxes or multiple taxes ably like him, who see this glass as al- majority leader, and Tom Daschle on with respect to the Internet. They have most full; but even if it were almost our side, the Democratic leader. been sort of sitting back biding their empty, I tend to see it as half full. As I speak right now, Judge Becker is time, waiting to see what we would do. We were here about a week or so ago holding forth, meeting, listening, ask- I think there are four areas of con- debating what to do with respect to the ing questions, probing, trying to move tention that exist with respect to the situation we face in this country with the disparate forces to a consensus. I proposal that Senator MCCAIN has of- asbestos. We all heard the stories that joined him for a little while over in the fered. One is the definition of what is there are people who are sick and dying Hart Building earlier today and said to tax exempt under any moratorium we from asbestos exposure and not getting Judge Becker: My job, I get paid to try negotiate. On our side, Senators ALEX- the help they need. There are folks who to build a consensus on difficult issues. ANDER, VOINOVICH, ENZI, myself, and may have been exposed to asbestos, and That is part of what we do in the Sen- others believe the existing moratorium they are taking away money from the ate. actually nails it pretty well, and the folks who ought to be getting it, who That is not Judge Becker’s job. He is idea that folks should not have to pay are sick and dying. retired. He ought to be somewhere tak- a tax on accessing the Internet on their In the meantime, in the settlements ing life easier, and yet he is here. He AOL bills, if you will. Whether they ac- that are taking place, in relation to paid his way down on the train today. cess their e-mail, their Internet by the transaction costs, the legal fees, He did the same thing yesterday. He cable, by DSL, or by wireless, we think maybe half the settlements go for legal pays for his own meals, his own lodg- folks should not have to pay that kind fees. That is a situation we face. It is ing. He does it out of the goodness of of tax. not a good situation. We all know we his heart because he thinks it needs to We do not believe folks should have ought to do something about it. The be done. to pay multiple taxes by different lev- tough thing is trying to figure out I raise that just to say that every els of government on the Internet. We what. day, in some corner of this Capitol, believe there should not be discrimina- We have the insurance industry in somebody is trying to make this place tory taxes on purchases, for example, one corner, the manufacturers and the work. In this case, it is Judge Becker. that are made over the Internet. defendants in another corner, the trial There are other people of good will who But we have a clear difference of bar in another corner, and organized are in that room with him trying to opinion with respect to defining what labor, which is a proxy for victims, in get through a tough patch and to help is to be tax exempt—free from tax- yet another corner. us find a way to a more rational, log- ation—by State and local governments. Last week, we voted not to proceed ical, fair way to help people who have Our friends on the other side are inter- to the bill that Senator FRIST had in- been exposed to asbestos. ested in doing a whole lot more than troduced. Some of us thought it was We voted last week not to go to the stopping access fees that we pay as premature, given the negotiations that bill. I know some people were not consumers. We don’t want anybody to have been underway for the last couple happy with that vote, but we simply pay those either. months, trying to narrow our dif- believed it was not time to go to the They want to go well beyond the ferences on asbestos litigation reform. bill, given this mediation process. We moratorium against multiple fees on As a result, I think 47 of us voted not urged our leaders to embrace that proc- use of the Internet. They want to go to proceed to the bill. We did not pro- ess, and they have done that. I am en- beyond discriminatory taxes. What ceed to the bill. couraged—out of that embracing of they want to do, really, is take away But a very good thing has happened that mediation process, and the infu- from States and local governments the subsequent to that. The very good sion of leadership authority to it—that ability, if States want to, to impose thing is, the negotiations, the medi- something good will come of these ne- business-to-business transaction taxes ation led by a retired Federal judge gotiations. that might involve the Internet. I am from Pennsylvania, a fellow named Mr. President, we will have an oppor- not interested in taxing those as a Fed- Becker, who had been the chief judge of tunity to vote tomorrow on proceeding eral legislator, but I don’t know that it

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.047 S28PT1 S4464 CONGRESSIONAL RECORD — SENATE April 28, 2004 is our part, as Federal legislators, to important that we hold the States rolling in money up in Alaska any say to State and local governments harmless. If I can just take a minute or more than they are in California. that they can’t do that unless we are 2, I want to share part of this. If States were rolling in money, Sen- willing to make up the revenue short- Our States are clearly facing ex- ator ALEXANDER and myself, Senators fall that may come as a result. tremely difficult times. We all know VOINOVICH, ENZI, HUTCHISON, and others So the four areas of difference: One is that. States have cut services and would not be making this big fuss over the definition of what is tax exempt raised taxes over the last 3 years as what we believe is an unfunded man- under the moratorium we adopt. A sec- they have scrambled to fill a budget date for State and local governments ond area of difference that we have is shortfall that approaches $250 billion. that is represented by S. 150 and, we be- with respect to the duration of the Many States still face significant rev- lieve, by the alternative offered by moratorium that we might extend. I enue shortfalls. California alone must Senator MCCAIN. If the States were said earlier, the first moratorium we fill an estimated $16 billion shortfall. rolling in money, we wouldn’t be doing passed was 3 years in duration from New York faces a $4 billion shortfall. this. If we were providing some kind of 1998 to 2001. At that time, Congress Both Michigan and Florida still have offset to the revenues that State and passed, almost unanimously, a further projected deficits of $1 billion. Some local governments would lose, we 2-year extension of that moratorium States are being forced to make cuts wouldn’t be making a big fight about it that lasted until last fall. Now that that are not only painful and unpopu- either. If States could be held harm- moratorium has lapsed. lar but which ultimately undermine I think we have seen suggestions in less, we could probably work our way our efforts as part of welfare reform to through this. Maybe we ought to. I be- S. 150, introduced by Senator ALLEN make work pay. Some 34 States have lieve we should. and Senator WYDEN, that they wanted adopted cuts that are causing any- One thing I know for sure, there is to make the moratorium permanent, where from 1.2 million to 1.6 million agreement to extend the moratorium. I an extension of the moratorium not 2 low-income people to lose their health think if we were to vote on a simple 2- years, not 3 years, but to make it per- insurance. Alabama, Colorado, Mary- year extension of the moratorium that manent. They define very broadly what land, Montana, and Utah have all expired last November, there would is to be exempt from taxation under stopped enrolling children in their chil- probably be votes to pass that. that permanent moratorium, even if it dren’s health insurance programs. cuts into the revenue bases of State Florida has done the same and has I am concerned about the vote on clo- and local governments, and even if we built up a waiting list of more than ture tomorrow on the McCain proposal. do not make up the shortfall they may 10,000 children. I urge my colleagues not to vote for it. then face. So the second area of con- Meanwhile, Connecticut is cutting Last week I urged my colleagues not to tention is the duration of the morato- coverage for more than 20,000 parents, vote to proceed to the bill on asbestos rium. and Georgia is cutting coverage for that Senator FRIST had introduced, not The third area of contention deals 20,000 pregnant women and children. In because I was not interested in getting with whether we should grandfather in Texas, the State is actually ending a conclusion or consensus. I believed the rights of State and local govern- coverage entirely for nearly 160,000 that by not bringing the bill to the ments, so if they have already put in children and working families. floor, it actually increased the likeli- place some kind of tax on the Internet, Besides health care, childcare is also hood that we are going to get con- our previous moratoriums grand- on the chopping block. Some 23 States sensus on asbestos litigation reform. fathered them in, protected them, for a have cut back on childcare for working We are moving in that direction, and I period of time, from losing those reve- families. Florida, for example, has am encouraged that we are on the right nues. It held them harmless, if you more than 48,000 children on a waiting track. will. And the question is, if we go for- list for childcare. Under the State’s ward and we have a grandfather clause I believe if we go to the McCain bill formula they are actually eligible, but to protect the States that already have tomorrow, we would be acting pre- imposed some kind of tax measure, how they are not able to get it given the maturely. There are still negotiations long do we extend that grandfather State’s fiscal challenges. Reducing the that can take place and should take clause for those State and local govern- waiting list is not even an option. I am place around the four elements I dis- ments that are going to be deprived of told the budget in Florida is moving cussed. If we are forced to take up the revenues they currently collect, and through the statehouse and they have bill at that point in time, we foreclose that we are not prepared to make up? cut childcare even more, by another $40 what could come out of those discus- The suggestion has come forward, in million. sions, some of which have borne fruit Senator MCCAIN’s proposal earlier this Tennessee faces similar cuts. Ten- already, some which still could. week—maybe yesterday—that there nessee has begun declining applications There are a number of Senators on should be a grandfather clause to hold for childcare from all families who are my side who want to offer amendments the States harmless for a while but not not actually receiving welfare pay- of their own. It is ironic. We have on for as long as the duration of the mora- ments. the one hand people on the other side Altogether, in about half of all torium. And that is problematic. of this issue—from Senators ALEX- States, low-income families who are el- The fourth area of contention deals ANDER, VOINOVICH, ENZI, and myself— igible for or in need of childcare assist- with the application of the moratorium who contend that they want to support ance are either not allowed to apply or to what I would describe as traditional the telecom industry. I believe in their are placed on waiting lists. In Cali- taxable voice communications, taxable hearts they want to promote the indus- fornia alone, over a quarter of a mil- by State and local governments, but try. It is a good industry with good lion kids, 280,000 children, are on wait- the application of the moratorium to people. But there are also folks on our ing lists in that one State. those traditional taxable voice commu- side and on the Republican side who I won’t go on. The point I am trying nications when those communications have a whole bunch of ideas they would to make is just a reminder. States face are routed over the Internet. It is like to present and to offer as amend- terribly difficult choices these days, called VOIP. ments. I will mention a few that might whether it is health care, childcare, Is it possible to bridge our differences be appropriate. on those four areas? It may or may not size of the classrooms, or the ability to be. But having clearly defined them, hire teachers and to pay them what If we want to help the industry build our side is certainly willing to discuss they need to attract good math and a market broadband network, there are them with those who have a different science teachers. States are in a bind. I any number of viable options. Senator view of these issues than we do. One was Governor in the good years, from HOLLINGS has introduced legislation, thing we all agree on is, whatever we 1993 to 2001, when we were rolling in with a number of cosponsors, that do, we should try to hold the States money. The States are not rolling in would provide block grants to support harmless. money anymore. State and local broadband initiatives. Somewhere in my talking points The father of the Presiding Officer is Senator DORGAN, the floor manager today, I have a discussion of why it is Governor. He will tell us they are not on our side, has legislation to make

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.050 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4465 low-interest loans available to coun- Ms. MURKOWSKI. Madam President, we have, the less we have to spend on tries who would deploy broadband tech- I ask unanimous consent that the order energy, the stronger an economy we nology in rural areas. Senator ROCKE- for the quorum call be rescinded. have. FELLER has introduced legislation, with The PRESIDING OFFICER (Mrs. But it is not just the residential cus- 65 cosponsors, to provide tax credits for DOLE). Without objection, it is so or- tomers in America who are suffering companies investing in broadband dered. from these sustained high natural gas equipment. Senator BURNS of Montana Ms. MURKOWSKI. Madam President, prices. It is our industrial consumers has legislation that would allow the ex- I would like to take a little time this who rely on natural gas to produce the pensing of broadband equipment. Sen- afternoon to talk about one of the petrochemicals, the fertilizers, and ator BOXER has legislation that allo- pending amendments. This would be other goods. They are losing their mar- cates the additional spectrum for unli- the amendment of the Senator from kets to foreign competitors who have censed use by wireless broadband de- New Mexico regarding energy. It has access to less expensive reserves of gas. vices. Senator CLINTON and others have been said on this floor and in the com- Whether I am sitting in the Energy legislation. mittees in which I have been partici- Committee or the EPW, talking about To the extent that we vote for clo- pating, and no doubt it is going to be what is happening across the country ture tomorrow on the McCain proposal, said again: At a time when the Amer- now, whether it is on our farms or many, if not all, of these proposals will ican economy is suffering under the whether it is AMAZON.Com not being not be made in order, even though they weight of high energy prices such as able to produce the packaging bubbles are germane and they relate to the the steadily increasing natural gas domestically because of the high price issue. These amendments and, frankly, prices, record high gasoline prices as of natural gas, it affects all of us in all a lot of others like them could not be we go into the summer months, and the industries. offered. tight international oil markets result- In many instances we are hearing I am not suggesting that all of them ing in rising crude oil prices, it is time about the companies that are laying off should be offered, but some of them that the Congress act on issues as they workers, closing their factories, be- should. Members who have a strong in- relate to energy with a comprehensive cause they simply cannot pay the cur- terest and have worked on the issues national energy policy. rent natural gas prices and remain for a long time deserve that right. I am pleased the Senate is reconsid- competitive within the global market- They believe strongly. ering this vital national policy. I com- place. The layoffs affect thousands of As my collegues think about tomor- mend Chairman DOMENICI for his lead- workers in many regions of the coun- row’s cloture votes, I realize this bill ership on this issue. The Senator from try. has gotten off track. What somehow New Mexico has shown a great deal of Look at what Alaska’s natural gas started off as an Internet tax bill and willingness to find the middle ground can do. We are a long way from the rest figuring out how we can extend the on many of these issues addressed in of the 48, but with a pipeline getting moratorium and then paying a user fee the amendment. I believe we should our reserves of natural gas into the for access to the Internet got off on an- work with him to enact this com- lower 48, we can meet that supply need; other side rail on energy policy, eth- prehensive energy legislation. we can help to reopen these factories. anol, and a number of other things. I There are several different compo- Natural gas is not only a vital feed- think Senator DOMENICI has introduced nents to the amendment. Certainly the stock for industry and home heating, it as an amendment the entire Energy one I happen to focus on most, coming also serves as a major fuel for elec- bill. Eventually, I hope we will work from Alaska, is that area which will tricity production. By the year 2020, our way through that. In the mean- help facilitate the construction of an the Energy Information Agency has time, I hope we will use the hours Alaska natural gas pipeline. Construc- predicted that natural gas will account ahead and maybe the next couple of tion of this pipeline means a great deal for 32 percent of all electricity genera- days to join in a negotiation with our to the people in my State. It means not tion. When we think back to the situa- colleagues on the other side of this only jobs for Alaskans, but it means tion just last August in the Northeast, issue and try, maybe one last time, to energy, natural gas, to my State. California’s power problems 3 years see if there is someplace in between But we have to look beyond just what ago, increasing the investment require- where we are and where they are. it can provide to Alaska. The construc- ments for our Nation’s electrical grid In the end, if there is a push for the tion of a natural gas pipeline will cre- and production capability will only fur- approach Senator ALEXANDER and I in- ate thousands of jobs throughout the ther the demand for natural gas as troduced, which is the straight-ahead, United States and bring a much needed plant operators look to natural gas as 2-year extension of the moratorium, to new supply of domestically produced having lower capital costs, higher fuel make sure it is not biased against DSL, natural gas to our starved lower 48 efficiency, shorter construction lead we can just have that vote. We are not times, and lower emissions as com- there yet. We have about 24 hours to markets. We have seen in the news recently pared to traditional coal-fired elec- consider it, and maybe cooler heads the suggestion, coming from Mr. trical plants. will prevail. If it comes to it, I will Greenspan, that the future, if you will, Yet with all of these facts in front of vote against cloture, not because I am is in imported LNG. Once again, it is us, recognizing that the residential not interested in finding a solution—I consumer is paying more, that the in- think we can. The time just may not be the emphasis that we should place in dustrial consumer is paying more, and right. It could be close. the national energy policy on domestic With that, I yield the floor. sources of energy. We have those do- businesses are being closed, recog- The PRESIDING OFFICER. The Sen- mestic reserves in Alaska, as it relates nizing the future as it relates to elec- ator from Nevada is recognized. to natural gas. Let’s take advantage of tricity production, and considering the Mr. REID. Madam President, I ask that. President’s request, if you will, that we the Chair to make an inquiry to the Residential natural gas customers move to a hydrogen-based society, the leadership as to whether it would be are paying nearly historic high costs to request he made in his State of the appropriate for us to recess at about heat their homes, to cool their homes, Union Address last year when he indi- 2:55 until about 4:05. The Secretary of to keep the lights on. Americans are cated he wanted children who were Defense will be here. With the par- increasingly forced to spend a substan- born today to be driving vehicles pow- liamentary situation we find ourselves tial portion of their household income ered by hydrogen—it is wonderful, but in on the Senate floor, it would be ap- on energy costs. A reasonably priced we have to have the natural gas to as- preciated if the Chair would check that supply of natural gas will allow home- sist with all of this. out through the leadership. owners to devote a greater portion of Despite all of Alaska’s proven re- I suggest the absence of a quorum. their disposable income to other pur- serves, 35 trillion cubic feet of proven The PRESIDING OFFICER. The suits. reserves on the North Slope with the clerk will call the roll. When you think about the state of possibility of upwards of 100 trillion The assistant legislative clerk pro- the economy and what we spend on en- cubic feet still in the ground, we need ceeded to call the roll. ergy, the more disposable income that to do all we can to bring that from

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.052 S28PT1 S4466 CONGRESSIONAL RECORD — SENATE April 28, 2004 Alaska’s North Slope to the rest of the thousands of jobs throughout the coun- finishes. In fact, the President pro tem- country. try. As I said on many occasions, the pore has arrived. Senator DOMENICI’s amendment is Energy bill is a jobs bill. So is this I yield the floor to the Senator from not all about natural gas. For elec- amendment. Alaska until he finishes. tricity, about which many of my col- I commend the Senator from New f leagues have spent a great deal of time Mexico for offering this amendment. I PRAISE FOR MILITARY MEDICAL talking on the floor, the amendment know my constituents in Alaska don’t COMMUNITY ensures reliable and affordable elec- care whether this bill is enacted as an tricity for America. amendment or as a stand-alone bill. My Mr. STEVENS. Madam President, the We all recognize that we in Congress constituents want to see the jobs. My Senator is very kind, and I thank the must address the issue of reliability. constituents want to see the energy, Senator from Tennessee. The amendment would prohibit oner- they want to see the natural gas, and Madam President, I come to the floor ous Federal manipulation of energy they want to see movement on an en- today to inform the Senate of the out- trading markets that cost consumers ergy policy. I think most Americans standing commitment, courage, and professionalism of our military med- money, and it would increase the pen- want the same thing. They want high- ical community. This morning, the alties for market manipulation and en- paying jobs. They want decreased vola- Senator from Hawaii and I cochaired a hance consumer protections. tility in the energy market. They want hearing with the Surgeons General and To those of my colleagues who have increased use of renewable energy and the chiefs of the Nursing Corps from called on the Senate to address the improved electricity grids. I think we each branch of the Armed Forces. We electricity issue, the reliability issue, I have that within this amendment. were joined by Army Surgeon General say support Senator DOMENICI’s pro- I urge my colleagues as we move for- James Peake, Navy Surgeon General posal. ward to support the amendment of the Michael Cowan, and Air Force Surgeon For coal, which is used to produce 50 Senator from New Mexico. General George Taylor. From the Serv- percent of our Nation’s electricity, the I thank the Chair. I yield the floor. I ice Nursing Corps, we heard from Army amendment authorizes $2 billion to suggest the absence of a quorum. COL Deborah Gustke, Navy ADM fund the Clean Coal Power Initiative. The PRESIDING OFFICER. The Nancy Lescavage, and Air Force GEN The development of clean coal tech- clerk will call the roll. nology will help our Nation use its Barbara Brannon. The bill clerk proceeded to call the I want the Senate to note and person- abundant coal resources in an environ- roll. ally thank each of our witnesses today mentally responsible manner. Mr. MCCAIN. Madam President, I ask for the outstanding leadership they In Alaska, we are working to find unanimous consent that the order for provided to our military medical com- new ways to use our very abundant re- the quorum call be rescinded. munity. Their individual accomplish- serves while mitigating the impact on The PRESIDING OFFICER. Without ments are numerous. our environment. We have a little objection, it is so ordered. I offer a special recognition to Sur- place called Healy, AK, where we have f geons General Peake and Cowan, who a small experimental clean coal plant. MORNING BUSINESS will be retiring from Active Duty this This clean coal plant is currently sit- year. We greatly appreciate their serv- ting dormant. It just barely missed its Mr. MCCAIN. Madam President, I ask ice in military medicine, to our Nation, emissions requirement. We were at- unanimous consent at this time the and especially their assistance to the tempting to utilize new technology to Senate proceed as if in morning busi- Appropriations Subcommittee on De- again provide very necessary energy to ness until 2:55, and the Senate will re- fense. The insight they provided to the an area that was very limited in what cess for approximately 1 hour because subcommittee is invaluable. I con- it could receive and what it could gen- Secretary Rumsfeld will be briefing gratulate each one of them on a suc- erate. Once the Healy clean coal plant Members in room 407. I amend my cessful and distinguished career. and other clean coal technologies dem- unanimous consent request that the During today’s hearing, the members onstrate better ways for us to generate Senate reconvene at 4 p.m. today. of the committee and I were told of electricity from coal, we can utilize Mr. REID. If the Senator would mod- outstanding accomplishments by our our Nation’s vast coal resources in an ify his request, at that time we come military medical leaders. I have come environmentally responsible manner back on the bill. to the Senate to share some of what we for many years to come, as well as pro- Mr. MCCAIN. Return to consideration learned today with my colleagues. vide high-paying jobs and much needed of the McCain substitute. Over the last year, our thoughts have electricity. Mr. REID. Reserving the right to ob- never been far from the battlefields, or There is also renewable energy. For ject, I appreciate very much the re- from the soldiers and families who renewable energy, the amendment request of the Senator from Arizona. It is have sacrificed so much for our Nation. authorizes the Renewable Energy Pro- appropriate. By 4 o’clock we will know I salute our brave soldiers, sailors, air- duction Incentive Program to promote what position we are in on both sides. men, and marines for their efforts in the use of clean renewable energy. The The PRESIDING OFFICER. Without the war on terrorism. I join the fami- amendment would also encourage ex- objection, it is so ordered. lies of our lost sons and daughters in ploration and development of geo- Mr. REID. I suggest the absence of a mourning and remembering those who thermal energy, including a call for quorum. made the ultimate sacrifice in the de- rulemaking on a new royalty structure The PRESIDING OFFICER. The fense of freedom. that encourages new production. clerk will call the roll. I have seen many headlines about the I could go further in detailing all The bill clerk proceeded to call the casualties of the war, but the accom- those very important matters con- roll. plishments of our military doctors, tained in the energy amendment, but I Mr. ALEXANDER. Madam President, nurses, and corpsmen are seldom men- think these four examples—authorizing I ask unanimous consent that the order tioned. These health care professionals the Alaska natural gas pipeline, im- for the quorum call be rescinded. were among the first to rush to the proving our Nation’s electricity grid, The PRESIDING OFFICER. Without battlefield, and they are still on the providing research on clean coal tech- objection, it is so ordered. front lines providing care in some of nology, and promoting the use of clean Mr. ALEXANDER. Madam President, the most dangerous and difficult condi- renewable energy—illustrate the im- I ask unanimous consent I be allowed tions. mense benefits of a comprehensive en- to speak as in morning business. Today our combat medics regularly ergy policy. They are great, but they The PRESIDING OFFICER. The Sen- perform miracles. They use trans- are meaningless to us unless we enact ator has that right. formational technology to successfully them. Mr. ALEXANDER. I understand the expand the ‘‘golden hour’’ of trauma A comprehensive national energy President pro tempore may be coming care, the critical hour of opportunity policy, as envisioned in Senator to the Senate floor. If he appears, I will from when a trauma is sustained and DOMENICI’s amendment, will generate yield to him and pick back up when he the lives can be most often saved.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.056 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4467 One telling statistic is the lowest threats. Among these military health THE LASTING WOUNDS OF WAR ‘‘died of wounds rate’’ in recorded his- professionals are nationally recognized (By Karl Vick) tory of warfare. experts in chemical, biological, radio- BAGHDAD.—The soldiers were lifted into A number of factors have contributed logical, and nuclear threats. Their ex- the helicopters under a moonless sky, their to this accomplishment, but the mobile pertise ranges from medical surveil- bandaged heads grossly swollen by trauma, surgical teams have been crucial. They lance and epidemiology to casualty their forms silhouetted by the glow from the bring resuscitative surgical care onto management. Chemical, biological, ra- row of medical monitors laid out across their the battlefield. Without the care they bodies, from ankle to neck. diological, and nuclear training has An orange screen atop the feet registered get within the ‘‘golden hour’’ after been incorporated into the soldiers’ blood pressure and heart rate. The blue being wounded, the 15 to 20 percent of common skills training, advanced indi- screen at the knees announced the level of wounded soldiers they target would vidual training, and leadership courses. postoperative pressure on the brain. On the probably die while being evacuated to Our health professionals also con- stomach, a small gray readout recorded the the combat support hospital. sider the mental health of our troops level of medicine pumping into the body. These surgical teams are specially to be a top priority. In July 2003, a And the slender plastic box atop the chest equipped to deal with excessive hem- team of mental health experts from signaled that a respirator still breathed for orrhaging, which has been the major the lungs under it. treatment facilities around the Nation At the door to the busiest hospital in Iraq, cause of death in previous conflicts. left for Iraq. Their mission was to as- a wiry doctor bent over the worst-looking One of the transformational tech- sess mental health issues and address case, an Army gunner with coarse stitches nologies employed by these surgical concerns about a spike in the number holding his scalp together and a bolt pro- units is a hand-held ultrasound ma- of suicides occurring in the theater of truding from the top of his head. Lt. Col. Jeff chine used to identify internal bleed- operation. These professionals evalu- Poffenbarger checked a number on the blue ing, a truly lifesaving piece of equip- ated the mental health patient flow screen, announced it dangerously high and ment. quickly pushed a clear liquid through a sy- from theaters and assessed the stress- ringe into the gunner’s bloodstream. The Other technologies the medics have related issues soldiers experienced in employed include haemostatic number fell like a rock. combat operations. ‘‘We’re just preparing for something a dressings and the chitosen bandage. The survey team remained in the brain-injured person should not do two days These are two new lifesaving wound theater for 6 weeks and traveled to sev- out, which is travel to Germany,’’ the neu- dressings that are being used in Iraq eral base camps. I am told this is the rologist said. He smiled grimly and started and Afghanistan. first time a mental health assessment toward the UH–60 Black Hawk thwump- Approximately 1,200 haemostatic team has ever conducted a mental thwumping out on the helipad, waiting to dressings have been deployed under an spirit out of Iraq one more of the hundreds of health survey with soldiers in an active Americans wounded here this month. investigational new drug battlefield combat environment. protocol. In one account we learned of While attention remains riveted on the ris- While many of the medical providers ing count of Americans killed in action— today, the dressing was successfully are deployed in the support of contin- more than 100 so far in April—doctors at the applied to a thigh wound to completely gency operations, the military health main combat support hospital in Iraq are control arterial bleeding when a pres- system continues to provide out- reeling from a stream of young soldiers with sure dressing and tourniquet proved standing care to service members, their wounds so devastating that they probably unsuccessful. There are two similar re- would have been fatal in any previous war. families, and our retirees here at home. ports of special forces medics using More and more in Iraq, combat surgeons These professionals never waiver in chitosen bandages to treat severe say, the wounds involve severe damage to their commitment to the highest qual- bleeding caused by gunshot wounds to the head and eyes—injuries that leave sol- ity of health care for our beneficiaries. diers brain damaged or blind, or both, and the extremities. Approximately 5,800 of the doctors who see them first struggling these chitosen bandages have been de- The caregivers here at home also provide rehabilitative care to our troops against despair. ployed to the theater of operations. For months the gravest wounds have been These are just a few of the examples after returning from combat. Perhaps caused by roadside bombs—improvised explo- of military medics using revolutionary the best example is the amputee center sives that negate the protection of Kevlar medical technologies to lead the way at Walter Reed Army Medical Hospital, helmets by blowing shrapnel and dirt upward in trauma treatment, lead the way in which provides state-of-the-art care to into the face. In addition, firefights with saving lives. Military researchers con- service members who have lost limbs guerrillas have surged recently, causing a in battle. The center aims to return sharp rise in gunshot wounds to the only tinue to investigate numerous other vital area not protected by body armor. cutting-edge technologies, and those each amputee to the highest level of performance and quality of life. I have The neurosurgeons at the 31st Combat Sup- efforts are the foundation for the fu- port Hospital measure the damage in the ture of medical health care while in personally visited with wounded sol- number of skulls they remove to get to the the service. Many of these same tech- diers at the center, and I can tell you injured brain inside, a procedure known as a nologies will likely be used someday in they are achieving their goal. craniotomy. ‘‘We’ve done more in 8 weeks civilian trauma centers across our I have come to the Chamber to com- than the previous neurosurgery team did in country. mend our military health care profes- 8 months,’’ Poffenbarger said. ‘‘So there’s Aeromedical and ground evacuation sionals who have served with distinc- been a change in the intensity level of the war.’’ crews, operating from Blackhawk heli- tion throughout the global war on terrorism. Their dedication and commit- Numbers tell part of the story. So far in copters, a variety of fixed-wing air- April, more than 900 soldiers and Marines craft, and ground evacuation vehicles, ment to their fellow service members have been wounded in Iraq, more than twice such as the Stryker, have also per- is unmistakable, and their service is the number wounded in October, the pre- formed exceptionally during operations responsible for saving countless lives, vious high. With the tally still climbing, this in Iraq and Afghanistan. The crews both of our American service members month’s injuries account for about a quarter have demonstrated an ability to swoop and injured Iraqis. We are truly grate- of the 3,864 U.S. servicemen and women list- into a hostile environment and pull ful for their service. ed as wounded in action since the March 2003 I ask the whole Senate to join me in invasion. wounded service members from the About half the wounded troops have suf- battlefield. They provide critical in- commending the military service of fered injuries light enough that they were flight trauma care until more substan- these medical professionals who have able to return to duty after treatment, ac- tial care can be provided at fleet and done so much for us. cording to the Pentagon. field hospitals. I ask unanimous consent that the ar- The others arrive on stretchers at the hos- Military health professionals also en- ticle from the Washington Post of pitals operated by the 31st CSH. ‘‘These inju- sure the health and safety of our sol- April 27, entitled ‘‘The Lasting Wounds ries,’’ said Lt. Col. Stephen M. Smith, execu- diers in a number of other ways. When of War,’’ by Karl Vick, be printed in tive officer of the Baghdad facility, ‘‘are hor- rific.’’ forces deploy around the globe, envi- the RECORD. By design, the Baghdad hospital sees the ronmental health professionals are on There being no objection, the mate- worst. Unlike its sister hospital on a sprawl- the ground surveying the environment rial was ordered to be printed in the ing air base located in Balad, north of the for biological and environmental RECORD, as follows: capital, the staff of 300 in Baghdad includes

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.059 S28PT1 S4468 CONGRESSIONAL RECORD — SENATE April 28, 2004 the only ophthalmology and neurology sur- The ambush heralded a wave of attacks by As the Senator from New Hampshire gical teams in Iraq, so if a victim has dam- a Shiite militia across southern Iraq. The knows, who is a member of the Com- age to the head, the medevac sets out for the next morning, another front erupted when merce Committee, and has a large in- facility here, located in the heavily fortified Marines cordoned off Fallujah, a restive, terest in the fastest-growing tech- coalition headquarters known as the Green largely Sunni city west of Baghdad. The en- Zone. gagements there led to record casualties. nology in America, the growth of high- Once there, doctors scramble. A patient ‘‘Intellectually, you tell yourself you’re speed Internet access—the question of might remain in the combat hospital for prepared,’’ said Gullick, from San Antonio. how we approach, in a comprehensive only six hours. The goal is lightning-swift, ‘‘You do the reading. You study the slides. way, the regulation and taxation of expert treatment, followed as quickly as pos- But being here. . . .’’ His voice trailed off. this new technology—is very impor- sible by transfer to the military hospital in ‘‘It’s just the sheer volume.’’ tant. It is important for our economic Landstuhl, Germany. In part, the surge in casualties reflects While waiting for what one senior officer growth. It is important because, as we more frequent firefights after a year in do this, we will be making, inevitably, wearily calls ‘‘the flippin’ helicopters,’’ the which roadside bombings made up the bulk Baghdad medical staff studies photos of of attacks on U.S. forces. At the same time, major adjustments in terms of the re- wounds they used to see once or twice in a insurgents began planting improvised explo- sponsibilities of State and local gov- military campaign but now treat every day. sive devices (IEDs) in what one officer called ernments, and we need to do it right. And they struggle with the implications of a ‘‘ridiculous numbers.’’ That is why I am encouraged by the system that can move a wounded soldier The improvised bombs are extraordinarily fact Senator MCCAIN; Senator STEVENS; from a booby-trapped roadside to an oper- destructive. Typically fashioned from artil- the Commerce Committee; Michael ating room in less than an hour. lery shells they may be packed with such de- ‘‘We’re saving more people than should be Powell, the Chairman of the Federal bris as broken glass, nails, sometimes even saved, probably,’’ Lt. Col. Robert Carroll Communications Commission, all have gravel. They’re detonated by remote control said. ‘‘We’re saving severely injured people. announced that we need to take a new as a Humvee or truck passes by, and they ex- Legs. Eyes. Part of the brain.’’ plode upward. look at the Telecommunications Act of Carroll, an eye surgeon from Waynesville, 1996 in light of the recent growth of Mo., sat at his desk during a rare slow night To protect against the blasts, the U.S. last Wednesday and called up a digital photo military has wrapped many of its vehicles in high-speed Internet access. on his laptop computer. The image was of a armor. When Xenos, the orthopedist, treats I am not happy about the fact we are brain opened for surgery earlier that day, limbs shredded by an IED blast, it is usually trying to solve problems that ought to the skull neatly lifted away, most of the ‘‘an elbow stuck out of a window, or an be solved comprehensively, for the long organ healthy and pink. But a thumb-sized arm.’’ term, on a piecemeal basis, which is ex- section behind the ear was gray. Troops wear armor as well, providing pro- actly what some are trying to do, by ‘‘See all that dark stuff? That’s dead tection that Gullick called ‘‘orders of mag- nitude from what we’ve had before. But it turning a fairly innocuous idea—a tem- brain,’’ he said. ‘‘That ain’t gonna regen- porary timeout on State and local tax- erate. And that’s not uncommon. That’s just shifts the injury pattern from a lot of really not uncommon. We do craniotomies abdominal injuries to extremity and head ation of Internet access; we are just on average, lately, of one a day.’’ and face wounds.’’ talking about the connection between ‘‘We can save you,’’ the surgeon said. ‘‘You The Army gunner whom Poffenbarger was my computer and AOL or whoever is might not be what you were.’’ preparing for the flight to Germany had his providing my Internet access; that is Accurate statistics are not yet available skull pierced by four 155mm shells, rigged to just a little bitty thing—they have on recovery from this new round of battle- detonate one after another in what soldiers turned that into a debate about wheth- call a ‘‘daisy chain.’’ The shrapnel took a field brain injuries, an obstacle that frus- er we should give a broad exemption to trates combat surgeons. But judging by med- fortunate route through his brain, however, ical literature and surgeons’ experience with and ‘‘when all is said and done, he should be the entire high-speed Internet access their own patients, ‘‘three of four months independent. . . . He’ll have speech, cog- industry, and make decisions now from now 50 to 60 percent will be functional nition, vision.’’ about whether State and local govern- and doing things,’’ said Maj. Richard On a nearby stretcher, Staff Sgt. Rene ments will be able to continue to col- Gullick. Fernandez struggled to see from eyes bruised lect taxes on telephone services. ‘‘Functional,’’ he said, means ‘‘up and nearly shut. One of the problems with this debate around, but with pretty significant disabil- ‘‘We were clearing the area and an IED is that everyone who stands up on op- ities,’’ including paralysis. went off,’’ he said, describing an incident posite sides offers different facts and The remaining 40 percent to 50 percent of outside the western city of Ramadi where his patients include those whom the surgeons unit was patrolling on foot. figures and interpretations, so a Mem- send to Europe, and on to the United States, The Houston native counted himself lucky, ber of the Senate who is not really with no prospect of regaining consciousness. escaping with a concussion and the tem- studying or following this issue closely The practice, subject to review after gath- porary damage to his open, friendly face. is easily misled. ering feedback from families, assumes that Waiting for his own hop to the hospital plane Let me deal with four or five of the loves ones will find value in holding the sol- headed north, he said what most soldiers tell misconceptions. First, let me talk dier’s hand before confronting the decision surgeons: What he most wanted was to re- about what we are talking about. We to remove life support. turn to his unit. ‘‘I’m actually glad I’m here and not at are talking about high-speed Internet home, tending to all the social issues with Mr. STEVENS. I thank the Senator access, which was barely known to all these broken soldiers,’’ Carroll said. from Tennessee. most Members of Congress when the But the toll on the combat medical staff is The PRESIDING OFFICER (Mr. 1996 Telecommunications Act was en- itself acute, and unrelenting. SUNUNU). The Senator from Tennessee. acted, not very well known in 1998, In a comprehensive Army survey of troop Mr. ALEXANDER. Mr. President, I when we all said—almost all of us said; morale across Iraq, taken in September, the ask unanimous consent to speak in unit with the lowest spirits was the one that I said this—let’s take a temporary ran the combat hospitals until the 31st ar- morning business for as much time as I timeout. Let’s not allow even State rived in late January. The 3 months since may require. and local taxation of Internet access then have been substantially more intense. The PRESIDING OFFICER. The Sen- until we figure out what it is. ‘‘We’ve all reached our saturation for ator has that right. So we did that for 2 years. We did it drama trauma,’’ said Maj. Greg Kidwell, f then for 3 more years. Now the effort is head nurse in the emergency room. to not just do that permanently but to On April 4, the hospital received 36 wound- INTERNET TAXATION ed in 4 hours. A U.S. patrol in Baghdad’s just say: OK, this is a great new inven- Sadr City slum was ambushed at dusk, and Mr. ALEXANDER. Mr. President, I tion. Let’s just exempt the whole in- the battle for the Shiite Muslim neighbor- was just at a luncheon with the distin- dustry from taxation. hood lasted most of the night. The event guished chairman of the Commerce High-speed Internet access is now of- qualified as a ‘‘mass casualty,’’ defined as Committee, and he wondered where I fered in lots of different ways. The rea- more casualties than can be accommodated had been in terms of the debate on the son it is so important is because it by the 10 trauma beds in the emergency Internet tax question. So here I am. I means that lots of different services room. am glad to have this opportunity. I may come to my home. If I am watch- ‘‘I’d never really seen a ‘mass cal’ before April 4,’’ said Lt. Col. John Xenos, an ortho- know we have been diverted to discuss ing television through direct satellite pedic surgeon from Fairfax. ‘‘And it just the Energy bill. But I appreciate the in my home here in the District of Co- kept coming and coming. I think that week leadership creating an opportunity to lumbia, there is a nice young woman we had three or four mass cals.’’ debate these issues. who comes on and she advertises that

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.010 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4469 the same DirecTV satellite television I services, it is $1.7 billion a year. So if tax. Buy a regular car in Nashville and have can also supply me with high- the bill passes in the form it passed the you will pay 6, 7 percent on the cost of speed Internet access. House or in the form it is now written the car, I believe up to a ceiling. So we Anywhere I am that I can get in the Senate, we might as well call will have two tiers. That is what is DIRECTV, which is most places in the this the Texas new income tax law of going to happen with telephone calls. world, I can get high-speed Internet ac- 2004 or the Nashville higher local prop- One of the exciting advantages of cess. It seems I get something in the erty tax law of 2004. Because you can- this new technology is we will soon be mail every day from my telephone not put at risk billions of dollars of making regular telephone calls over company saying they can deliver it State and local revenues and expect the Internet, not over the telephone over the telephone line. That is DSL. I those governments to continue to fully wires. They will be using telephone would get something from the cable fund universities, schools, parks, roads, wires but not in the same way. It is a TV, when I had that, that said: We can and the other things they are expected different technology. It is still a tele- deliver high-speed Internet access to to do. phone call but a different way of doing you as well. There are Internet service One might say, well, let them just it, just as with a hybrid car. Calls, as providers, companies who deliver it, cut the size of government. I could be they move to the Internet, will be free such as America Online. Now we are facetious about this, although I don’t of State and local taxation. That is finding that high-speed Internet access want to be because it is so serious. what adds up to about $10 billion a year can be delivered by power companies. Here is a serious analogy. I just had in State and local revenues. In other words, there is no problem lunch with the president of one of the That won’t happen overnight. The with making high-speed Internet ac- largest car companies in the world. We Congressional Budget Office has in- cess available to anybody in America were talking about hybrid cars, the formed us that within the next 5 years, who has a telephone wire running to cars that have an electric engine in State and local governments will lose their house or business, has an electric them and an internal combustion en- $3 billion of revenue. I think it will wire running to their house or busi- gine in them. They are reported, ac- come faster than that. Most people who ness, who can put up a satellite dish or cording to Toyota Corporation, to get look at VOIP, voice over Internet pro- hook into a cable television. That cov- 50 miles a gallon. That is pretty good. tocol, believe it will and hope it does. I ers about everybody. But not every- Gasoline is at record prices. The Mid- hope it does. I think it is a great ad- body has it. More Americans have it dle East is in turmoil. We are getting vance. But I disagree that on this bill, than in any other country, which I will 65 percent of our oil from around the we should decide the question of get to in a minute. But this is a new world, and our air is dirty. So as a Sen- whether State and local governments technology. A lot of people have it. In ator, I think it would be a great idea to must stop taxing telephone services and start raising property taxes, or Manassas, VA, you can buy it from encourage people to use hybrid cars. your electric power company. The Why don’t I propose a Federal law sales taxes on food, or institute a new same people who provide electricity that stops Tennessee, New Hampshire, income tax to make up for all or part will sell it to you for $25 a month. Most Texas, and California from charging a of the revenue you lose. I would much rather see the Senate cable systems or telephone companies State tax on the sale of hybrid cars? Commerce Committee, over the next will sell it to you for $30 or $40 a That would clean the air. That is a year or two, consider legislation such month. I get things in the mail that good thing. Let’s do it. You might say: as that by the distinguished Presiding offer it on an introductory basis for $10 That sounds good, but it sounds odd, Officer, which straight out says—if I or $15 a month. too, because you are a Federal legis- am stating it correctly—that with this What we are debating is whether lator. Why would you pass a hybrid car new protocol, it should be free of tax- State and local governments can apply act about State laws? If you have an ation. We ought to talk about that. It the sales taxes they usually apply to expensive idea, why don’t you do it ought not be snuck into a bill. such transactions and whether they yourself? I urge the chairman of the committee can apply the business taxes they usu- The Senator from Virginia and the and Senator ALLEN to accept plain ally apply to such business activities. Senator from Arizona have said it is English language—just take it and The tax we are talking about that Ten- not the intention of their legislation to change their bill. They asked what sug- nessee, New Hampshire, or Texas might keep States from continuing to tax gestions we have. I have given this to charge might be $1 a month or $2 a telephone calls, telephone services, them several times. Just say that month. That is what all the fuss is even if the calls are made over the nothing in this legislation precludes about. If that were all we were talking Internet. That is what was said. But States from collecting taxes they are about, it really would not be worth that is not what the language of the collecting on telephone services, in- very much of the Senate’s time except bill does. I don’t think the Senate cluding telephone calls made over the the legislation that we are being of- should take any chance that in the Internet. Save that question for an- fered would do much more than is ad- State of California we would pass a law other day. I have heard that is their in- vertised. on such a simple item as exempting tention. That is not what it says. Let me begin by suggesting what it Internet access from taxation and have In Alabama, that is worth up to $213 will do or what it could do. I don’t the unintended effect of costing State million a year; in Alaska, it is $18 mil- know why every Governor in America and local governments up to $10 billion lion a year; in Arizona, it is $308 mil- and every mayor in America is not sit- a year in revenues they now collect on lion a year; California collects $1.5 bil- ting in the lobby right now saying to telephone calls—not all telephone serv- lion a year. So that is a huge cost to Members of the Senate: Be careful ices, just telephone calls. State and local governments. It is 5 about what you are doing because the In Florida, it is $1 billion a year. So percent of the Tennessee State budget, way we read the latest proposal by the you might call this act, as it is now to give you an example. Senator FEIN- distinguished chairman of the Com- written, the Florida income tax act of STEIN says there are more than 100 cit- merce Committee, Senator MCCAIN, 2004, the Tennessee income tax act of ies and counties in California that esti- and certainly the way we read the leg- 2004, the Texas income tax act of 2004, mate they could lose from 5 to 15 per- islation that came over from the House because I don’t know what other rev- cent of their revenue. So that is one of that is expected to be put into con- enue base is left if that much of a sales the four issues that could be easily cor- ference with whatever we produce, you tax is taken away. rected. put at risk the money State and local You might ask: Why are you saying Another question that has come up governments collect today from taxing it would be taken away? Let’s assume quite a bit lately is the idea that sud- telephone services. I am right about the way the law is denly we need more Government sub- If you are sitting at home listening, written. Here is what happens. I will sidy for high-speed Internet access be- you might say: Hooray, I don’t want to use the hybrid car analogy. We might cause the United States is falling be- pay those taxes. Well, fine. So we take set up a two-tier tax system for cars. hind. those taxes off. In Texas, if we take off Buy a hybrid car in Nashville and you Well, my view on that is I don’t the taxes Texas collects on telephone will pay zero of the Tennessee sales think it is true that we do. But if it is

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.062 S28PT1 S4470 CONGRESSIONAL RECORD — SENATE April 28, 2004 true, Congress ought to pay the bill companies are at risk. If you take that risk up to $1 billion of revenues in sales and not send it to State and local gov- away, that is a subsidy to a company. taxes the State collects today on tele- ernments. Just as we think hybrid cars You can subsidize a company in one phone services. That is one. are great and we want to give them a of two ways. You can give it some Second, it stops Texas from col- subsidy—that is called picking and money or you can say you don’t have lecting business taxes on telephone choosing winners in the economic mar- to pay taxes like everybody else does. companies it normally would collect on ketplace, which I thought conserv- That is a flatout subsidy. That is not any company that does business in the atives were not supposed to do. If we the only subsidy. I mentioned to the State. The definition of the latest pro- want to do that for hybrid cars, we distinguished chairman, the Senator posal by the distinguished Senator should take it out of our budget and from Arizona, that it seems to me that from Arizona says we are not just talk- not tell Governors and mayors to take insofar as my research indicates, high- ing about the hookup, Internet access it out of property taxes or take it out speed Internet access is a lot like eth- between the end user and the provider, of the classrooms to do it. If we want anol. It is hard to find anything that we are talking about the whole indus- to give an advantage to high-speed has more subsidy. According to the try. We are talking about that, that, Internet access, we should pay for it. Congressional Research Service, the that, and that—in other words, all the But we ought not to pass this bill be- Congressional Budget Office identified way through. cause we think we are behind in high- three programs totaling $4.8 billion in Let’s go back to the example of the speed Internet access. There is no real subsidy, a Federal subsidy for pro- hybrid cars. It would be like passing a evidence of that. moting the adoption of high-speed Federal law saying you cannot collect For example, in 2002, the United Internet access. They are already in the State tax in Arizona or Tennessee States had the highest number of place—$4.8 billion of Federal subsidy on the sale of a hybrid car because it is Internet subscribers in the world, near- for high-speed Internet access. a great new invention. Not only that, ly 20 million. Eighty-eight percent of Established in 1996, the Tele- you cannot collect a sales tax—if you all ZIP codes have at least one high- communications Act provided subsidies are an auto parts supplier in Ten- speed subscriber; 29 percent of all ZIP for schools and libraries, subsidies for nessee—you can’t collect a tax there. codes have access to five or more pro- rural health care providers. The Farm And if they brought steel to the auto viders. The Pew analysis recently Security and Rural Investment Act of parts supplier, you cannot collect a tax showed that a quarter of Americans 2002 authorizes $20 million per year for there. have high-speed Internet access in loans and grants. None of us like to pay taxes, but their home and half have it at their Then I have the Alliance for Public when we lower State and local taxes workplace. Technologies’ report on all of the State here, we are inevitably raising State Consumers are adopting broadband, and local broadband policy experi- and local taxes there. Lowering taxes high-speed Internet access, at a record ments in the State. In virtually every in this amount of money by direction pace, not a slow pace. There is no State in America, there is a spending from Washington, DC, inevitably emergency in terms of people not using of taxpayer dollars to encourage the makes this the Higher Sales Tax Act of this. They are adopting broadband spread of high-speed Internet access. 2004, the Higher Local Property Tax technology at a faster pace than CD Yesterday, I used the example of Act of 2004 because every mayor and players. High-speed Internet access is Texas. Texas set up a fund in 1995 to every Governor is going to be scram- coming in at a faster pace than cell spend $1.5 billion over 10 years to pro- bling to figure out: We lost all this rev- phones, color TVs, and VCRs during vide telecommunications access to enue because the Congress in its wis- their development. That is according public schools, hospitals, libraries, and dom had the idea to give a big subsidy to a report from the Department of institutions of higher education. Al- to the high-speed Internet access busi- Commerce in 2002. Cellular phones took most every State is doing it. So let’s ness, and we are going to have to find 6 years from their introduction to take how this works as an example. a way to pay for the schools, to keep reach 71⁄2 million subscribers. High- If this bill passes—and if I am read- from raising tuition so much, to pay speed Internet reached that in 31⁄2 ing the McCain proposal right and it for health care, and to open the parks. years. affects telephones the way I believe it So we are going to have to close them, High-speed Internet service providers does—this is what happens in Texas to cut them back, or raise the sales tax on are increasing their investment in broadband. They are spending $1.5 bil- food and raise the property tax. That is broadband services. For example, be- lion already to encourage the spread of why we usually leave those matters to tween 1996 and 2001, the four largest broadband in public institutions. Texas mayors and Governors and do not do it phone companies increased their in- also has a law put in by President Bush from here. vestment in broadband technologies by when he was Governor in 1999; I think We are all for home ownership, but 64 percent and cable companies by 68 it is a good law. By the way, I think we we do not pass a Federal law to lower percent. ought to adopt that. I think it is ex- property taxes. We all want our cor- In short, the Congressional Budget actly the way to encourage perma- porations to stay in the United States, Office told us, the Senate, in December nently the growth of high-speed Inter- and we do not want them to have high 2003 that the broadband market is net access, if that is what we want to local taxes any more than high Federal booming. In its report to us in Decem- do. taxes, but we do not pass a Federal law ber of 2003, ‘‘Does the Residential Texas, in 1999, said it is the law of lowering the local corporate income Broadband Market Need Fixing?’’ the Texas that the first $25 is exempt of ev- tax. CBO analysis also concluded that erything to pay for Internet access. So That is why I am perplexed by this ‘‘Nothing in the performance of the that would save you maybe $1 or $2 a bill. The idea that by adding a subsidy residential broadband market suggests month. That is what the tax would be we would encourage the use of high- that Federal subsidies for it will in Texas on high-speed Internet access. speed Internet access when it is al- produce large economic gains.’’ You can get it anywhere from $20, to ready, according to the New York This is CBO. ‘‘Nothing in the per- $40, or $50, depending on who sells it to Times last week, the fastest growing formance of the residential broadband you. The prices are coming down be- technology in America, when already it market suggests that Federal subsidies cause of the competition. is being accepted more rapidly than for it will produce large economic So you have $1.5 billion in Texas at VCR and all these other innovations I gains.’’ least to encourage it. You have an ex- do not agree with. The idea that it So, then, why are we coming with a emption for every single person in needs more taxpayer support I do not bill that would give more big subsidies? Texas who wants to sign up. The first agree with. I have reviewed the fact that, because $25 is already exempt. Let’s throw that item completely out of the language in the latest proposal Now here we come with our bill. the window and say if we do believe it by the chairman of the Commerce What does it do? It does a lot more needs a subsidy, then why do we send Committee, up to $10 billion of State than exempt Texans from tax on Inter- the bill to State and local govern- and local tax collections on telephone net access. First, I believe it puts at ments? We promised not to do that.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.065 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4471 Mr. President, 300 Republicans stood that permanently or do that again, chances for job growth and a high over on the steps of the Capitol in late they have cooked up a new definition. standard of living depend to a great ex- September 1994 and said: No money, no This definition is the one that runs the tent on the ability of State and local mandates. If we break our promise, risk of costing State and local govern- governments to properly fund colleges throw us out. ments so much. That is one. and universities and create schools our I thought we were the party on this Second, the language—and this may children can attend. side of the aisle of no Federal unfunded be inadvertent and if it is, maybe I can Any time we take away resources mandates. That was a big movement ask the Senator from Arizona if there from State and local governments, that back then. Everybody got fired up is a way we can agree on how to fix it. does not sound like the Republican about it. I heard it. I was running If we agree we do not intend to keep Party. President Reagan was giving re- around the country trying to offer my- States from continuing to collect State sources to State and local govern- self for higher office, which the people and local taxes on telephone services, ments. President Eisenhower was giv- rejected. I know the great Contract even telephone calls made over the ing resources to State and local gov- with America was no more unfunded Internet, then we ought to get that ernments. Last year, we sent a welfare mandates. I remember Senator Dole issue off the table, and surely we can check to State and local governments saying when he was majority leader find somebody who can write that in a of $20 billion, and this year we are talk- the first act on the part of the Senate sentence to which we can all agree. ing about taking back up to at least $10 was no more unfunded mandates. In Then there is the term. I applaud the billion a year. That is my objection. We could have a separate debate fact, this unfunded mandate might be leadership of those Senators on the about whether the subsidy is warranted so large that according to CBO’s letter Commerce Committee who want to ad- and, if it is, well, we could pay for it to us, they cannot calculate how much dress this issue. I think if we go 4 from here. But surely we would not it will be, although they know it is years, which is better than permanent, send the bill to State and local govern- but if we go 3 or 4 years, we run the enough to make it an unfunded Federal ments. mandate. risk of freezing into the law provisions The PRESIDING OFFICER. The Sen- Why would we do that? Why don’t we that will be much harder for the Com- ator from Arizona. do what Texas did? Texas did a very di- merce Committee and the full Senate Mr. MCCAIN. Mr. President, I look rect thing. They said the first $25 you to change. Then there is the question forward to discussions with the Sen- pay every month is exempt from State of the so-called grandfather act which ator from Tennessee and the Senator and local taxes. It could be $30, it could allows States already collecting taxes from Delaware. As they know, we have be $35, it could be $40. Then we won’t to keep doing that. a meeting with Secretary Rumsfeld in have any argument about definition. Those are all the issues we have here. 407 in about 20 minutes, and we are We would not have to worry about One is the definition, one is telephone, going to go back on the bill at 4. I whether we were subsidizing companies one is term, and one is grandfather. would be glad to have discussions. instead of consumers, and we would ac- That is tantalizingly close, it would Meanwhile, I hope there would be some tually be giving a benefit to the indi- seem to me, but the one that makes amendments proposed by the oppo- vidual American—maybe there will be the most difference is the definition, nents of the legislation, and we could 100 million of them 1 day—who sub- which means for the first time, States dispose of them as we did yesterday scribe to high-speed Internet access, will not be allowed to apply business with the Senator from Texas, who and we say no State and local taxes at taxes to the high-speed Internet indus- came forward with an amendment and all, none on you. try in the same way they normally we debated it. Unfortunately, neither The States have asked us to do that, would other businesses for the first the Senator from Tennessee, nor the and we have not done it. I don’t know time. They are not collecting these Senator from Delaware, nor the Sen- why. That also is an unfunded man- taxes. ator from Ohio have chosen to do so. date, but it is not much money. The The other issue is the language, we Usually, I like to do business by way we are doing it is a lot of money. believe, in the latest draft and cer- amendments, debates, and votes. That It is at least hundreds of millions of tainly the language in the House bill is the way we usually like to move for- State dollars a year, and the way this runs the substantial risk of over time ward legislatively. latest bill is written, it could be bil- costing the States up to $10 billion a I look forward to that opportunity lions a year of State and local reve- year in sales taxes, and the House bill and also engaging in any discussions nues. another $7 billion in business taxes now which the Senator would like. I want I thought the National Governors As- collected on telephone services. to assure him I am very confident in sociation letter was thoughtful and re- I do not want to overstate that point. the sincerity of his views on this issue spectful and acknowledged the hard That is not going to happen tomorrow. and his commitment to the issue. I un- work all sides have done on this issue. It is going to gradually happen as tele- derstand his background as a very suc- That is why it is such a hard issue, phone calls are made over the Internet. cessful Governor of the great State of maybe, because it ought to be easy. It So that would be my hope since we Tennessee which gives him a perspec- ought to be a small amount of money have narrowed it down to that, and one tive for which I am greatly appre- and a fairly simple issue. But it has of them may not be an issue at all, but ciative. that is pretty close. I do not know We are still in morning business? been written into a complex issue with The PRESIDING OFFICER. The Sen- much more that I can say about it ex- the possibility that it might run a ator is correct. cept—well, I can say a whole lot more Mack truck through State and local Mr. MCCAIN. I ask unanimous con- budgets. about it. I have stacks of stuff and I sent that I be allowed to finish my The National Governors Association will be glad to stick around and talk statement, which I hope will be done yesterday suggested the proposal by about it if anybody wants to. I do have by 2:55. If not, I ask unanimous consent the Senator from Arizona falls short of the hearing I am expected to chair at 3, to finish my complete statement. their hope of balancing the interests of but I would say to the distinguished The PRESIDING OFFICER. Without State sovereignty and State responsi- chairman from Arizona that I hope he objection, it is so ordered. bility with the desire for keeping high- understands I am not persisting in this f speed Internet access free of excessive just for the purpose of being obstinate. taxation. They talked about the spe- I feel very deeply, from my background THE FEDERAL ELECTION cific issues I suggested in my letter to as Governor, that it is important for us COMMISSION CHAIRMAN MUST GO the chairman earlier this week and to respect the ability of State and local Mr. MCCAIN. Mr. President, I was in that formed the basis for amendments governments to fund their programs. Arizona recently, and by chance I I have filed. Since I left the Governor’s office in watched C–SPAN airing the Federal One, the definition. Instead of using Tennessee in 1987, Federal funding for Election Commission hearing on the the definition of the original morato- education has gone from 50 cents out of issue of 527s. Let me assure my col- rium in 1998, the one we all agreed to in every dollar to 40 cents. Most of that leagues, it was both eye opening and 1998 and 2000, instead of saying let’s do has gone to higher education. Our appalling.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.067 S28PT1 S4472 CONGRESSIONAL RECORD — SENATE April 28, 2004 Once in a while, we have a public de- nance laws have been repeatedly re- tended to do in these bills were the bate in Washington that serves as a jected by the Supreme Court. Mr. very same lawyers who spent years perfect metaphor for the cynical way Smith was dead wrong in his views urging Members to vote against BCRA, in which business is sometimes done that the Federal Election Campaign and argued its unconstitutionality be- here. The argument over whether and Act and its restrictions on contribu- fore the Supreme Court. Give me a when the Federal Election Commission tions were unconstitutional, and Mr. break. As witnesses to Congressional should regulate new soft money fund- Smith was dead wrong in his views intent, they have zero credibility. Let raising groups provides us with one of that BCRA was unconstitutional. Mr. me be clear on this: Senator FEINGOLD those moments. In it, we can see how Smith seems to be incapable of accept- and I repeatedly told the FEC exactly badly our election watchdog has served ing the fact that the Supreme Court of what we intended to accomplish with the public and the urgent need to fix it. the United States, not Mr. Smith, is our legislation, and the legislative his- The Chairman of the Federal Elec- the last word on the constitutionality tory of FECA from 1974 is equally as tion Commission, Bradley Smith, of campaign laws and that it is his job clear. The only confusion in this area claims apparently some moral superi- as an FEC Commissioner to carry out, has been with the FEC itself and those ority on the issue of 527s because as a not thwart, the Supreme Court’s man- Commissioners who just simply didn’t Republican he stands in opposition to date. like the actions taken by Congress. the Republican Party’s effort to ensure I do not deny that Mr. Smith is enti- The Commission’s hearings centered 527 groups comply with the law. While tled to his personal views on the issue on the issue of regulation of so-called some may look upon his views as prin- of regulating 527s. I am saying, how- ‘‘527 groups’’ that are raising and ciples, I can only conclude that they ever, that he is failing to fulfill his du- spending millions of dollars in soft money in the current presidential elec- again illustrate the same unfitness to ties as the chairman of a Federal agen- tion. These groups readily admit that serve on the Federal Election Commis- cy and one who is sworn to uphold and their intended purpose is to influence sion he has shown since he was ap- enforce the law. Just as we would not the outcome of Federal elections. pointed 5 years ago. tolerate the appointment of a pacifist FECA has long required these groups Despite claims that his contempt for to be Chairman of the Joint Chiefs of the Federal elections laws was merely to register as Federal political com- Staff or the Director of the FBI who mittees and comply with Federal cam- that of an academic commentator and believes the whole Penal Code should that he would uphold the laws as paign finance limits. Unfortunately, be null and void, so we should not ac- because the FEC has misinterpreted passed by Congress if confirmed, Mr. cept a Chairman of the FEC who op- Smith has made no secret since arriv- and undermined the law, we find our- poses campaign laws upheld as con- selves in this unenforced regulatory ing at the FEC of his disdain for the stitutional by the U.S. Supreme Court. Federal Election Campaign Act of 1974, limbo today. The 1974 law requires that Knowing of his opposition to the laws any group with a ‘‘major purpose’’ of as well as the Bipartisan Campaign Re- he was sworn to uphold, I cannot fath- form Act of 2002. He has done so once influencing a Federal election, and om why Mr. Smith would have even ac- which spends more than $1,000 doing so, again in the pending rulemaking. cepted his current position in the first Even after the Supreme Court deci- must use the same limited hard money place, certainly now that the Supreme sion in McConnell v. FEC, Mr. Smith contributions as the political parties Court has proven him wrong and has gone out of his way to criticize the and the candidates themselves. In re- upheld the constitutionality of a law Court’s decision and the law he is sup- cent years though, the FEC slouched that he stated was ‘‘clearly unconstitu- posed to enforce. In one public speech into the feckless and unjustified posi- tional.’’ It makes no sense. It makes no he said: tion of not enforcing the law in the sense for him to be charged with en- Now and then the Supreme Court issues a case of groups which avoided the decision that cries out to the public, ‘‘We do forcing a law he so publicly opposes on ‘‘magic words’’ of ‘‘express advocacy’’ not know what we are doing.’’ McConnell is policy and legal grounds. but were set up and operated to influ- such a decision. I know if I were in Mr. Smith’s shoes, ence Federal elections. Then, in Further evidence of Mr. Smith’s I would do the honorable thing and re- McConnell, the Supreme Court itself predilection can be found in an article sign if I was so determined to carry on made clear what many of us already in the May 3 edition of National Re- a crusade against Federal regulation of knew—that the Constitution did not view in which he writes: campaign finance. I would leave the require an ‘‘express advocacy’’ stand- Campaign reform passed Congress and was FEC position to be filled by someone ard, and that such a standard is ‘‘func- upheld by the Supreme Court because groups who believed in the job. tionally meaningless.’’ That’s the hostile to freedom spent hundreds of millions If any of my colleagues think I am words of The United States Supreme of dollars to create an intellectual climate in exaggerating about these FEC hear- Court. which free political participation was viewed ings, by the way, they should get a But here we are, with these groups as a threat to democracy. tape from C–SPAN and look at it them- openly flouting the law and openly This is perhaps the most inflam- selves. It was shocking. spending soft money for the express matory and inappropriate comment I One very troubling aspect of the purpose of influencing the presidential have ever seen by an individual who is hearings was the way in which some election while the FEC sits on its supposed to be enforcing existing law, Commissioners and antireform wit- hands once again. Like the emperor affirmed in its constitutionality by the nesses joined in a chorus of complaint with no clothes, those Commissioners Supreme Court of the United States of that ‘‘no one knew what Congress in- just do not know what to do now that America. To assert that proreform tended to do’’ when it passed FECA in the Supreme Court has removed their groups had somehow brainwashed Con- 1974 and BCRA in 2002. ‘‘express advocacy is required by the gress and the Supreme Court is simply One witness testified that it took Constitution’’ rationale for failing to pathetic and solidifies my belief that Congress 7 years to figure out what to regulate political activity by the 527 Mr. Smith cannot administer our cam- do about soft money. I am somewhat political organizations. As a result, paign finance laws in good faith be- amazed by such a statement because these organizations remain busy solic- cause he is incapable of putting his anyone who was in Washington during iting and spending millions for the sworn duties above his personal opin- those 7 years knows that the main avowed purpose of influencing Federal ion. component of our bill—from the very elections. By the way, his treatment of Mr. beginning—was a ban on soft money. That the FEC’s lack of action under- Nobel, a witness before the FEC, was as You can’t get much more definitive mines the law isn’t just my opinion. bullying and as cowardly as I have ever than a ban. What did take 7 years was The Supreme Court confirmed this in seen anyone conduct themselves in our convincing our opponents to allow a its recent decision upholding the soft Nation’s Capital and clearly was an vote on the measure, and when we fi- money ban. In McConnell v. FEC, the abuse of his authority as Chairman of nally got our vote, we had clear ma- Supreme Court stated, in no uncertain the Commission. jorities in both Houses. terms, how we ended up in the soft Mr. Smith’s views on the constitu- Some of the lawyers who testified money crisis to begin with. The Jus- tionality of the Nation’s campaign fi- that no one knows what Congress in- tices placed the blame squarely at the

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.070 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4473 doors of the FEC, concluding that the We know systemic campaign finance rules, which govern the mix of soft and agency had eroded the prohibitions on abuses have usually begun when one hard money a political committee can union and corporate spending, and the political party decides to push the en- spend when it is supporting both State limits on individual contributions velope and the FEC declines to act, and Federal candidates. It is clear that through years of bad rulings and leading the other party to adopt the a number of the current crop of 527s rulemakings, including its formulas for same illegal tactics. In 1988, one party exist only to defeat President Bush. allocation of party expenses between invented the use of soft money to pro- But through the absurd FEC allocation Federal and non-Federal accounts. Re- mote their Presidential campaign, formulas, if these same entities also garding the allocation regulations for evading campaign finance rules. The claim to be working in state elections, parties, the Supreme Court stated in Commission let them get away with they could use soft money for 98 per- McConnell that the FEC had ‘‘sub- this. This is well documented. The cent of their expenditures—a complete verted’’ the law, issued regulations other party followed. end-run around the soft money ban in that ‘‘permitted more than Congress In 1996, the soft money scheme was Federal races. . . . had ever intended’’, and ‘‘invited raised to an art form and the Commis- Despite all the evidence, I am still widespread circumvention of FECA’s sion did nothing. You have to ask hopeful the Commissioners will sum- limits on contributions.’’ That is a whether the Commission has learned mon the political will to do the right damning indictment of the behavior anything about the consequences of its thing now. There are some commissioners who want to do the right thing. and performance of the Federal Elec- failure to properly enforce the law. His- I want them to step forward and do it. tions Commission. tory proves it is imperative that the But even if they do, the agency’s struc- Based on the recent hearings, it Commission act now. If it does not, we tural problems will be the same as they seems entirely possible that the FEC can rest assured both parties will soon ever were. By unfortunate custom, will once again abdicate its statutory be trying to out-raise each other in three Republicans and three Democrats responsibilities and refuse to end this this venue, and a whole new soft money are chosen by their party leadership, new soft money scheme—or at least scheme will have blossomed. usually with the express purpose of put off any action until the Presi- By the way, the reality is if these protecting their party’s interests, rath- dential election is over. In fact, FFC soft money 527s are allowed to stand— er than enforcing the law. It takes four Vice-chair Ellen Weintraub recently they are now, we know, largely funded votes for the Commission to take ac- opposed a rulemaking on 527 activity by Democrats. Who in the world tion—a requirement that has been a saying that: doesn’t understand if you allow this to stand, then the Republicans will do the recipe for deadlock and bipartisan col- At this stage in the election cycle, it is un- lusion and gave birth to the soft money same thing, and understandably so? precedented for the FEC to contemplate problem we’re trying to put behind us. changes to the very definitions of terms as Just as in 1988 one party was allowed to Last month I testified before the fundamental as ‘‘expenditure’’ and ‘‘political do it, so the other party was able to as committee’’ . . . sowing uncertainty during Senate Rules Committee on the issue well. of 527s. During my testimony I stated an election year. Much of the controversy at the Com- that one of the problems the FEC faces Ms. Weintraub further stated: mission has been ginned up by an art- today is that some Commissioners, and I will not be rushed to make hasty deci- fully crafted misinformation campaign in particular Chairman Smith, refuse sions, with far-reaching implications, at the designed to persuade the nonprofit to accept the Supreme Court’s conclu- behest of those who see in our hurried action community—the 501(c)s—that any FEC their short-term political gain. sions in the area of campaign financ- action to rein in 527s would have the ing. A decision by the FEC to abdicate Ms. Weintraub has no business look- unintended consequence of limiting ing at the election calendar. That is its responsibility at this politically in- their own advocacy efforts. It is true convenient moment will only provide none of her business. What is her busi- certain campaign finance rules for ness is to enforce existing law accord- further evidence that it is time to start spending by nonprofits are different over. If the Commission has become ing to the law in the U.S. Supreme than they are for political groups like too hopelessly politicized to do its job, Court upholding its constitutionality. 527s. There is no immediate campaign then we must replace it with an agency It should not matter to Ms. Weintraub finance regulatory problem with the that will. whether we are in an even numbered 501(c) groups. I repeat, there is no im- The FEC’s current difficulty in deal- year, an odd numbered year, fall, mediate campaign finance regulatory ing with an issue as straightforward as spring, winter, or summer. This is an problem with the 501(c) groups as there these 527 organizations spending soft incredible statement as to how politics is with the 527 groups, and no need—no money to influence the 2004 Federal affects a Federal commission that is need to address 501(c) groups in this elections, and the 3–3 ties at the Com- supposed to rule on laws, not on polit- rulemaking. mission when it recently considered an ical campaigns. Some have suggested the agency do advisory opinion on this issue, are only Of course, it is not that complicated. what Congress did when it passed the most recent examples of the need All the FEC needs to do now is simply BCRA: Issue a ruling but make the for fundamental FEC reform. With my enforce existing Federal law as written change effective after the election. fellow BCRA sponsors, I have intro- by Congress in 1974 and interpreted by What these critics fail to recognize, duced legislation that would scrap the the Supreme Court in a number of however, is that Congress was creating FEC and start over, using a new orga- cases, including the McConnell case. It an entirely new set of election rules in nizational structure and administra- defies the whole purpose of the FEC, to BCRA. All that is required here is for tive law judges to avoid deadlocks and say it should not properly enforce the the FEC to properly enforce law that take some of the politics out of the law in the middle of an election year has been on the books for 30 years, and process. Whether we adopt this or some because such enforcement might affect to abandon its wrong interpretations of other basic reform, it is time for a that election. We want the law en- the law as made clear in the McConnell watchdog with some bite. forced. I have never heard of a regu- decision. To issue new regulations now I thank the President for his patience latory agency that has any reference and make them effective after the 2004 as I ran over the previously agreed-to whatsoever to political campaigns. election would be for the FEC to say time. The fact the FEC has neglected to that ‘‘we know the law has been wrong- This is a very serious issue. We are properly enforce the law correctly in ly interpreted for years but we are not going to give up on it. We didn’t the past is not a reason or justification going to allow that to continue for the work for 7 years to get campaign fi- for the Commission to continue failing rest of this year, and then next year, nance reform done and upheld by the to properly enforce the law, now that we will start interpreting that law cor- U.S. Supreme Court to have a group of the Supreme Court has made clear the rectly.’’ This is simply not rational and six people down there who are so politi- FEC was wrong. If the FEC fails to act it is an abdication of their responsibil- cized that they refuse to enforce a law now, the FEC will simply be treading ities. which was passed by this Congress in the same destructive path it has fol- Finally, it is essential that the FEC overwhelming numbers, finally, and lowed for a generation. act quickly to fix its absurd allocation upheld by the U.S. Supreme Court.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.008 S28PT1 S4474 CONGRESSIONAL RECORD — SENATE April 28, 2004 I want to tell them and all of those Have we lost the will to legislate? Is in recent years. We have had 17 cloture other people I watched on CSPAN who the current leadership afraid to allow votes on 6 controversial and problem- are trying to undermine this law that the Senate to work its will? The Re- atic nominees. The response of the Re- we will not let you get away with it. publican leadership seems to feel that publican leadership and the adminis- American politics and the political their slim majority gives them a blank tration has not been to address the fun- process is too sacred for me to allow check to impose their exclusive agen- damental underlying concerns raised these stooges of special interests da. Let me be clear. It does not. The by various Senators. Oh, no, no nego- around this town to prevail and pre- Senate, by its very existence, embodies tiation. Instead, they choose the course vent us from restoring faith and con- a core tenet in American democracy; of holding cloture vote after cloture fidence in the American people and namely, the principle that the minor- vote and then bash Democratic Sen- their electoral system. ity—the minority, the Democrats as of ators as obstructionist. And just for Again, I appreciate the patience of now, the minority—has rights. The Re- good measure, the President, who has the Presiding Officer. publican leadership is fast making the had 96 percent of his judges confirmed, I yield the floor. committee process a thing of the past. moved two of these divisive nominees on to the bench in recess appoint- f Furthermore, the leadership has done everything in its power to prevent ments. RECESS Democratic Senators from getting Now, I do not pretend that the conflict over judicial nominees began in The PRESIDING OFFICER. Under votes on their amendments. this Senate or with the President, but the previous order, the Senate stands The United States is faced with a trade deficit that has mushroomed to I will state that this Senate leadership in recess until 4 p.m. and this President have worked in con- Thereupon, the Senate, at 3:04 p.m., an all-time high for the third year in a row. Adding to that unfortunate situa- cert to further politicize the process by recessed until 4 p.m. and reassembled which we select members of the judici- when called to order by the Presiding tion, in August 2002, the World Trade Organization authorized the European ary. Officer (Mr. CORNYN). And it is not just with judicial nomi- Union to impose up to $4 billion in nees that the Republican leadership is f trade sanctions against the United doing the White House’s bidding. The States if provisions of the Tax Code INTERNET TAX Republican leadership is controlled by NONDISCRIMINATION ACT were not repealed. How about that? The distinguish Republican leader this White House—controlled by this The PRESIDING OFFICER. The Sen- brought up the Foreign Sales Corpora- White House. Rather than have a legis- ate will resume consideration of S. 150. lative branch which crafts a bill and tion legislation to address this situa- Mr. REID. I suggest the absence of a then sends it to the President to sign tion only after the sanctions were in quorum. or veto, this Republican leadership in place. After votes on only two amend- The PRESIDING OFFICER. The the Senate and in the House has al- ments, the majority wanted to shut clerk will call the roll. lowed this President to control both down the amendment process—shut it The assistant legislative clerk pro- ends of Pennsylvania Avenue. down. Many reasons were given, but ceeded to call the roll. During the conference on the Omni- the truth is that they did not want to Mr. BYRD. Mr. President, I ask unan- bus appropriations bill, the Republican vote on an amendment dealing with imous consent that the order for the majority allowed this White House to overtime rules for American workers. quorum call be rescinded. assert itself and put in provisions that Yes, the American workers. While The PRESIDING OFFICER. Without had been rejected by one or both American companies are losing their objection, it is so ordered. Houses. Specifically, the provision to competitive edge, the ‘‘my way or the allow increased concentration of media ANOTHER WEEK, ANOTHER CLOTURE VOTE highway’’ approach of the leadership Mr. BYRD. Mr. President, our coun- ownership had been rejected by both has delayed a final resolution on this the House and the Senate. However, it try is facing record budget and trade bill. deficits. We are in a war of our Presi- was included in the bill at the behest of In the past, cloture was a rarely used the White House. Shameful. Yes, dent’s choosing that is not, to put it procedural tool. When I came to this mildly, going as well as had been ex- shameful. Senate, it was rarely used—only once The House and the Senate were both pected. Millions of Americans are within a while. Not so today. Cloture is rou- on record as opposing overtime regula- out health care and millions more tinely filed in an attempt to limit non- tions proposed by the Bush administra- worry about the security of their jobs. germane amendments. Instead of the tion. Nevertheless, at the urging of the These are troubled times and many phrase, ‘‘another day, another dollar,’’ Bush White House, language to block issues clamor for the attention of the the Senate operates in an atmosphere implementation of these regulations Senate. Yet what is the response of the of ‘‘another week, another cloture was dropped from the conference re- Senate, the world’s greatest delibera- vote.’’ port—dropped from the conference re- tive body? Are we debating strategies Last November, we had three cloture port. to quell the violence in Iraq and bring votes in one day. What great hopes the Another example of allowing the our soldiers home? No. Are we consid- leadership must have had for the first Bush White House to dictate the legis- ering plans to shore up Social Security two votes to schedule three in a row. lation produced by the Congress is the and Medicare? No. Is the Senate delib- How can such a move be seen as any- highway bill. Here is a bill that is im- erating on how to make America’s thing more than political portant to every State and every per- workforce more competitive? No. Is the scorekeeping? son in the Union. Every Senator’s Senate grappling with reauthorizing This Senate has spent an extraor- State will benefit from this bill. The welfare reform or the highway bill? No. dinary amount of time and energy and transportation bills passed the House This great deliberative body which effort on President Bush’s judicial and the Senate by wide bipartisan ma- was forged by the Founding Fathers in nominees. In fact, last November the jorities, majorities that could easily the Great Compromise of July 16, 1787, Senate set aside the VA–HUD appro- override a veto. Yet we are stalled be- has become a factory that manufac- priations bill to hold an overnight mar- cause the Bush White House is demand- tures sound-bite votes that make great athon stunt—something to watch in- ing that the cost of the highway bill be fodder for 30-second political ads but deed, something to watch. What a significantly lower than what was which do very little to address the sham. The majority actually set aside passed by both Houses of Congress. many challenges facing this country. If substantive legislation to conduct a This White House, under the Bush ad- this continues, I fear that the Senate circus—a circus—on the floor of the ministration, has threatened a veto if will be little more than an insignifi- Senate. the cost of the bill is over its chosen cant arm of the political parties, and The VA–HUD appropriations bill was number. What is meant by ‘‘its’’? we may as well lower the flag that flies never completed. Instead, it was rolled Under the White House’s chosen num- over this Capitol and wave the white into the Omnibus appropriations bill, ber. Big daddy down at the White flag of surrender in its place. as has become the unfortunate custom House, big daddy.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.073 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4475 And what is the reaction of the Sen- floor—and this goes for both sides of silly, silly, little selfish games are ate leadership to such an outrageous, the aisle—to try to get Senators on doing to the soul of this Senate. outrageous, outrageous demand? Did record as voting for and against such- Mr. President, I yield the floor. the Senate stand its ground? No. The and-such. The PRESIDING OFFICER. The Sen- White House offers a disapproving nod Bills are brought to the floor. ator from Oregon is recognized. and the Senate leaders scurry like Amendments are offered to create a Mr. SMITH. Mr. President, I am mice, taking the offensive proposal off public record that can be touted or at- going to yield to the Senator from Ar- the table. tacked come campaign season. In all kansas, and I hope to speak after him. It was not always like this. There this sound bite and fury, the losers are Briefly, I wonder if the Senator from was a time when the Senate was an the people, the people out there who West Virginia would permit me to independent body, not the errand boy are watching through those electronic thank him for his kind words. I have of the White House. It was not always lenses. They are the losers. The losers heard Senator BYRD many times speak like that. It was not always that the are the people whom we represent, the about his mother. In hearing his speech executive branch effectively dictated people who send us to this body to act today, from a statesman such as he, he what provisions the Congress included in their best interests, not to squabble is uniquely qualified to remind us Sen- in conference reports. No, this is not and point fingers like petulant chil- ators as to our institutional responsi- how the Senate is supposed to work. dren. bility and the importance of remem- The Senate is like a broken bone That is where all of these shenani- bering civility. today. Left untreated, we risk that this gans play out, in front of the American I remember when my mother used to body will be permanently weakened, people—people who need affordable say: ‘‘Gordy, the best way to ruin a never again able to do the work and health care or help putting their chil- good story is to hear the other side.’’ I bear the load for which it was designed. dren through college, people who are have remembered so much else that she I say that we must set the Senate afraid that their jobs will be sent over- taught me while she was alive about back on course and allow it to knit seas or that they will lose the pay and treating others as I would like to be back together. The current path is the benefits they have worked hard to treated. I appreciate Senator BYRD’s ci- reckless, unsustainable, and unwise. secure, people on Medicare, people on vility on every occasion on which I The record of this Senate is abysmal. Social Security, people who worry have ever dealt with him. We don’t Time after time, on issues such as med- about whether Medicare and Social Se- vote much the same, but I will tell you, ical malpractice, asbestos reform, and curity will be there when it is time for we both care about coal miners, we many others, the Republican leader- them to retire, people who have sent both care about timbermen, or lumber- ship has abandoned the committee their sons and daughters to fight in the men, we care about people who love the process of the Senate to bring partisan, hot sands of the Middle East halfway land. In all of my dealings with him, he divisive bills to the floor to make a po- around the world and who are afraid has always been civil and set that ex- litical statement and to score political that their sons and daughters may not ample. points with supporters. come home. For that, I publicly express my ap- One might dismiss the polarization of I have served in this Chamber for preciation and thank you, sir, for your this body as a product of the Senate more than four decades. Times have kind words. being so closely divided. But this lead- changed. The world has changed. But Mr. BYRD. Mr. President, the Sen- ership has allowed external forces— our responsibilities and our duties, ator from Oregon, as I have already in- most notably pressure from the White may I say to the distinguished Senator dicated, is a gentleman. I think—in House—to seep into the dealings of the from Oregon, Mr. SMITH—who always is fact I know—that if all Senators ac- Senate. so nice to his colleagues, always has a corded to their fellow Senators and fel- Is the leadership unaware that the smile. I like him. He is always a gen- low men and women the graciousness Constitution has separate articles for tleman. What better can be said about that he accords us, not only the Senate the legislative and the executive one? Our responsibilities and our duties but the Nation would be a better place branches? This is the Constitution. I as Senators have not changed, may I in which to live. I like him. I like him hold it in my hand. It has separate ti- say to my friend, Mr. SMITH. for what he is, for what he appears to tles for the executive and the legisla- Long after the campaign of this No- be. As I said earlier, he is a gentleman. tive branches, does it not, Mr. MCCAIN, vember or the campaigns of many No- There seems to be, as I have found, my friend from Arizona? Separate ti- vembers to come, each Senator in this something bigger and better than a po- tles. What branch does it mention body will look back at the content of litical party. His political party does first? Not the executive branch. No, his or her career and judge whether not seem to be the end-all, not the be- not the executive branch. No, it men- they made our country a better place. ginning of everything. He seems to be tions first the people’s branch and then The people send us here to do a job. something even bigger and better than the executive branch and then the judi- They do not send us here to play with his political party. I appreciate that, I cial branch. their lives or their children’s lives or commend him for that, and I wish in What has become of civility in this to score political points. many ways that I could be the man branch? That is a great question. One It is difficult in this world of instant that he is. I remember those lines, could spend a day talking about that. gratification to think beyond the mo- ‘‘You are a better man than I am, What has become of civility, old-fash- ment, to think beyond the immediate, Gunga Din.’’ The Senator from Oregon ioned civility? What has become of but we should all pause for a moment sets a fine example. I thank him for comity? What has become of comity in and reflect on the Senate. that. this branch? It used to be unheard of The Senate is an institution that re- I yield the floor. for Senate leaders to seek an active lies on precedent. What kind of prece- The PRESIDING OFFICER. The Sen- role against each other in campaigns. dent is being set here? ator from Arkansas is recognized. That time has apparently gone. Has In my many years in this body, I Mr. PRYOR. Mr. President, I notice honor gone, too? Who cares about have spent approximately two-thirds of that today we have a number of school- honor when a Senate seat might be my time in the majority and one-third children watching the proceedings. It is gained? When did party labels become in the minority. The majority is bet- always great to have people here more important than honor and the ter, by the way. I would say to the Re- watching in on us and watching what power of ideas? publican leadership that it is unlikely we do and hopefully keeping us ac- Gone are the days in which there was that they will always be in the major- countable. I hope they realize and ap- genuine debate. Gone are the days ity. There will come a time when they preciate the greatness of the Senator when Senators listened to the give and may appreciate once again the rights from West Virginia and his wisdom and take of the discussion to learn about afforded to the minority. We all need counsel. I hope they also will recall the an issue. And sadly, many of the votes to spend a little time thinking about teaching in the Bible about respecting that we take have a predetermined out- how it may feel once again to be in the your elders. I can say that there is no come. Yet they are brought to the other guy’s shoes, and about what our Senator in this body that we, the body,

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.088 S28PT1 S4476 CONGRESSIONAL RECORD — SENATE April 28, 2004 have more respect for than the Senator On April 22, we were fortunate all the members of the 39th would re- from West Virginia. So we thank him enough to welcome home 106 Army Na- turn home safely. The events of the for those comments. tional Guard soldiers, members of the past few weeks have prevented this f 1123rd Transportation Company based from happening, although we remain in Marked Tree, AR, and Blytheville, hopeful. HONORING OUR ARMED FORCES AR. Also, more than 60 Army Reserve I stand here today to extend my Mr. PRYOR. Mr. President, today I soldiers from Company C of the 489th deepest sympathies to their families rise to talk about the ongoing war in Engineer Battalion returned to their and honor them for their commitment Iraq, but more importantly to recog- home bases in Arkansas last week after and sacrifice. The brave men and nize a few of those soldiers who some- spending more than a year in Iraq. women who have surrendered their times get lost in the mounting rolls of These units spent more than a year in lives this weekend so others might casualty listings and to speak to the Iraq helping rebuild Iraqi cities, pro- enjoy freedom include: reality of war as seen through the eyes viding protection and logistical sup- U.S. Army CPT Arthur ‘‘Bo’’ Felder, of a State that has a long tradition of port, and destroying enemy weapons. 36, of Lewisville, AR. He had served in sending young men and women onto I commend these men and women for the National Guard since 1986, a year the battlefield. their brave service. Some of them were after he graduated from Lewisville I have been in every county in my away from their families for far longer High School. Felder served as a youth State many times, and I cannot think than they expected, but they are now director at St. Luke Missionary Bap- of one county in Arkansas that does home, and I, along with all Arkansans tist Church in North Little Rock. not have some sort of war memorial. In and all Americans, welcome them U.S. Army CWO 3 Patrick fact, most of those are at the county back. Kordsmeier, 49, of North Little Rock, courthouse. In fact, War Memorial Sta- Mr. President, while Arkansans re- AR, who died tending the soldiers in- dium is in Little Rock; it is where the joiced in the news of having a collec- jured in the first blast when he was Razorbacks play their games. You can tion of our men and women return safe- killed by a second attack. He was up go all over the State and see memorials ly, we at the same time faced the harsh for retirement before the war in Iraq to men and women who have served reality that some of our men and began, but he asked for an extension so and died in World War I, World War II, women would pay the ultimate sac- he might serve. He was born in Little the Korean War, Vietnam, and now we rifice for freedom. Rock. He reminds me of that phrase in are adding memorials for those who On Saturday, April 24, four soldiers, the Bible where it talks about there is have died in Iraq. In fact, in some parts all members of the Arkansas Army Na- no greater love than one who lays down of Arkansas, you can visit the graves of tional Guard’s 39th Infantry Brigade, his life for a friend. That is exactly Revolutionary War soldiers who actu- were killed in Taji, Iraq, as a result of what he did; ally—even though Arkansas wasn’t hostile fire when rockets hit their U.S. Army SSG Stacey Brandon, 35, even a State or a territory during that camp. An additional soldier was killed of Hazen. He was a prison guard for the time, we have taken those graves, hon- a day later when a roadside bomb deto- Arkansas Department of Correction ored them, and we are proud that they nated near Sadr City. and later worked at the Federal prison migrated to the area known as Arkan- To let my colleagues know, there are in Forrest City; sas. We feel connected to the Revolu- approximately 4,200 troops in the 39th U.S. Army SSG Billy Orton, 41, of tionary War through them. Infantry Brigade, including about 2,800 Sometimes it is easy to feel discon- Humnoke, AR. His wife and children nected from the war effort. Even Arkansans from 47 hometown units. reside in Carlisle, AR, and his mother though there is 24-hour news coverage The balance of the troops are from 10 in Hazen; dominated by visions of our men and other States. U.S. Army SP Kenneth Melton, 30, of The 39th was officially called to ac- women in uniform fighting for freedom Batesville, AR. Melton was traveling as in Iraq, the pictures, words, and stories tive duty last September, and I part of a protection team with bat- can have a numbing effect. We start watched their progress as they trained talion leaders when a roadside bomb paying attention to other matters, and and prepared to fulfill their mission. exploded, taking his life. In January, I traveled to Fort Hood, we try to live our daily lives and try to The events of this past weekend al- put the echoes of war in the back- TX, to visit troops from the 1st Cav- most double the number of troops my ground. But sometimes all it takes is alry Division and the 39th Infantry Bri- State has previously lost during the one event to snap us back, to grab our gade. During my trip, I witnessed dem- war in Iraq. Arkansas has lost eight attention and make us more attuned to onstrations of topnotch training and soldiers prior to this weekend. the conflict we face. cutting-edge equipment that will en- To put this in perspective, no single The tragic events in Iraq in April able these soldiers to successfully day during Vietnam saw as many Ar- have brought with it 115 American carry out their mission in Iraq. kansans killed by hostile fire as this military fatalities; major combat in I again visited them at Fort Polk, past Saturday. In fact, Saturday’s Fallujah; and a rush of kidnapping, LA, with other members of Arkansas’s events are the bloodiest for Arkansas’s bombings, and other insurgent attacks congressional delegation. I was truly soldiers since December 2, 1950, when that have terrorized not just American proud of what I witnessed. I saw Arkan- five Arkansans were killed during com- soldiers but innocent Iraqis. sans who had undergone long days of bat in Korea. April has also brought our full atten- training and preparation and were I also honor the other eight soldiers tion as a Nation back to the war in aware of the dangerous conditions and who gave their lives during combat in Iraq. Almost a year later, we fully real- challenges that lay ahead for them in Iraq. They include: ize there is still work to be done mili- Iraq. However, they remained in high U.S. Army SFC William Labadie, 45, tarily and diplomatically, and that our spirits and were determined to carry of Bauxite, AR, who died 2 weeks after mission is not yet accomplished. out their mission. being deployed. Labadie was also as- As for the citizens of Arkansas, we I am inspired by these men and signed to the 1st Cavalry, 39th Brigade, have in the past few weeks experienced women, patriots all, who have taken Troop E–151 Cavalry, Camp Taji in Ku- both the joy and pain that is associated determination and commitment to a wait; with being a standard bearer for free- new level. I know the sacrifice and the U.S. Army SP Ahmed ‘‘Mel’’ Cason, dom and democracy. We are a country dedication of the 39th will help bring 24, died on April 4 in Baghdad. He was that has and will continue to risk life stability and democracy to the streets assigned to the 2nd Battalion, 5th Cav- and limb, not only to protect our free- of Iraq. alry Regiment, 1st Cavalry Division in dom and liberty but to extend those We wished these soldiers well, know- Fort Hood. Cason grew up in McGehee same opportunities to all people in all ing it was a matter of days before they and many of his relatives now live in places. It is something of which we can would be sent to Iraq. In March, they Maumelle, AR; and should be proud. But as we know, were sent over. Since their departure, U.S. Army 1LT Adam Mooney, 28, of it often comes with the most precious we have all gone to bed with prayers in Cambridge, MD. His helicopter went sacrifice. our minds and hope in our hearts that down in the Tigris River in Mosul,

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.091 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4477 Iraq, during a search for a missing sol- in Iraq on April 25, 2004, as he sought to tation and Homeland Security Appro- dier. His wife now lives in Conway, AR; intercept a marine vessel attempting priations Subcommittees, I have often U.S. Army MSG Kevin Morehead, 33, to launch a terrorist attack. noted the tremendous task the Coast a special forces soldier from Little Petty Officer Bruckenthal’s death re- Guard faces in terms of securing our Rock who had previously received a minds us of the dangerous mission that Nation’s ports and cargo terminals. I Bronze Star with valor in Afghanistan, the Coast Guard performs every day, at have applauded their efforts in address- died on September 12, 2003, from hostile home and overseas, in support of the ing the security issues facing our coun- fire in Ramadi, Iraq; Nation’s defense. try’s ports. The 13th Coast Guard Dis- U.S. Army SP Dustin McGaugh, 20, of It is with a deep respect for the Coast trict is known as guardians of the Pa- Derby, KS, died on September 30 in Guard and the many valiant Americans cific Northwest. They have a presence Balad, Iraq. His mother resides in who serve in the Coast Guard that I in 14 locations throughout my State Tulsa, OK, and his father in Spring- come to the floor today to pay tribute and are responsible for monitoring 200 dale, AR. McGaugh grew up in Spring- to the first Coast Guardsmen killed in facilities in Washington, including 60 dale and joined the Army ROTC after Iraq. U.S. Coast Guard Damage designated water front facilities that he graduated from high school in 2001; Controlman Third Class Nathan B. handle oil and hazardous materials. U.S. Army PFC Jonathan M. Bruckenthal was killed along with two We know that many fine young Cheatham, 19, of Camden, AR, my fa- U.S. Navy sailors, Petty Officer First American soldiers, sailors and airmen ther’s hometown. He was assigned to Class Michael J. Pernaselli and Petty have made the ultimate sacrifice in the the 489th Engineer Battalion, U.S. Officer Second Class Christopher E. fight against terrorism and terrorists Army Reserve, North Little Rock, AR. Watts, trying to protect oil terminals and in Iraq and Afghanistan. I have He was killed while riding in a convoy off the coast of Iraq. A coordinated sui- personally written to 25 families of that came under a rocket-propelled cide bombing attack struck members service men and women with ties to grenade attack on July 26 in Baghdad; of the coalition Maritime Interception the State of Washington who have died U.S. Marine Corps PFC Brandon Operations team as they attempted to while serving in Operation Iraqi Free- Smith, 20, of Washington, AR, died board a small boat that threatened the dom and Operation Enduring Freedom. March 18, 2004, in Qaim, Iraq, on the Khawr Al Amay Oil Terminal. Now, sadly, a proud member of the This tragic loss of the first Coast eve of the anniversary of the war. He Coast Guard has joined the list of Guard member killed in battle since was trying to help comrades under at- Americans killed in action in defense Vietnam highlights the critical and tack when he was killed by mortar fire; of our country. We extend our deepest often overlooked role of Coast Guard U.S. Navy Hospital Corpsman Third sympathies and respect to Petty Offi- operations in Operation Iraqi Freedom. Class Michael Vann Johnson, Jr., of cer Bruckenthal’s family and friends. At the height of combat operations, Little Rock, AR. He was the first Ar- We join the Coast Guard family in hon- the Coast Guard had approximately kansan to die during Operation Iraqi oring Petty Officer Nathan 1,250 personnel deployed to Operation Freedom. In fact, one of my staff in Bruckenthal. We will remember his Iraqi Freedom for port and coastal se- Little Rock was visiting a doctor sev- brave service to the Coast Guard, to curity, maritime law enforcement, hu- eral days ago and it so happened he our Nation’s defense, and to us all. manitarian aid, maintenance of navi- started talking to the woman who was The PRESIDING OFFICER. The Sen- gational waterways, contingency pre- assisting in the doctor’s office, and it ator from Oregon. paredness for environmental terrorism, Mr. SMITH. Mr. President, I ask was Michael Vann Johnson’s mother. It and training the newly established unanimous consent that I be allowed to happened to be the 1-year anniversary Iraqi coast guard. Coast Guard support speak as in morning business, and after of his death in Iraq. to Operation Iraqi Freedom continues my remarks that the Senator from We have not lost nearly as many as today with approximately 300 people New Mexico, Mr. BINGAMAN, be allowed other States, but our loss is just as supporting these vital operations. to speak. real. The grieving is just as sorrowful, Petty Officer Bruckenthal enlisted in The PRESIDING OFFICER. Without and the fear that there may be more the Coast Guard 6 years ago. I am objection, it is so ordered. coming is just as frightening, but our proud to say his service included 2 ENVIRONMENTAL POLICIES resolve is just as strong. years in western Washington at the Mr. SMITH. Mr. President, I am This is a very real war for the people Coast Guard Station Neah Bay. In ad- pleased to be addressing a Texan, the of my State. It impacts every commu- dition to protecting the safety of lives Presiding Officer, at this moment. I nity. It seems as if everybody in my at sea, he was a dedicated citizen of the wish to speak about a Texan. I was State knows of someone who has Clallum County community. Petty Of- serving in the Senate for 4 years when served, is serving, or who will serve in ficer Bruckenthal made time to volun- I got a call from the Governor of Texas, Iraq. teer as a Neah Bay fire fighter, an George W. Bush, to ask if I would give We might not all agree on how we got emergency medical technician, a re- him some time and consider his can- where we are. We might not all agree serve police officer, and a coach for the didacy for the Presidency of the United with all the decisions that have been Neah Bay High School. He was known States. made by this administration. But we for his terrific work with children and I was privileged to travel to Austin, stand behind our troops and are truly his passion for law enforcement. and an hour’s meeting turned into a inspired by their dedication. We are As many brave members of our half a day’s meeting, as I found in this proud of our professional soldiers, armed forces, Petty Officer good man a man of the West, a man Guard members and reservists who left Bruckenthal was serving on his second who understood from whence he came behind their families and way of life to tour in Iraq. He served from February in rural parts of Texas. fight in a land that is not theirs for 2003 to May 2003 in Operation Iraqi I represent the State of Oregon. I people they do not know. Freedom where he received the Armed come from the dry side of Oregon, a The soldiers we have lost will never Forces Expeditionary Medal and the side not unlike many parts of Texas. be forgotten. They, along with all our Combat Action Ribbon. He returned for People do not think of Oregon in those soldiers, will be remembered for their a second tour in Iraq beginning Feb- terms, but many parts of Oregon are strength and dedication in bringing ruary 2004. This was an extremely dif- arid. My neighbors are people who farm independence to the Iraqi nation, and ficult and complex mission; particu- the earth, fish the rivers, the ocean, they will be defined as heroes of the larly trying to distinguish between the and they harvest timber from our 21st century. enemy and the average citizens. Coast mountains. Mr. President, I yield the floor. Guard is carrying a very heavy load in I had served for 4 years as a Senator, Mrs. MURRAY. Mr. President, I rise protecting the northern Arabian Gulf working with President Clinton and his today to honor Petty Officer Nathan B. and the oil fueling stations which are administration, trying to make sense Bruckenthal for his service to the essential to the recovery of the Iraqi of his Northwest Forest Plan, and United States Coast Guard and his economy. other proposals of his administration commitment to his country. Petty Of- I have long ties to the Coast Guard. that had an enormous effect upon the ficer Bruckenthal was killed in action In my leadership roles on the Transpor- State of Oregon.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.093 S28PT1 S4478 CONGRESSIONAL RECORD — SENATE April 28, 2004 It was interesting to watch the elec- So when one wants to know where a lot rural places: a little compassion, a lit- tion results 4 years ago and to see the of our jobs went, they went away be- tle balance. diversity of voting between urban and cause of conscious Federal policy. In 2002, President Bush came to Or- rural places. Overwhelmingly, rural Right now, as we barely utilize our egon. He saw firsthand the destruction people voted for George W. Bush, as did resources in Oregon and in America, we and dislocation caused by these cata- I because I am from a rural place. are overcutting in Canada. The spotted strophic wildfires. On occasion, I was In my first meeting with George W. owl does not know the difference. In able to share with him the importance Bush, I began to discuss the issues of fact, as we overcut in Canada, we of rebalancing policies, even as it re- the people I serve and who elected me. watch our forests burn at record rates. lated to producing electricity. For a I could tell in an instant that he got it, George W. Bush, fortunately, true to long time there were serious people in that he understood. He understood his word, helped with this Senate and powerful places advocating the demoli- water. He understood ranching. He un- the House of Representatives to pass a tion of hydroelectric power on the Co- derstood farmers. forest health initiative. It is a modest lombia and Snake Rivers. It is the Should he be elected, I asked him as step but it is designed to make commu- product of our prosperity in this coun- he formulated his environmental poli- nities safer, improve environmental try that we have come to a place where cies to please not forget the people who health, and to harvest timber. All of too many think electricity comes from I thought would vote overwhelmingly those things will begin to be enjoyed a light switch, gasoline comes from a for him. I asked him to please try to by the people of Oregon again: a better service station, and timber comes from better balance the environmental poli- environment and a better economy. the local hardware store. But all of cies of the Federal Government so we Some of those jobs can come back. these things come from rural places, did not forget our human stewardship I lamented when Michael Kelly, the from industries that provide us the as we try to implement our environ- late columnist, lost his life in Iraq. He power and the means to enjoy the mental stewardship. put the natural resources conflict quite American way of life. President Bush We have just observed the 34th an- eloquently in a column he wrote in has had the good sense to resist some nual Earth Day. I know many in the 2001. He said that the battle of values of these proposals that went too far environmental community are assem- over land use and environmental poli- and, when appropriate, to rebalance bling an arsenal of millions of dollars cies, while often framed as between them so people can have a place again to run against George W. Bush and sug- man and beast, is better understood as in the environmental equation. gest that the air has gotten dirtier, the between increasingly poor and power- This President also is strongly com- water is fouler, and that the earth is less rural voters and increasingly rich mitted to species conservation. Some- more imbalanced because of his tenure. and powerful urban and suburban vot- times that is missed. In fact, it will He has not forgotten those who have ers. never be included in the ads of environ- elected him. He has not forgotten rural Kelly went on to note that the En- mental organizations, but this Presi- people. He has reconsidered and rebal- dangered Species Act ‘‘has been ex- dent’s budget for fiscal year 2005 in- anced some proposals, and the air is ploited by environmental groups whose cludes $100 million for the Pacific cleaner, the water is cleaner, and the agenda is to force humans out of lands Coastal Salmon Recovery Fund, which land is doing fine. We have made enor- they wish to see returned to a pre- is a $10 million increase from the year mous environmental progress in our human state.’’ before. The combined Federal funding country and sometimes we do not stop For my counterparts in the East, request for Pacific salmon mitigation to celebrate all the progress we have some of whom think all resource ex- and recovery is over $719 million, and made. traction on public lands should be off this commitment is paying off. Ten I remember as a boy growing up in limits, I would like to give you a sense years ago a little over 200,000 chinook Bethesda, MD, one could not safely go of how vast the Federal presence is in and 160,000 steelhead returned to the in the Potomac River because it was so my State. This picture is of an area Bonneville Dam. But in 2003, nearly a polluted. We can do that today because known as the Biscuit Fire. The Biscuit million chinook and 365,000 steelhead of the EPA, an Agency established by Fire consumed lands larger than the returned to that dam. Richard Nixon and the Congress. We State of Rhode Island, or four times This President has also understood can do that because of all of the efforts the size of the District of Columbia. It the need for a comprehensive national that have gone on before. destroyed countless acres of roadless energy policy, and that energy security I used to be somewhat concerned and areas, wilderness, spotted owl habitat, is vital to our national security, to say frustrated as President Clinton would and salmon spawning grounds. I ask nothing of our economic security. He go to Virginia and West Virginia and how that moonscape leaves the envi- has championed the research and devel- decry rural poverty, when I recognized ronment better. I know it left the peo- opment of new fuel cell technology that much of the poverty occurring in ple worse. that would lessen our dependence on my State was as a direct result of Fed- The Federal Government owns over imported oil. He has supported energy eral policies. It used to be that in the 50 percent of the State of Oregon, conservation and tax credits for the State of Oregon, for a long time, we which amounts to almost 33 million production of electricity from renew- harvested tremendous amounts of tim- acres; greater than the total acreage of able sources. ber. We had a very vibrant timber in- 22 other individual States. So it is safe As energy prices remain high, and as dustry in our country. to say Federal land management poli- our economy rebounds, the need for a Indeed, from the Pacific Northwest cies have a significant impact on the national energy policy will only con- region alone we would average about 4 people, the economy, the environment, tinue to become more and more urgent. billion board feet a year. I think Presi- and the environmental health of my President Bush is not going to get dent Clinton recognized that maybe State. credit for these things in the ads of cer- that was more than was sustainable. I am proud we have a President who tain advocacy groups, but I hope the He promised the timber industry and understands the implications of Fed- American people will remember to the people of the forest in Oregon that eral policies on rural America. This credit him for his care for rural people he would give them 25 percent of their President understands that humans are and places, for his tangible efforts to average harvest—that is 1 billion board part of the environmental equation, restore lost family-wage jobs as it re- feet. We have probably harvested 10 and he is working to maintain domes- lates to fishing, farming, forestry, and percent of that since that promise was tic resource industries and to return energy production. I hope people will made, and I have witnessed tens of strength to rural economies. also remember our air is cleaner, our thousands of family wage jobs evapo- So as he gets attacked in this cam- water is cleaner—we are making tre- rate. paign, I hope the people of Oregon will mendous progress. While some will say When that happens, it is not just jobs understand there is a human side to this has been rolled back, or that has that go away. There are problems with this equation, and they will remember been changed, it is usually because alcoholism, spousal abuse, crime, hope- the compassionate conservatism he something has gone too far and a little lessness, suicide, and a loss of dignity. campaigned on is being restored in common sense, a little compassionate

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.095 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4479 conservatism was needed to be restored that there are not good provisions in tical purposes, a dead issue at this to the equation. the bill. But let me start the list of ex- point, I do not see why we are still try- On Earth Day I had wanted to come amples of objectionable provisions by ing to address it in the clumsy way it and say these things to defend the talking a little about electricity and is addressed in the amendment. President, as he is being attacked so the efforts that we made in the Senate Let me move on from electricity and liberally, but time on the floor was not regarding the regulation of electricity the whole issue of oil and gas. allowed that day. So I am here this day markets. With respect to the dependence on to put in this reminder and ask the The new amendment substantially foreign oil, the bill has some problem- American people to remember: Presi- fails to protect electricity consumers atic provisions, both on the efficiency dent Bush is a good steward. More than from market manipulation, including side and on the supply side. One provi- that, he is a good man. most of the schemes that were used in sion in the amendment would increase I yield the floor. California by Enron and other compa- U.S. gasoline demand over the current The PRESIDING OFFICER (Ms. COL- nies that were acting in the same way law by 11 billion gallons by 2020. Given LINS). Under the previous order, the that Enron was. It makes illegal only today’s prices at the pump, that would Senator from New Mexico is recog- one specific practice that was used by seem to me to be a step in the wrong nized. Enron, that is round-trip trading. It po- direction. Mr. CORNYN. Will the Senator from tentially leaves an inference that Con- New Mexico yield for a unanimous congress does not view the other schemes With respect to oil and gas produc- sent request? as equally problematic. tion, the bill mixes up the worthy goal Mr. BINGAMAN. I am glad to yield. The Senate voted last year, 57 to 40, of getting more energy development on Mr. CORNYN. I ask unanimous con- for a broad ban on market manipula- Indian lands with provisions that sent that following the remarks of the tion. I strongly believe that was the weaken the National Environmental Senator from New Mexico, I be recog- right way for us to vote on this issue. Policy Act process—the NEPA proc- nized for such remarks that I may I do not understand the rationale for ess—with the change in the trust rela- make. ignoring a past strong Senate vote on tionship between Indian tribes and the The PRESIDING OFFICER. Without this subject in an effort to prohibit Department of the Interior. The trust objection, it is so ordered. market manipulation. relationship has nothing to do with en- The Senator from New Mexico. The amendment also contains a pro- ergy, and the change contemplated by AMENDMENT NO. 3051 posal to shift the cost of constructing this bill is vigorously opposed by sev- Mr. BINGAMAN. Madam President, I new transmission from one set of par- eral Indian tribes. I do not know why it thank my colleague from Oregon for ties in the electric utility industry to needs to be included in this amendment his courtesy in reserving my oppor- another. Trying to legislate rate design either. tunity to speak. is probably never a good idea. In the The new amendment adds some other The pending business before the Sen- form of so-called participant funding new provisions related to the oil and ate is the Domenici amendment which that is contained in this amendment, it gas industry that, in my view, are like- has been offered to the Internet tax is particularly egregious. Its effect ly to backfire when they actually get bill. I thought it would be useful to try would be to create a huge disincentive implemented. The first of these pro- to talk about that legislation and the for the construction of new trans- vides the cost of NEPA analyses can be substance of that legislation, at least mission by corporations that are not pushed off on oil and gas producers to to some extent this afternoon, before already in a substantial monopoly posi- be recovered by them at some future we get to a cloture vote tomorrow. tion in a given region. date from their royalty stream to the This amendment, of course, is the En- Why should we want to cut down on government, if one ever develops from ergy bill. For those who have not fo- the number of companies interested in the lease for which the NEPA work was cused on it, this is the amendment I building generation and transmission? done. This is essentially a mandate hold in my hand. It is 913 pages. It is I fear that is what this amendment, as that producers give the Federal Gov- called the Energy Policy Act of 2003. it currently stands, would do. The new ernment the equivalent of an interest- Unfortunately, not a lot has changed amendment repeals the Public Utility free loan with the producers paying for since the beginning of the floor debate Holding Company Act. It does so, how- something they thought they had al- that we had in the Congress last May, ever, without any other provisions ready paid for through their taxes. or when we debated the energy con- being added to ensure that electric or If this amendment were to become ference report last November. We have gas mergers or acquisitions had to be law, there would be much greater pres- before us proposed legislation that I be- in the public interest, without any real sure to let producers bear the entire lieve does not command the broad pub- protection for the ability of State pub- cost of preparing the Government’s lic support that we need in order to lic utility commissions to protect con- NEPA documents with a theoretical have a national energy policy. sumers against cross-subsidization or cost recovery by them at some point in I would cite three categories of prob- other abuses. the future. I do not think this is good lems with the bill. First, I will talk If there were such protections, it public policy. about some of the objectionable provi- would be my inclination to support the sions in the bill and give examples of repeal of PUHCA, and I have supported A second provision that could back- concerns in that area. Second, I will the repeal of PUHCA in the past. But I fire is the very detailed micromanage- talk about some meritorious provisions think a world of untrammeled mergers ment of the permit approval process in which the Senate has previously passed of electric utility companies is going the Government with extremely tight as part of the Energy bill that we acted to turn out to be bad for electricity deadlines like a 10-day deadline for upon in this Congress and in the pre- consumers. agency action. This is likely to result vious Congress but which have been de- The amendment also overreaches, in in a great deal of paperwork to explain leted from this bill, which I think is a my view, in the response to the stand- why the 10-day limit was exceeded for mistake. Finally, I will talk about the ard market design rulemaking. It basi- such permits, and the effort spent on legislative thicket that we would be cally throws into question the Federal generating all of the defensive paper- wading into if in fact we invoked clo- Energy Regulatory Commission’s au- work will probably come at the expense ture on this amendment. thority to issue rules of general appli- of actually getting permits done. First, let me talk about this category cability that are other than the stand- What we need and what I have of objectionable provisions that are ard market design rule. If we have an- strongly supported is getting more re- contained in the Domenici amendment. other price crisis in this country as we sources into the field offices of the De- There are fairly good provisions in the have in California, the Federal Energy partment of the Interior to eliminate bill as well. Let me say that at the out- Regulatory Commission will be unable the backlogs that are there at the set. Many of those are ones we have in- to intervene as it ultimately did in present time. That is what we should cluded in legislation previously passed California and in the West. Since be focused on—not on micromanaging in the Senate. I do not mean to imply standard market design is, for all prac- the bureaucratic process.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.097 S28PT1 S4480 CONGRESSIONAL RECORD — SENATE April 28, 2004 With respect to coal, the new amend- At this point, the adoption of the hydro- year by Senator LANDRIEU to promote ment waters down the Clean Coal Tech- power title would significantly complicate oil savings economy-wide. That amend- nology Program in some very impor- the implementation of these new rules and ment passed this body 99–1 as part of tant ways. It lowers the fraction of would lengthen the licensing process. our debate of an energy bill. Again, I funds in the program that needs to be I ask unanimous consent that the see no reason why that should not be spent on the cleanest technologies letter be printed in the RECORD fol- included if we are going to, in fact, from what we have previously agreed lowing my remarks. pass an energy bill. to here in the Senate. It also sets up a The PRESIDING OFFICER. Without The new amendment also entirely brand new competing program to the objection, it is so ordered. ducks the important issue of climate Clean Coal Technology Program. Under (See exhibit 1.) change. Climate change is closely re- that program, the Federal Government Mr. BINGAMAN. Madam President, lated to energy policy because the two will contribute up to $1.8 billion to the these are some of the many problems most prominent greenhouse gases— utility industry to help foot the bill for contained in the pending amendment. I that is, carbon dioxide and methane— off-the-shelf coal and pollution control am sure colleagues will come to the are largely released due to energy pro- technology for existing coal plants. I floor and mention others they particu- duction in use. Every study of how to don’t see how this subsidy makes sense larly are focused on. mitigate the possibility of global cli- from the point of view of energy, or the Let me talk about the second class of mate change comes up with a list of environment, or our budget situation. problems which consists of the good policy measures which relies heavily With respect to renewables, the new and needed energy policy provisions on increased energy efficiency and new amendment authorizes grants to burn the amendment leaves out, even energy production technologies with lower greenhouse gas emissions. Be- biomass for energy, but then it fails to though those in most cases I am going cause of this connection, much of the protect old-growth forests. Under the to discuss are ones we in the Senate energy policy and much of the climate amendment, old-growth forests could have passed as part of the Energy bill change policy has to be discussed to- be cut down with Federal grants for we sent to conference. First of all, the amendment steps gether. To do one is, by implication, to use as an energy source. I think that is do the other; to ignore one while doing objectionable. An imperative for Fed- backward from the old conference report that was brought to the Senate the other is to risk unfortunate and un- eral energy policy legislation has to be intended consequences. to recognize the ways in which energy last fall in one important area; that is, in renewing the Federal Government’s The Senate has previously passed en- use and energy policy is intertwined ergy bills with numerous provisions to with the environment. ability to enter into emergency savings performance contracts. This is one of ensure that we integrate climate In this area, the amendment we have change strategy with energy policy, de- the Federal Government’s primary before us has some major failures. If velop better climate change science, tools for improving energy efficiency enacted, it would be the first statute in and that we focus on breakthrough in Federal facilities. I don’t know why years to substantially roll back envi- technologies with better environ- we would not want to include that in ronmental protections for our citizens mental performance, and the United any energy bill we passed here in the and those rollbacks have nothing to do States takes the lead in exporting the Senate. We have included it in the bills with improving our energy security. clean energy technologies we develop. we have passed previously. For example, the amendment loosens These provisions do not receive even Second, the new amendment lacks ozone attainment standards nation- the slightest consideration or mention something that enjoys majority sup- wide. To its credit, EPA in the last few in the amendment that has been put port in the Senate; that is, a renewable weeks has taken definitive steps in the forward. Leaving climate change out of opposite direction; that is, for tough portfolio standard for electricity. the energy legislation is a very short- Along with the tax incentives in the standards for ozone control. I don’t sighted approach, both in terms of en- know why we should vote in the Senate FSC/ETI bill, this measure is essential, ergy policy and in terms of our overall to undercut the progress the EPA is in my view, in order to give new cer- relations with the rest of the world. making. Further changing ozone stand- tainty to the fledgling market to allow Finally, let me talk about this third ards is a topic that has never received economies of scale to drive down costs major problem, and that is the way we Senate consideration in the past on and improve manufacturing capacity are being asked to go about legislating any energy bill. for renewable energy equipment in the on energy with this cloture vote on The particular provision I am de- United States. this amendment added to the Internet scribing here materialized for the first The Energy Information Agency tax bill. This has to do with the fact time in one of last year’s closed-door agrees with this analysis. They have that all of the above problems are en- conference discussions. come up with their own analysis that compassed in the 913-page amendment. The conference report also exempts shows this renewable portfolio stand- Because it is a second-degree amend- oil and gas construction sites from the ard is effective in getting more renew- ment, all 913 pages are, at the moment, Clean Water Act, even large sites that ables into the market beyond what tax unamendable. It is a take-it-or-leave-it have been under regulation for years. incentives would do. That would re- proposition for the Senate at this It contains numerous provisions that lieve some of the pressure on national point. are inconsistent with a thoughtful en- gas prices over the long term. Let us suppose a cloture is invoked vironmental review process under Another problem that is unaddressed on this second-degree amendment and NEPA. in the bill deals with distributed gen- it was then adopted to the first-degree I could go on at some length here eration such as combined heat and Daschle amendment. At that point, pointing out problems in the bill. power at industrial facilities. The Senators who wish to change language I have a letter I received today from amendment does not address the bar- currently contained within the Domen- Trout Unlimited and various Indian riers that have been erected to uniform ici amendment could only do so by of- tribes in the Northwest and other out- interconnection of distributed genera- fering a complete substitute amend- door sportsmen’s groups—41 groups in tion to the grid. It is not enough to ment for the whole 913-page amend- total—that talks about problems they have the technology; we need to rid ment. Senators who wish to add new see with the hydroelectric provisions in ourselves of the redtape that is keeping subject matter, not seeking to change this amendment. It is a letter sent to the technology from being used. The what is currently in the Domenici all Senators and I am sure all Senators amendment, unfortunately, does not do amendment, would do so by offering have received it. that. amendments that would be added onto They say: With respect to reducing our depend- the end of the amendment. But when- We urge you to oppose cloture on the ence on foreign oil, the new amend- ever the first substitute amendment amendment and support amendments to fix ment leaves out another important fixing a problem within the Domenici or eliminate the hydro provisions from the proposal that has overwhelming sup- amendment was adopted, no further energy bill. port in the Senate. That would be the amendments to the amended Daschle They also go on to say: innovative amendment offered last amendment would be in order.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.101 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4481 To have further amendment opportu- them with the Internet tax bill, we EXHIBIT 1 nities, Senators would then have to ought to separate them and pass them TRIBAL NATIONS AND RIVER CONSERVATION- agree to adopt the Daschle amendment individually. ISTS CALL ON THE SENATE TO OPPOSE CLO- to the underlying text of S. 150. At that TURE ON SENATOR DOMENICI’S SECOND DE- One such provision, of course, is the point, Senators with new ideas could GREE AMENDMENT TO ADD THE ENERGY BILL (S. 2095) TO THE INTERNET TAX BILL—PROVI- still add new amendments addressing legislation related to electricity reli- SIONS HARMFUL TO RIVERS AND FISH MUST those new ideas but—and this is signifi- ability. Congress has been working on this over three Congresses now. Sen- BE FIXED OR ELIMINATED IN THE ENERGY cant—Senators who still want to ad- BILL ator CANTWELL has proposed free- dress problems remaining in the text APRIL 28, 2004. would have to write so-called ‘‘bigger standing legislation and has come to DEAR SENATOR: Last year, the conference bite’’ amendments. the Senate floor twice now and asked committee agreed to profound changes to the As an example of what I am talking unanimous consent to pass this bill. Federal Power Act contained in the proposed about, a Senator wishing to change Her requests have been denied. I urge hydropower title of the Energy Bill. These something on page 600 of this 913-page changes turn 80 years of law on its head by my colleagues to let this bipartisan significantly changing Sections 33(b), 4(e), amendment would have to write an bill pass. There is no reason why this and 18 of the Federal Power Act. Under the amendment containing part of S. 150 much needed provision should be held new statute, States, Tribes and interested and the first 599 pages of the Domenici hostage to more controversial energy citizens would, for the first time, be afforded amendment, and then the Senator provisions. inferior status in the process for establishing would have to make sure the amend- fish passage and other public land protec- ment made substantive changes both Another noncontroversial energy tions on hydropower licenses. Today, Sen- to the text of S. 150 and to the Domen- provision is related to the Alaska gas ator Domenici is trying to add the Energy ici amendment. Successful amend- pipeline. The needed fiscal incentives bill, S. 2095, containing these provisions to the Internet Tax Bill. We urge you to oppose ments of this sort could take bigger to build the pipeline are now in the cloture on his amendment, and support bites that would unwittingly screen FSC/ETI bill. That is a great develop- amendments to fix or eliminate the hydro out other such amendments other Sen- ment. Why can’t we go ahead and pass provisions from the Energy bill. ators might want to offer. the provisions to streamline the regu- Under these provisions, a given license ap- If this sounds convoluted as a way to plicant would offer alternative conditions latory approvals for the pipeline by contrary to what the Secretaries of the Inte- do business in the Senate, that is be- unanimous consent? I am not aware of cause it is. If anyone wants to stand up rior, Commerce, or Agriculture may have anyone in the Senate who objects to recommended, and provide them with an un- and say this amendment would be fully doing that. fair and exclusive opportunity to specify the amendable even if we invoke cloture level of protection for public lands (including tomorrow, I guess there is some tech- A third example where the Senate Indian lands) or implementation of fish pas- nical argument to the effect that is could act very easily, in my view, sage. Perhaps the most disturbing aspect of true, but the reality is, all Senators would be to renew the authority for en- this language is the establishment of a new with interests in changing specific ergy savings performance contracts. administrative appeals process in the form of problems in this 913 pages would find a ‘‘trial-type’’ hearing. Both this new ‘‘hear- This is an important energy matter ing’’ and the right to require the agencies to themselves at a considerable and per- that has broad bipartisan support. I accept alternative conditions are available haps overwhelming disadvantage com- pointed that out. As I have also point- only to dam owners. Other interests already pared to the normal way we go about ed out, it has been totally deleted from full parties to FERC proceedings, including amending bills in the Senate. states, tribes, irrigators, landholders, and this amendment. So for both substantive and proce- environmental are prohibited from gaining dural reasons, I think proceeding to in- I could go on and point to other pro- party status in this process. To suggest that voke cloture on the Domenici amend- visions related to the oil and gas indus- State and Tribal governments or local citi- ment is not the best course of action try, to energy efficiency, to research zens should not be able to exercise their role as full parties to hydro licensing when hy- for the Senate. I believe we have better and development, and to other topics dropower dam operators proposed alter- options for enacting energy issues in that are probably also easy enough to natives that could damage fisheries and pub- this Congress than this convoluted pass on a bipartisan basis. It does not lic lands is nothing less than an attack on amendment situation. Those options make sense to take the position that basic democratic principles. would be to take the most pressing en- Today, there is even less reason to adopt we cannot do any single thing related the language from last year’s conference. On ergy needs and promising energy op- to energy unless we tie it to the resolu- portunities and act directly on those July 23, 2003, FERC finalized new rules that tion of every other controversial issue establish a new licensing process—Integrated without getting mired in the many Licensing—designed collaboratively by in- controversies that are contained in in energy policy. In my view, that is counterproductive. dustry, FERC, State and Tribal governments this amendment. and the public interest community. See ‘‘Hy- The Senate has already made a start I hope my colleagues will agree with droelectric Licensing Under the Federal in that direction. Over the past few me that the current amendment before Power Act; Final Rule,’’ 68 Fed. Reg. 51069– months, the Senate has incorporated the Senate is not the path we should 51143 (August 25, 2003). This new process spe- both large chunks and smaller pieces of cifically addresses the longstanding concerns take to move forward. that inadequate interagency coordination the energy conference report into other has resulted in delays and unnecessary costs legislation it has either passed or hope- I think there has been too much partisanship on energy in this Congress. In in licensing decisions. Under this process, li- fully is going to pass. The prime exam- censees along with the other parties are pro- ple, of course, is the unanimous agree- my view, that is unfortunate. Taking vided with opportunities to work collabo- ment to incorporate the Senate’s bipar- an especially partisan approach to for- ratively with the conditioning agencies on tisan energy tax package into the FSC/ mulating the policy has not been a rec- the development of public land protections ETI bill. We have also acted separately ipe for success. I hope the Senate will and fishways in FERC licensing. The process on LIHEAP reauthorization, the Low- not proceed forward with this amend- will run on a strict clock to assure a relicensing decision before expiration of an Income Home Energy Assistance Pro- ment and will proceed forward with the original license, as the hydropower industry gram reauthorization, putting that in a underlying Internet tax bill. I do not requested. The rules also require FERC to separate bill, S. 1786, which passed the believe this amendment provides the conduct consultation with tribes affected by Senate on February 12. Other sections right balance between energy supply, the licensing. At this point, the adoption of of the Energy bill were put into the energy efficiency, and the protection of hydropower title would significantly com- highway bill, which has also passed the plicate the implementation of these new the environment. We can do better for rules (for example, by requiring Commerce, Senate. this Nation by passing the sensible en- I have pointed out for some time now Agriculture and Interior to undertake their ergy provisions that are broadly sup- own further rulemakings), and would length- that there are a number of additional en the licensing process. Without question, provisions from the conference report ported in this body, and passing them soon. they will add a new layer of red tape to a that have broad bipartisan support process that has not even been given a that we could act on. Instead of mixing Madam President, I yield the floor. chance to work.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.104 S28PT1 S4482 CONGRESSIONAL RECORD — SENATE April 28, 2004 Yesterday, amendment was offered to the tially involved in the development of the proposed procedures that have Internet tax legislation on the Senate floor the new information-sharing policy, maintained and buttressed this wall that includes the Hydropower Title. We ask and, No. 2, the Department’s policies that blinded America to this terrible you to vote ‘‘no’’ on cloture for Senator Do- under the Clinton-Reno administration threat. menici’s amendment. We also ask you to oppose any efforts to attach or otherwise pass enhanced rather than restricted infor- Mary Jo White, in part, said—and the the hydropower title and its provisions that mation sharing. documents are on the website so any- are so contrary to the interests of State and Madam President, these documents— one who wishes can see the whole docu- Tribal governments and local citizens. Let’s and they are not particularly lengthy, ment, but she said, in part: give these new FERC regulations an oppor- but they do raise significant questions It is hard to be totally comfortable with tunity to work. about the decision of the Commission instructions to the FBI prohibiting contact We thank you for your continued leader- not to have Ms. Gorelick testify in pub- with United States Attorney’s Offices when ship on this issue to ensure that our nation’s lic. Indeed, the only testimony we such prohibitions are not legally required. rivers remain a public resource for all to use know she has given has been in secret ... and enjoy. She goes on to say: The PRESIDING OFFICER. The Sen- or in camera, to use the technical ator from Texas is recognized under term. These documents make it even Our experience has been that the FBI labels of an investigation as intelligence or the previous order. more important that we get her explanation for these apparent inconsist- law enforcement can be quite arbitrary de- Mr. CORNYN. Thank you, Madam pending upon the personnel involved and President. encies and contradictions. Indeed, the document that Attorney that the most effective way to combat ter- THE 9/11 COMMISSION General Ashcroft declassified and re- rorism is with as few labels and walls as pos- Madam President, earlier, I spoke on sible so that wherever permissible, the right leased during the course of his testi- and left hands are communicating. the importance of the 9/11 Commission mony —giving his very powerful testi- maintaining its credibility given the mony about the erection and the but- Indeed, it was this lack of commu- important mission that organization tressing of this wall that blinded Amer- nication, which I think is universally has undertaken to determine, first, a ican law enforcement and intelligence acknowledged, that contributed to the factual record of the events leading up agencies from the threat of al-Qaida blinding of America to the threat of to 9/11, and then to make recommenda- and Osama bin Laden—these new docu- terrorism leading up to the events of 9/ tions to Congress and various Govern- ments reveal, indeed, Ms. Gorelick did 11. So Ms. White made what she called ment agencies on how we can continue have a key role in establishing that a very modest compromise and some to protect our homeland against any policy, which was ultimately signed off recommendations for change to this further terrorist attacks on our own on and approved by Attorney General proposed policy. soil. Janet Reno; indeed, that she received In the interest of fairness and com- I spoke about the need of one of the and rejected in part and accepted in pleteness, let me just say the docu- Commissioners, Commissioner Jamie part recommendations made by the ments reveal there were two memo- Gorelick, to provide information about U.S. attorney for the Southern District randa by U.S. Attorney Mary Jo White, her knowledge of relevant facts. She, of of New York with regard to this wall. and they contain recommendations for course, was Deputy Attorney General Specifically, Madam President, as revisions of the policy, and that Ms. during the Clinton administration you will recall, the first attack on Gorelick, through and in cooperation under Attorney General Janet Reno. American soil that al-Qaida adminis- with Michael Vatis, Deputy Director of I also made one other point that I tered was, in all likelihood, the World the Executive Office for National Secu- think bears repeating here now; that Trade Center bombing in 1993. Indeed, rity, accepted some of those proposed is, this is not about blame. The only the document that Attorney General changes and rejected others. person and the only entity to blame for Ashcroft released pointed out that But then in these documents, again, the events of 9/11 are al-Qaida and Mary Jo White, the U.S. attorney for which were finally disclosed today in Osama bin Laden. This is not about the Southern District of New York, was response to Senator GRAHAM’s and my blaming the Clinton administration or concerned about an ongoing criminal request, there is a handwritten note the Bush administration. This is about investigation ‘‘of certain terrorist acts, from Ms. Gorelick that says: getting to the facts. This is about get- including the bombing of the World To the AG—I have reviewed and concur ting good recommendations based on Trade Center,’’ and that ‘‘[d]uring the with the Vatis/Garland recommendations for all the information and then making the reasons set forth in the Vatis memo. course of those investigations signifi- Jamie. the American people safer as a result. cant counterintelligence information On Monday, Senator LINDSEY [had] been developed related to the ac- So it is clear Ms. Gorelick was inti- GRAHAM and I asked the Justice De- tivities and plans of agents of foreign mately involved with consideration of partment to produce any documents powers operating in [the United States] the arguments, both pro and con, on es- they may have in their possession re- and overseas, including previously un- tablishing this policy which, according lating to Jamie Gorelick’s involvement known connections between separate to her own memo, went well beyond in establishing policies preventing the terrorist groups.’’ what the law required. Thus, it be- sharing of critical terrorism-related in- Well, in response to some draft pro- comes even more clear she is a person formation between intelligence and law posals for establishing criteria for both with knowledge of facts that are rel- enforcement officials. It is the fact law enforcement and intelligence, evant and indeed essential to the deci- that those have now been made public counterterrorism officials, Ms. sionmaking process of the 9/11 Commis- and, indeed, posted on the Department Gorelick noted that the procedures sion. of Justice’s Web site at www.usdot.gov that were adopted at her recommenda- I wish it stopped there, but it does which brings me back to the Senate tion by the Justice Department under not. Indeed, it appears these new docu- floor to briefly mention why I think Attorney General Janet Reno went be- ments contradict or at least require Ms. Gorelick’s testimony is even more yond what is legally required. Indeed, I clarification by Ms. Gorelick of subse- important to explaining what she did spoke earlier about the fact that the quent statements that she has made on as a member of the Justice Department USA PATRIOT Act brought down that the 9/11 Commission. For example, in a under Janet Reno to erect and buttress law that had been established both by broadcast on CNN’s Wolf Blitzer Re- this wall that has been the subject of this policy and, indeed, by policies that ports, Wolf Blitzer asked her: so much conversation and why it is so had preceded it. Did you write this memorandum in 1995 much more important that she do so But it is important, in these new doc- ... because the 9/11 Commission’s credi- uments that have just been revealed By reference, this was the one that bility is at stake. today, in response to my request and was declassified by Attorney General Documents posted today on the Jus- Senator GRAHAM’s request, that there Ashcroft that established these proce- tice Department’s Web site substan- is, indeed, a memorandum by Mary Jo dures building the wall and blinding tially discredit Ms. Gorelick’s recent White dated June 13, 1995, in which she America to this terrible threat. claims that, No. 1, she was not substan- was given an opportunity to respond to He asked:

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.014 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4483 Did you write this memorandum in 1995 General Janet Reno and former FBI Di- it would be connected to a switch, that helped establish the so-called walls be- rector Louis Freeh, current FBI Direc- again somewhere on the east coast. tween the FBI and CIA? tor Robert Mueller, George Tenet, Di- The message at that point is connected Ms. Gorelick said: rector of Central Intelligence, and At- to AT&T at a network in one of their No. And again, I would refer you back to torney General John Ashcroft, if they many facilities on the east coast. what others on the commission have said. refuse, if they continue to refuse to AT&T would then shoot the message The wall was a creature of statute. It existed avail themselves of this public testi- across scores of States and connect it since the mid-1980s. And while it is too lengthy to go into, basically the policy that mony and the opportunity for ques- at a Qwest switch in Portland, in my was put out in the mid 1990s, which I didn’t tions to be asked about these apparent home State. That Qwest switch then sign, wasn’t my policy in any way. It was the contradictions, they will have adminis- connects the message to a cell tower in Attorney General’s policy, was ratified by tered a self-inflicted wound. The public Portland. And then, finally, it connects Attorney General Ashcroft’s deputy as well will be left, at the conclusion of the 9/ it to the friend in Portland. on August of 2001. 11 Commission, with grave doubts The way that message is sent could In other words, Ms. Gorelick, not- about the impartiality and the judg- involve as many as 100 different con- withstanding the fact that her initials ment of the Commissioners who have nections—the concept that is not de- as Deputy Attorney General appear on refused to allow the American people fined in the Alexander proposal. But the very memos considering rec- the benefit of this relevant and impor- depending on how the word ‘‘connect’’ ommendations, both pro and con, with tant testimony. is defined—and it is not laid out any- regard to establishing these proce- I yield the floor. where in the proposal of the Senator dures, in spite of the fact she appears The PRESIDING OFFICER. The Sen- from Tennessee—you could have hun- by these documents to have been inti- ator from Oregon. dreds of jurisdictions imposing taxes mately involved in the adoption and es- INTERNET TAXES on the one message I have just de- tablishment of these procedures, said: I Mr. WYDEN. Madam President, as we scribed as being sent on a Blackberry didn’t sign this memorandum and it move to conclusion of the debate on from Providence, RI, to Portland, OR. wasn’t my policy. the question of Internet taxes and The reason why that is the case is Well, at the very least it is clear that votes tomorrow, as has happened so the Alexander proposal states no taxes it was the policy of the Attorney Gen- often over the last 8 years that we have would be applied on services used to eral, based on her explicit rec- dealt with this issue, a lot of Senators connect a purchaser of Internet to the ommendation, and that she consciously have asked for some examples of how Internet access provider. But in the ex- adopted in some cases and rejected in all this would work because it is obvi- ample I just gave, what you would have others the recommendation of the U.S. ously an extraordinarily complicated is scores of jurisdictions across the attorney for the Southern District of issue, and the terminology is pretty country saying they are not the ex- New York with regard to sharing of in- dense. What I wanted to do was give empted connection. They would say formation between law enforcement Senators a sense of what we are talk- they are not the exempted connection, and counterintelligence authorities. ing about. and then they would be off to the races, Finally, another example of an ap- Of course, under the McCain pro- in terms of imposing these special parent contradiction, and maybe one posal, Senator ALLEN and I would sim- taxes. that Ms. Gorelick could explain if she ply say, with respect to Internet ac- So we are going to have a chance, I would testify in public, as I and others cess, it is tax free. You have already think tomorrow, to extend this debate have requested, before the Commission, paid for it. It is like buying a carton of a bit longer. I think people are going to she said in an op-ed that appeared in milk. You have already paid for it be pretty close to ecstasy to have this the Washington Post, April 18, 2004, en- once. You should not have to pay for it debate wrap up, given how long it has titled ‘‘The Truth About the Wall,’’ in again when you pour it on your cereal. gone. But I want to take a minute and giving the various reasons for her side That is essentially what the McCain try to recap what I think are the cen- of the story in response to the testi- compromise would do. tral kinds of questions. mony of Attorney General Ashcroft The proposal offered by the Senator From the very beginning, those who and the revelation of this previously from Tennessee takes a very different have been involved in this effort have classified document: kind of tack. I wanted to give a very tried to promote technological neu- Nothing in the 1995 guidelines prevented specific example of how it would work trality. We have come back again and the sharing of information between criminal and why I am opposed to what he has again to say all we would like is to and intelligence investigators. been advocating. The Senator from make sure that what happens in the That appears to directly contradict Tennessee, in his proposal, stipulates offline world is applicable to the online what is contained in these documents. that there would be no taxes on serv- world. We have said it does not make I would imagine if asked to provide her ices used ‘‘to connect a purchaser of sense today to discriminate against the own testimony, Mary Jo White, the Internet access to the Internet access future, which is broadband delivered now retired former U.S. attorney for provider.’’ through DSL. Certainly, that would be the Southern District of New York, That certainly sounds like a laudable the case if cable gets a free ride and would beg to differ. goal and something everyone should DSL gets hammered. The primary purpose of this is not to support. But because the Senator from I am of the view the message you get cast blame. We know where the blame Tennessee nowhere defines what the today under the Alexander proposal— lies. But it is important the 9/11 Com- word ‘‘connect’’ means, I am of the instead of that message, ‘‘you’ve got mission get an accurate record, a his- view that proposal alone means that mail,’’ the message will be ‘‘you’ve got torical record of the events leading up scores of jurisdictions in our country special taxes,’’ and you will have those to September 11. If, in fact, there is a would be able to subject a simple mes- special taxes because terms like the way for Ms. Gorelick to shed some sage, sent by a Blackberry via DSL, to one I have described this afternoon are light on this subject, indeed, if there is scores of taxes. not defined. a way for her to clarify or reconcile the I want to walk through exactly why As I have talked about in the last apparent contradictions between what I believe that. Let us say, for purposes couple of days, we have pointed out the these newly released records dem- of discussing an example, you send a revenue estimates, which are always so onstrate and her public statements and Blackberry message via DSL from dire in terms of lost revenue on the writings, then she ought to be given a Providence, RI, to Portland, OR. You part of the States and localities, and chance to do so. type your message in and you hit send. time after time—and we have debated If she does not avail herself of that The first connection—again, I am cit- this in the last 8 years—those revenue opportunity, if the Commission refuses ing that because it is the language of projections have not come to pass. I to hear from this person in public and the Alexander proposal—is with a cell know Senators and their staffs right to give the American people the benefit tower in Providence. This would then now are being bombarded by some offi- of this testimony in public in a way be connected to a Verizon local phone cials from State and local govern- that they have done with Attorney line somewhere in the Northeast. Then ments, saying they are going to lose

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.108 S28PT1 S4484 CONGRESSIONAL RECORD — SENATE April 28, 2004 enormous amounts of money, and this Having been involved in this issue for 8 The PRESIDING OFFICER. Without is going to drain their revenue base, years, I think it is fair to say the deci- objection, it is so ordered. and it will have calamitous financial sion the Senate makes on this subject f ramifications. will say a whole lot about the future of But as you listen to those projec- the Internet. We learned this morning, MORNING BUSINESS tions—and I know they are pouring as the chairman of the Commerce Com- Mr. FRIST. Mr. President, I ask into Senators’ offices—we have heard mittee pointed out, we are already lag- unanimous consent that the Senate those arguments again and again, and ging behind in terms of broadband in- now proceed to a period for morning they have not come to pass. I point vestment. That is the wave of the fu- business, with Senators permitted to out, for example—and I will quote—in ture. I think small towns in Maine and speak for up to 10 minutes each. 1997, the National Governors Associa- in Oregon—when we talk about access, The PRESIDING OFFICER. Without tion said the Internet Tax Freedom Act for example, to the Net and new tech- objection, it is so ordered. ‘‘would cause the virtual collapse of nology, it is not going to come about f the State and local revenue base.’’ through cable, because cable is going The chairman of the Commerce Com- to be very reluctant to make those JOHN RHODES MEMORIES mittee worked with myself and Sen- major investments in small towns, ator STEVENS and others, and we passed Mr. COCHRAN. Mr. President, it has such as those that the distinguished come to my attention that the family the legislation. The Governors said Presiding Officer represents, and my that revenue base was going to col- of former Congressman John Rhodes of small towns. It is going to come about Arizona has established a special Web lapse. But in the next year, local and essentially through broadband, deliv- State tax revenues were up $7.2 billion. site: www.johnrhodesmemories.org for ered via DSL, and the fact is, today, the purpose of collecting memories That is one example from over the last DSL in many jurisdictions is singled 8 years and the journey we have had in from friends and former colleagues of out for special and discriminatory this outstanding statesman. the debate over this legislation. treatment. If we were to not update the The same thing happened in 2001. When I was elected to serve in the law, that would be a trend that would Those who opposed our legislation said: U.S. House of Representatives in 1972 be sure to accelerate. one of the first House leaders I came to The growth of e-commerce represents a So I think this is going to be an ex- significant threat to State and local know was John Rhodes, who was serv- tremely important vote tomorrow. tax revenues and they might lose tax ing as chairman of the House Repub- This is a law that has worked. I will revenue in the neighborhood of $20 bil- lican Policy Committee. Together with wrap up with this one comment I have lion in 2003. Congressman Gerald Ford, who was the According to the National Associa- mentioned to colleagues, as we have Republican leader, he helped shape our tion of State Budget Officers, State talked about this over the years. I have legislative priorities and worked close- sales tax collections rose from $134.5 not found a single jurisdiction any- ly with President Nixon to formulate billion in 2001 to $160 billion in 2003, an where that can point to an example of Republican Party policies. increase of more than $25 billion in 2 how they have been hurt by their in- The memories I have of John Rhodes years. ability to discriminate against the include his impeccable manners, his We heard again and again this would Internet. That is all we have sought to courtesy, his warm, big smile, his good be devastating to mom-and-pop stores do over the last 7 years. We said treat judgement and his honesty. He was on Main Streets, and pretty much the the Internet as you treat the offline well liked by all Members of the House, Main Streets of Maine and Oregon world. When we started, that was not Republicans and Democrats. would shrivel up because of the special the case. If you bought a paper the tra- It was foregone conclusion when Ger- fix that was provided for sales online. ditional way in a number of jurisdic- ald Ford was selected by President Over the entire period this law has tions, you would pay no taxes. If you Nixon to be his Vice President that been on the books, the number of sales bought the online edition of that very John Rhodes would be elected by House online has gone up something like 1.5 same paper, you would pay a tax. That Republicans to be the Republican lead- percent. It has been a tiny fraction of was not technologically neutral. So we er. He was unopposed and elected our economy. passed the first Internet tax freedom unanimously. The fact is, the major development bill to deal with that kind of example. He served as leader with distinction For over more than 5 years, this is a over the 8 years we have had this legis- during a very challenging time. The law that has worked. Under the McCain lation on the books is we have essen- Watergate experience decimated House compromise that we will vote on to- tially seen most of our businesses go to Republicans, but he helped put us on morrow, we would simply be updating ‘‘bricks and clicks.’’ If you walk on the the road to political recovery and even- that law to incorporate the kinds of streets of Maine, or the streets of Or- tual majority status. Even though he technologies that evolved over the last egon, our smallest businesses so often and I left the House about the same few years. are able to expand their sales because time—he to retirement and I to elec- I wanted to make sure tonight that they have a significant online compo- tion to the Senate—we would get to- people understood with a specific ex- nent, and people from all over the gether occasionally at meetings of world can shop at a small store in ample of a message that would go from SOS, a group that meets every week to Maine or Oregon. I think as the Chair Providence, RI, to Portland, OR, how discuss mutual interests and ideas for will note, these small stores don’t have the vagueness in terms of the defini- the improvement of the country and big advertising budgets. They cannot tions in the Alexander legislation beyond. send people all over the world to mar- would, in my view, subject a simple In summary, all my memories of the ket their products. Because of the message sent by BlackBerry via DSL Honorable John Rhodes were good Internet, they are in a position to have to scores of new taxes. I cannot believe ones. His death on August 24, 2003, sad- a global marketplace. So major devel- any Senator would want that to hap- dened all who knew him. He was a true opment in this field, rather than wip- pen, and that is why I am hopeful we friend and a great Congressman. ing out Main Street stores, has helped will get support for the McCain com- them. promise and be able to move forward to f Senator LEAHY brought in a small final passage of the legislation. UKRAINIAN DEMOCRACY merchant from Vermont who talked to I yield the floor, and I suggest the ab- us specifically about the extraordinary sence of a quorum. Mr. LEVIN. Mr. President, the de- gains they have been able to make as a The PRESIDING OFFICER (Mr. AL- mise of the Soviet Union, in 1991, pro- result of the convenience provided by EXANDER). The clerk will call the roll. vided an opportunity for millions of Internet shopping, which will certainly The legislative clerk proceeded to people to chart their own destiny as be harmed if the Alexander legislation call the roll. people free from the yoke of repressive were to pass. Mr. FRIST. Mr. President, I ask communism. At that time, there was I imagine we will continue to pum- unanimous consent that the order for great hope that a free and prosperous mel this subject a bit more tomorrow. the quorum call be rescinded. Ukraine could become a member of the

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.111 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4485 Euro-Atlantic community that is out further attempts to undermine pressed its concerns about this elec- united by democracy, free markets and Ukraine’s constitution. tion, as well as recent legislation that the rule of law. The constitutional changes advo- bars domestic non-partisan observers In the past 12 years, Ukraine’s transi- cated by President Kuchma are just from monitoring elections. Without the tion to democracy and capitalism has one facet of an increasingly authori- assurances of a free, open, and trans- been a difficult process marked by suc- tarian trend in Ukraine. Media repres- parent election, there is little to hope cess and failure. The successes are sion that threatens the safety of that the fall election will, in fact, up- many: Ukraine has given up nuclear Ukrainian journalists also limits the hold true democratic values. The weapons, peacefully changed power ability of citizens to obtain fair and ac- events in Mukachevo and the barring from Leonid Kravchuk to Leonid curate reporting prior to the October of domestic observers are reasons for Kuchma, partnered with NATO’s Part- elections. A free press and open media great concern. Recent actions, such I nership for Peace program, and has sta- are essential foundations for any open, described, raise the fear that this elec- tioned roughly 1,600 troops in Iraq—one democratic society. Yet the ability of tion will be stolen from the Ukrainian of whom, Private Ruslan Androshchuk the media to operate freely has been people. paid the ultimate price for his service. threatened in the past several years. Ukraine has taken some positive Yet, in spite of these achievements, The commercial FM Dovira network steps toward the creation of demo- Ukraine faces a stark choice of leader- removed Radio Free Europe/Radio Lib- cratic institutions and a free-market ship as it seeks to shape its second dec- erty, RFE/RL, Ukrainian-language pro- economy, though much more remains ade of freedom from communism. grams from its schedule in February of to be done. This is why a free and fair Those who would seek to forge a new this year. This move came after the presidential election in October 2004 re- and open Ukrainian identity aligned takeover of the network by a political mains so important to determining the with the community of democratic na- supporter of President Kuchma. The future path of Ukraine. Who emerges tions stand in contrast to those who network had previously served as the victorious from this election is a mat- RFE/RL major affiliate, reaching seek to return the nation to its repres- ter to be decided by the Ukrainian peo- roughly 60 percent of Ukraine’s popu- sive past by establishing a more au- ple. What is of concern to the United lation. Apparently RFE/RL program- thoritarian regime that avoids the States is how these elections will be ming did not ‘‘fit the envisioned new needed reforms it must undertake. conducted. Both the election day and format of the radio network,’’ despite The choices facing the Ukrainian the pre-election period must meet the fact that these programs were the people are clear, and the upcoming Oc- international standards for a free and most popular shows on the station. tober 2004 presidential election will fair electoral process, including ensur- play a critical role in determining the When Radio Kontynent, an FM commercial station in Kyiv, started airing ing that candidates have unimpeded ac- course that this proud and important cess to media outlets, citizens are nation will take. It is my hope that the RFE/RL programming a couple of weeks later, the station was raided and guaranteed the opportunity to exercise presidential election will draw Ukraine closed by Ukrainian authorities. The their civil and political rights, free closer to the West by cementing a station’s transmission equipment and from intimidation and interference, strong and stable democracy. Unfortu- three employees were briefly detained. and domestic and international mon- nately, a number of recent events and The former owner of the station fled to itors are allowed to observe the elec- actions by the Ukrainian government Poland fearing for his life and is await- toral process and report their findings. have provided supporters of a demo- ing political asylum. The numerous problems in Ukraine cratic Ukraine with reason for concern. This action was not an isolated noted in elections in 1999 and 2002 by In the lead up to the fall’s election, event, unfortunately. According to the election observers only intensify every- Ukrainian president Leonid Kuchma Broadcasting Board of Governors, one’s concerns. has pursued constitutional changes Ukrainian authorities continue an on- Ukraine, if it is to realize its consid- that would shift substantial powers going campaign against the inde- erable potential, must take action now from the presidency to the Ukrainian pendent media, including the harass- to protect the fundamental human parliament, the Verkhovna Rada, on ment of journalists and the suppression rights of its citizens. There have been the eve of the presidential election in of fact-based news and information and some achievements in the past twelve which a strong opponent of the Presi- investigative reporting. Several jour- years, but much more remains to be dent is currently leading in the polls. nalists have been murdered and others done. I know that my Senate col- In response to concerns expressed by have been killed in suspicious ‘‘acci- leagues share my concerns about the many nations, President Kuchma dents.’’ We must do more to support ef- upcoming presidential elections and dropped the most egregious provision, forts in Ukraine by journalists and stand ready to support the Ukrainian which would have replaced the direct media organizations that fight for fun- people as they continue with efforts to election of the president with an elec- damental rights. make their nation more free and demo- tion by the Ukrainian parliament. De- Political repression and harassment cratic. liberations on constitutional reforms, apparently influenced the election for f especially reforms that would alter the the mayor of Mukachevo, a town in LOCAL LAW ENFORCEMENT ACT political landscape and structure of the southwestern Ukraine. Exit polls for OF 2003 nation, should be discussed in a full this election indicated that Our and open parliamentary debate with Ukraine’s candidate received 62.4% of Mr. SMITH. Mr. President, I rise the broad participation of the Ukrain- the vote, yet a subsequent recount in- today to speak about the need for hate ian population. Yet, the proponents of dicated that his opponent won by 5,000 crimes legislation. On May 1, 2003, Sen- this measure primarily relied on back- votes. Reports trickling out after the ator KENNEDY and I introduced the room maneuvering to push through election indicated that some of the Local Law Enforcement Enhancement their changes. Although President election stations were raided and dam- Act, a bill that would add new cat- Kuchma argued that he was not advo- aged by ‘‘criminal elements’’ and other egories to current hate crimes law, cating these changes to strengthen his ballots were summarily destroyed or sending a signal that violence of any position, since he has said he will not ignored. Four members of the par- kind is unacceptable in our society. run for reelection, many concerns ex- liament were beaten and an election Three employees of the Office of Di- isted that he was doing so to fortify observer was hospitalized after being versity and Dialogue in Scottsdale, AZ, the position of his allies in the legisla- assaulted. In addition to this, prior to were injured on February 26, 2004, when ture. the election the Our Ukraine candidate a bomb delivered through the mail ex- In a sign that true democratic aspira- temporarily was taken off the ballot ploded in their office. The Office of Di- tions in Ukraine are still alive, those and a theater director that allowed Our versity and Dialogue offers community changes to the Ukrainian constitution Ukraine to use his venue for a meeting training and outreach programs and failed by six votes earlier this month. I was severely beaten. handles various complaints from city am hopeful that President Kuchma will The Organization for Security and employees and citizens, including ra- permit the election to go forward with- Cooperation in Europe, OSCE, ex- cial and sex discrimination grievances.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.076 S28PT1 S4486 CONGRESSIONAL RECORD — SENATE April 28, 2004 The explosion occurred when Don I argued against the repeal of Spratt- funding for the Robust Nuclear Earth Logan, the director of Scottsdale’s Of- Furse on the floor, and working with Penetrator in half, to $7.5 million; con- fice of Diversity and Dialogue, opened Senator KENNEDY, I offered an amend- dition $4 million of the $6 million for a notebook sized package addressed to ment to maintain it. Unfortunately, we Advanced Concepts on further report- him that was carrying a bomb. The did not prevail. ing and planning on Stockpile Steward- blast left a 31⁄2 inch-wide hole in What really concerns me is that, ship; and contain spending on the Mod- Logan’s desk and shot shrapnel into throughout all of this, the Administra- ern Pit Facility to $10 million, a $12 the walls, ceiling and floor. Logan, 48, tion continues to deny their intention million reduction. suffered serious burns on his hands and to develop new nuclear weapons. Critically, we also managed to win arms. For example, Secretary of Energy passage of a requirement that any I believe that Government’s first Spencer Abraham, in a Washington move to develop a Robust Nuclear duty is to defend its citizens, to defend Post op-ed on July 21, 2003, stated: Earth Penetrator further than the 6.2A them against the harms that come out ‘‘. . . we are not planning to develop phase require a specific congressional of hate. The Local Law Enforcement any new nuclear weapons at all.’’ authorization. Enhancement Act is a symbol that can And Secretary of Defense Donald As many of my colleagues know, become substance. I believe that by Rumsfeld, in response to a question I there is a formal set of phases by which passing this legislation and changing asked him at a Defense Appropriations new and modified nuclear weapons current law, we can change hearts and Subcommittee hearing on May 14, 2003, move through research, development, minds as well. stated that the work the Administra- production, deployment, and retire- tion was undertaking was ‘‘just a f ment. study’’, and that there were no plans to As a recent CRS report states, ‘‘The A CREDIBILITY GAP ON NEW build new weapons. NUCLEAR WEAPONS Key phases for Robust Nuclear Earth This defies credibility. Penetrator are: phase 6.2, feasibility Well, if one really wants to know Mrs. FEINSTEIN. Mr. President, I study and down select; phase 6.2A, de- what is happening, the best thing to do rise today to address what I consider a sign definition and cost study; phase is to track where the Administration is large and serious issue—U.S. nuclear 6.3, development engineering in which asking for and spending money. weapons policy—and update the Senate the nuclear weapons labs produce a on what has been happening. And when you do, you find that the administration is putting major re- completed warhead design; and phase In particular, I am concerned about 6.4, production engineering, in which the apparent reopening of the nuclear sources into researching new nuclear weapons. the design is a adopted for production door by the United States and the fur- and a system to manufacture the weap- ther research and development of a new For instance, last year’s budget request included: $15 million for the on is created.’’ generation of nuclear weapons. So when the administration wants to I serve as a member of the Senate study of the development of the Robust move beyond 6.2A to 6.3 and into the Appropriations Committee, on both the Nuclear Earth Penetrator; $6 million in development engineering phase, they Energy and Water and Defense Sub- funding for Advanced Nuclear Weapons need specific Congressional authoriza- committees, and have had an oppor- Concepts, including the study for de- tion. tunity to participate in the committee velopment of low-yield, battlefield weapons; $24 million to increase the Continuing its efforts, the adminis- and conference debates on this issue. tration came back this year and asked Despite earlier claims to the con- Nevada Test Site’s time-to-test readi- for significantly more funding for re- trary, by all appearances the Bush Ad- ness posture from the current 36 search into new nuclear weapons. ministration is seeking to develop a months to 18 months; and, $22 million Indeed, the administration’s budget new generation of nuclear weapons. for site selection for the Modern Pit This includes both the Robust Nu- Facility, which is a facility to build requests before Congress this year clear Earth Penetrator, which is a 100- nuclear triggers for our Nation’s stock- total some $96.5 million, and makes it kiloton ‘‘bunker buster’’, and so-called pile of nuclear weapons. clear that there are those in this ad- Advanced Concepts, which translate This would be a $4 billion plant to ministration who are deadly serious into low-yield battlefield nuclear weap- make up to 450 new ‘‘pits’’ per year, about the development and deployment ons, below 5 kilotons. some of which could be designed for of a new generation of nuclear weap- The first hints of this policy came in new weapons. ons. the administration’s 2001 Nuclear Pos- Four-hundred-and-fifty pits is larger The administration’s FY 2005 budget ture Review—which was leaked to the than China’s entire nuclear arsenal, so request calls for: $27.5 million for the press in early 2002. this production capacity raises ques- Robust Nuclear Earth Penetrator; $9 The review cited the need to develop tions about the number of weapons the million for Advanced Concepts Initia- a new generation of tactical nuclear Administration wants in the U.S. arse- tive, which includes so-called ‘‘low weapons, blurring the lines between nal. yield’’ weapons (under 5 kilotons); and conventional and nuclear forces. Currently, the United States has ap- $30 million for the Modern Pit Facility. According to press reports, it named proximately 15,000 warheads. Under the This is just the tip of the iceberg. seven countries against which it would Moscow Treaty, the U.S. is to decrease The Congressional Research Service consider launching a nuclear first its strategic nuclear force to 1,700 to now reports that the administration’s strike: North Korea, Iraq, Iran, Syria, 2,200 warheads by 2012. own long-term budget plans, including Lybia, China, and Russia. To maintain a 2,200 warhead nuclear $485 million for the Robust Nuclear And it proposed a ‘‘new triad,’’ in force at replacement level, we would Earth Penetrator between 2005 and which nuclear and conventional weap- only need to build 50 pits a year, not 2009, ‘‘cast doubt’’ on the contention ons co-exist along the same continuum. 450. Fifty pits a year can be handled at that the study of new nuclear weapons This blurs the distinction between Los Alamos. So why build a new facil- are, in fact, only a study. nuclear and conventional weapons and ity, with a production capacity of 450 This ramp-up in funding can mean suggests that they could be used as of- pits a year? one thing: the administration is deter- fensive weapons. This country doesn’t need that much mined to develop and deploy a new gen- Subsequently, in the Defense Author- production unless plans are underway eration of nuclear weapons. ization Bill last year the Administra- to increase the size of our nuclear arse- Yes, the administration is seeking to tion sought, and ultimately obtained nal, including a new generation of nu- re-open the nuclear door and is seeking permission, to repeal the 10-year old clear weapons. more ‘‘usable’’ nuclear weapons: Spratt-Furse Amendment, which pro- Last year, those of us opposed to de- The Robust Nuclear Earth Pene- hibited research to develop a low-yield, veloping tactical nuclear weapons did trator, for use in launching first less than 5 kiloton, nuclear weapon. have some success in limiting these strikes to reach deeply embedded com- Spratt-Furse has served as a ‘‘brake’’ programs. mand bunkers; and on nuclear weapons development for Working with others in the House Tactical nuclear weapons, for pos- the past decade. Now, it is gone. and Senate, we managed to: cut the sible use on the battlefield.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.077 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4487 The logic of the Robust Nuclear the proliferation the United States I will propose such an amendment Earth Penetrator, for instance, is that seeks to prevent. most likely in mark-up or Conference there are certain scenarios in which Instead, I believe that the United Committee. the United States could need a nuclear States’ top priority for nuclear secu- Third, Congress should postpone weapon to destroy deeply buried tar- rity should be preventing the spread of funding for the Modern Pit Facility gets—such as command bunkers— nuclear, chemical, and biological weap- until we receive a joint laboratory re- which could not be effectively targeted ons and the means to deliver them. port that will include the finds of ‘‘ac- by conventional weapons. Leading non-proliferation efforts and celerated aging’’ experiment, due in The goal would be to develop a weap- actions, and convincing the world to 2006, on that could burrow into the earth follow, that’s how the world will be Although it is true that the pits in deep enough so that it would be ‘‘anti- safer today and safer tomorrow. current U.S. warheads are expected to septic’’, with fallout contained deep be- U.S. Nuclear Weapons Policy: I am slowly deteriorate as they age—and at neath the surface, 500–1000 feet below not a supporter of unilateral disar- some point will need to be replaced if the surface. mament. I am a supporter of treaties, the warheads are to remain in the There are three problems with this: agreements, and programs with strong stockpile—until that study is com- First, a casing that can drill down enforcement and interdiction programs pleted we simply have insufficient data 800–1000 feet before the warhead ex- to accomplish multi-lateral disar- to measure either the urgency by plodes does not exist. While the U.S. mament. which pits need to be replaced or how has technologically sophisticated mis- I believe that this Nation should al- many pits a year the United States siles, there is no such casing at this ways be in a position to protect itself, needs to be able to manufacture to time. with a strong military, and the most meet replacement needs. Second, advanced conventional muni- advanced technology available to that Finally, Congress should deny any tions can shut down air vents, cut-off military. funding for new nuclear weapons until electricity, and render these targets But I believe that moving ahead with the reports we are awaiting justify harmless. these programs is folly. these programs, including: Third, and most critically, it is not First, who would want to send their The report on stockpile stewardship possible to contain the radioactive fall- son or daughter to a battlefield with required by last year’s Energy and out from these weapons—and the radio- tactical nuclear weapons? Water bill and which is intended to Second, under what circumstances active fallout is enormous. help inform decision making; and, According to Stanford University would a President push the ‘‘Red But- A formal report that spells out the physicist Sidney Drell, even a one-kil- ton’’ for a nuclear first strike that specific military necessity of any of oton weapon detonated 20–50 feet un- would launch a nuclear missile of 100 these new weapons. Usually, the mili- derground would dig a crater the size of kilotons, 4 or 5 times more devastating tary requirements for a specific weap- ground zero and eject a million cubic than Hiroshima, which killed 140,000 in ons system—nuclear or nonnuclear are feet of radioactive debris into the air. just the first four months after the provided before well before funds are The Robust Nuclear Earth Penetrator Bomb was dropped. provided for design engineering. The United States has the most ad- is a 100 megaton weapon, so magnify These steps are necessary to bring vanced conventional strike forces in that by 100-fold. this administration’s unrestrained en- the world. We have conventional bombs You would need to burrow more than thusiasm for developing new nuclear that can burrow into the earth and de- 800 feet into the earth before the weap- weapons under control, and assure that liver thousands of pounds of explosives. on exploded in order to contain the the United States proceeds in this area If the United States develops new nu- fallout from the Robust Nuclear Earth with all the seriousness and restraint clear weapons, what do we think India Penetrator. The maximum feasible that is fitting for a great power. will do? depth we can bury a warhead into the If the United States develops new nu- Now, I want to take a moment to say earth today is about 35 feet. clear weapons, what do we think Paki- what I believe the United States should Use of the Robust Nuclear Earth Pen- stan will do? be doing with regard to nuclear policy. etrator would be a cataclysm of the And what about Iran and North First and foremost, the United States highest order. Using one might well Korea? must work with others in the inter- take out a buried North Korean bunk- Does this encourage them to develop national community to address the er, but would also kill tens of thou- battlefield nuclear weapons? I believe larger nuclear non-proliferation prob- sands, if not hundreds of thousands in it does. lem. both North and South Korea and, de- This administration is placing too Proliferation poses a clear and pending on wind patterns, either China great an emphasis on efforts to develop present danger not only to our nation and Japan as well. and deploy a new generation of nuclear but to the world. So the idea that the Robust Nuclear weapons. President Bush offered a glimmer of Earth Penetrator would provide the This is the wrong policy and, in my hope two months ago, when he called United States with a usable nuclear view, will only cause America to be for international cooperation on con- weapon—perhaps even a weapon that placed in greater jeopardy in the fu- trolling the spread of weapons of mass would be an effective first strike weap- ture. destruction. on—is absurd. What should be done? In his speech, President Bush called Furthermore, it represents a major First, Congress should cut the fund- for: expanding efforts to obtain multi- departure from U.S. policy and makes ing for the Robust Nuclear Earth Pene- lateral cooperation in interdicting our nation less safe—not more. trator and Advanced Concepts entirely. land, sea and air shipments of WMD-re- This is in fact part of the administra- Second, Congress should close an in- lated equipment, materials and tech- tion’s broader policy in the inter- advertent loophole that appears to nology. national arena that can best be allow the Administration to go forward Early adoption of a U.N. Security summed up in two words: Arrogant with design engineering of low-yield or Council resolution that would require unilateralism. other Advanced Concepts weapons, but all Nations to criminalize certain pro- This administration has: engaged in requires specific Congressional action liferation-related activities, enact unnecessarily belligerent unilateralist for the Robust Nuclear Earth Pene- strict export control regulations, and rhetoric and action; dismissed arms trator. ensure adequate security for nuclear control and nonproliferation efforts as Congress should put the same restric- and other sensitive materials within ineffective; emphasized the role of pre- tions on Advance Systems that are re- their borders. emptive military action; and pursued quired for the Robust Nuclear Earth Expansion of threat-reduction assist- new nuclear weapon capabilities. Penetrator—and require specific Con- ance programs that are designed to se- The administration is sending the de- gressional authorization for design en- cure sensitive materials and prevent stabilizing message that nuclear weap- gineering and development of battle- former weapons scientists from selling ons have utility, thereby encouraging field nuclear weapons. their expertise on the black market.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.081 S28PT1 S4488 CONGRESSIONAL RECORD — SENATE April 28, 2004 Closing a loophole in the Non- The Non-Proliferation Treaty guar- Libya, North Korea, Syria, Brazil, proliferation Treaty—NPT—that has antee of access to ‘‘peaceful’’ nuclear Egypt, and Saudi Arabia. enabled countries like Iran to acquire technology has allowed states such as Despite the administration’s claim of dual-use facilities capable of producing Iran to acquire uranium enrichment or a Libya success story, other nations bomb-grade plutonium under the guise plutonium production facilities useful appear to be drawing different conclu- of a civil nuclear energy program. for weapons without adequate over- sions from the Administration’s ap- Strengthening verification of the sight and monitoring. proach on these issues. Non-Proliferation Treaty, by calling on I support efforts in the UN Security We are experiencing on-going crises countries to adhere to the Inter- Council to effectively criminalize traf- involving the North Korean nuclear national Atomic Energy Agency’s— ficking in weapons of mass destruction, weapons programs, and Iran now ap- IAEA—Additional Protocol. and work with other nations to make pears to be on the verge of a nuclear The creation of a special committee sure that effective means to control weapons capability. of the IAEA Board to deal with the spread of any WMD technology are Finally, the United States and other verification and compliance. in place. nuclear weapon states must reduce the Ensuring that no country under in- Fourth, the United States should ex- role of nuclear weapons in their own vestigation for violating nuclear pro- pand and accelerate Nunn-Lugar threat thinking. liferation obligations should be allowed reduction programs. For the United States to be increas- to serve on the IAEA Board of Gov- This initiative has helped make the ing funding for the research and devel- ernors. United States and the world safer over opment of a new generation of nuclear These are important steps, but they the past 10 years by improving security weapons even as we are telling others do not amount to a comprehensive non- and taking much of the Soviet era nu- that they should not pursue these proliferation strategy. clear, chemical, and biological weapons weapons themselves may well provoke Building on what the President sug- arsenal and infrastructure out of cir- the very proliferation we seek to pre- gested, I believe the following actions culation. Yet funding for Nunn-Lugar vent. are needed to implement a comprehen- has remained flat at about $1 billion I strongly support a robust military sive approach to non-proliferation: First, the U.S. should support annually over the past several years. to safeguard America’s National Secu- strengthened international monitoring The bipartisan Baker-Cutler Com- rity interests. But I believe we will make our nation and inspection capabilities, such as the mission proposed last year that U.S. ef- and our allies less secure—not more—if International Atomic Energy Agency’s forts for nuclear security should be in- the United States opens the door to the Additional Protocol. creased to $30 billion over ten years, The Additional Protocol is an adden- and I believe it is critical that we in- development, testing, and deployment dum to the Non-Proliferation Treaty, crease Nunn-Lugar funding so that re- of new tactical and ‘low-yield’ nuclear which would expand the amount of in- sources are commensurate with the weapons. formation that Nations will have to challenge. The administration claims that it is provide the IAEA—including, the loca- Fifth, we must redouble our efforts not seeking to develop these nuclear tion, operational status, and produc- to secure and remove all unprotected weapons. tion of any uranium and thorium nuclear material, especially material But I think we’ve seen that the facts mines. at the world’s most vulnerable sites. demonstrate that this is not the case. It also would expand IAEA’s ability During the Cold War more than twen- That is why those of us who do not to check for clandestine nuclear facility tons of HEU were distributed around want the nuclear door opened need to ties by providing the agency with au- the world to research reactors and stand firm and oppose these efforts by thority to visit, on short or no notice, other facilities. Most of this material the administration to develop these any facility to investigate questions or is poorly guarded and much is stored at weapons. inconsistencies in a state’s nuclear dec- extremely vulnerable sites. f Along with Senators REED, NELSON, larations. JAMES MONROE, FIFTH and LEVIN I recently introduced legis- The Additional Protocol has now PRESIDENT 1817–1825 passed the Senate, and I believe that lation to give our government the di- the United States must work with the rection, tools, and resources necessary Mr. ALLEN. Mr. President, I rise IAEA to give it reality and force. to secure and remove nuclear materials today on the 198th anniversary of his Second, the U.S. and other global from around the world in an expedi- birth, to recognize James Monroe, a powers can no longer ignore the posses- tious manner by creating a single, inte- Virginia patriot, and honor his service sion of nuclear weapons by allies and grated U.S. government program, with to our Nation as a soldier, a diplomat, friends. a defined budget and resources, to fa- a legislator and as the fifth President India and Pakistan are not a direct cilitate the removal of these materials. of the United States of America. threat to the United States, but they It is my hope that Congress will take James Monroe, born April 28, 1758 in do threaten one another, and, as we reaction on this legislation soon. Westmoreland County, was born, cently learned, Pakistan has been at Sixth, the United States should work raised, and educated in the Common- the hub of a global black market in nu- to achieve a global halt to the produc- wealth of Virginia. Foregoing his stud- clear technology. tion of weapons usable fissile materials ies at the College of William and Mary, According to a press report last Fri- through the Fissile Material Cut off James Monroe joined the Williamsburg day, it is possible that India is now Treaty—FMCT. Militia in 1775 in defiance of the British seeking to develop a low-yield nuclear Progress on multilateral negotia- King. He served gallantly in the Conti- weapon of less than one kiloton, fol- tions to end the supply of new material nental Army on the battlefield at Har- lowing in the footsteps of the Bush ad- for nuclear bombs has been stalled for lem Heights, White Plains, Trenton, ministration’s nuclear weapons policy. years. Brandywine, Germantown and Mon- Such a move by India would likely be Now, a shift in China’s position opens mouth, eventually rising to the rank of extremely destabilizing for Asia. We the way for progress. Unfortunately, Lieutenant Colonel. must realize that the way in which the the Bush administration has decided to A student of Thomas Jefferson’s after United States and our friends and al- reevaluate its support for such an serving in the Revolutionary War, lies approach nuclear weapons has a agreement. James Monroe was an adherent of Mr. profound impact on global security, Seventh, the United States should Jefferson’s principles of individual and we must be willing to make sure seek to engage in discussions with freedom and restrained representative that our friends, no less than states of ‘‘states of proliferation concern’’ to government, which would guide him concern, adopt a responsible approach look for ways to bring such states into through fifty years of public service. to nuclear weapons. the community of responsible nations. Elected to the Virginia General Assem- Third, the international community These are states that have nuclear bly in 1782, Monroe served in the Con- must consider new ways to restrict ac- weapons or may be pursuing them and federate Congress and in the first cess to dangerous nuclear technologies. include: India, Pakistan, Iran, Israel, United States Senate before his first of

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.083 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4489 two terms as Minister to France. He re- dedication to education and to helping The Girl Scout Gold Award is the turned to his Virginia, and as many those who need it most has encom- highest achievement in Girl Scouting. students of Mr. Jefferson have done passed serving in many capacities, in- It is presented to Senior Girl Scouts since, served four years as Governor. cluding teacher, professor, adminis- who have demonstrated outstanding During Thomas Jefferson’s Presi- trator, advocate, mentor and role accomplishments in the areas of lead- dency, James Monroe returned to model. Each one of these alone are wor- ership, community service, career France and was essential in the nego- thy of praise in their own right. planning, and personal development. tiation of the Louisiana Purchase in One of Sister Janice’s first of many Nationwide, less than 3 percent of Sen- 1803. His foreign policy experience led outstanding accomplishments was the ior Girl Scouts earn the Gold Award James Madison to name him both Sec- development of the special education each year. retary of State and Secretary of War as program at Trinity College, where she To earn the Girl Scout Gold Award, a the United States was once again served as a professor, Chair of Edu- Girl Scout must satisfy several re- pulled into war with Great Britain in cation and President. She continued on quirements. First, she must fulfill a se- 1812. that path of service in helping to pass ries of preliminary tasks, including the Elected President of the United groundbreaking legislation that en- completion of four Interest Project States in 1816, Monroe’s Presidency has sured the educational rights of children Patches, the Career Exploration Pin, long been referred to as the Era of with disabilities. the Senior Girl Scout Leadership Good Feeling, during which time he Sister Janice’s passion and commit- Award, and the Senior Girl Scout Chal- helped resolve long-standing griev- ment to the children of Vermont and lenge. Upon completion of these four ances with the British, acquired Flor- the Nation is unsurpassed. From 1995 to tasks, the Girl Scout then must design ida from the Spanish in 1819, signed the 1999 Sister Janice served as Education and implement a Girl Scout Gold Missouri Compromise and renounced Director on my staff. Her experience Award project, integrating all of the European intervention or dominion in was invaluable. I am forever indebted skills and knowledge that she has the Western Hemisphere with one of to her for her service. gained through her years in Girl Scout- our Nation’s greatest foreign policy All who know Sister Janice know ing. The project must demonstrate a documents, the Monroe Doctrine. how dedicated she has been her entire substantial commitment to commu- In 1820, Monroe achieved an impres- life in serving others. She now serves nity service and leadership and be car- sive re-election, losing only one elec- as the Deputy Director for the ried out over the course of at least 50 toral vote, reserving a unanimous elec- Vermont Department of Corrections. hours. tion for George Washington. Leslie Carter, of Girl Scout Troop 47, There are very few people in this world My own family has many strong ties will be presented with the Girl Scout who have given so much and asked so to the legacy of James Monroe. My Gold Award for her service as a person- little in return. I hope Sister Janice wife Susan and I enjoyed our wedding alized aide for a student with special knows that her years of giving have on the grounds of his home Ashlawn- needs during the summer school term. not gone unnoticed. This award shows Highland in Charlottesville where her Leslie’s project involved planning les- how much she is appreciated even family has worked for many years. In sons and activities that helped the girl though it is impossible for us to fully fact, part of Monroe’s property in Albe- improve her socialization skills, ena- recognize her contributions. marle County, is now on the grounds of bling the student to be more receptive I am so proud to stand here and tell his teacher’s great institution of learn- to academic lessons, try new activities, you about such a great Vermonter. I ing, the University of Virginia and is and improve her abilities. wish her my deepest congratulations respectfully referred to as Monroe’s Tiffany Cremer, of Girl Scout Troop for an award she so greatly deserves. Hill. 47, will be honored with the Girl Scout The life of James Monroe is one that Everyone who has the opportunity to Gold Award for her project which embodied Virtue, Honor and Commit- benefit from Sister Janice’s service is aimed to increase public awareness of ∑ ment during his accomplished life of extremely lucky. Girl Scout events, service projects, and public service. It is fitting that he f programming, by publishing articles would pass from this Earth on July HONORING PARENTS ANONYMOUS and photographs in local newspapers Fourth, 1831. OF SOUTH EASTERN KENTUCKY across Fulton County, IL. It is with sincere admiration that I Kendall Juers, of Girl Scout Troop ∑ Mr. BUNNING. Mr. President, I pay respectfully ask my colleagues to rec- 555, will receive her Girl Scout Gold tribute and congratulate the work of ognize James Monroe’s one hundred Award for her efforts to refurbish the Parents Anonymous of South Eastern and ninety-eighth birthday as a re- collection of the Glen Oak Primary Kentucky. minder of his remarkable and magnifi- School Library. Kendall collected new Parents Anonymous was founded cent leadership for the people of Vir- and used books to be donated to the li- with the goal of preventing child abuse ginia and the United States of Amer- brary and also made bags that the chil- by engaging parents and strengthening ica. dren will use to protect the books they families. Their goal is to stop child f check out of the library and bring abuse by working with parents before home. ADDITIONAL STATEMENTS it happens or continues to happen. Alicia McCombs, of Girl Scout Troop The citizens of Kentucky are fortu- 47, will receive her Girl Scout Gold nate to have the services of Parents Award in recognition of her role in co- CONGRATULATING SISTER JANICE Anonymous of South Eastern Ken- directing a school play and fulfilling a RYAN tucky. This organization’s example of variety of additional responsibilities, ∑ Mr. JEFFORDS. Mr. President, dedication, hard work and compassion including set building, costumes, today I recognize Sister Janice Ryan, a should be an inspiration to all through- makeup, and lighting. native of Fairfield, as this year’s re- out the Commonwealth. Diana Newlan, of Girl Scout Troop cipient of the Kids On The Block They have my most sincere apprecia- 555, will be presented with the Girl Vermont Puppet’s Choice Award win- tion for this work and I look forward to Scout Gold Award in recognition of her ner. This award is conferred annually their continued service to Kentucky.∑ efforts to reorganize her school’s music by Kids on the Block—Vermont, a the- f library, including cataloging, repair- atrical troupe that performs with pup- ing, and replacing sheet music. pets to deliver messages of personal GIRL SCOUTS OF KICKAPOO COUN- Sarah Rosecrans, of the Juliette Girl safety, diversity, and acceptance of dis- CIL HONOR SIX GOLD AWARD Scout Troop, will be honored with the abilities. As an honoree, Sister Janice RECIPIENTS Girl Scout Gold Award for her leader- is being acknowledged for her out- ∑ Mr. DURBIN. Mr. President, I rise ship in planning a councilwide event standing contributions to children and today to salute six remarkable young for Brownie Girl Scouts, enabling the families statewide. women who will soon be presented with younger girls to learn about and pre- I have admired Sister Janice ever the Girl Scout Gold Award by Girl pare for Junior Girl Scouts, the next since I first met her. Her career-long Scouts-Kickapoo Council in Peoria, IL. level in Girl Scouting.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.023 S28PT1 S4490 CONGRESSIONAL RECORD — SENATE April 28, 2004 For each of these young women, I ex- NASCAR believe his electric talent and spon- race car—Adam’s car. ‘‘Racing is all Adam pect that the completion of the Girl sor-friendly personality would have driven knew,’’ Petty says. Scout Gold Award is only the first step the Petty Enterprises team back to the Often when something is done in someone’s toward a lifetime of civic involvement. prominence it once enjoyed. Petty doesn’t memory, it is said he or she would have allow such thoughts: ‘‘If you do, you’ll just wanted it this way. In Adam’s case, this is I take this opportunity to congratulate go crazy.’’ literally true: After helping his sponsor, each of these young women for their Kyle’s father, seven-time NASCAR cham- Sprint, promote a product that allowed kids hard work and dedication in earning pion Richard Petty, 66, says it took years for in different hospitals to communicate, Adam the Girl Scout Gold Award and to pub- Kyle’s upbeat personality to resurface. ‘‘It became determined to do something else for licly recognize them for their excep- took him a long time to get over it,’’ Rich- those kids—even if, as his grandfather says, tional leadership and service to their ard says, pausing to reconsider his use of the that meant offering to sign over the rights communities.∑ phrase ‘‘over it.’’ to his winnings for the next 20 years to a ‘‘Not to get over it. To get it beside of him loan officer if he’d lend Adam the money to f instead of in front of him.’’ build a camp. But the project never got roll- IN TRIBUTE TO THE PETTYS Says Stewart: ‘‘I think when you see what ing until after his death. Kyle’s been through as a person, a lot of peo- ‘‘Most 19-year-old kids (are) looking out ∑ Mr. HOLLINGS. Mr. President, this ple at that point would kind of retreat and for themselves,’’ Richard says. ‘‘And he was, year many of our colleagues are seek- kind of put themselves in their own little don’t get me wrong. But he had feelings for ing the NASCAR vote, but I think it hole and shut themselves out from the rest other kids, too. So that just inspired us that would be wise if each member in this of the world. much more, that it was his idea originally. body, instead, sought out the NASCAR ‘‘With Kyle and (wife) Pattie, it’s just the We’re going to do it come heck or high heart. opposite. He’s such a positive person that water.’’ My neighbors in South Carolina are you can’t help gravitate toward people like NASCAR and many of its drivers, team him and you want to be surrounded by peo- owners and sponsors have chipped in for the Pattie and Kyle Petty. In May 2000, the ple like him.’’ camp, which will welcome its first group in Pettys faced a terrible tragedy, as ‘‘CAMP’’ A MISNOMER June; Stewart has pledged to raise at least $1 their young son, Adam, the next great million. Fans have donated money and time. racing hope in the family, died during A tour of the Victory Junction Gang Camp, a retreat in rural Randleman, N.C., for Nursing home groups have sent box loads of a practice session. Pattie and Kyle chronically ill children, revealed two minor handmade teddy bears and quilts, gifts to didn’t retreat after that, but have flaws. campers. worked ever since to bring Adam’s The first is in its name: A ‘‘camp’’ has The project is personal to rookie driver dream of a camp for chronically ill shoddy log cabins, leaky canoes and a slimy Brian Vickers, who befriended Adam and the pond. This place feels more like a trendy other Petty children, brother Austin, 22, and children to reality. Many NASCAR sister Montgomery, 18. All four grew up at- drivers, owners, sponsors, and fans suburban subdivision. There are new buildings—a theater, a gym, a pool and more— tending the same home-schooling classes have contributed, and the Victory from a tutor. Vickers isn’t comfortable talk- Junction Gang Camp will open its trimmed in bright colors and stainless steel, resort-quality guest cottages and medical fa- ing about Adam and doesn’t mention the sig- doors in June. cilities where volunteer doctors will care for nificant donation he’s quietly making to the I bring to the attention of my col- campers’ special needs. camp. Asked if Adam was talented enough to be- leagues the following article from the The second flaw, pointed out by Kyle and come a star, Vickers looks at the floor and April 23 USA Today, outlining the good Pattie Petty, is a bent pedestrian bridge says, ‘‘Yeah.’’ work of the Petty family and I ask girder that was rammed by an errant deliv- TEAM LOSES GROUND that it be printed in the RECORD. ery truck. It’s March, three months before The article follows: the camp is to open. This setback doesn’t Most of today’s big-time racing teams have seem to be stressful. Instead, the Pettys moved into gleaming buildings designed to [From USA TODAY, Apr. 23, 2004] laugh, reminded of the time Adam, at 15, ac- attract tourists and impress sponsors in sub- LEGENDARY RACING FAMILY HOPES TO TURN cidentally mangled the family van by run- urban Charlotte. Then there’s Petty Enter- CORNER ning into an overhang at his grandfather’s prises’ humble jumble of white shacks in KYLE PETTY HELPS MAKE HIS SON’S DREAM A house. Randleman, a town short on stoplights and REALITY Fond stories about Adam, the only one of long on religious radio programming. (By Chris Jenkins) the Pettys’ three children who seriously pur- Founded in 1949 by Kyle’s grandfather, As a race car driver, Kyle Petty can’t hope sued a driving career, still waft through the NASCAR pioneer Lee Petty, then made fa- to match the success of his father and grand- garage. Once he was spotted carrying a brief- mous by Richard, the team has won 268 races father. As an executive, he can’t hope to case around the infield, an accessory not and 10 NASCAR championships. Most of that compete with NASCAR’s mega-teams that often associated with drivers. Bystanders success came before the NASCAR boom of have millions more to spend on the best cars, couldn’t let that oddity pass without com- the 1990s. When corporate America began drivers and mechanics. As a father, he can’t ment, so they asked him what he was car- waking up to the popularity of NASCAR in hope to put his son’s death in a racing acci- rying. Grinning, he opened the briefcase to the late 1980s, Richard was past his prime, dent nearly four years ago completely behind reveal a hairbrush and some gum. though he’d drive until 1992. him. For Kyle, almost anything can trigger Other teams were winning races, so they But Petty does hope, and he seems to radi- memories. ‘‘The way the sun shines, the way landed big sponsors. Having more money al- ate hope to those around him through his you see a car on the racetrack,’’ he says. lowed those teams to develop technology to sincere nature and gentle, quick wit. Other ‘‘I’ll hear somebody holler, say a name and make their cars faster. drivers might be better at turning left on the turn around expecting to see Adam standing The Pettys fell behind; they’ve won three racetrack. They don’t have his gift for turn- there. And it just tweaks you just right. And races since 1984, none since ’99. Adam was ing life’s negatives into positives. it hurts you. And it just breaks your heart. supposed to change that. When he died, the ‘‘No matter how bad your day is, when you ‘‘And I’m not the only person in this boat, promise of a young driver who could rally see Kyle, your day’s better,’’ driver Tony believe me. There’s plenty of other families crewmembers and attract sponsorships died Stewart says. ‘‘He tells you a silly joke that out all over this country who have lost kids. with him. ‘‘We had a lot of stuff lined up makes you laugh or something that makes I’m sure they all feel the same way.’’ around how we were going to do his career you feel better.’’ Adam died in May 2000 during a practice and stuff like that,’’ Richard says. ‘‘So when Petty, 43, gets angry—furious, actually— session at New Hampshire International the accident happened, everything just went when he and his cars don’t measure up. And Speedway. NASCAR officials determined into limbo. For six months or a year there, he recently woke up crying in the middle of that he died of a neck injury, the same type we just basically survived.’’ the night, missing his son, Adam. that would kill Dale Earnhardt nine months Today the team, which fields cars for Kyle But in the right-hand column of Petty’s later. Drivers now are required to wear safe- and journeyman Jeff Green, 41, has funding emotional ledger is the camaraderie he feels ty collars that help prevent neck injuries, from Georgia-Pacific and General Mills, plus with others in the NASCAR community, op- and the wall Adam hit is covered with an im- associate sponsors. It’s significant money timism that his family’s team eventually pact-absorbing barrier system. (exact amounts are not disclosed), but no- will return to victory lane and, above all, the Kyle Petty doesn’t blame NASCAR. He where near what marquee teams command. completion of Adam’s dream: a $20 million- knows it might sound odd to outsiders, but But the team’s problems might not all be plus retreat for chronically ill children. being around racers offers ‘‘a lot of com- financial. Years ago it was common for driv- ‘‘I’ve always been incredibly optimistic fort.’’ ers to run teams. As the business of racing that as bad as it is, it’s got to get better,’’ The camp embraces racing as its theme. became more complex, other teams added Petty says. Used race cars will be suspended from the layers of management. Today Petty is the It would be easy to dwell on what might cafeteria ceiling. An obstacle course is built only driver with a major team who has ex- have been. Had Adam Petty lived, many in from tires. One building looks like a giant tensive executive responsibilities.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.074 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4491 ‘‘Definitely, he tries to handle way, way S. 2043. An act to designate a Federal mittee on Agriculture, Nutrition, and For- too much,’’ says Robbie Loomis, who worked building in Harrisburg, Pennsylvania, as the estry. for the Pettys before becoming Jeff Gordon’s ‘‘Ronald Reagan Federal Building’’. EC–7219. A communication from the Con- crew chief in 2001. ‘‘He’s good at about every- The message further announced that gressional Review Coordinator, Animal and Plant Health Inspection Service, Department thing, but when you get stretched so thin pursuant to section 637(d)(1) of the and get pulled in so many directions, it’s of Agriculture, transmitting, pursuant to hard to tell what direction to go in.’’ HELP Commission Act (Public Law law, the report of a rule entitled ‘‘Certifi- Petty says he enjoys being busy but con- 108–199), the Minority Leader appoints cation Program for Imported Articles of cedes that the return of Dale Inman, the the following individuals on the part of Pelargonium spp. and Solanum spp. to Pre- crew chief for Richard Petty’s championship the House of Representatives to the vent Introduction of Potato Brown Rot’’ teams, is making his job easier. Although Helping To Enhance the Livelihood of (Doc. No. 03–019–2) received on April 27, 2004; Inman is 67 and can’t offer much in the way People (HELP) Around the Globe Com- to the Committee on Agriculture, Nutrition, and Forestry. of technical advice, Petty says Inman’s pres- mission: Mr. Lytn C. Fritz of Cali- ence helps crewmembers believe the team EC–7220. A communication from the Ad- can win. Petty compares it to Joe Gibbs re- fornia, Mr. C. Payne Lucas of Wash- ministrator, Rural Business-Cooperative turning to coach the NFL’s Washington Red- ington, DC, and Mr. Jeffery D. Sachs of Service, Department of Agriculture, trans- skins. New York. mitting, pursuant to law, the report of a rule entitled ‘‘General Requirements for Coopera- Although Petty says this isn’t his last sea- f son as a driver, Loomis says Petty’s retire- tive Services Grant Programs, Value-Added ment could be the first major step toward a MEASURES REFERRED Producer Grants, Agriculture Innovation team resurgence. When Petty stops driving Centers and Rural Cooperative Development and focuses on running the team, Loomis The following bill was read, and re- Grants’’ (RIN0570–AA40) received on April 27, says, ‘‘You’re going to see a whole new Petty ferred as indicated: 2004; to the Committee on Agriculture, Nu- Enterprises.’’ H.R. 3942. An act to redesignate the facil- trition, and Forestry. The team is improving slowly; Petty’s re- ity of the United States Postal Service Lo- EC–7221. A communication from the Office cent 12th-place finish at Las Vegas Motor cated at 7 Commercial Boulevard in Middle- of the Secretary, Department of Defense, Speedway was cause for mild celebration. town, Rhode Island, as the ‘‘Rhode Island transmitting, pursuant to law, the report of The lack of research-and-development Veterans Post Office Building’’; to the Com- a rule entitled ‘‘CHAMPUS/TRICARE; Imple- money continues to show, as Petty and mittee on Governmental Affairs. mentation of the Pharmacy Benefits Pro- Green finish in the bottom half of the field gram’’ (RIN0720–AA63) received on April 27, f most of the time. 2004; to the Committee on Armed Services. Though nice guys, as the saying goes, EC–7222. A communication from the Assist- EXECUTIVE AND OTHER ant Secretary of Defense for Homeland De- might finish last, that doesn’t mean they COMMUNICATIONS fense, Department of Defense, transmitting, have to like it; a disappointing race can pursuant to law, a report relative to Depart- transform Petty from friendly to fierce. But The following communications were ment of Defense assistance to civilian sport- his outbursts aren’t without perspective and laid before the Senate, together with ing events during calendar year 2003; to the don’t last long. accompanying papers, reports, and doc- ‘‘I can deal with how we run a lot better, Committee on Armed Services. uments, and were referred as indicated: EC–7223. A communication from the Gen- sometimes, because of Adam,’’ Petty says. eral Counsel, National Credit Union Admin- ‘‘Because nothing is as bad as Adam, no mat- EC–7213. A communication from the Direc- istration, transmitting, pursuant to law, the ter what. I can go to the racetrack, run dead tor, Regulatory Review Group, Department of Agriculture, transmitting, pursuant to report of a rule entitled ‘‘Prompt Corrective last. I can go to the racetrack, not make the Action; Corporate Credit Unions; Credit race. That’s still not the worst day.’’ law, the report of a rule entitled ‘‘Emer- gency Conservation Program’’ (RIN0560– Union Service Organizations; Member Busi- ness Loans; Regulatory Flexibility Pro- GANG CAMP’S AIM: HELPING SICK KIDS AG26) received on April 27, 2004; to the Com- mittee on Agriculture, Nutrition, and For- gram’’ received on April 27, 2004; to the Com- About the Victory Junction Gang Camp: mittee on Banking, Housing, and Urban Af- Campers will be grouped according to the estry. EC–7214. A communication from the Direc- fairs . disease they have been diagnosed with; a EC–7224. A communication from the Sec- group of children with hemophilia will visit tor, Regulatory Review Group, Department of Agriculture, transmitting, pursuant to retary of the Treasury, transmitting, pursu- the camp June 20–25, and seven other groups ant to law, a report relative to the national of children will visit during the camp’s law, the report of a rule entitled ‘‘Tree As- sistance Program’’ (RIN0560–AG83) received emergency declared in with respect to Sierra eight-week season. Leone in Executive Order 13194; to the Com- Campers, ages 7–15, will be selected based on April 27, 2004; to the Committee on Agri- culture, Nutrition, and Forestry. mittee on Banking, Housing, and Urban Af- on their doctors’ recommendations and will fairs. EC–7215. A communication from the Con- not pay a fee to attend. EC–7225. A communication from the Chair- gressional Review Coordinator, Animal and The camp is seeking volunteer counselors man and President, Export-Import Bank of and donations. Plant Health Inspection Service, Department the United States, transmitting, pursuant to Online: www.victoryjunction.org.∑ of Agriculture, transmitting, pursuant to law, a report relative to U.S. imports to law, the report of a rule entitled ‘‘Tuber- f Mexico; to the Committee on Banking, Hous- culosis Cattle and Bison; State and Zone ing, and Urban Affairs. MESSAGE FROM THE HOUSE Designations; Michigan’’ (Doc. No. 02–112–3) EC–7226. A communication from the Chair- At 1:12 p.m., a message from the received on April 27, 2004; to the Committee man and President, Export-Import Bank of on Agriculture, Nutrition, and Forestry. the United States, transmitting, pursuant to House of Representatives, delivered by EC–7216. A communication from the Con- Mr. Hays, one of its reading clerks, an- law, a report relative to U.S. imports to the gressional Review Coordinator, Animal and Republic of Korea; to the Committee on nounced that the House has passed the Plant Health Inspection Service, Department Banking, Housing, and Urban Affairs. following bills, in which it requests the of Agriculture, transmitting, pursuant to EC–7227. A communication from the Acting concurrence of the Senate: law, the report of a rule entitled ‘‘Classical General Counsel, Federal Emergency Man- H.R. 3942. An act to redesignate the facil- Swine Fever Status of France and Spain’’ agement Agency, transmitting, pursuant to ity of the United States Postal Service lo- (Doc. No. 98–090–7) received on April 27, 2004; law, the report of a rule entitled ‘‘List of cated at 7 Commercial Boulevard in Middle- to the Committee on Agriculture, Nutrition, Communities Eligible for the Sale of Flood town, Rhode Island, as the ‘‘Rhode Island and Forestry. Insurance’’ (Doc. No. FEMA–7770) received on Veterans Post Office Building’’. EC–7217. A communication from the Con- April 27, 2004; to the Committee on Banking, H.R. 4219. An act to provide an extension of gressional Review Coordinator, Animal and Housing, and Urban Affairs. highway, highway safety, motor carrier safe- Plant Health Inspection Service, Department EC–7228. A communication from the Acting ty, transit, an other programs funded out of of Agriculture, transmitting, pursuant to General Counsel, Federal Emergency Man- the Highway Trust Fund pending enactment law, the report of a rule entitled ‘‘Cattle agement Agency, transmitting, pursuant to of a law reauthorizing the Transportation From Australia and New Zealand; Testing law, the report of a rule entitled ‘‘Final Equity Act for the 21st Century. Exemptions’’ (Doc. No. 99–071–3) received on Flood Elevation Determinations; 68 FR 8113’’ April 27, 2004; to the Committee on Agri- The message also announced that the received on April 27, 2004; to the Committee culture, Nutrition, and Forestry. on Banking, Housing, and Urban Affairs. House has passed the following bills, EC–7218. A communication from the Con- EC–7229. A communication from the Acting without amendment: gressional Review Coordinator, Animal and General Counsel, Federal Emergency Man- S. 1904. An act to designate the United Plant Health Inspection Service, Department agement Agency, transmitting, pursuant to States courthouse located at 400 North of Agriculture, transmitting, pursuant to law, the report of a rule entitled ‘‘Final Miami Avenue in Miami, Florida, as the law, the report of a rule entitled ‘‘Golden Flood Elevation Determinations; 68 FR 8112’’ ‘‘Wilkie D. Ferguson, Jr. United States Nematode; Regulated Area’’ (Doc. No. 03–082– received on April 27, 2004; to the Committee Courthouse’’. 2) received on April 27, 2004; to the Com- on Banking, Housing, and Urban Affairs.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.033 S28PT1 S4492 CONGRESSIONAL RECORD — SENATE April 28, 2004 EC–7230. A communication from the Acting ties; to the Committee on Commerce, EC–7252. A communication from the Sec- General Counsel, Federal Emergency Man- Science, and Transportation. retary of Energy, transmitting, pursuant to agement Agency, transmitting, pursuant to EC–7241. A communication from the Ad- law, a report relative to the effectiveness of law, the report of a rule entitled ‘‘Suspen- ministrator, Federal Aviation Administra- the Department of Energy’s defense and na- sion of Community Elibility; 69 FR 9755’’ tion, transmitting, pursuant to law, the Ad- tional security programs; to the Committee (Doc. No. FEMA–7827) received on April 27, ministration’s Capital Investment Plan; to on Energy and Natural Resources. 2004; to the Committee on Banking, Housing, the Committee on Commerce, Science, and EC–7253. A communication from the Dep- and Urban Affairs. Transportation. uty Associate Administrator, Environmental EC–7231. A communication from the Assist- EC–7242. A communication from the Sec- Protection Agency, transmitting, pursuant ant Secretary, Division of Corporate Fi- retary of Homeland Security, transmitting, to law, the report of a rule entitled ‘‘Gera- nance, Securities and Exchange Commission, pursuant to law, a report relative to the im- niol; Exemption from the Requirement of a transmitting, pursuant to law, the report of plementation and enforcement of the Inter- Tolerance’’ (FRL#7351–1) received on April a rule entitled ‘‘Foreign Bank Exemption national Safety Management Code; to the 27, 2004; to the Committee on Agriculture, from the Insider Lending Prohibition of Ex- Committee on Commerce, Science, and Nutrition, and Forestry. change Act Section 13(k)’’ (RIN3235–AI81) re- Transportation. EC–7254. A communication from the Dep- EC–7243. A communication from the Sec- ceived on April 27, 2004; to the Committee on uty Associate Administrator, Environmental retary of Transportation, transmitting, pur- Banking, Housing, and Urban Affairs. Protection Agency, transmitting, pursuant suant to law, a report entitled ‘‘Funda- EC–7232. A communication from the Chair- to law, the report of a rule entitled ‘‘Pes- mental Properties of Asphalts and Modified man, Consumer Product Safety Commission, ticides; Tolerance Exemption for Active and Asphalts—II’’; to the Committee on Com- transmitting, pursuant to law, the Commis- Inert Ingredients for Use in Antimicrobial sion’s Audited Financial Statements for Fis- merce, Science, and Transportation. EC–7244. A communication from the Acting Formulations (Food-Contract Surface Sani- cal Year 2003; to the Committee on Com- Director, Office of Sustainable Fisheries, Na- tizing Solutions)’’ (FRL#7335–4) received on merce, Science, and Transportation. April 27, 2004; to the Committee on Agri- EC–7233. A communication from the Sec- tional Marine Fisheries Service, transmitting, pursuant to law, the report of a rule en- culture, Nutrition, and Forestry. retary of Transportation, transmitting, pur- EC–7255. A communication from the Dep- suant to law, the Department of Transpor- titled ‘‘Prohibiting Directed Fishing for Pa- cific Cod by Catcher Vessels 60 Feet Length uty Associate Administrator, Environmental tation’s Fiscal Year 2003 Annual Report; to Overall and Longer Using Pot Gear in the Protection Agency, transmitting, pursuant the Committee on Commerce, Science, and Bering Sea and Aleutian Islands Manage- to law, the report of a rule entitled ‘‘Interim Transportation. Final Determination to Stay and/or Defer EC–7234. A communication from the Assist- ment Area’’ received on April 27, 2004; to the Committee on Commerce, Science, and Sanctions, South Coast Air Quality Manage- ant Administrator for Procurement, Na- ment District’’ (FRL#7651–6) received on tional Aeronautics and Space Administra- Transportation. EC–7245. A communication from the Direc- April 27, 2004; to the Committee on Environ- tion, transmitting, pursuant to law, the re- tor, Office of Sustainable Fisheries, National ment and Public Works. port of a rule entitled ‘‘NASA Grant and Co- Marine Fisheries Service, transmitting, pur- EC–7256. A communication from the Dep- operative Agreement Handbook—Property suant to law, the report of a rule entitled uty Associate Administrator, Environmental Reporting’’ (RIN2700–AC79) received on April ‘‘Inseason Adjustment Opening Directed Protection Agency, transmitting, pursuant 27, 2004; to the Committee on Commerce, Fishing for Pollock in Statistical Area 630 of to law, the report of a rule entitled ‘‘Final Science, and Transportation. the Gulf of Alaska for Twelve Hours’’ re- Rule to Implement the 8-Hour Ozone Na- EC–7235. A communication from the Assist- ceived on April 27, 2004; to the Committee on tional Ambient Air Quality Standard—Phase ant Administrator for Procurement, Na- Commerce, Science, and Transportation. 1’’ (FRL7651–7) received on April 27, 2004; to tional Aeronautics and Space Administra- EC–7246. A communication from the Assist- the Committee on Environment and Public tion, transmitting, pursuant to law, the re- ant Administrator for Fisheries, National Works. port of a rule entitled ‘‘Conformance with Oceanic and Atmospheric Administration, EC–7257. A communication from the Dep- Federal Acquisition Circular 2001–16’’ re- transmitting, pursuant to law, a report enti- uty Associate Administrator, Environmental ceived on April 27, 2004; to the Committee on tled ‘‘Apportionment of Membership on the Protection Agency, transmitting, pursuant Commerce, Science, and Transportation. Regional Fishery Management Councils’’; to to law, the report of a rule entitled ‘‘In Vitro EC–7236. A communication from the Assist- the Committee on Commerce, Science, and Dermal Absorption Rate Testing of Certain ant Administrator for Procurement, Na- Transportation. Chemicals of Interest to the Occupational tional Aeronautics and Space Administra- EC–7247. A communication from the Ad- Safety and Health Administration’’ tion, transmitting, pursuant to law, the re- ministrator, Energy Information Adminis- (FRL#7321–2) received on April 27, 2004; to port of a rule entitled ‘‘NASA Grant and Co- tration, Department of Energy, transmit- the Committee on Environment and Public operative Agreement Handbook—Synopses ting, pursuant to law, a report entitled ‘‘Vol- Works. Requirements’’ (RIN2700–AC93) received on untary Reporting of Greenhouse Gases of EC–7258. A communication from the Dep- April 27, 2004; to the Committee on Com- 2002’’; to the Committee on Energy and Nat- uty Associate Administrator, Environmental merce, Science, and Transportation. ural Resources. Protection Agency, transmitting, pursuant EC–7237. A communication from the Assist- EC–7248. A communication from the Direc- to law, the report of a rule entitled ‘‘Revi- ant Administrator for Procurement, Na- tor, Office of Personnel Policy, Department sions to the Arizona State Implementation tional Aeronautics and Space Administra- of the Interior, transmitting, pursuant to Plan, Pinal County Air Quality Control Dis- tion, transmitting, pursuant to law, the re- law, a report of a nomination for the posi- trict’’ (FRL#7638–2) received on April 27, port of a rule entitled ‘‘Government-Owned tion of Solicitor, Department of the Interior, 2004; to the Committee on Environment and Contractor-Operated Vehicle Fleet Manage- received on April 27, 2004; to the Committee Public Works. ment and Reporting’’ received on April 27, on Energy and Natural Resources. EC–7259. A communication from the Dep- 2004; to the Committee on Commerce, EC–7249. A communication from the Direc- uty Associate Administrator, Environmental Science, and Transportation. tor, Office of Human Resources Management, Protection Agency, transmitting, a report EC–7238. A communication from the Dep- Department of Energy, transmitting, pursu- relative to the Agency’s regulatory pro- uty Assistant Administrator, National Ma- ant to law, a report of a nomination for the grams; to the Committee on Environment rine Fisheries Service, transmitting, pursu- position of Principal Deputy Administrator, and Public Works. ant to law, the report of a rule entitled ‘‘Pa- Department of Energy, received on April 27, cific Coast Groundfish Fishery; Groundfish 2004; to the Committee on Energy and Nat- f Fishery Management Measures’’ (RIN0648– ural Resources. AR68) received on April 27, 2004; to the Com- EC–7250. A communication from the Direc- INTRODUCTION OF BILLS AND mittee on Commerce, Science, and Transpor- tor, Office of Human Resources Management, JOINT RESOLUTIONS tation. Department of Energy, transmitting, pursu- The following bills and joint resolu- EC–7239. A communication from the Dep- ant to law, a report of a vacancy and des- tions were introduced, read the first uty Assistant Administrator, National Ma- ignation of acting officer for the position of and second times by unanimous con- rine Fisheries Service, transmitting, pursu- Assistant Secretary for Policy and Inter- ant to law, the report of a rule entitled ‘‘De- national Affairs, Department of Energy, resent, and referred as indicated: crease of the Commercial Trip Limit for the ceived on April 27, 2004; to the Committee on By Mr. CRAIG (for himself, Ms. MUR- Hook-and-Line Fishery for Gulf Group King Energy and Natural Resources. KOWSKI, Mr. DOMENICI, Mr. BURNS, Mackerel in the Southern Florida West EC–7251. A communication from the Direc- Mr. ROBERTS, Mr. BUNNING, Mr. COCH- Coast Subzone’’ received on April 27, 2004; to tor, Office of Human Resources Management, RAN, Mr. CRAPO, Mr. BENNETT, and the Committee on Commerce, Science, and Department of Energy, transmitting, pursu- Mr. REID): Transportation. ant to law, a report of a vacancy and des- S. 2353. A bill to reauthorize and amend the EC–7240. A communication from the Direc- ignation of acting officer for the position of National Geologic Mapping Act of 1992; to tor, Office of Management and Budget, Exec- Assistant Secretary, Fossil Energy, Depart- the Committee on Energy and Natural Re- utive Office of the President, transmitting, ment of Energy, received on April 27, 2004; to sources. pursuant to law, a report of all federal pro- the Committee on Energy and Natural Re- By Mr. MCCAIN (for himself and Mr. grams related to coastal and ocean activi- sources. KYL):

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.017 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4493 S. 2354. A bill to amend the National Trails the 50th anniversary of the Supreme Court COLLINS) was added as a cosponsor of S. System Act to direct the Secretary of the In- decision in Brown v. Board of Education of 1092, a bill to authorize the establish- terior and the Secretary of Agriculture to Topeka; to the Committee on Rules and Ad- ment of a national database for pur- jointly conduct a study on the feasibility of ministration. poses of identifying, locating, and cata- designating the Arizona Trail as a national f scenic trail or a national historic trail; to loging the many memorials and perma- the Committee on Energy and Natural Re- ADDITIONAL COSPONSORS nent tributes to America’s veterans. sources. S. 198 S. 1909 By Mr. JOHNSON: At the request of Mr. SMITH, the At the request of Mr. COCHRAN, the S. 2355. A bill to make available hazardous names of the Senator from Hawaii (Mr. duty incentive pay to uniformed service name of the Senator from Mississippi AKAKA), the Senator from Delaware members performing firefighting duties; to (Mr. COCHRAN) was added as a cospon- the Committee on Armed Services. sor of S. 198, a bill to amend the Inter- (Mr. BIDEN) and the Senator from Con- By Ms. COLLINS (for herself and Mr. nal Revenue Code of 1986 to allow an necticut (Mr. DODD) were added as co- FEINGOLD): income tax credit for the provision of sponsors of S. 1909, a bill to amend the S. 2356. A bill to require the Director of the homeownership and community devel- Public Health Service Act to improve Office of Management and Budget to issue opment, and for other purposes. stroke prevention, diagnosis, treat- guidance for, and provide oversight of, the ment, and rehabilitation. management of micropurchases made with S. 493 S. 2174 Government-wide commercial purchase At the request of Mrs. LINCOLN, the cards, and for other purposes; to the Com- names of the Senator from North Da- At the request of Mr. BUNNING, the mittee on Governmental Affairs. kota (Mr. DORGAN), the Senator from name of the Senator from Minnesota By Mr. BAUCUS: New Jersey (Mr. CORZINE), the Senator (Mr. DAYTON) was added as a cosponsor S. 2357. A bill to direct the Secretary of the of S. 2174, a bill to amend title XIX of Army, acting through the Chief of Engineers, from Nebraska (Mr. NELSON) and the Senator from New Jersey (Mr. LAUTEN- the Social Security Act to include po- to maintain a minimum quantity of stored diatrists as physicians for purposes of water in certain reservoirs in the vicinity of BERG) were added as cosponsors of S. the upper portion of the Missouri River; to 493, a bill to amend title XVIII of the covering physicians services under the the Committee on Environment and Public Social Security Act to authorize phys- medicaid program. Works. ical therapists to evaluate and treat S. 2192 By Mr. DURBIN (for himself, Mr. medicare beneficiaries without a re- At the request of Mr. HATCH, the LEAHY, Mr. FEINGOLD, and Mr. KEN- quirement for a physician referral, and name of the Senator from Iowa (Mr. NEDY): GRASSLEY) was added as a cosponsor of S. 2358. A bill to allow for the prosecution for other purposes. of members of criminal street gangs, and for S. 859 S. 2192, a bill to amend title 35, United other purposes; to the Committee on the Ju- At the request of Mr. CORZINE, the States Code, to promote cooperative diciary. name of the Senator from Massachu- research involving universities, the By Mr. REID: setts (Mr. KERRY) was added as a co- public sector, and private enterprises. S. 2359. A bill to amend the Internal Rev- sponsor of S. 859, a bill to amend the S. 2236 enue Code of 1986 to provide a refundable tax At the request of Ms. CANTWELL, the credit for small business health insurance Public Health Service Act with respect costs, and for other purposes; to the Com- to facilitating the development of name of the Senator from Rhode Island mittee on Finance. microbicides for preventing trans- (Mr. CHAFEE) was added as a cosponsor By Mr. MILLER: mission of HIV and other diseases. of S. 2236, a bill to enhance the reli- S.J. Res. 35. A joint resolution to repeal S. 896 ability of the electric system. the seventeenth article of amendment to the At the request of Mrs. MURRAY, the S. 2267 Constitution of the United States; to the At the request of Ms. SNOWE, the Committee on the Judiciary. name of the Senator from New York (Mr. SCHUMER) was added as a cospon- name of the Senator from Wyoming f sor of S. 896, a bill to establish a public (Mr. ENZI) was added as a cosponsor of SUBMISSION OF CONCURRENT AND education and awareness program re- S. 2267, a bill to amend section 29(k) of SENATE RESOLUTIONS lating to emergency contraception. the Small Business Act to establish The following concurrent resolutions S. 976 funding priorities for women’s business and Senate resolutions were read, and At the request of Mr. WARNER, the centers. referred (or acted upon), as indicated: name of the Senator from Oregon (Mr. S. 2292 By Mr. BOND: SMITH) was added as a cosponsor of S. At the request of Mr. VOINOVICH, the S. Res. 344. A resolution welcoming the 976, a bill to provide for the issuance of names of the Senator from Connecticut Prime Minister of Singapore on the occasion a coin to commemorate the 400th anni- (Mr. DODD) and the Senator from North of his visit to the United States, expressing versary of the Jamestown settlement. Dakota (Mr. DORGAN) were added as co- gratitude to the Government of Singapore S. 1010 sponsors of S. 2292, a bill to require a for its support in the reconstruction of Iraq report on acts of anti-Semitism around and its strong cooperation with the United At the request of Mr. HARKIN, the States in the campaign against terrorism, name of the Senator from Massachu- the world. and reaffirming the commitment of the Sen- setts (Mr. KERRY) was added as a co- S. 2311 ate to the continued expansion of friendship sponsor of S. 1010, a bill to enhance and At the request of Mr. CHAFEE, his and cooperation between the United States further research into paralysis and to name was added as a cosponsor of S. and Singapore; to the Committee on Foreign improve rehabilitation and the quality 2311, a bill to provide for various en- Relations. of life for persons living with paralysis ergy efficiency programs and tax in- By Mrs. CLINTON (for herself, Ms. centives, and for other purposes. SNOWE, Mr. KENNEDY, Mr. MILLER, and other physical disabilities. Mr. KERRY, Mr. JOHNSON, Mr. PRYOR, S. 1063 S. 2318 Mr. CORZINE, Mrs. MURRAY, Ms. At the request of Ms. COLLINS, the At the request of Ms. COLLINS, the STABENOW, Ms. MIKULSKI, Mr. BAU- name of the Senator from New York name of the Senator from New York CUS, Mr. COCHRAN, Mr. LIEBERMAN, (Mrs. CLINTON) was added as a cospon- (Mrs. CLINTON) was added as a cospon- and Mrs. LINCOLN): sor of S. 1063, a bill to amend the Pub- sor of S. 2318, a bill to expand upon the S. Res. 345. A resolution expressing the Sense of the Senate that Congress should ex- lic Health Service Act to authorize the Department of Defense Energy Effi- pand the supports and services available to Commissioner of Food and Drugs to ciency Program required by section 317 grandparents and other relatives who are conduct oversight of any entity en- of the National Defense Authorization raising children when their biological par- gaged in the recovery, screening, test- Act of 2002 by authorizing the Sec- ents have died or can no longer take care of ing, processing, storage, or distribution retary of Defense to enter into energy them; to the Committee on Health, Edu- of human tissue or human tissue-based savings performance contracts, and for cation, Labor, and Pensions. products. other purposes. By Mr. BROWNBACK (for himself and S. 1092 S. 2337 Mr. ROBERTS): S. Con. Res. 101. A concurrent resolution to At the request of Mr. CAMPBELL, the At the request of Ms. STABENOW, the express the sense of the Congress regarding name of the Senator from Maine (Ms. name of the Senator from Minnesota

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.019 S28PT1 S4494 CONGRESSIONAL RECORD — SENATE April 28, 2004 (Mr. DAYTON) was added as a cosponsor FITZGERALD) and the Senator from tiveness and to provide future guid- of S. 2337, a bill to establish a grant North Carolina (Mrs. DOLE) were added ance. program to support coastal and water as cosponsors of S. Res. 311, a resolu- FedMap geologic mapping priorities quality restoration activities in States tion calling on the Government of the are determined by the needs of Federal bordering the Great Lakes, and for Socialist Republic of Vietnam to im- land-management agencies, regional other purposes. mediately and unconditionally release customer forums, and cooperatively S. 2343 Father Thadeus Nguyen Van Ly, and with the State geological surveys. FedMap also coordinates national geo- At the request of Mr. CONRAD, the for other purposes. logic mapping standards. StateMap is a name of the Senator from North Da- S. RES. 342 competitive program wherein the kota (Mr. DORGAN) was added as a co- At the request of Mr. HATCH, the States submit proposals for geologic sponsor of S. 2343, a bill to amend title names of the Senator from South Caro- mapping that are critiqued by a peer XVIII of the Social Security Act to im- lina (Mr. GRAHAM) and the Senator review panel. A requirement of this prove the medicare program, and for from New Jersey (Mr. CORZINE) were section of the legislation is that each other purposes. added as cosponsors of S. Res. 342, a Federal dollar be matched one-for-one S.J. RES. 33 resolution designating April 30, 2004, as with State funds. Each participating At the request of Mr. BROWNBACK, the ‘‘Dia de los Ninos: Celebrating Young State has a State Advisory Committee names of the Senator from Oregon (Mr. Americans’’, and for other purposes. to ensure that its proposal addresses SMITH) and the Senator from South AMENDMENT NO. 3050 priority areas and needs as determined Carolina (Mr. GRAHAM) were added as At the request of Mr. DASCHLE, the in the NGMA. The success of this pro- cosponsors of S.J. Res. 33, a joint reso- names of the Senator from Iowa (Mr. gram ensured reauthorization of simi- lution expressing support for freedom HARKIN) and the Senator from Indiana lar legislation in 1997 and in 1999 with in Hong Kong. (Mr. BAYH) were added as cosponsors of widespread bipartisan support in both S.J. RES. 34 amendment No. 3050 proposed to S. 150, the House and Senate. To date approxi- At the request of Mr. CONRAD, the a bill to make permanent the morato- mately $50M has been awarded to State name of the Senator from West Vir- rium on taxes on Internet access and geological surveys through StateMap, ginia (Mr. ROCKEFELLER) was added as multiple and discriminatory taxes on and these Federal dollars have been a cosponsor of S.J. Res. 34, a joint reso- electronic commerce imposed by the more than matched by State dollars. lution designating May 29, 2004, on the Internet Tax Freedom Act. In 2003, more than 450 new digital occasion of the dedication of the Na- f geologic maps were published by tional World War II Memorial, as Re- NCGMP, covering over 120,000 square membrance of World War II Veterans STATEMENTS ON INTRODUCED miles of the Nation. These high quality Day. BILLS AND JOINT RESOLUTIONS geologic maps will be used by a very S. CON. RES. 90 By Mr. CRAIG (for himself, Ms. broad base of customers including geotechnical consultants, Federal, At the request of Mr. LEVIN, the MURKOWSKI, Mr. DOMENICI, Mr. name of the Senator from South Da- BURNS, Mr. ROBERTS, Mr. State and local land managers, and mineral and energy exploration compa- kota (Mr. JOHNSON) was added as a co- BUNNING, Mr. COCHRAN, Mr. sponsor of S. Con. Res. 90, a concurrent CRAPO, Mr. BENNETT, and Mr. nies. Information on how to obtain all of these maps is provided on the Inter- resolution expressing the Sense of the REID): net by the National Geologic Map Congress regarding negotiating, in the S. 2353. A bill to reauthorize and Database, allowing ease of access for United States-Thailand Free Trade amend the National Geologic Mapping all users. Agreement, access to the United States Act of 1992; to the Committee on En- ergy and Natural Resources. EdMap has trained over 550 univer- automobile industry. sity students at 118 universities across S. CON. RES. 100 Mr. CRAIG. Mr. President, I am today introducing, along with Senators the Nation. The best testament to the At the request of Mr. ALEXANDER, the quality of this training are its bene- MURKOWSKI, DOMENICI, BURNS, ROB- name of the Senator from Maryland ficiaries—an unusually high percentage ERTS, BUNNING, COCHRAN, CRAPO, BEN- (Mr. SARBANES) was added as a cospon- of these students go on to careers in sor of S. Con. Res. 100, a concurrent NETT, and REID, the National Geologic Mapping Reauthorization Act of 2004. Earth Science, becoming university resolution celebrating 10 years of ma- professors, energy company explo- This is an act that has been very bene- jority rule in the Republic of South Af- ration scientists, or mapping special- ficial to the Nation and deserves to be rica and recognizing the momentous ists themselves. Their EdMap program reauthorized. social and economic achievements of experience provides them with a re- The National Geologic Mapping Act South Africa since the institution of markable self-confidence, having com- was originally signed into law in 1992, democracy in that country. pleted a difficult and independent field creating the National Cooperative Geo- S. RES. 164 mapping experience. At this very mo- logic Mapping Program (NCGMP). This ment, a former EdMap student, Ser- At the request of Mr. ENSIGN, the program exists as a partnership be- geant Alexander Stewart, is serving his name of the Senator from New Hamp- tween the USGS and the State geologi- Nation in Operation Iraqi Freedom, shire (Mr. GREGG) was added as a co- cal surveys, whose purpose is to pro- sponsor of S. Res. 164, a resolution re- where his geologic mapping skills have vide the Nation with urgently-needed been put to excellent use training his affirming support of the Convention on geologic maps that can be and are used the Prevention and Punishment of the unit in all aspects of map making and by a diverse clientele. These maps are interpretation. Crime of Genocide and anticipating the vital to understanding groundwater re- commemoration of the 15th anniver- Mr. President, the National Geologic gimes, mineral resources, geologic haz- Mapping Reauthorization Act benefits sary of the enactment of the Genocide ards such as landslides and earth- Convention Implementation Act of 1987 numerous citizens every day by assur- quakes, and geology essential for all ing there is accurate, usable geologic (the Proxmire Act) on November 4, types of land use planning; as well as 2003. information available to communities providing basic scientific data. The and individuals so that safe, educated S. RES. 269 NCGMP contains three parts: resource use decisions can be made. I At the request of Mr. DORGAN, his FedMap—the U.S. Geological Survey’s encourage my colleagues to support name was added as a cosponsor of S. geologic mapping program, StateMap— this legislation and am committed to Res. 269, a resolution urging the Gov- the State geological survey’s part of its timely consideration. ernment of Canada to end the commer- the act, and EdMap—a program to en- I ask unanimous consent that the cial seal hunt that opened on Novem- courage the training of future geologic text of the bill be printed in the ber 15, 2003. mappers at our colleges and univer- RECORD. S. RES. 311 sities. All three components are re- There being no objection, the bill was At the request of Mr. BROWNBACK, the viewed annually by a Federal Advisory ordered to be printed in the RECORD, as names of the Senator from Illinois (Mr. Committee to ensure program effec- follows:

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.021 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4495 S. 2353 (1) in paragraph (2)— Trail. A companion bill is being intro- Be it enacted by the Senate and House of Rep- (A) by striking ‘‘Administrator of the En- duced in the House of Representatives resentatives of the United States of America in vironmental Protection Agency or a des- today by Representative KOLBE and Congress assembled, ignee’’ and inserting ‘‘Secretary of the Inte- rest of the Arizona delegation. SECTION 1. SHORT TITLE. rior or a designee from a land management Since 1968, when the National Trails agency of the Department of the Interior’’; This Act may be cited as the ‘‘National System Act was established, Congress Geologic Mapping Reauthorization Act of (B) by inserting ‘‘and’’ after ‘‘Energy or a 2004’’. designee,’’; and has designated twenty national trails. SEC. 2. FINDINGS. (C) by striking ‘‘, and the Assistant to the This legislation is the first step in the Section 2(a) of the National Geologic Map- President for Science and Technology or a process of national trail designation ping Act of 1992 (43 U.S.C. 31a(a)) is amend- designee’’; and for the Arizona Trail. If the study con- ed— (2) in paragraph (3)— cludes that designating the Arizona (1) by striking paragraph (1) and inserting (A) by striking ‘‘Not later than’’ and all Trail as a part of the national trail sys- the following: that follows through ‘‘consultation’’ and intem if feasible, subsequent legislation ‘‘(1) although significant progress has been serting ‘‘In consultation’’; made in the production of geologic maps (B) by striking ‘‘Chief Geologist, as Chair- will be introduced to designate the Ari- since the establishment of the national coop- man’’ and inserting ‘‘Associate Director for zona Trail as either a National Scenic erative geologic mapping program in 1992, no Geology, as Chair’’; and Trail or National Historic Trail. modern, digital, geologic map exists for ap- (C) by striking ‘‘one representative from The Arizona Trail is a beautifully di- proximately 75 percent of the United the private sector’’ and inserting ‘‘2 rep- verse stretch of public lands, moun- States;’’; and resentatives from the private sector’’. tains, canyons, deserts, forests, his- (2) in paragraph (2)— SEC. 8. FUNCTIONS OF NATIONAL GEOLOGIC-MAP toric sites, and communities. The Trail (A) in subparagraph (C), by inserting DATABASE. begins at the Coronado National Me- ‘‘homeland and’’ after ‘‘planning for’’; Section 7(a) of the National Geologic Map- morial on the U.S.-Mexico border and (B) in subparagraph (E), by striking ‘‘pre- ping Act of 1992 (43 U.S.C. 31f(a)) is amend- dicting’’ and inserting ‘‘identifying’’; ed— ends in the Bureau of Land Manage- (C) in subparagraph (I), by striking ‘‘and’’ (1) in paragraph (1), by striking ‘‘geologic ment’s Arizona Strip District on the after the semicolon at the end; map’’ and inserting ‘‘geologic-map’’; and Utah border. In between these two (D) by redesignating subparagraph (J) as (2) in paragraph (2)— points, the Trail winds through some of subparagraph (K); and (A) in the matter preceding subparagraph the most rugged, spectacular scenery (E) by inserting after subparagraph (I) the (A), by inserting ‘‘information on how to ob- in the Western United States. following: tain’’ after ‘‘that includes’’; and For the past 10 years, over 16 Federal, ‘‘(J) recreation and public awareness; and’’; (B) in subparagraph (A), by striking ‘‘under state and local agencies, as well as and the Federal component and the education (3) in paragraph (9), by striking ‘‘impor- component’’ and inserting ‘‘with funding community and business organizations, tant’’ and inserting ‘‘available’’. provided under the national cooperative geo- have worked to form a partnership to SEC. 3. PURPOSE. logic mapping program established by sec- create, develop, and manage the Ari- Section 2(b) of the National Geologic Map- tion 4(a)’’. zona Trail. Designating the Arizona ping Act of 1992 (43 U.S.C. 31a(b)) is amended SEC. 9. BIENNIAL REPORT. Trail as a national trail would help by striking ‘‘protection’’ and inserting Section 8 of the National Geologic Mapping streamline the management of the ‘‘management’’. Act of 1992 (43 U.S.C. 31g) is amended by Trail to ensure that this pristine SEC. 4. DEADLINES FOR ACTIONS BY THE UNITED striking ‘‘Not later’’ and all that follows STATES GEOLOGICAL SURVEY. stretch of diverse land is preserved for through ‘‘biennially’’ and inserting ‘‘Not Section 4(b)(1) of the National Geologic future generations to enjoy. Mapping Act of 1992 (43 U.S.C. 31c(b)(1)) is later than 3 years after the date of enact- The corridor for the Arizona Trail en- amended in the second sentence— ment of the National Geologic Mapping Re- authorization Act of 2004 and biennially’’. compasses the wide range of ecological (1) in subparagraph (A), by striking ‘‘not diversity in the state, and incorporates later than’’ and all that follows through the SEC. 10. AUTHORIZATION OF APPROPRIATIONS; ALLOCATION. a host of existing trails into one con- semicolon and inserting ‘‘not later than 1 tinuous trail. The Arizona Trail ex- year after the date of enactment of the Na- Section 9 of the National Geologic Mapping tional Geologic Mapping Reauthorization Act of 1992 (43 U.S.C. 31h) is amended— tends through seven ecological life Act of 2004;’’; (1) by striking subsection (a) and inserting zones including such legendary land- (2) in subparagraph (B), by striking ‘‘not the following: marks as the Sonoran Desert and the later than’’ and all that follows through ‘‘in ‘‘(a) IN GENERAL.—There is authorized to Grand Canyon. It connects the unique accordance’’ and inserting ‘‘not later than 1 be appropriated to carry out this Act lowland desert flora and fauna in $64,000,000 for each of fiscal years 2006 year after the date of enactment of the Na- Saguaro National Park and the pine- tional Geologic Mapping Reauthorization through 2010.’’; and (2) in subsection (b)— covered San Francisco Peaks, Arizo- Act of 2004 in accordance’’; and na’s highest mountains at 12,633 feet in (3) in the matter preceding clause (i) of (A) in the matter preceding paragraph (1), subparagraph (C), by striking ‘‘not later by striking ‘‘2000’’ and inserting ‘‘2005’’; elevation. In fact, the Trail route is so than’’ and all that follows through ‘‘submit’’ (B) in paragraph (1), by striking ‘‘48’’ and topographically diverse that a person and inserting ‘‘submit biennially’’. inserting ‘‘50’’; and can hike from the Sonoran Desert to (C) in paragraph (2), by striking 2 and in- SEC. 5. GEOLOGIC MAPPING PROGRAM OBJEC- Alpine forests in one day. The Trail TIVES. serting ‘‘4’’. also takes travelers through ranching, Section 4(c)(2) of the National Geologic mining, agricultural, and developed Mapping Act of 1992 (43 U.S.C. 31c(c)(2)) is By Mr. MCCAIN (for himself and Mr. urban areas, as well as remote, pristine amended— KYL): (1) by striking ‘‘geophysical-map data base, wildlands. geochemical-map data base, and a’’; and S. 2354. A bill to amend the National With nearly 700 miles of the 800-mile (2) by striking ‘‘provide’’ and inserting Trails System Act to direct the Sec- trail already completed, the Arizona ‘‘provides’’. retary of the Interior and the Sec- Trail is a boon to recreationists. The SEC. 6. GEOLOGIC MAPPING PROGRAM COMPO- retary of Agriculture to jointly con- Arizona State Parks recently released NENTS. duct a study on the feasibility of desig- data showing that two-thirds of Arizo- Section 4(d)(1)(B)(ii) of the National Geo- nating the Arizona Trail as a national nans consider themselves trail users. logic Mapping Act of 1992 (43 U.S.C. scenic trail or a national historic trail; 31c(d)(1)(B)(ii)) is amended— Millions of visitors also use Arizona’s (1) in subclause (I), by striking ‘‘and’’ after to the Committee on Energy and Nat- trails each year. In one of the fastest- the semicolon at the end; ural Resources. growing states in the U.S., the designa- (2) in subclause (II), by striking the period Mr. MCCAIN. Mr. President, I am tion of the Arizona Trail as a National at the end and inserting ‘‘; and’’; and pleased to be joined today by Senator Scenic or National Historic Trail would (3) by adding at the end the following: KYL in introducing the Arizona Trail ensure the preservation of a corridor of ‘‘(III) the needs of land management agen- Feasibility Study Act. This bill would open space for hikers, mountain cies of the Department of the Interior.’’. authorize the Secretaries of Agri- bicyclists, cross country skiers, SEC. 7. GEOLOGIC MAPPING ADVISORY COM- culture and Interior to conduct a joint MITTEE. snowshoers, eco-tourists, equestrians, Section 5(a) of the National Geologic Map- study to determine the feasibility of and joggers. ping Act of 1992 (43 U.S.C. 31d(a)) is amend- designating the Arizona Trail as a Na- I commend the Arizona Trail Asso- ed— tional Scenic or National Historic ciation for taking the lead in building

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.024 S28PT1 S4496 CONGRESSIONAL RECORD — SENATE April 28, 2004 a coalition of partners to bring the Ari- firefighters as one of the top three rea- (703) 683–1400 if the Association can be of as- zona Trail from its inception to a near- sons for morale and retention prob- sistance. ly completed, multiple-use, non-motor- lems. The Air Force has specifically JOSEPH L. BARNES, ized, long-distance trail. Trail enthu- stated that the lack of hazardous duty National Executive Secretary. siasts look forward to the completion incentive pay is a primary factor in AIR FORCE SERGEANTS of the Arizona Trail. Its designation as poor retention rates among its mili- ASSOCIATION, a national trail would help to protect tary firefighters. In my view, providing Temple Hills, MD, April 23, 2004. the natural, cultural, and historic re- hazardous duty incentive pay is essen- Hon. TIM JOHNSON, sources it contains for the public to use tial to retaining our best firefighters Hart Senate Office Building, and enjoy. and maintaining this crucial capability Washington, DC. within our Armed Forces. DEAR SENATOR JOHNSON: On behalf of the By Mr. JOHNSON: Mr. President, I am pleased the Fair 135,000 members of this association, thank S. 2355. A bill to make available haz- you for introducing legislation which would Pay for Military firefighters Act has provide Hazardous Duty Incentive Pay for ardous duty incentive pay to uniformed been endorsed by both the Fleet Re- military firefighters. Your efforts will un- service members performing fire- serve Association and the Air Force doubtedly pave the way to correct an in- fighting duties; to the Committee on Sergeants Association and I thank equity that senior military leaders have Armed Services. them for their assistance in preparing identified as a contributing factor to low re- Mr. JOHNSON. Mr. President, I rise this legislation. I ask unanimous contention and morale among enlisted fire- today to introduce the Fair Pay for sent that the full text of two letters fighters. Military Firefighters Act. This bill au- Military firefighters face hazardous duty from these distinguished organizations every day—not just in wartime. They are thorizes hazardous duty incentive pay be printed in the RECORD and the bill confronted with fuel fires and explosive situ- for our Nation’s military firefighters. be printed in the RECORD. ations on our flightlines and in the environ- It may come as a surprise to many of I look forward to working with my ments unique to executing the military mis- my colleagues, as it did to me, that colleagues to pass the Fair Pay for sions required to protect this nation. Like military firefighters are not currently Military Firefighters Act and to ex- you, we are extremely proud of their courage eligible to receive hazardous duty in- tending hazardous duty incentive pay and dedication. We are pleased you have centive pay. This issue was first benefits to our nation’s military fire- taken the lead to honor them and to provide them equitable compensation for their intre- brought to my attention in a letter I fighters. There can be no doubt that pidity. received several months ago from an firefighting is one of the most dan- Senator Johnson, thank you again for your Air Force Staff Sergeant stationed at gerous professions. Military fire- leadership and your dedication to enlisted Ellsworth Air Force Base. The letter fighters understand this threat and de- military members. AFSA will continue to in- stated, ‘‘We are in one of the most dan- serve the recognition of receiving haz- form Airmen of all ranks at our chapters gerous jobs in the world. We face dan- ardous duty incentive pay for the sac- around the world that they have a dedicated ger not only when we deploy like other rifices they make and the risks they champion in Washington thanks to your untiring efforts. We look forward to continue jobs that get this pay but we face haz- take. working with you on this and other matters ards at our home station.’’ There being no objection, the two let- of mutual concern. Please let me know when As the Staff Sergeant said, fire- ters and the text of the bill were or- we can be of further assistance to you. fighting is in itself a dangerous profes- dered to be printed in the RECORD, as Sincerely, sion, but military firefighters must follows: RICHARD M. DEAN, confront a wide variety of threats and FLEET RESERVE ASSOCIATION, Executive Director. are exposed to toxic materials distinc- Alexandria, VA, April 22, 2004. S. 2355 tive to the military. The fires they Hon. TIM JOHNSON, U.S. Senate, Hart Senate Office Building, Be it enacted by the Senate and House of Rep- fight often involve fuel and propel- resentatives of the United States of America in lants, munitions, or chemicals which Washington, DC. DEAR SENATOR JOHNSON: The Fleet Reserve Congress assembled, present unique and extremely dan- Association (FRA) has been advised that you SECTION 1. SHORT TITLE. gerous situations. These plan to introduce a bill to recognize the regi- This Act may be cited as the ‘‘Fair Pay for servicemembers face risks not only men that requires military firefighters to Military Firefighters Act of 2004’’. when in combat, but as a part of their put themselves in harm’s way by authorizing SEC. 2. AVAILABILITY OF HAZARDOUS DUTY IN- every day duties. Despite these dan- their eligibility to receive Hazardous Duty CENTIVE PAY FOR MILITARY FIRE- gers, most of the approximate 5,000 Incentive Pay (HDIP). FRA strongly en- FIGHTERS. (a) ADDITIONAL TYPE OF DUTY ELIGIBLE FOR military firefighters serving in the dorses this initiative. There is no doubt these firefighters rate PAY.—Subsection (a) of section 301 of title 37, Armed Forces are not eligible to re- special consideration in the performance of United States Code, is amended— ceive hazardous duty incentive pay. If their duties. They race to quell fires placing (1) in paragraph (12), by striking ‘‘or’’ at these servicemembers are willing to themselves in jeopardy from dangerous traf- the end; take the risk, our nation should be fic conditions. They rush into burning build- (2) by redesignating paragraph (13) as para- willing to provide them the benefits ings to fight flames and smoke, rescue per- graph (14); and they deserve. sons in peril, and face the possibility of (3) by inserting after paragraph (12) the fol- structures falling on them at any moment. lowing new paragraph: In addition to being the right thing ‘‘(13) involving regular participation as a to do, I believe there are broader rea- They rush to stop burning aircraft from exploding, fight toxic chemical spills, rescue firefighting crew member, as determined by sons to support hazardous duty incen- victims in danger of losing their lives, re- the Secretary concerned; or’’. tive pay for military firefighters. First, solve hazardous material conditions, and (b) MONTHLY AMOUNT OF PAY.—Subsection there is an issue of fairness. Federal ci- even free kittens caught in tree tops. All are (c) of such section is amended— vilian firefighters, who also face great dangerous and can be life threatening at any (1) in paragraph (1), by striking ‘‘(12)’’ and risk and are critically important to time. inserting ‘‘(13)’’; and protecting our nation, rightly have It is the Association’s understanding that (2) in paragraph (2)(A), by striking ‘‘(13)’’ and inserting ‘‘(14)’’. risk calculated into their compensa- the military services are in favor of authorizing this special pay to their military fire- tion package. This creates a situation fighters. However, there are forces within By Ms. COLLINS (for herself and where federal civilian and military the Administration that believe military Mr. FEINGOLD): firefighters, who often work side-by- firefighters, all enlisted service members, do S. 2356. A bill to require the Director side, are exposed to the same risk but not deserve HDIP. But the question arises of the Office of Management and Budg- are compensated differently. that if their sacrifices are not worthy of rec- et to issue guidance for, and provide Second, it is my understanding that ognition then why do civilian personnel, oversight of, the management of each of the Services supports providing working side-by-side with these uniformed micropurchases made with Govern- this benefit to our military firefighters personnel, receive a risk factor incorporated ment-wide commercial purchase cards, in their federal pay checks? because they see it as a manning and FRA applauds your leadership on this pro- and for other purposes; to the Com- retention issue. In fact, according to posal, and remains committed to working mittee on Governmental Affairs. survey results, lack of hazardous duty with you and your staff on its advancement. Ms. COLLINS. Mr. President, I rise incentive pay was cited by military Please contact our legislative department at today with my colleague, Senator RUSS

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.035 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4497 FEINGOLD, to introduce the ‘‘Purchase available discounts on purchase card of Engineers, to maintain a minimum Card Waste Elimination Act of 2004,’’ buys. In too many cases, purchase quantity of stored water in certain res- to help eliminate wasteful spending cardholders are buying goods and serv- ervoirs in the vicinity of the upper por- through the use of governmental credit ices from vendors that already agreed tion of the Missouri River; to the Com- cards. to provide government discounts mittee on Environment and Public Today, the Governmental Affairs through the GSA schedule, yet card- Works. Committee explored the federal gov- holders often lack the information and Mr. BAUCUS. Mr. President, I ask ernment’s use of ‘‘purchase cards,’’ training needed to obtain the dis- unanimous consent that the text of the which are commercial charge cards counted prices. As a result, GAO found bill be printed in the RECORD. used by federal agencies to buy billions numerous instances of cardholders pay- There being no objection, the bill was of dollars worth of goods and services. ing significantly more for items for ordered to be printed in the RECORD, as The Committee heard the results of the which discounts already had been nego- follows: General Accounting Office’s investiga- tiated. In light of the fact that con- S. 2357 tion into waste, fraud, and abuse in the scientious shoppers often can obtain Be it enacted by the Senate and House of Rep- purchase card program. savings beyond the schedule discounts, resentatives of the United States of America in Congress assembled, The American people have the right these findings indicate that some fed- SECTION 1. UPPER MISSOURI RIVER WATER to expect the federal government to eral agencies are substantially over- spend their tax dollars carefully and STORAGE. paying for routine supplies. (a) WATER STORAGE.—Notwithstanding any wisely. While this is true at all times, For example, an analysis of the De- project or activity carried out by the Sec- it is never more so than today, when partment of Interior’s purchase card retary of the Army, acting through the Chief the government faces enormous fiscal buys of ink cartridges found that most of Engineers, under the Pick-Sloan Missouri pressures and a growing budget deficit. of the time the cardholder paid more River Basin Program authorized by section 9 The Governmental Affairs Com- than the government schedule price to of the Act of December 22, 1944 (58 Stat. 891), mittee has a mandate to help safeguard or any other law, the Secretary shall cease which the vendors had already agreed. those tax dollars from waste, fraud, to support water releases for navigation pur- One vendor had agreed to a schedule and abuse. To meet this mandate, the poses at any time at which the total volume price of $24.99 for a particular ink car- Committee has launched an initiative of water stored in the reservoirs described in tridge, yet of 791 separate purchases of subsection (b) is less than 44,000,000 acre-feet. to root out government waste. Today’s this model,only two were at or below (b) RESERVOIRS.—The reservoirs referred to hearing was part of that effort and fo- that price. Some purchasers paid $34.99 in subsection (a) are the following reservoirs cused on wasteful, inefficient, and in located in the vicinity of the upper portion or about 40 percent more for the same some cases, fraudulent, transactions of the Missouri River: item. using purchase cards. (1) Fort Peck Lake. These cards were first introduced by In conducting its investigation, the (2) Lake Sakakawea. the General Services Administration GAO examined six agencies that to- (3) Lake Oahe. on a government-wide basis in 1989. gether account for over 85 percent of (4) Lake Sharpe. all government purchase card trans- (5) Lake Francis Case. Purchase cards are used primarily for (6) Lewis and Clark Lake. making routine purchases such as of- actions. If the six agencies reviewed in this study negotiated automatic dis- fice supplies, computers and copying By Mr. DURBIN (for himself, Mr. counts of just 10 percent from major machines. Purchase cards are similar LEAHY, Mr. FEINGOLD, and Mr. vendors, and if agency employees had to the personal credit cards we all KENNEDY): carry, but with one important dif- used those discounts, GAO estimates S. 2358. A bill to allow for the pros- ference: The taxpayers pays the bill. annual savings of $300 million. Over 10 ecution of members of criminal street Although the card is only supposed to years, that’s $3 billion. Pretty soon, as gangs, and for other purposes; to the be used for official purposes, the Fed- Senator Dirksen once observed, we’re Committee on the Judiciary. eral Government is responsible for pay- talking real money. Mr. DURBIN. Mr. President, today, I ing all charges by authorized card- The GAO also found that agencies am joined by Senators LEAHY, KEN- holders, regardless of what was pur- should be making greater efforts to NEDY, and FEINGHOLD in introducing chased. collect and analyze data on purchase the American Neighborhoods Taking While legitimate purchases are usu- card transactions. This would help the Initiative—Guarding Against ally small, they nevertheless add up to agencies to eliminate waste and to ex- Neighborhood Gangs (ANTI–GANG) big money. Purchase card use has pose fraud and abuse. Act, which is a comprehensive, tailored soared during the past decade—from We must assure taxpayers that the bill that will help State and local pros- less than $1 billion in fiscal year 1994 to federal government is shopping care- ecutors prevent, investigate, and pros- more than $16 billion in fiscal year fully, wisely and honestly. That’s why ecute gang crimes in their neighbor- 2003. There are more than 134,000 pur- the legislation we introduce today hoods. chase cardholders in the Defense De- would require the Office of Manage- The National Youth Gang Center has partment alone. ment and Budget to direct agencies to reported evidence of resurgence in gang This explosive growth presents both better train cardholders and to more violence, and this is clearly reflected in challenges and opportunities. While effectively scrutinize their purchases. Chicago, IL, where 45 percent of the there are many benefits to the pur- This legislation would also instruct the homicides last year were gang-related. chase card, such as expediting pur- General Services Administration to in- In Chicago, there are 98 identified chases, cutting red tape, and saving ad- crease its efforts to secure discount gangs, with an estimated 100,000 gang ministrative costs, the General Ac- agreements with vendors and to better members; over 13 percent of the gang counting Office and the Inspectors Gen- provide agencies with the tools needed members nationwide are located within eral have reported that inadequate con- to control wasteful spending. Accord- Chicago’s city limits. trols over purchase cards leave agen- ing to testimony by GAO, this legisla- I would like to commend the State cies vulnerable to waste, fraud, and tion would be a strong first step to and local prosecutors and law enforce- abuse. eliminating $300 million in wasteful ment agencies for their work in fight- The Governmental Affairs Com- spending. ing this problem. The ANTI–GANG Act mittee heard testimony describing how The American people have the right would authorize $862.5 million in grants smarter use of purchase cards could to expect the federal government to over the next 5 years to provide them save taxpayers hundreds of millions of spend their tax dollars carefully and with the tools they need and have spe- dollars. A GAO report that I requested wisely. I urge my colleagues to cospon- cifically requested of Congress to com- along with Senator FEINGOLD and Con- sor this legislation and help eliminate bat violent gangs. gresswoman SCHAKOWSKY, which is wasteful purchase card spending. For example, the National District being released today, highlights sev- Attorneys Association (NDAA) wrote eral wasteful purchasing practices. By Mr. BAUCUS: the following: ‘‘We must find new The GAO concludes that many agen- S. 2357. A bill to direct the Secretary methods of protecting those individ- cy cardholders fail to obtain readily of the Army, acting through the Chief uals brave enough to come forward as

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.026 S28PT1 S4498 CONGRESSIONAL RECORD — SENATE April 28, 2004 witnesses. Our biggest problem is get- sponds to concerns raised by the NDAA are nearly 8 times more likely to com- ting the financial help to establish, and regarding potential conflicts with local mit suicide than youth in juvenile fa- run, meaningful witness protection investigation and prosecution efforts, cilities.’’ programs.’’ The National Alliance of by requiring certification by the De- In light of these concerns, the ANTI– Gang Investigators (NAGI) also has partment of Justice before any pros- GANG Act provides Congress with the identified a trend in witness intimida- ecution under this bill could be under- necessary data to decide whether to ex- tion that is ‘‘dramatically affecting the taken in federal court. pand the federal role in prosecuting ju- prosecution of violent gang offenders.’’ The ANTI–GANG Act also promotes venile offenders, by requiring a com- The ANTI–GANG Act responds by au- the recruitment and retention of high- prehensive report on the current treat- thorizing $300 million over 5 years for ly-qualified prosecutors and public de- ment of juveniles by the states and the the protection of witnesses and victims fenders by establishing a student loan capability of the federal criminal jus- of gang crimes. This bill also would forgiveness program modeled after the tice system to take on these additional allow the Attorney General to provide current program for federal employees. cases and house additional prisoners. for the relocation and protection of Almost a third of prosecutors’ offices The American Bar Association has witnesses in State gang, drug, and across the country have problems with written that this study is ‘‘the more homicide cases, and it would allow recruiting or retaining staff attorneys, prudent course of action at this time.’’ States to obtain the temporary protec- and low salaries were cited as the pri- The ANTI–GANG Act is a comprehen- tion of witnesses in Stage gang cases mary reason for recruitment and reten- sive, common-sense approach to fight through the Federal witness relocation tion problems. This proposed loan for- gang violence. I urge my colleagues to and protection program, without any giveness program is supported by the join me in support of this important requirement of reimbursement for American Bar Association, the NDAA, legislation. those temporary services. the National Association of Prosecutor Mr. President, I ask unanimous con- The ANTI–GANG Act also authorizes Coordinators, the National Legal Aid sent that a summary of the bill be $200 million for grants to develop gang and Defender Association, and the printed in the RECORD. prevention, research, and intervention American Council of Chief Defenders. There being no objection, the mate- services. However, these grants should The ANTI–GANG Act will effectively rial was ordered to be printed in the not be limited to those areas already strengthen the ability of prosecutors at RECORD, as follows: identified as ‘‘high intensity’’ inter- the local, state, and federal level to THE AMERICAN NEIGHBORHOODS TAKING THE state gang activity areas. The NAGI prosecute violent street gangs, and it INITIATIVE—GUARDING AGAINST NEIGHBOR- also has identified a trend of gangs mi- will give state and local governments HOOD GANGS (ANTI–GANG) ACT grating from larger cities to smaller the resources they need to protect wit- OVERVIEW communities, which is fueled in large nesses and prevent youth from joining The American Neighborhoods Taking the part by an increase in gang involve- gangs in the first place. This bill Iniative—Guarding Against Neighborhood ment in drug trafficking. This may be achieves these important goals without Gangs (ANTI–GANG) Act of 2004 is a comprehensive, tailored bill that will help state related to the spread of methamphet- increasing any mandatory minimum sentences, which conservation jurists and local prosecutors prevent, investigate, amine, which is the fastest-growing and prosecute gang crimes in their neighbor- drug in the United States and, accord- such as Justice Anthony Kennedy have hoods. This bill contains four major provi- ing to Illinois Attorney General Lisa criticized as ‘‘unfair, unjust, unwise.’’ sions: Madigan, the ‘‘single-greatest threat to It also does not unnecessarily expand (1) It gives state and local prosecutors the rural America today.’’ In response to the federal death penalty—a measure tools they need and have specifically re- these trends, the ANTI–GANG Act which has been included in other fed- quested of Congress to combat violent gangs would allow rural communities and eral gang legislation but is opposed by by authorizing $52.5 million for the coopera- the Leadership Conference on Civil tive prevention, investigation, and prosecu- other jurisdictions to apply for these tion of gang crimes; $20 million for tech- grants, to prevent gang violence from Rights, NAACP, ACLU, and National nology, equipment, and training to identify occurring in the first place. Association of Criminal Defense Law- gang members and violent offenders and to The ANTI–GANG Act also authorizes yers. maintain databases to facilitate coordina- $262.5 million over five years for the co- Finally, the Juvenile Justice and De- tion among law enforcement and prosecu- operative prevention, investigation, linquency Prevention Coalition has tors; $60 million for the protection of wit- and prosecution of gang crimes. Most raised the following concerns regarding nesses and victims of gang crimes; and $40 of this funding would be for criminal federal gang legislation that would million for grants to develop gang preven- allow more juveniles to be prosecuted tion, research, and intervention services. street gang enforcement teams made (2) It replaces the current provision on up of local, State, and Federal law en- as adults in the federal system: ‘‘[T]he criminal street gangs in federal law, seldom- forcement authorities that would in- fact remains that transfer of youth to used penalty enhancement, with a stronger vestigate and prosecute criminal street the adult system, simply put, is a measure that criminalizes participation in gangs in high intensity interstate gang failed public policy. Comprehensive na- criminal street gangs, recruitment and re- activity areas (HIIGAAs). Importantly, tional research on the practice of pros- tention of gang members, and witness in- this bill would allow HIIGAAs to be in- ecuting youth in the adult system has timidation. The ANTI–GANG Act targets tegrated with High Intensity Interstate shown conclusively that transferring gang violence and gang crimes in a logical, youth to the adult criminal justice sys- straightforward manner. Drug Trafficking Areas (HIIDTAs), to (3) It will provide Congress with the nec- avoid conflicts in those areas where the tem does nothing to reduce crime and essary data to decide whether to expand the two entities would coexist. actually has the opposite effect. In federal role in prosecuting juvenile offenders The ANTI–GANG Act also authorizes fact, study after study has shown that by requiring a comprehensive report on the $100 million over five years for tech- youth transferred to the adult criminal current treatment of juveniles by the states nology, equipment, and training to justice system are more likely to re-of- and the capabilities of the federal criminal identify gang members and violent offend and to commit more serious justice system to take on these additional fenders and to maintain databases to crimes upon release than youth who cases and house additional prisoners. (4) It promotes the recruitment and reten- facilitate coordination among law en- were charged with similar offenses and tion of highly-qualified prosecutors and pub- forcement and prosecutors. had similar offenses histories but re- lic defenders by establishing a student loan In addition to these new resources, mained in the juvenile justice system. forgiveness program modeled after the cur- the ANTI–GANG Act will effectively Moreover, national data show that rent program for federal employees. strengthen the ability of prosecutors to young people incarcerated with adults The ANTI–GANG Act will effectively prosecute violent street gangs, by cre- are five times as likely to report being strengthen the ability of prosecutors at the ating a stronger federal criminal gang a victim of rape, twice as likely to be local, state, and federal level to prosecute prosecution offense. This new offense beaten by staff and 50 percent more violent street gangs, it will give state and local governments the resources they need to criminalizes participation in criminal likely to be assaulted with a weapon protect witnesses and prevent kids from join- street gangs, recruitment and reten- than youth held in juvenile facilities. A ing gangs in the first place. This bill tion of gang members, and witness in- Justice Department report also found achieves these important goals without intimidation. At the same time, it re- that youth confined in adult facilities creasing any mandatory minimum sentences

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.039 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4499 (which conservative jurists such as Justice maintain databases with such information to thority for the prosecution of 16- and 17- Anthony Kennedy have criticized as ‘‘unfair, facilitate coordination among law enforce- year-old offenders. Some have proposed in- unjust, unwise’’). It also respects the tradi- ment and prosecutors. Subsection (f) author- dicting and prosecuting more juveniles in tional principles of federalism, by requiring izes $20 million for each fiscal year 2005 Federal courts as a step in combating gang certification by the Department of Justice through 2009. No grant may exceed $1 million violence. Although there is insufficient data before any prosecution under this bill may nor last for any period longer than 2 years. to support this proposition, it is appropriate be undertaken in federal court and by not Sec. 1089. Enhancement of Project Safe for the GAO to review the current treatment unnecessarily expanding the federal death Neighborhoods Initiative to Improve En- of such offenders by the States and the capa- penalty. forcement of Criminal Laws Against Violent bility of the Federal criminal justice system SECTION-BY-SECTION SUMMARY OF THE ANTI- Gangs. Expands the Project Safe Neighbor- to take on these additional cases and house GANG ACT hood program to require United States At- additional prisoners. With this review, Con- Title I—Criminal Street Gangs torneys to identify and prosecute significant gress can knowledgeably consider whether to gangs within their district; to coordinate expand the Federal role in prosecuting juve- Sec. 101. Criminal Street Gangs—Defini- such prosecutions among all local, State, niles. tions. Defines a criminal street gang as a and Federal law enforcement agencies; and Sec. 202. Prosecutors and Defenders Incen- preexisting and ongoing entity (e.g., having to coordinate criminal street gang enforce- tive Act. This section establishes a student already committed crimes); targets violent ment teams in designated ‘‘high intensity’’ loan repayment program for prosecutors and criminal street gangs by requiring that at interstate gang activity areas. Subsection public defenders that is modeled after the least one predicate gang crime be a violent (b) authorizes the hiring of 94 additional As- program currently available to federal em- gang crime; establishes evidentiary rel- sistant United States Attorneys and funding ployees. This would increase the ability of evance of gang symbolism in prosecutions; of $7.5 million for each fiscal year 2005 federal, state, and local prosecutors and pub- and allows federal prosecution of neighbor- through 2009 to carry out the provisions of lic defenders to recruit and retain highly- hood gang activity when those activities this section. qualified attorneys. Attorneys in this pro- substantially affect interstate commerce. Sec. 109. Additional Resources Needed by gram must agree to serve for a minimum of Sec. 102. Criminal Street Gangs—Prohib- the Federal Bureau of Investigation to Inves- three years. Participants can receive up to ited Acts, Penalties, and Forfeiture. Creates tigate and Prosecute Violent Criminal $10,000 per year and a total of up to $60,000; three new federal crimes to prosecute cases Street Gangs. Requires the Federal Bureau these amounts are identical to the limita- involving violent criminal street gangs. (1) It of Investigation to increase funding for the tions in the program for federal employees. prohibits the recruitment and forced reten- Safe Streets Program and to support the Subsection (h) authorizes $25 million for fis- tion of gang members, including harsher pen- criminal street gang enforcement teams in cal year 2005 and such sums as may be nec- alties if an adult recruits a minor or pre- designated high intensity interstate gang ac- essary for each succeeding fiscal year. vents a minor from leaving a criminal street tivity areas. Subsection (b) authorizes $5 gang. (2) It prohibits participation in a Mr. LEAHY. Mr. President, I am million for each fiscal year 2005 through 2009 pleased to cosponsor the introduction criminal street gang if done with the intent to expand the FBI’s Safe Streets Program. to further the criminal activities of the gang Sec. 110. Expansion of Federal Witness Re- of the ANTI-Gang Act with my good or through the commission of a single predi- location and Protection Program. Amends 18 friends on the Judiciary Committee, cate gang crime. (3) It prohibits witness in- U.S.C. § 3521(a)(1), which governs the Federal Senators DURBIN, KENNEDY and FEIN- timidation and tampering in cases and inves- witness relocation and protection program, GOLD. tigations related to gang activity. Before the to make clear that the Attorney General can The American Neighborhoods Taking federal government may undertake a pros- provide for the relocation and protection of the Initiative—Guarding Against ecution of these offenses, the Department of witnesses in State gang, drug, and homicide Justice must certify that it has consulted Neighborhood Gangs Act of 2004 is a cases. Current law authorizes Federal reloca- bill carefully crafted to target violent with state and local prosecutors before seek- tion and protection for witnesses in State ing an indictment and that federal prosecu- cases involving ‘‘an organized criminal ac- criminal street gangs whose activities tion is ‘‘in the public interest and necessary tivity or other serious offense.’’ extend beyond the neighborhood and to secure substantial justice.’’ Sec. 111. Grants to States and Local Pros- have a substantial impact on Federal Sec. 103. Clerical Amendments. ecutors to Protect Witnesses and Victims of interests. Sec. 104. Conforming Amendments. Crime. Authorizes the Attorney General to Sec. 105. Designation of and Assistance for As a former county prosecutor, I make grants available to State and local ‘‘High Intensity’’ Interstate Gang Activity have long expressed concern about prosecutors and the U.S. Attorney for the Areas. Requires the Attorney General, after making Federal crimes out of every of- District of Columbia for the purpose of pro- consultation with the governors of appro- fense that comes to the attention of viding short-term protection to witnesses in priate States, to designate certain locations cases involving an organized criminal activ- Congress. I know that States have as ‘‘high intensity’’ interstate gang activity ity, criminal street gang, serious drug of- competent and able police depart- areas (HIIGAAs) and provide assistance in fense, homicide, or other serious offense. ments, county sheriffs’ offices, prosecu- the form of criminal street gang enforce- State and local prosecutors will have the op- tors and judges. Gangs are, more often ment teams made up of local, State, and tion of either providing the witness protec- Federal law enforcement authorities to in- than not, locally-based, geographi- tion themselves or contracting with the vestigate and prosecute criminal street cally-oriented criminal associations, United States Marshals Service for use of the gangs in each designated area. The ANTI– and our local communities are on the Federal witness protection and relocation GANG bill also allows for HIIGAAs to be in- front lines of the fight against gang vi- program. Subsection (d) authorizes $60 mil- tegrated with High Intensity Interstate Drug lion for each fiscal year 2005 through 2009 to olence. We should be supplementing Trafficking Areas (HIIDTAs), to avoid con- fund the program. By providing significantly the work of our State and local law en- flicts and bureaucratic morasses in those increased resources and flexibility for State forcement officers, not usurping them. areas where the two entities would coexist. and local prosecutors, this provision re- This is why this bill specifically tar- Subsection (c) authorizes funding of $40 mil- sponds in a meaningful way to the need for lion for each fiscal year 2005 through 2009. gets only those gangs where there is a effective witness protection emphasized by Sec. 106. Gang Prevention Grants. Requires provable Federal interest. This is why prosecutors during the September 17, 2003, the Office of Justice Programs of the Depart- this bill requires consultation with our hearing in the Judiciary Committee. ment of Justice to make grants to States, State and local counterparts before Sec. 1112. Witness Protection Services. units of local government, tribal govern- Amends 18 U.S.C. § 3526 to allow States to ob- embarking on a Federal prosecution of ments, and qualified private entities to de- tain the temporary protection of witnesses historically State crimes. And this is velop community-based programs that pro- in State gang cases through the Federal wit- why major provisions of the bill are di- vide crime prevention, research, and inter- ness relocation and protection program, rected toward helping State and local vention services designed for gang members without any requirement of reimbursement and at-risk youth. Subsection (f) authorizes law enforcement officers prevent, infor those temporary services. Currently, $40 million for each fiscal year 2005 through vestigate, and prosecute gang crimes in complex reimbursement procedures deter 2009. No grant may exceed $1 million nor last their own neighborhoods. State and local prosecutors from obtaining for any period longer than 2 years. There are four major sections of the Sec. 107. Gang Prevention Information witness protection services from the Federal government in emergency circumstances. bill: Grants. Requires the Office of Justice Pro- First, the bill gives State and local grams of the Department of Justice to make Title II—Related Matters Involving Violent Crime Prosecution prosecutors financial resources to grants to States, units of local government, guard against neighborhood gangs by tribal governments to fund technology, Sec. 201. Study on Expanding Federal Au- equipment, and training for state and local thority for Juvenile Offenders. This section authorizing $72.5 million for the coop- sheriffs, police agencies, and prosecutor of- requires the General Accounting Office to do erative prevention, investigation, and fices to increase accurate identification of a comprehensive report on the advantages prosecution of gang crimes; $40 million gang members and violent offenders and to and disadvantages of increasing Federal au- for grants to develop gang prevention,

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.041 S28PT1 S4500 CONGRESSIONAL RECORD — SENATE April 28, 2004 research, and intervention services; decision about whether or not to ex- tive formulas that would keep the ma- and $60 million for the protection of pand the Federal role in prosecuting jority of the assistance from reaching witnesses and victims of gang crimes. juvenile offenders. suburban and rural communities. This Federal funds are also provided for hir- Some have suggested that the Fed- money will be able to go to the commu- ing new Assistant U.S. Attorneys and eral Government has been unable to nities in Wisconsin and the rest of the to fund technology, equipment and proceed effectively against gang crime country where rural and smaller law training grants to increase accurate because of Federal law’s protections for enforcement agencies are financially identification of gang members and juvenile offenders. I have not seen suf- limited in their ability to deal with the violent offenders and to maintain data- ficient evidence to support his claim, exploding increase in gang violence as- bases with such information to facili- but I think that Congressional consid- sociated with methamphetamines and tate state and Federal coordination. eration of this issue would benefit other narcotics. The first defense in protecting our greatly from a comprehensive General The Anti-Gang Act also promotes youth against gang influence is a good Accounting Office study on this topic. hiring and long-term service of highly offense. I have long thought that pro- We need to know both whether justice qualified prosecutors and public de- grams aimed at combating gang activ- would be served by increasing the Fed- fenders by establishing a student loan ity must incorporate gang prevention eral role, and whether the Federal sys- forgiveness program. Prosecuting and education—programs that would tem—including both our prosecutors gangs is some of the most demanding examine why our youth choose to asso- and the Bureau of Prisons—is prepared and challenging work a prosecutor will ciate in gangs and prey on others—to for such a step. tackle. Loan forgiveness will allow As- sistant District Attorneys and Assist- be effective. When Chairman HATCH ap- Fourth, the bill promotes the recruit- propriately targeted gang violence as a ment and retention of highly-qualified ant Attorney Generals to remain in subject for a full Committee hearing State and local prosecutors and public public service and allow them to take last year, all agreed that we should be defenders by establishing a student their wealth of experience and use it to doing more to deter our youth from loan forgiveness program modeled after combat gang violence. The Anti-Gang Act also replaces the joining gangs in the first place. This the current program for Federal em- current Federal RICO statute that was bill heeds that call. ployees. never intended to be used against vio- Another unifying theme of the expert We have worked very hard in crafting lent street gangs with a tough statute witnesses at the Committee’s hearing this legislation not to further blur the that not only criminalizes participa- was the serious need for Federal assist- lines between Federal and State law tion in criminal street gangs, but ad- ance in protecting witnesses who will enforcement responsibilities or to add dresses the serious problem of the re- provide information about and testify more burdens to the FBI as the pri- cruitment and retention of gang mem- against gangs from intimidation. Our mary Federal investigative agency. bers. The Anti-Gang Act targets gang bill not only provides funding to help Federal law enforcement has been violence and gang crimes in a logical, protect witnesses, it also makes it a faced with a unique challenge since the straightforward manner. The bill also September 11 attacks. The FBI is no Federal crime to intimidate witnesses recognizes that the vast majority of longer just an enforcement agency, but in certain State prosecutions involving gang investigations and prosecutions also has a critical terrorism prevention gang activity. have been and will continue to be done Second, the bill defines a Federal mission. This mission is a daunting at the State and local level. The bill criminal street gang by using well-es- one, and our Federal law enforcement requires that Federal prosecutors con- tablished legal principles and providing resources are not limitless. I, for one, sult with State and local law enforce- recognizable limits. Rather than create do not want the FBI or U.S. Attorneys ment before seeking an indictment and yet another cumbersome and broad- to focus these limited resources on that a Federal prosecution is in the reaching Federal crime that overlaps cases that are best handled at the local public interest and necessary to secure with numerous existing Federal stat- level. substantial justice. utes, this bill actually targets the Combating gang violence should not Finally, the Anti-Gang Act will pro- problem that needs to be addressed: be a partisan battle. The tragedy of vide Congress with the data necessary violent criminal street gangs. It recog- gang violence affects too many. No to decide whether to expand the Fed- nizes that gangs are ongoing entities community can afford to lose a single eral role in prosecuting juvenile offend- whose members commit crimes more youth to the arms of a waiting gang. ers by requiring a comprehensive re- easily simply because of their associa- No gang should be allowed to flourish port on the current treatment of juve- tion with one another. Gangs prove the without consequence in our commu- niles by the States and the capability old adage: there is safety in numbers. nities. I urge your support for this im- of the Federal criminal justice system Gang members can be sheep-like in portant bill. to take on more juvenile cases and to their loyalty and allegiance to the Mr. FEINGOLD. Mr. President, I am house additional prisoners. Some have gang. In this regard, the bill also ex- pleased to support S. 2358, the Anti- proposed indicting and prosecuting plicitly and evenhandedly addresses Gang Act. This critical legislation will more juveniles in Federal courts as a the evidentiary significance of gang provide State and Federal law enforce- way of combating gang violence with- symbolism in gang prosecutions. ment with the tools and resources out being able to tell us why this is In addition to witness intimidation, needed to successfully fight the ex- necessary and what effect it might other important crimes established by panding presence of violent gangs that have on the criminal justice system. this bill include: One, participation in bring drugs like methamphetamine With this review, Congress can intel- criminal street gangs by any act that into our communities. ligently consider whether to expand is intended to effect the criminal ac- Time and time again, we in Congress the Federal role in prosecuting juve- tivities of the gang; two, participation have heard the call of prosecutors and niles. by committing a crime in furtherance law enforcement for more resources to Our citizens should be able to send of or for the benefit of the gang, and combat the problem of gang violence. their children to school, use their three, recruitment and retention of The Anti-Gang Act gives local prosecu- parks and walk their streets without gang members. There are increased tors and law enforcement what they fearing that ever-spreading gang vio- penalties for those who target minors have asked Congress for most—tar- lence will grow unfettered in their for recruitment in a criminal street geted financial assistance. The bill will community. The Anti-Gang Act is an gang. help combat the growth and prolifera- important step towards making all of Third, the bill requires a comprehen- tion of violent gangs by authorizing our neighborhoods safe and I urge my sive report on the current treatment of funds for the cooperative prevention, colleagues to support it. juveniles by the States, and the capa- investigation, and prosecution of gang Mr. KENNEDY. Mr. President, it’s a bility of the Federal criminal justice crimes. In addition, grant money will privilege to join my colleagues Senator system to take on these additional be made available for the protection of DURBIN, Senator LEAHY, and Senator cases and house additional prisoners, witnesses and victims of gang violence. FEINGOLD in introducing this impor- so that Congress can make an informed These funds will not be tied to restric- tant legislation, the ANTI–GANG Act.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.044 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4501 Gang violence is a serious problem in The call for expanding federal pros- million in assistance. By contrast, the many communities across the nation, ecution of juveniles as adults was almost recently revised version of S. 1735 and it deserves a serious response by ready controversial in those years authorizes only $12 million. Congress. The key to success is an ef- when juvenile violent crime was at its In addition, our bill amends the cur- fective strategy that rejects partisan- peak. It makes no sense today, when rent law on governing federal witness ship and ‘‘lock-em-up’’ sound bites in juvenile violent crime rates have fallen relocation and protection to make favor of tough, targeted law enforce- to historic lows. clear that the Attorney General can ment; aggressive steps to take guns out Unfortunately, an expansion is ex- use these provisions to support wit- of the hands of criminal gang members actly what is sought by the supporters nesses in state gang, drug, and homi- and other violent juvenile offenders; of S. 1735, the Gang Prevention and Ef- cide cases. We also allow states to ob- and heavy emphasis on prevention pro- fective Deterrence Act. Their bill retain the temporary protection of wit- grams that discourage gang member- sponds to the problem of gang violence nesses in gang cases, without any re- ship and provide realistic alternatives in the wrong way. They want the ex- quirement of reimbursement. The cur- for at-risk youth. panded federal prosecution of juveniles rent complex reimbursement proce- The past decade saw a dramatic re- as adults. They want to federalize a dures deter state and local prosecutors duction in violent juvenile crime, in broad range of street crimes now being from obtaining witness protection as- large part because of these crime-fight- prosecuted effectively at the local sistance from the federal government, ing strategies. Many of us remember level. They want to create an unneces- even in emergencies. Our bill offers the dire ‘‘juvenile superpredator’’ pre- sary bureaucratic morass by dupli- needed relief to state prosecutors un- dictions that were common before that cating law enforcement efforts now dertaking difficult prosecutions of reduction took place. In 1996, William taking place on drug trafficking. They gang offenders, but no such relief is in- Bennett and John Walters wrote that support a one-size-fits-all, Washington- cluded in S. 1735. America was a ‘‘ticking crime bomb,’’ knows-best approach to juvenile crime The ANTI–GANG Act respects the faced with the ‘‘youngest, biggest, and that ignores the achievements of the primary role of state and local govern- baddest generation’’ of juvenile offend- past decade and will only make the ments in fighting street crime, but it ers that our country had ever known. current problem of gang violence also recognizes that violent gangs can Fortunately, these predictions were worse. be a substantial impact on federal in- wrong. From 1993 to 2001, arrest rates Our bill, the ANTI–GANG Act, avoids terests. According to the most recent for violent juvenile crime fell by more the most serious defects of S. 1735 by National Drug Threat Assessment, than two-thirds. We’re still reaping the recognizing, first and foremost, the pri- benefits of this lower crime rate today. criminal street gangs are responsible The decrease in crime is explained mary role of state and local law en- for the distribution of much of the co- partly by the sensible measures taken forcement in responding to violent caine, methamphetamine, heroin, and by Congress on gun safety in the early crime. The American Bar Association other illegal drugs being distributed in 1990’s, including the ban on assault and the Judicial Conference have both communities throughout the United weapons. In 1999, the National Center called on Congress to consider the risks States. Gang activity interferes with for Juvenile Justice concluded that all of federalizing offenses that have tradi- lawful commerce and undermines the of the increase in homicides by juve- tionally been the responsibility of freedom and security of entire commu- niles between the mid-1980’s and mid- state criminal justice systems. Many of nities. 1990’s was firearms-related. The Sur- us support the Local Law Enforcement The current provision on criminal geon General concluded that guns were Enhancement Act (S. 966), to deal with street gangs in federal law is a seldom- responsible for both the epidemic in ju- hate crimes. It would require the Jus- used penalty enhancement. To address venile violence in the late 1980’s and tice Department to certify the need for these legitimate federal interests, the the decrease in violence after 1993. ‘‘It federal involvement before com- ANTI–GANG Act replaces that provi- is now clear,’’ the Surgeon General mencing federal prosecution of a hate sion with a stronger set of measures wrote, ‘‘that the violence epidemic was crime. We also oppose the enactment of criminalizing participation in criminal caused largely by an upsurge in the use federal ‘‘concealed carry’’ laws, which street gangs, recruitment and reten- of firearms by young people. . . . To- would undermine state and local gun- tion of gang members, and witness in- day’s youth violence is less lethal, safety laws. timidation. It also increases penalties largely because of a decline in the use Instead of ignoring the primary role for gang members who target minors of firearms.’’ The current ban on as- of state and local governments in fight- for recruitment. It targets gang vio- sault weapons is scheduled to expire in ing violent gang crimes in their com- lence and gang crimes in a sensible September, and given its proven results munities, our ANTI–GANG Act way, avoiding the confusing and coun- against crime, it is reckless for anyone strengthens that role, by giving local terproductive approach taken in S. to oppose its continuation. law enforcement and prosecutors the 1735. Before any federal prosecution Another factor that contributed to resources they need. It authorizes $52 can take place under our bill, a high- the remarkable decrease in juvenile million for cooperative prevention, in- level representative from the Justice violent crime was the innovative, coop- vestigation, and prosecution of gang Department, after consultation with erative crime-fighting strategy devel- crimes. It authorizes $20 million for state and local prosecutors, must cer- oped in Boston and other communities technology, equipment, and training, tify that the federal prosecution is in across the nation. The Boston strategy so that state and local sheriffs, police the public interest and necessary to was neither a ‘‘liberal’’ nor a ‘‘conserv- agencies, and prosecutors can improve achieve substantial justice. ative’’ approach. It engaged the entire their identification of gang members The Act strengthens the ability of community, including police and pro- and maintain databases with informa- prosecutors at all levels—federal, state bation officers, clergy and community tion to facilitate coordination among and local—to prosecute violent street leaders, and even gang members them- law enforcement and prosecutors. It gangs, and it does so without increas- selves in a united effort to crack down authorizes $60 million for the pro- ing any mandatory minimum sentences on gang violence, strengthen after- tecting and relocation of witnesses and or unnecessarily expanding the federal school prevention programs, and take victims of gang crimes, and $40 million death penalty to include state murder guns out of the hands of juvenile of- for grants for gang prevention, re- offenses. fenders. This strategy was very suc- search, and intervention services. An increasing number of judges, pros- cessful—juvenile homicides dropped 80 The resources in our bill for witness ecutors, defense lawyers, and other percent from 1990 to 1995—and it suc- relocation and protection are particu- criminal justice authorities now agree ceeded without prosecuting more juve- larly important. At a Judiciary Com- that mandatory minimum sentences niles as adults, without housing non- mittee hearing last September, state are, in the words of Justice Anthony violent juvenile offenders in adult fa- and local prosecutors specifically Kennedy, ‘‘unfair, unjust, and unwise.’’ cilities, and without spending huge asked for Congress’s help in protecting They are inconsistent with and under- sums of money on new juvenile facili- witnesses of gang crimes. Our bill re- mine the sentencing guidelines that ties. sponds to this need by authorizing $60 Congress established in the Sentencing

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.055 S28PT1 S4502 CONGRESSIONAL RECORD — SENATE April 28, 2004 Reform Act of 1984. The supporters of America who have no health insurance a heartbeat—that is certainly true. But S. 1735 have commendably removed work. it can also deny uninsured kids some of some of the mandatory sentencing pro- These uninsured workers are trapped the most basic and simple pleasures of visions in their original bill, but even a in the middle—in fact, most of them being a child: going outside to play, single increased mandatory minimum are middle class families. They do not joining a tee-ball team, riding a bike. is counterproductive and unjustified. receive health coverage through their Surely we can do better. The ANTI–GANG Act also requires jobs. They are too young to qualify for Living without health insurance is a the General Accounting Office to con- Medicare. They earn too much to qual- terrible problem. So why are so many duct a comprehensive study and report ify for a public health insurance pro- families forced to do it? Who are these on the current treatment of juveniles gram. families trapped in the middle—earn- by states and local governments and Yet they cannot afford private insur- ing too much to qualify for free care, the capability of the Bureau of Prisons ance plans. but not enough to pay for private in- and other parts of the federal criminal For each one of those 44 million peo- surance? justice system to take on the addi- ple, and each one of those millions of It turns out that more than half of tional cases that would result from an families, living without health cov- the uninsured people in our country expansion of the federal prosecutions of erage causes real and serious problems. live in a family supported by someone juvenile offenders as adults. This re- Living without health insurance is who works for a small business—mean- port will enable Congress to make a difficult for anyone. It is especially ing a company that employs fewer than better informed decision on this crimi- hard for parents with children. In addi- 100 workers. nal issue. tion to the constant worry about This is not because small businesses Finally, the Act encourages the re- whether their child will have an acci- are less committed to their workers cruitment and retention of highly- dent or get sick, there are serious long- than larger employers. On the con- term consequences for kids who grow qualified prosecutors and public de- trary, the small business owners in my up without health insurance. fenders by establishing a student loan State seem to care a great deal about Uninsured kids have a higher rate of forgiveness program modeled on the their employees. Most small business current program for federal employees. acute and infectious diseases than children who are covered by health insur- owners work closely with their employ- According to the National District At- ees, and they understand that the suc- torneys Association, this provision ance, and uninsured kids actually have a higher number of hospitalizations, cess of their enterprise depends on the ‘‘would allow prosecutors to relieve the loyalty of the people who work for crushing burden of student loans that because their problems don’t get treated until they become serious. them. now cause so many young attorneys to The reason small businesses are less abandon public service.’’ The provision Uninsured children are: four times as likely to have necessary care delayed; likely to provide health insurance is is also strongly supported by the Na- simply a matter of economics. tional Legal Aid and Defender Associa- five times more likely to use a hospital emergency room as their regular At a small business, where people are tion and the American Council of Chief delivering a product or service with Defenders. source of care; and six times as likely as other children to go without the just a handful of employees, the mar- I commend my colleagues for their gin between revenues and costs can be leadership in developing this important care they need. pretty slim. legislation to protect American com- But having no health care is a problem even when kids are not sick. It That does not leave much room for munities from gang violence without error—or for rising costs. But health undermining fundamental principles of forces parents into the kinds of choices that none of us would want to make, care costs are spiraling out of control. fairness and federal-state relations. I Every year for the last several years, urge the Senate to approve it. and that nobody in America should have to make. we have seen double-digit inflation in By Mr. REID: When your daughter is uninsured, health care prices. With health care S. 2359. A bill to amend the Internal you have to think twice about signing costs rising out of sight, small business Revenue Code of 1986 to provide a re- her up for a youth soccer league, be- owners are rightly concerned about fundable tax credit for small business cause she might break her arm. whether these uncontrolled prices rep- health insurance costs, and for other When your son has no health cov- resent too much of a risk to their over- purposes; to the Committee on Fi- erage, maybe it is not safe to let him all business health. nance. ride his bike through the neighbor- My legislation would create a Fed- Mr. REID. Mr. President, I rise today hood, or try out his friend’s new eral refundable tax credit to reimburse to introduce the Healthy Employees, rollerblades. small employers for part of the costs Healthy Small Businesses Act of 2004. Accidents happen to everyone, espe- they incur for providing health insur- This legislation addresses a number of cially to active children. But when ance coverage to their employees. fundamental problems: the fact that your family has no health insurance, a The HEHSB tax credit would operate millions of hard working American simple fall requiring a few stitches, a on a sliding scale, providing a large tax families have no health insurance, they broken bone, or a minor sports-related credit to all businesses with fewer than live in fear that financial ruin is just injury could result in hundreds or even 50 employees, but giving the greatest one illness away, or that a family thousands of dollars in emergency tax relief to the smallest enterprises. member will need medical treatment room fees. Last year, the average health insur- that they simply can’t afford; the fact In the end, in a lot of families, living ance plan for a single person costs that small businesses in this country without health insurance sometimes $3,383, of which the employee paid an are facing health care costs that are means that kids do not get to do very average of $508 and the employer paid skyrocketing far beyond the rate of in- much living at all. an average of $2,875. flation, and that as much as many In her book The Betrayal of Work, For a family policy, the average cost small business owners would like to Beth Shulman asked Flor Segunda, a totalled $9,068, with the employee bear- provide health benefits to their em- working mom with no health insur- ing $2,412 and the employer shouldering ance, about how her family’s uninsured ployees, it is becoming more and more $6,656. status affects her kids. Segunda says: difficult for them to afford these costs; Under my bill, companies with fewer and the fact that this health care di- Doctors require immediate payment before than 10 employees would be eligible to they will see you, but many times I don’t claim a credit of 50 percent of the cost lemma is damaging our Nation’s com- have the money. Right now, [my son] Luis petitive position internationally. has a temperature. But I try to take care of of each eligible employee’s policy, up In 2002, 44 million Americans lived it myself because I can’t afford to take him to a limit of $1,500 for an individual without health insurance for the entire to the doctor every time. It is one of the rea- policy or $3,400 for a family policy. year. 85 percent of these uninsured peo- sons I don’t like my children to play outside. Companies with 25 to 50 employees ple belong to working families. They will get sick and I can’t afford it. would be eligible to claim a credit of 35 Think about that. The vast majority A lack of access to health care can percent of the cost of each eligible em- of the people in the United States of destroy a family’s financial security in ployee’s policy, up to a limit of $750 for

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.057 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4503 a self-only policy or $1,700 for a family It is not funny. It is sad. It is tragic. Make no mistake about it. It is the policy. And it can only get worse—much special interest groups and their fund- I believe that this legislation will worse. What this Government needs is raising power that elect Senators and give more small business owners the one of those extreme makeovers they then hold them in bondage forever. ability to do what they want to do in have on television, and I am not refer- In the past five election cycles, Sen- the first place: provide their first-rate ring to some minor nose job or a little ators have raised over $1.5 billion for employees with first-rate benefits. botox here and there. their election contests, not counting It will shield them from the worst Congressional Quarterly recently de- all the soft money spent on their behalf risks associated with rising health care voted an issue to the mandate wars, in other ways. Few would believe it, costs. with headlines blaring: ‘‘Unfunded but the daily business of the Senate in And I hope that it will eventually re- Mandates Add to Woes, States Say; Lo- fact is scheduled around fundraising. sult in families like the Segundas feel- calities Get the Bill for Beefed Up Se- The 17th amendment was the death ing a little more security and happi- curity; Transportation Money Comes of the careful balance between State ness. With Strings, and Medicare Stuck in and Federal Government. As designed Funding Squabbles,’’ et cetera, et by that brilliant and very practical By Mr. MILLER: cetera, et cetera. group of Founding Fathers, the two S.J. Res. 35. A joint resolution to re- One would think that the much her- governments would be in competition peal the seventeenth article of amend- alded Unfunded Mandate Reform Act of with each other and neither could ment to the Constitution of the United 1995 never passed. The National Con- abuse or threaten the other. The elec- States; to the Committee on the Judi- ference of State Legislatures has set tion of Senators by the State legisla- ciary. the unfunded mandate figure for the tures was the lynchpin that guaranteed Mr. MILLER. Madam President, we States at $33 billion for 2005. This, the interests of the States would be live in perilous times. The leader of the along with the budget problems they protected. free world’s power has become so have been having for the last few years, Today State governments have to neutered he cannot, even with the sup- has put States under the heel of a dis- stand in line because they are just an- port of the majority of the Senate, ap- tant and unresponsive government. other one of the many special interests point highly qualified individuals en- That is us. And it gives the enthusi- that try to get Senators to listen to dorsed by the American Bar to a Fed- astic tax raisers at the State level the them, and they are at an extreme dis- eral court. He cannot conduct a war very excuse they are looking for to dig advantage because they have no PAC. You know what the great historian without being torn to shreds by par- deeper and deeper into the pockets of Edward Gibbons said of the decline of tisans with their eyes set, not on he de- their taxpayers. the Roman Empire. I quote: ‘‘The fine feat of our enemy but on the defeat of It is not a pretty picture. No matter theory of a republic insensibly van- our President. who you send to Washington, for the ished.’’ The Senate has become just one big, most part smart and decent people, it bad, ongoing joke, held hostage by spe- That is exactly what happened in 1913 is not going to change much because when the State legislatures, except for cial interests, and so impotent an 18- the individuals are not so much at wheeler truck loaded with Viagra Utah and Delaware, rushed pell-mell to fault as the rotten and decaying foun- ratify the popular 17th amendment would do no good. dation of what is no longer a Republic. Andrew Young, one of the most and, by doing so, slashed their own It is the system that stinks, and it is thoughtful men in America, recently throats and destroyed federalism for- only going to get worse because that took a long and serious look at the ever. It was a victory for special-inter- perfect balance our brilliant Founding Senate. He was thinking about making est tyranny and a blow to the power of Fathers put in place in 1787 no longer a race for it. After visiting Wash- State governments that would cripple exists. ington, he concluded that the Senate is them forever. Perhaps, then, the answer is a return Instead of Senators who thoughtfully composed of: to the original thinking of those wisest A bunch of pompous, old— make up their own minds as they did of all men, and how they intended for during the Senate’s greatest era of And I won’t use his word here, I would this government to function. Fed- Clay, Webster, and Calhoun, we now say ‘‘folks’’— eralism, for all practical purposes, has have too many Senators who are mere listening to people read statements they become to this generation of leaders, cat’s-paws for the special interests. It didn’t even write and probably don’t believe. some vague philosophy of the past that is the Senate’s sorriest of times in its The House of Representatives, theo- is dead, dead, dead. It isn’t even on life long, checkered, and once glorious his- retically the closest of all the Federal support. The line on that monitor went tory. Government to the people, cannot re- flat some time ago. Having now jumped off the Golden strain its extravagant spending nor You see, the reformers of the early Gate Bridge of political reality, before limit our spiraling debt, and incum- 1900s killed it dead and cremated the I hit the water and go splat, I have in- bents are so entrenched you might as body when they allowed for the direct troduced a bill that would repeal the well call off 80 percent of the House election of U.S. Senators. 17th amendment. I use the word races. There are no contests. Up until then, Senators were chosen ‘‘would,’’ not ‘‘will,’’ because I know it Most of the laws of the land, at least by State legislatures, as James Madi- doesn’t stand a chance of getting even the most important and lasting ones, son and Alexander Hamilton had so a single cosponsor, much less a single are made not by elected representa- carefully crafted. vote beyond my own. tives of the people but by unelected, Direct elections of Senators, as great Abraham Lincoln, as a young man, unaccountable legislators in black and as good as that sounds, allowed made a speech in Springfield, IL, in robes who churn out volumes of case Washington’s special interests to call which he called our founding principles law and hold their jobs for life. A half the shots, whether it is filling judicial ‘‘a fortress of strength.’’ Then he went dozen dirty bombs the size of a small vacancies, passing laws, or issuing reg- on to warn, and again I quote, that suitcase planted around the country ulations. The State governments aided they ‘‘would grow more and more dim could kill hundreds of thousands of our in their own collective suicide by going by the silent artillery of time.’’ citizens and bring this Nation to its along with that popular fad at the A wise man, that Lincoln, who under- knees at any time, and yet we can’t time. stood and predicted all too well the even build a fence along our border to Today it is heresy to even think fate of our republican form of govern- keep out illegals because some nutty about changing the system. But can ment. Too bad we didn’t listen to him. environmentalists say it will cause ero- you imagine those dreadful unfunded I ask unanimous consent that the sion. mandates being put on the States or a text of the joint resolution be printed This Government is in one hell of a homeland security bill being torpedoed in the RECORD. mess. Frankly, as Rett Butler said—my by the unions if Senators were still There being no objection, the joint dear, very few people up here give a chosen by and responsible to the State resolution was ordered to be printed in damn. legislatures? the RECORD, as follows:

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S.J. RES. 35 in Iraq and its support in the global cam- from their homes even though they often fail Resolved by the Senate and House of Rep- paign against terrorism; and to receive the same services and supports of- resentatives of the United States of America in (3) reaffirms the commitment of the fered to non-related foster parents. Congress assembled (two-thirds of each House United States to the continued expansion of Whereas, grandparents and other relatives, concurring therein), That the following article friendship and cooperation between the whether raising children inside or outside of is proposed as an amendment to the Con- United States and Singapore. the foster care system, need better access to stitution of the United States, which shall be f health insurance, respite care, child care, valid to all intents and purposes as part of special education, housing, and other bene- the Constitution when ratified by the legis- SUBMITTED RESOLUTIONS fits, and where appropriate, support from latures of three-fourths of the several States Temporary Assistance For Needy Families, within 7 years after the date of its submis- federal foster care and subsidized guardian- sion for ratification: SENATE RESOLUTION 345—EX- ship programs. ‘‘ARTICLE — PRESSING THE SENSE OF THE Resolved, That— ‘‘SECTION 1. The seventeenth article of SENATE THAT CONGRESS (1) it is the sense of the Senate that amendment to the Constitution of the SHOULD EXPAND THE SUPPORTS (A) Congress and all Americans should rec- United States is hereby repealed. ognize and publicly laud the commitment of AND SERVICES AVAILABLE TO grandparents, aunts, uncles, and other rel- ‘‘SECTION 2. The Senate of the United GRANDPARENTS AND OTHER States shall be composed of two Senators ative caregivers raising children whose par- from each State, chosen by the legislature RELATIVES WHO ARE RAISING ents are unable or unwilling to do so; thereof, for six years; and each Senator shall CHILDREN WHEN THEIR BIOLOGI- (B) Congress urges institutions and govern- have one vote. CAL PARENTS HAVE DIED OR ment entities at every level to promote pub- ‘‘SECTION 3. If vacancies happen by resigna- CAN NO LONGER TAKE CARE OF lic policies that support, and remove barriers tion or otherwise, during the recess of the THEM to these caregivers; legislature of any State, the executive there- (C) Congress should establish new and ex- of may make temporary appointments until Mrs. CLINTON (for herself, Ms. panded appropriate supports and services, the next meeting of the legislature, which SNOWE, Mr. KENNEDY, Mr. MILLER, Mr. such as respite care, housing, and subsidized shall then fill such vacancies. KERRY, Mr. JOHNSON, Mr. PRYOR, Mr. guardianship, for grandparents and other rel- ‘‘SECTION 4. This amendment shall not be CORZINE, Mrs. MURRAY, Ms. STABENOW, atives who are raising children inside and so construed as to affect the election or term outside of the foster care system. Ms. MIKULSKI, Mr. BAUCUS, Mr. COCH- of any Senator chosen before it becomes a Mrs. CLINTON. Mr. President, today valid part of the Constitution.’’. RAN, Mr. LIEBERMAN, and Mrs. LINCOLN) submitted the following resolution; I am pleased to be submitting a resolu- S. RES. 334 which was referred to the Committee tion that urges Congress to expand the Whereas the United States and Singapore on Health, Education, Labor, and Pen- supports and services available to have a strong and enduring friendship; sions: grandparents and other relatives who Whereas the United States and Singapore S. RES. 345 are raising children when their biologi- share a common vision in ensuring the con- cal parents can no longer take care of tinued peace, stability, and prosperity of the Whereas, 4.5 million children in the United States are living in grandparent-headed them. I am pleased to have worked Asia-Pacific region; with my friend and colleague, Senator Whereas Singapore is a member of the coa- households—a 30% increase from 1990 to lition for the reconstruction of Iraq and is a 2000—and an additional 1.5 million children OLYMPIA SNOWE, in crafting this impor- strong supporter of the coalition efforts to are living in households headed by other rel- tant bill. stabilize and rebuild Iraq; atives; Today, in Albany, NY, there is a Whereas Singapore is a steadfast partner Whereas 70% of grandparents who report ‘‘GrandRally’’ going on to celebrate with the United States in the global cam- they are responsible for the grandchildren and honor the almost 300,000 children paign against terrorism and has worked living with them are under the age of 60, who live in grandparent-headed house- closely with the United States to fight ter- many of whom are still in the workforce and making a valuable contribution to the na- holds—a total of 6.3 percent of all chil- rorism around the world; dren in New York State. Another Whereas Singapore is a core member of the tional economy; Proliferation Security Initiative and is com- Whereas, an increasing number of parents 112,000 children live in households mitted to preventing the proliferation of are unable to raise their own children due to headed by other relatives. I am so weapons of mass destruction; substance abuse, incarceration, illnesses pleased that this resolution coincides Whereas Singapore has provided valuable such as HIV/AIDS, child abuse and neglect, with the GrandRally because they com- support to the United States Armed Forces, domestic and community violence, unem- pliment each other nicely. including inviting such Forces to use the ployment and poverty, and other serious Nationwide, four and a half million community crises; state-of-the-art Changi Naval Base; children are living in grandparent- Whereas Singapore is the 11th largest trad- Whereas, grandparents and other relatives ing partner of the United States; raising children, especially those without headed households and an additional Whereas Singapore was the first country in formal legal custody or guardianship of the 1.5 million children are living in house- Asia to enter into a free trade agreement children under their care, face a variety of holds headed by other relatives. This with the United States; unnecessary barriers, including difficulties represents a 30 percent increase be- Whereas Singapore, which has one of the enrolling children in school, authorizing tween 1990 and 2000. busiest ports in the world, was the first medical treatment, maintaining their public Kinship care families came to be be- country in Asia to join the Container Secu- housing leases, obtaining affordable legal cause there are many tragic instances rity Initiative (CSI), a key initiative of the services, and accessing a variety of federal when parents are unable to raise their United States Customs Service designed to benefits and services; prevent terrorist attacks through the use of Whereas, grandparents and other relatives own children. Serious illness, death, cargo; have stepped forward at great personal sac- substance abuse, incarceration, domes- Whereas Singapore is a leader in biological rifice to their financial and health status, to tic violence, and unemployment are research, has established a regional Emerg- provide safe and loving homes and keep just some of the reasons that have ing Diseases Intervention Center, and is thousands of children from unnecessarily enforced grandparents and other relatives leading efforts to respond to new health tering the formal foster care system; to step forward, often at great personal threats, including emerging diseases and the Whereas children feel content to live in an sacrifice, to provide safe and loving use of biological agents; environment with people that they know, homes for the children in their care. Whereas the relationship between the who are familiar, and who are able to provide United States and Singapore is reinforced by them with extended family as additional This has allowed thousands of children strong ties of culture, values, commerce, and support and a family history, which gives to live with extended family rather scientific cooperation; and them a sense of belonging. than strangers. Whereas relationship and international co- Whereas the time, effort, and unselfish We know that children are better off operation between the United States and commitment shown by these family mem- living in an environment with people Singapore is important and valuable to both bers is worthy of recognition. that they know, who are familiar, and countries: Now, therefore, be it Whereas, almost one-fifth of grandparents who are able to provide them with ex- Resolved, That the Senate— who report that they are responsible for the tended family as additional support. (1) welcomes the Prime Minister of grandchildren living with them live in pov- Singapore, His Excellency Goh Chok Tong, erty; When foster children are placed with to the United States; Whereas, grandparents and other relatives family members rather than strangers, (2) expresses profound gratitude to the have taken over the care of abused and ne- they gain a critical sense of belonging Government of Singapore for its assistance glected children who have been removed and a family history.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.049 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4505 Unfortunately, these grandparents (1) there were 11 school integration cases (4) though the State Supreme Court ruled and other relatives raising children dating from 1881 to 1949, prior to Brown v. in favor of the plaintiffs, the decision did not often face a number of unnecessary Board of Education in 1954; apply to all schools in Delaware; barriers, including difficulties enroll- (2) in many instances, the schools for Afri- Whereas with respect to the District of Co- lumbia case of Bolling, et al. v. C. Melvin ing children in school, authorizing can-American children were substandard facilities with out-of-date textbooks and often Sharpe, et al.— medical treatment, and accessing a va- no basic school supplies; (1) 11 African-American junior high school riety of government benefits and serv- (3) in the fall of 1950, members of the To- students were taken on a field trip to Wash- ices. Almost one-fifth of grandparents peka, Kansas chapter of the NAACP agreed ington, D.C.’s new John Philip Sousa School who are serving as the parents for their to again challenge the ‘‘separate but equal’’ for white students only; grandchildren are living in poverty. doctrine governing public education; (2) the African-American students were de- The time, effort, and unselfish com- (4) on February 28, 1951, the NAACP filed nied admittance to the school and ordered to mitment of these family members is their case as Oliver L. Brown et al. v. The return to their inadequate school; and (3) in 1951, a suit was filed on behalf of the worthy of recognition. Board of Education of Topeka Kansas (which represented a group of 13 parents and 20 chil- students, and after review with the Brown This resolution encourages institu- case in 1954, the United States Supreme tions and government entities at every dren); (5) the district court ruled in favor of the Court ruled that segregation in the Nation’s level to promote public policies that school board and the case was appealed to capitol was unconstitutional; support these caregivers by expanding the United States Supreme Court; Whereas on May 17, 1954, at 12:52 p.m., the existing services such as respite care, (6) at the Supreme Court level, the case United States Supreme Court ruled that the discriminatory nature of racial segregation housing, and subsidized guardianship was combined with other NAACP cases from ‘‘violates the 14th Amendment to the Con- for grandparents and other relatives Delaware, South Carolina, Virginia, and stitution, which guarantees all citizens equal Washington, D.C. (which was later heard sep- who are raising children inside and protection of the laws’’; arately); and outside of the foster care system. Whereas the decision in Brown v. Board of (7) the combined cases became known as I want to thank all of my colleagues Education set the stage for dismantling ra- Oliver L. Brown et al. v. The Board of Edu- who are cosponsors of this resolution. cial segregation throughout the country; cation of Topeka, et al.; Whereas the quiet courage of Oliver L. Senator SNOWE and I are being joined Whereas with respect to the Virginia case Brown and his fellow plaintiffs asserted the by a diverse, bipartisan group of Sen- of Davis et al. v. Prince Edward County right of African-American people to have ators whose commitment to this issue Board of Supervisors— demonstrates the broad range of sup- equal access to social, political, and com- (1) one of the few public high schools avail- munal structures; port for kinship care families. able to African-Americans in the State of Whereas our country is indebted to the Virginia was Robert Moton High School in work of the NAACP Legal Defense and Edu- SENATE CONCURRENT RESOLU- Prince Edward County; cational Fund, Inc., Howard University Law TION 101—TO EXPRESS THE (2) built in 1943, it was never large enough School, the NAACP, and the individual to accommodate its student population; SENSE OF THE CONGRESS RE- plaintiffs in the cases considered by the Su- (3) the gross inadequacies of these class- preme Court; GARDING THE 50TH ANNIVER- rooms sparked a student strike in 1951; SARY OF THE SUPREME COURT Whereas Reverend Oliver L. Brown died in (4) the NAACP soon joined their struggles 1961, and because the landmark United DECISION IN BROWN V. BOARD and challenged the inferior quality of their States Supreme Court decision bears his OF EDUCATION OF TOPEKA school facilities in court; and name, he is remembered as an icon for jus- (5) although the United States District Mr. BROWNBACK (for himself and tice, freedom, and equal rights; and Court ordered that the plaintiffs be provided Whereas the national importance of the Mr. ROBERTS) submitted the following with equal school facilities, they were denied concurrent resolution; which was re- Brown v. Board of Education decision had a access to the schools for white students in profound impact on American culture, af- ferred to the Committee on Rules and their area; fecting families, communities, and govern- Administration: Whereas with respect to the South Caro- ments by outlawing racial segregation in S. CON. RES. 101 lina case of Briggs v. R.W. Elliott— public education, resulting in the abolition (1) in Clarendon County, South Carolina, Whereas Oliver L. Brown is the namesake of legal discrimination on any basis: Now the State NAACP first attempted, unsuccess- of the landmark United States Supreme therefore be it fully and with a single plaintiff, to take legal Court decision of 1954, Brown v. Board of Resolved by the Senate (the House of Rep- Education (347 U.S. 483, 1954); action in 1947 against the inferior conditions resentatives concurring), That— Whereas Oliver L. Brown is honored as the that African-American students experienced (1) the Congress recognizes and honors the lead plaintiff in the Topeka, Kansas case under South Carolina’s racially segregated 50th anniversary of the Supreme Court deci- which posed a legal challenge to racial seg- school system; sion in Brown v. Board of Education of To- regation in public education; (2) by 1951, community activists convinced peka; Whereas by 1950, African-American parents African-American parents to join the (2) the Congress encourages all people of began to renew their efforts to challenge NAACP efforts to file a class action suit in the United States to recognize the impor- State laws that only permitted their chil- United States District Court; tance of the Supreme Court decision in dren to attend certain schools, and as a re- (3) the court found that the schools des- Brown v. Board of Education of Topeka; sult, they organized through the National ignated for African-Americans were grossly (3) by celebrating the 50th anniversary of Association for the Advancement of Colored inadequate in terms of buildings, transpor- the Brown v. Board of Education of Topeka, People (the NAACP), an organization found- tation, and teacher salaries when compared the Nation will be able to refresh and renew ed in 1909 to address the issue of the unequal to the schools provided for white students; the importance of equality in society; and and discriminatory treatment experienced and (4) the Rotunda of the Capitol is authorized by African-Americans throughout the coun- (4) an order to equalize the facilities was to be used on May 13, 2004 or June 17, 2004 for try; virtually ignored by school officials, and the a ceremony to commemorate the 50th anni- Whereas Oliver L. Brown became part of schools were never made equal; versary of the Supreme Court’s landmark de- the NAACP strategy led first by Charles Whereas with respect to the Delaware cision in Brown v. Board of Education of To- Houston and later by Thurgood Marshall, to cases of Belton v. Gebhart and Bulah v. peka, 347 U.S. 483 (1954); file suit against various school boards on be- Gebhart— physical preparations for the ceremony shall half of such parents and their children; (1) first petitioned in 1951, these cases chal- be carried out in accordance with such condi- Whereas Oliver L. Brown was a member of lenged the inferior conditions of 2 African- tions as the Architect of the Capitol may a distinguished group of plaintiffs in cases American schools; prescribe. from Kansas (Brown v. Board of Education), (2) in the suburb of Claymont, Delaware, Delaware (Gebhart v. Belton), South Caro- African-American children were prohibited f lina (Briggs v. Elliot), and Virginia (Davis v. from attending the area’s local high school, AMENDMENTS SUBMITTED AND and in the rural community of Hockessin, County School Board of Prince Edward PROPOSED County) that were combined by the United Delaware, African-American students were States Supreme Court in Brown v. Board of forced to attend a dilapidated 1-room school- SA 3052. Mrs. FEINSTEIN submitted an Education, and in Washington, D.C. (Bolling house, and were not provided transportation amendment intended to be proposed to v. Sharpe), considered separately by the Su- to the school, while white children in the amendment SA 3048 proposed by Mr. McCAIN preme Court with respect to the District of area were provided transportation and a bet- to the bill S. 150, to make permanent the Columbia; ter school facility; moratorium on taxes on Internet access and Whereas with respect to cases filed in the (3) both plaintiffs were represented by local multiple and discriminatory taxes on elec- State of Kansas— NAACP attorneys; and tronic commerce imposed by the Internet

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.051 S28PT1 S4506 CONGRESSIONAL RECORD — SENATE April 28, 2004 Tax Freedom Act; which was ordered to lie SA 3071. Mr. ALEXANDER submitted an Sec. 104. Procurement of energy efficient on the table. amendment intended to be proposed to products. SA 3053. Mr. ROCKEFELLER submitted an amendment SA 3048 proposed by Mr. McCAIN Sec. 105. Voluntary commitments to reduce amendment intended to be proposed to to the bill S. 150, supra; which was ordered to industrial energy intensity. amendment SA 3048 proposed by Mr. McCAIN lie on the table. Sec. 106. Advanced Building Efficiency to the bill S. 150, supra; which was ordered to SA 3072. Mr. ALEXANDER submitted an Testbed. lie on the table. amendment intended to be proposed to Sec. 107. Federal building performance SA 3054. Mr. ROCKEFELLER submitted an amendment SA 3048 proposed by Mr. McCAIN standards. amendment intended to be proposed to to the bill S. 150, supra; which was ordered to Sec. 108. Increased use of recovered mineral amendment SA 3048 proposed by Mr. McCAIN lie on the table. component in federally funded to the bill S. 150, supra; which was ordered to SA 3073. Mr. ALEXANDER submitted an projects involving procurement lie on the table. amendment intended to be proposed to of cement or concrete. SA 3055. Mr. ALLEN submitted an amend- amendment SA 3048 proposed by Mr. McCAIN Subtitle B—Energy Assistance and State ment intended to be proposed to amendment to the bill S. 150, supra; which was ordered to Programs SA 3048 proposed by Mr. McCAIN to the bill lie on the table. Sec. 121. Low Income Home Energy Assist- S. 150, supra; which was ordered to lie on the SA 3074. Mr. GRAHAM of Florida sub- table. ance Program. mitted an amendment intended to be pro- Sec. 122. Weatherization assistance. SA 3056. Mr. ALLEN submitted an amend- posed to amendment SA 3048 proposed by Mr. ment intended to be proposed to amendment Sec. 123. State energy programs. McCAIN to the bill S. 150, supra; which was Sec. 124. Energy efficient appliance rebate SA 3048 proposed by Mr. McCAIN to the bill ordered to lie on the table. S. 150, supra; which was ordered to lie on the programs. SA 3075. Mr. HOLLINGS submitted an Sec. 125. Energy efficient public buildings. table. amendment intended to be proposed by him SA 3057. Mr. ALLEN submitted an amend- Sec. 126. Low income community energy ef- to the bill S. 150, supra; which was ordered to ment intended to be proposed to amendment ficiency pilot program. lie on the table. SA 3048 proposed by Mr. McCAIN to the bill SA 3076. Mr. GRAHAM of Florida sub- Subtitle C—Energy Efficient Products S. 150, supra; which was ordered to lie on the mitted an amendment intended to be pro- Sec. 131. Energy Star program. table. Sec. 132. HVAC maintenance consumer edu- SA 3058. Mr. ALLEN submitted an amend- posed to amendment SA 3048 proposed by Mr. McCAIN to the bill S. 150, supra; which was cation program. ment intended to be proposed to amendment Sec. 133. Energy conservation standards for SA 3048 proposed by Mr. McCAIN to the bill ordered to lie on the table. SA 3077. Mr. LAUTENBERG submitted an additional products. S. 150, supra; which was ordered to lie on the Sec. 134. Energy labeling. table. amendment intended to be proposed by him SA 3059. Mr. BINGAMAN submitted an to the bill S. 150, supra; which was ordered to Subtitle D—Public Housing amendment intended to be proposed to lie on the table. Sec. 141. Capacity building for energy-effi- amendment SA 3048 proposed by Mr. McCAIN SA 3078. Mr. LAUTENBERG submitted an cient, affordable housing. to the bill S. 150, supra; which was ordered to amendment intended to be proposed to Sec. 142. Increase of CDBG public services lie on the table. amendment SA 3048 proposed by Mr. McCAIN cap for energy conservation and SA 3060. Mr. CARPER submitted an amend- to the bill S. 150, supra; which was ordered to efficiency activities. ment intended to be proposed to amendment lie on the table. Sec. 143. FHA mortgage insurance incen- SA 3048 proposed by Mr. McCAIN to the bill SA 3079. Mr. GRAHAM of Florida sub- tives for energy efficient hous- S. 150, supra; which was ordered to lie on the mitted an amendment intended to be pro- ing. table. posed to amendment SA 3048 proposed by Mr. Sec. 144. Public Housing Capital Fund. SA 3061. Mr. CARPER submitted an amend- McCAIN to the bill S. 150, supra; which was Sec. 145. Grants for energy-conserving im- ment intended to be proposed to amendment ordered to lie on the table. provements for assisted hous- SA 3048 proposed by Mr. McCAIN to the bill SA 3080. Mr. ENZI submitted an amending. S. 150, supra; which was ordered to lie on the ment intended to be proposed by him to the Sec. 146. North American Development table. bill S. 150, supra; which was ordered to lie on Bank. SA 3062. Mr. CARPER submitted an amend- the table. Sec. 147. Energy-efficient appliances. ment intended to be proposed to amendment SA 3081. Mr. ENZI submitted an amend- Sec. 148. Energy efficiency standards. SA 3048 proposed by Mr. McCAIN to the bill ment intended to be proposed by him to the Sec. 149. Energy strategy for HUD. S. 150, supra; which was ordered to lie on the bill S. 150, supra; which was ordered to lie on TITLE II—RENEWABLE ENERGY table. the table. SA 3063. Mr. CARPER submitted an amend- SA 3082. Mr. LOTT submitted an amend- Subtitle A—General Provisions ment intended to be proposed to amendment ment intended to be proposed to amendment Sec. 201. Assessment of renewable energy re- SA 3048 proposed by Mr. McCAIN to the bill SA 3048 proposed by Mr. McCAIN to the bill sources. S. 150, supra; which was ordered to lie on the S. 150, supra; which was ordered to lie on the Sec. 202. Renewable energy production in- table. table. centive. SA 3064. Mrs. FEINSTEIN submitted an Sec. 203. Federal purchase requirement. f amendment intended to be proposed to Sec. 204. Insular areas energy security. amendment SA 3048 proposed by Mr. McCAIN TEXT OF AMENDMENTS— Sec. 205. Use of photovoltaic energy in pub- to the bill S. 150, supra; which was ordered to TUESDAY, APRIL 27, 2004 lic buildings. lie on the table. Sec. 206. Grants to improve the commercial SA 3065. Mrs. FEINSTEIN submitted an SA 3051. Mr. DOMENICI proposed an value of forest biomass for elec- amendment intended to be proposed by her amendment to amendment SA 3050 pro- tric energy, useful heat, trans- to the bill S. 150, supra; which was ordered to posed by Mr. DASCHLE (for himself, Mr. portation fuels, petroleum- lie on the table. DURBIN, and Mr. JOHNSON) to the bill S. based product substitutes, and SA 3066. Mr. DORGAN submitted an 150, to make permanent the morato- other commercial purposes. amendment intended to be proposed by him Sec. 207. Biobased products. to the bill S. 150, supra; which was ordered to rium on taxes on Internet access and Subtitle B—Geothermal Energy lie on the table. multiple and discriminatory taxes on SA 3067. Mr. DORGAN submitted an electronic commerce imposed by the Sec. 211. Short title. amendment intended to be proposed by him Internet Tax Freedom Act; as follows: Sec. 212. Competitive lease sale require- to the bill S. 150, supra; which was ordered to ments. Strike all after the first word and insert Sec. 213. Direct use. lie on the table. the following: SA 3068. Mr. ALEXANDER submitted an Sec. 214. Royalties and near-term produc- amendment intended to be proposed to DIVISION ll—ENERGY tion incentives. amendment SA 3048 proposed by Mr. McCAIN SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Sec. 215. Geothermal leasing and permitting to the bill S. 150, supra; which was ordered to (a) SHORT TITLE.—This division may be on Federal lands. lie on the table. cited as the ‘‘Energy Policy Act of 2003’’. Sec. 216. Review and report to Congress. SA 3069. Mr. ALEXANDER submitted an (b) TABLE OF CONTENTS.—The table of con- Sec. 217. Reimbursement for costs of NEPA amendment intended to be proposed to tents for this division is as follows: analyses, documentation, and studies. amendment SA 3048 proposed by Mr. McCAIN TITLE I—ENERGY EFFICIENCY to the bill S. 150, supra; which was ordered to Sec. 218. Assessment of geothermal energy lie on the table. Subtitle A—Federal Programs potential. SA 3070. Mr. ALEXANDER submitted an Sec. 101. Energy and water saving measures Sec. 219. Cooperative or unit plans. amendment intended to be proposed to in congressional buildings. Sec. 220. Royalty on byproducts. amendment SA 3048 proposed by Mr. McCAIN Sec. 102. Energy management requirements. Sec. 221. Repeal of authorities of Secretary to the bill S. 150, supra; which was ordered to Sec. 103. Energy use measurement and ac- to readjust terms, conditions, lie on the table. countability. rentals, and royalties.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00062 Fmt 4624 Sfmt 0655 E:\CR\FM\A28AP6.054 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4507 Sec. 222. Crediting of rental toward royalty. Sec. 342. Federal onshore oil and gas leasing Sec. 414. Petroleum coke gasification. Sec. 223. Lease duration and work commit- and permitting practices. Sec. 415. Integrated coal/renewable energy ment requirements. Sec. 343. Management of Federal oil and gas system. Sec. 224. Advanced royalties required for leasing programs. Sec. 416. Electron scrubbing demonstration. suspension of production. Sec. 344. Consultation regarding oil and gas Subtitle C—Federal Coal Leases Sec. 225. Annual rental. leasing on public land. Sec. 421. Repeal of the 160-acre limitation Sec. 226. Leasing and permitting on Federal Sec. 345. Estimates of oil and gas resources for coal leases. lands withdrawn for military underlying onshore Federal Sec. 422. Mining plans. purposes. land. Sec. 423. Payment of advance royalties Sec. 227. Technical amendments. Sec. 346. Compliance with Executive Order under coal leases. 13211; actions concerning regu- Subtitle C—Hydroelectric Sec. 424. Elimination of deadline for submis- lations that significantly affect PART I—ALTERNATIVE CONDITIONS sion of coal lease operation and energy supply, distribution, or reclamation plan. Sec. 231. Alternative conditions and use. fishways. Sec. 347. Pilot project to improve Federal Sec. 425. Amendment relating to financial PART II—ADDITIONAL HYDROPOWER permit coordination. assurances with respect to bonus bids. Sec. 241. Hydroelectric production incen- Sec. 348. Deadline for consideration of appli- Sec. 426. Inventory requirement. tives. cations for permits. Sec. 427. Application of amendments. Sec. 242. Hydroelectric efficiency improve- Sec. 349. Clarification of fair market rental ment. value determinations for public Subtitle D—Coal and Related Programs Sec. 243. Small hydroelectric power projects. land and Forest Service rights- Sec. 441. Clean air coal program. Sec. 244. Increased hydroelectric generation of-way. TITLE V—INDIAN ENERGY at existing Federal facilities. Sec. 350. Energy facility rights-of-way and Sec. 245. Shift of project loads to off-peak corridors on Federal land. Sec. 501. Short title. periods. Sec. 351. Consultation regarding energy Sec. 502. Office of Indian Energy Policy and Sec. 246. Limitation on certain charges as- rights-of-way on public land. Programs. sessed to the Flint Creek Sec. 352. Renewable energy on Federal land. Sec. 503. Indian energy. Project, Montana. Sec. 353. Electricity transmission line right- Sec. 504. Four Corners transmission line Sec. 247. Reinstatement and transfer. of-way, Cleveland National For- project. Sec. 505. Energy efficiency in federally as- TITLE III—OIL AND GAS est and adjacent public land, California. sisted housing. Subtitle A—Petroleum Reserve and Home Sec. 354. Sense of Congress regarding devel- Sec. 506. Consultation with Indian tribes. Heating Oil opment of minerals under TITLE VI—NUCLEAR MATTERS Sec. 301. Permanent authority to operate Padre Island National Sea- Subtitle A—Price-Anderson Act the Strategic Petroleum Re- shore. Amendments serve and other energy pro- Sec. 355. Encouraging prohibition of off- grams. Sec. 601. Short title. shore drilling in the Great Sec. 602. Extension of indemnification au- Sec. 302. National Oilheat Research Alli- Lakes. ance. thority. Sec. 356. Finger Lakes National Forest with- Sec. 603. Maximum assessment. Subtitle B—Production Incentives drawal. Sec. 604. Department of Energy liability Sec. 357. Study on lease exchanges in the Sec. 311. Definition of Secretary. limit. Rocky Mountain Front. Sec. 312. Program on oil and gas royalties Sec. 605. Incidents outside the United Sec. 358. Federal coalbed methane regula- in-kind. States. tion. Sec. 313. Marginal property production in- Sec. 606. Reports. Sec. 359. Livingston Parish mineral rights centives. Sec. 607. Inflation adjustment. transfer. Sec. 314. Incentives for natural gas produc- Sec. 608. Treatment of modular reactors. tion from deep wells in the Subtitle D—Alaska Natural Gas Pipeline Sec. 609. Applicability. shallow waters of the Gulf of Sec. 371. Short title. Sec. 610. Prohibition on assumption by Mexico. Sec. 372. Definitions. United States Government of Sec. 315. Royalty relief for deep water pro- Sec. 373. Issuance of certificate of public liability for certain foreign induction. convenience and necessity. cidents. Sec. 316. Alaska offshore royalty suspension. Sec. 374. Environmental reviews. Sec. 611. Civil penalties. Sec. 317. Oil and gas leasing in the National Sec. 375. Pipeline expansion. Subtitle B—General Nuclear Matters Petroleum Reserve in Alaska. Sec. 376. Federal Coordinator. Sec. 318. Orphaned, abandoned, or idled wells Sec. 377. Judicial review. Sec. 621. Licenses. on Federal land. Sec. 378. State jurisdiction over in-State de- Sec. 622. NRC training program. Sec. 319. Combined hydrocarbon leasing. livery of natural gas. Sec. 623. Cost recovery from Government Sec. 320. Liquified natural gas. Sec. 379. Study of alternative means of con- agencies. Sec. 321. Alternate energy-related uses on struction. Sec. 624. Elimination of pension offset. the Outer Continental Shelf. Sec. 380. Clarification of ANGTA status and Sec. 625. Antitrust review. Sec. 322. Preservation of geological and geo- authorities. Sec. 626. Decommissioning. physical data. Sec. 381. Sense of Congress concerning use of Sec. 627. Limitation on legal fee reimburse- Sec. 323. Oil and gas lease acreage limita- steel manufactured in North ment. tions. America negotiation of a Sec. 628. Decommissioning pilot program. Sec. 324. Assessment of dependence of State project labor agreement. Sec. 629. Report on feasibility of developing of Hawaii on oil. Sec. 382. Sense of Congress and study con- commercial nuclear energy gen- Sec. 325. Deadline for decision on appeals of cerning participation by small eration facilities at existing consistency determination business concerns. Department of Energy sites. under the Coastal Zone Man- Sec. 383. Alaska pipeline construction train- Sec. 630. Uranium sales. agement Act of 1972. ing program. Sec. 631. Cooperative research and develop- Sec. 326. Reimbursement for costs of NEPA Sec. 384. Sense of Congress concerning nat- ment and special demonstra- analyses, documentation, and ural gas demand. tion projects for the uranium studies. Sec. 385. Sense of Congress concerning Alas- mining industry. Sec. 327. Hydraulic fracturing. kan ownership. Sec. 632. Whistleblower protection. Sec. 328. Oil and gas exploration and produc- Sec. 386. Loan guarantees. Sec. 633. Medical isotope production. tion defined. Sec. 634. Fernald byproduct material. TITLE IV—COAL Sec. 329. Outer Continental Shelf provisions. Sec. 635. Safe disposal of greater-than-class Sec. 330. Appeals relating to pipeline con- Subtitle A—Clean Coal Power Initiative C radioactive waste. struction or offshore mineral Sec. 401. Authorization of appropriations. Sec. 636. Prohibition on nuclear exports to development projects. Sec. 402. Project criteria. countries that sponsor ter- Sec. 331. Bilateral international oil supply Sec. 403. Report. rorism. agreements. Sec. 404. Clean coal Centers of Excellence. Sec. 637. Uranium enrichment facilities. Sec. 332. Natural gas market reform. Subtitle B—Clean Power Projects Sec. 638. National uranium stockpile. Sec. 333. Natural gas market transparency. Sec. 411. Coal technology loan. Subtitle C—Advanced Reactor Hydrogen Subtitle C—Access to Federal Land Sec. 412. Coal gasification. Cogeneration Project Sec. 341. Office of Federal Energy Project Sec. 413. Integrated gasification combined Sec. 651. Project establishment. Coordination. cycle technology. Sec. 652. Project definition.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00063 Fmt 4624 Sfmt 0655 E:\CR\FM\A28AP6.083 S28PT1 S4508 CONGRESSIONAL RECORD — SENATE April 28, 2004 Sec. 653. Project management. Sec. 804. Interagency task force. Subtitle F—Science Sec. 654. Project requirements. Sec. 805. Advisory Committee. Sec. 951. Science. Sec. 655. Authorization of appropriations. Sec. 806. External review. Sec. 952. United States participation in Subtitle D—Nuclear Security Sec. 807. Miscellaneous provisions. ITER. Sec. 808. Savings clause. Sec. 661. Nuclear facility threats. Sec. 953. Plan for fusion energy sciences pro- Sec. 662. Fingerprinting for criminal history Sec. 809. Authorization of appropriations. gram. record checks. TITLE IX—RESEARCH AND Sec. 954. Spallation Neutron Source. Sec. 663. Use of firearms by security per- DEVELOPMENT Sec. 955. Support for science and energy fa- sonnel of licensees and certifi- Sec. 901. Goals. cilities and infrastructure. cate holders of the Commission. Sec. 902. Definitions. Sec. 956. Catalysis research and development program. Sec. 664. Unauthorized introduction of dan- Subtitle A—Energy Efficiency gerous weapons. Sec. 957. Nanoscale science and engineering Sec. 665. Sabotage of nuclear facilities or Sec. 904. Energy efficiency. research, development, dem- Sec. 905. Next Generation Lighting Initia- fuel. onstration, and commercial ap- Sec. 666. Secure transfer of nuclear mate- tive. plication. Sec. 906. National Building Performance Ini- rials. Sec. 958. Advanced scientific computing for Sec. 667. Department of Homeland Security tiative. energy missions. Sec. 907. Secondary electric vehicle battery consultation. Sec. 959. Genomes to Life program. Sec. 668. Authorization of appropriations. use program. Sec. 960. Fission and fusion energy materials Sec. 908. Energy Efficiency Science Initia- research program. TITLE VII—VEHICLES AND FUELS tive. Sec. 961. Energy-Water Supply Program. Subtitle A—Existing Programs Sec. 909. Electric motor control technology. Sec. 962. Nitrogen fixation. Sec. 701. Use of alternative fuels by dual- Sec. 910. Advanced Energy Technology Subtitle G—Energy and Environment fueled vehicles. Transfer Centers. Sec. 964. United States-Mexico energy tech- Sec. 702. Neighborhood electric vehicles. Subtitle B—Distributed Energy and Electric nology cooperation. Sec. 703. Credits for medium and heavy duty Energy Systems Sec. 965. Western Hemisphere energy co- dedicated vehicles. Sec. 911. Distributed energy and electric en- operation. Sec. 704. Incremental cost allocation. ergy systems. Sec. 966. Waste reduction and use of alter- Sec. 705. Alternative compliance and flexi- Sec. 912. Hybrid distributed power systems. natives. bility. Sec. 913. High power density industry pro- Sec. 967. Report on fuel cell test center. Sec. 706. Review of Energy Policy Act of 1992 gram. Sec. 968. Arctic Engineering Research Cen- programs. Sec. 914. Micro-cogeneration energy tech- ter. Sec. 707. Report concerning compliance with nology. Sec. 969. Barrow Geophysical Research Fa- alternative fueled vehicle pur- Sec. 915. Distributed energy technology cility. chasing requirements. demonstration program. Sec. 970. Western Michigan demonstration Subtitle B—Hybrid Vehicles, Advanced Sec. 916. Reciprocating power. project. Vehicles, and Fuel Cell Buses Subtitle C—Renewable Energy Subtitle H—Management PART 1—HYBRID VEHICLES Sec. 918. Renewable energy. Sec. 971. Availability of funds. Sec. 711. Hybrid vehicles. Sec. 919. Bioenergy programs. Sec. 972. Cost sharing. Sec. 973. Merit review of proposals. PART 2—ADVANCED VEHICLES Sec. 920. Concentrating solar power research and development program. Sec. 974. External technical review of de- Sec. 721. Definitions. partmental programs. Sec. 722. Pilot program. Sec. 921. Miscellaneous projects. Sec. 922. Renewable energy in public build- Sec. 975. Improved coordination of tech- Sec. 723. Reports to Congress. nology transfer activities. Sec. 724. Authorization of appropriations. ings. Sec. 923. Study of marine renewable energy Sec. 976. Federal laboratory educational PART 3—FUEL CELL BUSES options. partners. Sec. 977. Interagency cooperation. Sec. 731. Fuel cell transit bus demonstra- Subtitle D—Nuclear Energy tion. Sec. 978. Technology infrastructure pro- Sec. 924. Nuclear energy. gram. Subtitle C—Clean School Buses Sec. 925. Nuclear energy research and devel- Sec. 979. Reprogramming. Sec. 741. Definitions. opment programs. Sec. 980. Construction with other laws. Sec. 742. Program for replacement of certain Sec. 926. Advanced fuel cycle initiative. Sec. 981. Report on research and develop- school buses with clean school Sec. 927. University nuclear science and en- ment program evaluation meth- buses. gineering support. odologies. Sec. 743. Diesel retrofit program. Sec. 928. Security of reactor designs. Sec. 982. Department of Energy Science and Sec. 744. Fuel cell school buses. Sec. 929. Alternatives to industrial radio- Technology Scholarship Pro- Subtitle D—Miscellaneous active sources. gram. Sec. 751. Railroad efficiency. Sec. 930. Geological isolation of spent fuel. Sec. 983. Report on equal employment op- Sec. 752. Mobile emission reductions trading Subtitle E—Fossil Energy portunity practices. Sec. 984. Small business advocacy and as- and crediting. PART I—RESEARCH PROGRAMS sistance. Sec. 753. Aviation fuel conservation and Sec. 931. Fossil energy. emissions. Sec. 985. Report on mobility of scientific Sec. 932. Oil and gas research programs. and technical personnel. Sec. 754. Diesel fueled vehicles. Sec. 933. Technology transfer. Sec. 755. Conserve by bicycling program. Sec. 986. National Academy of Sciences re- Sec. 934. Research and development for coal port. Sec. 756. Reduction of engine idling of mining technologies. heavy-duty vehicles. Sec. 987. Outreach. Sec. 935. Coal and related technologies pro- Sec. 988. Competitive award of management Sec. 757. Biodiesel engine testing program. gram. Sec. 758. High occupancy vehicle exception. contracts. Sec. 936. Complex well technology testing Sec. 989. Educational programs in science Subtitle E—Automobile Efficiency facility. and mathematics. Sec. 937. Fischer-Tropsch diesel fuel loan Sec. 771. Authorization of appropriations for TITLE X—DEPARTMENT OF ENERGY guarantee program. implementation and enforce- MANAGEMENT ment of fuel economy stand- PART II—ULTRA-DEEPWATER AND UNCONVEN- Sec. 1001. Additional Assistant Secretary po- ards. TIONAL NATURAL GAS AND OTHER PETRO- sition. Sec. 772. Revised considerations for deci- LEUM RESOURCES sions on maximum feasible av- Sec. 1002. Other transactions authority. Sec. 941. Program authority. TITLE XI—PERSONNEL AND TRAINING erage fuel economy. Sec. 942. Ultra-deepwater program. Sec. 773. Extension of maximum fuel econ- Sec. 943. Unconventional natural gas and Sec. 1101. Training guidelines for electric omy increase for alternative other petroleum resources pro- energy industry personnel. fueled vehicles. gram. Sec. 1102. Improved access to energy-related Sec. 774. Study of feasibility and effects of Sec. 944. Additional requirements for scientific and technical careers. reducing use of fuel for auto- awards. Sec. 1103. National Power Plant Operations mobiles. Sec. 945. Advisory Committees. Technology and Education Cen- TITLE VIII—HYDROGEN Sec. 946. Limits on participation. ter. Sec. 1104. International energy training. Sec. 801. Definitions. Sec. 947. Sunset. Sec. 802. Plan. Sec. 948. Definitions. TITLE XII—ELECTRICITY Sec. 803. Programs. Sec. 949. Funding. Sec. 1201. Short title.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00064 Fmt 4624 Sfmt 0655 E:\CR\FM\A28AP6.083 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4509 Subtitle A—Reliability Standards TITLE XIII—STUDIES Sec. 1522. Leaking underground storage Sec. 1211. Electric reliability standards. Sec. 1301. Study on inventory of petroleum tanks. Sec. 1523. Inspection of underground storage Subtitle B—Transmission Infrastructure and natural gas storage. tanks. Modernization Sec. 1302. Natural gas supply shortage report. Sec. 1524. Operator training. Sec. 1221. Siting of interstate electric trans- Sec. 1525. Remediation from oxygenated fuel Sec. 1303. Split-estate Federal oil and gas mission facilities. additives. leasing and development prac- Sec. 1222. Third-party finance. Sec. 1526. Release prevention, compliance, tices. Sec. 1223. Transmission system monitoring. and enforcement. Sec. 1304. Resolution of Federal resource de- Sec. 1224. Advanced transmission tech- Sec. 1527. Delivery prohibition. velopment conflicts in the Pow- nologies. Sec. 1528. Federal facilities. der River Basin. Sec. 1225. Electric transmission and dis- Sec. 1529. Tanks on tribal lands. Sec. 1305. Study of energy efficiency stand- tribution programs. Sec. 1530. Future release containment tech- ards. Sec. 1226. Advanced Power System Tech- nology. Sec. 1306. Telecommuting study. nology Incentive Program. Sec. 1531. Authorization of appropriations. Sec. 1307. LIHEAP report. Sec. 1532. Conforming amendments. Sec. 1227. Office of Electric Transmission Sec. 1308. Oil bypass filtration technology. Sec. 1533. Technical amendments. and Distribution. Sec. 1309. Total integrated thermal systems. TITLE I—ENERGY EFFICIENCY Subtitle C—Transmission Operation Sec. 1310. University collaboration. Subtitle A—Federal Programs Improvements Sec. 1311. Reliability and consumer protec- SEC. 101. ENERGY AND WATER SAVING MEAS- Sec. 1231. Open nondiscriminatory access. tion assessment. URES IN CONGRESSIONAL BUILD- Sec. 1232. Sense of the Congress on Regional TITLE XIV—MISCELLANEOUS INGS. Transmission Organizations. Subtitle A—Rural and Remote Electricity (a) IN GENERAL.—Part 3 of title V of the Sec. 1233. Regional Transmission Organiza- Construction National Energy Conservation Policy Act (42 tion applications progress re- U.S.C. 8251 et seq.) is amended by adding at Sec. 1401. Denali Commission programs. port. the end the following: Sec. 1234. Federal utility participation in Sec. 1402. Rural and remote community assistance. ‘‘SEC. 552. ENERGY AND WATER SAVINGS MEAS- Regional Transmission Organi- URES IN CONGRESSIONAL BUILD- zations. Subtitle B—Coastal Programs INGS. Sec. 1235. Standard market design. Sec. 1411. Royalty payments under leases ‘‘(a) IN GENERAL.—The Architect of the Sec. 1236. Native load service obligation. under the Outer Continental Capitol— Sec. 1237. Study on the benefits of economic Shelf Lands Act. ‘‘(1) shall develop, update, and implement a dispatch. Sec. 1412. Domestic offshore energy rein- cost-effective energy conservation and man- Subtitle D—Transmission Rate Reform vestment. agement plan (referred to in this section as Sec. 1241. Transmission infrastructure in- Subtitle C—Reforms to the Board of the ‘plan’) for all facilities administered by vestment. Directors of the Tennessee Valley Authority Congress (referred to in this section as ‘congressional buildings’) to meet the energy Sec. 1242. Voluntary transmission pricing Sec. 1431. Change in composition, operation, performance requirements for Federal build- plans. and duties of the board of direc- ings established under section 543(a)(1); and Subtitle E—Amendments to PURPA tors of the Tennessee Valley ‘‘(2) shall submit the plan to Congress, not Authority. Sec. 1251. Net metering and additional later than 180 days after the date of enact- Sec. 1432. Change in manner of appointment standards. ment of this section. of staff. Sec. 1252. Smart metering. ‘‘(b) PLAN REQUIREMENTS.—The plan shall Sec. 1253. Cogeneration and small power pro- Sec. 1433. Conforming amendments. include— duction purchase and sale re- Sec. 1434. Appointments; effective date; ‘‘(1) a description of the life cycle cost quirements. transition. analysis used to determine the cost-effec- Subtitle F—Repeal of PUHCA Subtitle D—Other Provisions tiveness of proposed energy efficiency Sec. 1261. Short title. Sec. 1441. Continuation of transmission se- projects; Sec. 1262. Definitions. curity order. ‘‘(2) a schedule of energy surveys to ensure Sec. 1263. Repeal of the Public Utility Hold- Sec. 1442. Review of agency determinations. complete surveys of all congressional building Company Act of 1935. Sec. 1443. Attainment dates for downwind ings every 5 years to determine the cost and Sec. 1264. Federal access to books and ozone nonattainment areas. payback period of energy and water con- records. Sec. 1444. Energy production incentives. servation measures; Sec. 1265. State access to books and records. Sec. 1445. Use of granular mine tailings. ‘‘(3) a strategy for installation of life cycle Sec. 1266. Exemption authority. TITLE XV—ETHANOL AND MOTOR FUELS cost-effective energy and water conservation measures; Sec. 1267. Affiliate transactions. Subtitle A—General Provisions Sec. 1268. Applicability. ‘‘(4) the results of a study of the costs and Sec. 1501. Renewable content of motor vehi- Sec. 1269. Effect on other regulations. benefits of installation of submetering in cle fuel. Sec. 1270. Enforcement. congressional buildings; and Sec. 1502. Findings and MTBE transition as- Sec. 1271. Savings provisions. ‘‘(5) information packages and ‘how-to’ sistance. Sec. 1272. Implementation. guides for each Member and employing au- Sec. 1503. Use of MTBE. Sec. 1273. Transfer of resources. thority of Congress that detail simple, cost- Sec. 1504. National Academy of Sciences re- Sec. 1274. Effective date. effective methods to save energy and tax- Sec. 1275. Service allocation. view and presidential deter- payer dollars in the workplace. Sec. 1276. Authorization of appropriations. mination. ‘‘(c) ANNUAL REPORT.—The Architect of the Sec. 1505. Elimination of oxygen content re- Sec. 1277. Conforming amendments to the Capitol shall submit to Congress annually a quirement for reformulated Federal Power Act. report on congressional energy management gasoline. and conservation programs required under Subtitle G—Market Transparency, Sec. 1506. Analyses of motor vehicle fuel this section that describes in detail— Enforcement, and Consumer Protection changes. ‘‘(1) energy expenditures and savings esti- Sec. 1281. Market transparency rules. Sec. 1507. Data collection. mates for each facility; Sec. 1282. Market manipulation. Sec. 1508. Reducing the proliferation of ‘‘(2) energy management and conservation Sec. 1283. Enforcement. State fuel controls. projects; and Sec. 1284. Refund effective date. Sec. 1509. Fuel system requirements harmo- ‘‘(3) future priorities to ensure compliance Sec. 1285. Refund authority. nization study. with this section.’’. Sec. 1286. Sanctity of contract. Sec. 1510. Commercial byproducts from mu- (b) TABLE OF CONTENTS AMENDMENT.—The Sec. 1287. Consumer privacy and unfair trade nicipal solid waste and cel- table of contents of the National Energy practices. lulosic biomass loan guarantee Conservation Policy Act is amended by add- Subtitle H—Merger Reform program. ing at the end of the items relating to part Sec. 1511. Resource center. Sec. 1291. Merger review reform and ac- 3 of title V the following new item: Sec. 1512. Cellulosic biomass and waste-de- countability. ‘‘Sec. 552. Energy and water savings meas- rived ethanol conversion assist- Sec. 1292. Electric utility mergers. ures in congressional build- ance. ings.’’. Subtitle I—Definitions Sec. 1513. Blending of compliant reformu- Sec. 1295. Definitions. lated gasolines. (c) REPEAL.—Section 310 of the Legislative Branch Appropriations Act, 1999 (2 U.S.C. Subtitle J—Technical and Conforming Subtitle B—Underground Storage Tank 1815), is repealed. Amendments Compliance (d) ENERGY INFRASTRUCTURE.—The Archi- Sec. 1297. Conforming amendments. Sec. 1521. Short title. tect of the Capitol, building on the Master

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.083 S28PT1 S4510 CONGRESSIONAL RECORD — SENATE April 28, 2004 Plan Study completed in July 2000, shall ‘‘(B) A finding of impracticability under section, the Secretary, in consultation with commission a study to evaluate the energy subparagraph (A)(i) shall be based on— the Department of Defense, the General infrastructure of the Capital Complex to de- ‘‘(i) the energy intensiveness of activities Services Administration, representatives termine how the infrastructure could be aug- carried out in the Federal building or collec- from the metering industry, utility industry, mented to become more energy efficient, tion of Federal buildings; or energy services industry, energy efficiency using unconventional and renewable energy ‘‘(ii) the fact that the Federal building or industry, energy efficiency advocacy organi- resources, in a way that would enable the collection of Federal buildings is used in the zations, national laboratories, universities, Complex to have reliable utility service in performance of a national security func- and Federal facility energy managers, shall the event of power fluctuations, shortages, tion.’’. establish guidelines for agencies to carry out or outages. (d) REVIEW BY SECRETARY.—Section paragraph (1). (e) AUTHORIZATION OF APPROPRIATIONS.— 543(c)(2) of the National Energy Conservation ‘‘(B) REQUIREMENTS FOR GUIDELINES.—The There are authorized to be appropriated to Policy Act (42 U.S.C. 8253(c)(2)) is amended— guidelines shall— the Architect of the Capitol to carry out sub- (1) by striking ‘‘impracticability stand- ‘‘(i) take into consideration— section (d), $2,000,000 for each of fiscal years ards’’ and inserting ‘‘standards for exclu- ‘‘(I) the cost of metering and submetering 2004 through 2008. sion’’; and the reduced cost of operation and main- SEC. 102. ENERGY MANAGEMENT REQUIRE- (2) by striking ‘‘a finding of imprac- tenance expected to result from metering MENTS. ticability’’ and inserting ‘‘the exclusion’’; and submetering; (a) ENERGY REDUCTION GOALS.— and ‘‘(II) the extent to which metering and sub- (1) AMENDMENT.—Section 543(a)(1) of the (3) by striking ‘‘energy consumption re- metering are expected to result in increased National Energy Conservation Policy Act (42 quirements’’ and inserting ‘‘requirements of potential for energy management, increased U.S.C. 8253(a)(1)) is amended by striking ‘‘its subsections (a) and (b)(1)’’. potential for energy savings and energy effi- Federal buildings so that’’ and all that fol- (e) CRITERIA.—Section 543(c) of the Na- ciency improvement, and cost and energy lows through the end and inserting ‘‘the Fed- tional Energy Conservation Policy Act (42 savings due to utility contract aggregation; eral buildings of the agency (including each U.S.C. 8253(c)) is further amended by adding and industrial or laboratory facility) so that the at the end the following: ‘‘(III) the measurement and verification energy consumption per gross square foot of ‘‘(3) Not later than 180 days after the date protocols of the Department of Energy; the Federal buildings of the agency in fiscal of enactment of this paragraph, the Sec- ‘‘(ii) include recommendations concerning years 2004 through 2013 is reduced, as com- retary shall issue guidelines that establish the amount of funds and the number of pared with the energy consumption per gross criteria for exclusions under paragraph (1).’’. trained personnel necessary to gather and (f) RETENTION OF ENERGY AND WATER SAV- square foot of the Federal buildings of the use the metering information to track and INGS.—Section 546 of the National Energy reduce energy use; agency in fiscal year 2001, by the percentage Conservation Policy Act (42 U.S.C. 8256) is specified in the following table: ‘‘(iii) establish priorities for types and lo- amended by adding at the end the following cations of buildings to be metered and sub- ‘‘Fiscal Year Percentage reduction new subsection: metered based on cost-effectiveness and a 2004 ...... 2 ‘‘(e) RETENTION OF ENERGY AND WATER SAV- schedule of 1 or more dates, not later than 1 2005 ...... 4 INGS.—An agency may retain any funds ap- year after the date of issuance of the guide- 2006 ...... 6 propriated to that agency for energy expend- lines, on which the requirements specified in 2007 ...... 8 itures, water expenditures, or wastewater paragraph (1) shall take effect; and 2008 ...... 10 treatment expenditures, at buildings subject 2009 ...... 12 to the requirements of section 543(a) and (b), ‘‘(iv) establish exclusions from the require- 2010 ...... 14 that are not made because of energy savings ments specified in paragraph (1) based on the 2011 ...... 16 or water savings. Except as otherwise pro- de minimis quantity of energy use of a Fed- 2012 ...... 18 vided by law, such funds may be used only eral building, industrial process, or struc- 2013 ...... 20.’’. for energy efficiency, water conservation, or ture. (2) REPORTING BASELINE.—The energy re- unconventional and renewable energy re- ‘‘(3) PLAN.—Not later than 6 months after duction goals and baseline established in sources projects.’’. the date guidelines are established under paragraph (1) of section 543(a) of the Na- (g) REPORTS.—Section 548(b) of the Na- paragraph (2), in a report submitted by the tional Energy Conservation Policy Act (42 tional Energy Conservation Policy Act (42 agency under section 548(a), each agency U.S.C. 8253(a)(1)), as amended by this sub- U.S.C. 8258(b)) is amended— shall submit to the Secretary a plan describ- section, supersede all previous goals and (1) in the subsection heading, by inserting ing how the agency will implement the re- baselines under such paragraph, and related ‘‘THE PRESIDENT AND’’ before ‘‘CONGRESS’’; quirements of paragraph (1), including (A) reporting requirements. and how the agency will designate personnel pri- (b) REVIEW AND REVISION OF ENERGY PER- (2) by inserting ‘‘President and’’ before marily responsible for achieving the require- FORMANCE REQUIREMENT.—Section 543(a) of ‘‘Congress’’. ments and (B) demonstration by the agency, the National Energy Conservation Policy (h) CONFORMING AMENDMENT.—Section complete with documentation, of any finding Act (42 U.S.C. 8253(a)) is further amended by 550(d) of the National Energy Conservation that advanced meters or advanced metering adding at the end the following: Policy Act (42 U.S.C. 8258b(d)) is amended in devices, as defined in paragraph (1), are not ‘‘(3) Not later than December 31, 2012, the the second sentence by striking ‘‘the 20 per- practicable.’’. Secretary shall review the results of the im- cent reduction goal established under sec- SEC. 104. PROCUREMENT OF ENERGY EFFICIENT plementation of the energy performance re- tion 543(a) of the National Energy Conserva- PRODUCTS. quirement established under paragraph (1) tion Policy Act (42 U.S.C. 8253(a)).’’ and in- (a) REQUIREMENTS.—Part 3 of title V of the and submit to Congress recommendations serting ‘‘each of the energy reduction goals National Energy Conservation Policy Act (42 concerning energy performance require- established under section 543(a).’’. U.S.C. 8251 et seq.), as amended by section ments for fiscal years 2014 through 2023.’’. SEC. 103. ENERGY USE MEASUREMENT AND AC- 101 of this Act, is amended by adding at the (c) EXCLUSIONS.—Section 543(c)(1) of the COUNTABILITY. end the following: National Energy Conservation Policy Act (42 Section 543 of the National Energy Con- ‘‘SEC. 553. FEDERAL PROCUREMENT OF ENERGY U.S.C. 8253(c)(1)) is amended by striking ‘‘An servation Policy Act (42 U.S.C. 8253) is fur- EFFICIENT PRODUCTS. agency may exclude’’ and all that follows ther amended by adding at the end the fol- ‘‘(a) DEFINITIONS.—In this section: through the end and inserting ‘‘(A) An agen- lowing: ‘‘(1) ENERGY STAR PRODUCT.—The term ‘En- cy may exclude, from the energy perform- ‘‘(e) METERING OF ENERGY USE.— ergy Star product’ means a product that is ance requirement for a fiscal year estab- ‘‘(1) DEADLINE.—By October 1, 2010, in ac- rated for energy efficiency under an Energy lished under subsection (a) and the energy cordance with guidelines established by the Star program. management requirement established under Secretary under paragraph (2), all Federal ‘‘(2) ENERGY STAR PROGRAM.—The term subsection (b), any Federal building or col- buildings shall, for the purposes of efficient ‘Energy Star program’ means the program lection of Federal buildings, if the head of use of energy and reduction in the cost of established by section 324A of the Energy the agency finds that— electricity used in such buildings, be me- Policy and Conservation Act. ‘‘(i) compliance with those requirements tered or submetered. Each agency shall use, ‘‘(3) EXECUTIVE AGENCY.—The term ‘execu- would be impracticable; to the maximum extent practicable, ad- tive agency’ has the meaning given the term ‘‘(ii) the agency has completed and sub- vanced meters or advanced metering devices in section 4 of the Office of Federal Procure- mitted all federally required energy manage- that provide data at least daily and that ment Policy Act (41 U.S.C. 403). ment reports; measure at least hourly consumption of elec- ‘‘(4) FEMP DESIGNATED PRODUCT.—The ‘‘(iii) the agency has achieved compliance tricity in the Federal buildings of the agen- term ‘FEMP designated product’ means a with the energy efficiency requirements of cy. Such data shall be incorporated into ex- product that is designated under the Federal this Act, the Energy Policy Act of 1992, Ex- isting Federal energy tracking systems and Energy Management Program of the Depart- ecutive orders, and other Federal law; and made available to Federal facility energy ment of Energy as being among the highest ‘‘(iv) the agency has implemented all prac- managers. 25 percent of equivalent products for energy ticable, life cycle cost-effective projects with ‘‘(2) GUIDELINES.— efficiency. respect to the Federal building or collection ‘‘(A) IN GENERAL.—Not later than 180 days ‘‘(b) PROCUREMENT OF ENERGY EFFICIENT of Federal buildings to be excluded. after the date of enactment of this sub- PRODUCTS.—

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‘‘(1) REQUIREMENT.—To meet the require- without causing any adverse impact on the (b), and provide the remaining 2⁄3 to the other ments of an executive agency for an energy system, system components, the refrigerant participants referred to in subsection (b) on consuming product, the head of the execu- or lubricant, or other materials in the sys- an equal basis. tive agency shall, except as provided in para- tem. SEC. 107. FEDERAL BUILDING PERFORMANCE graph (2), procure— Results of testing described in subparagraph STANDARDS. ‘‘(A) an Energy Star product; or (C) shall be published in the Federal Register Section 305(a) of the Energy Conservation ‘‘(B) a FEMP designated product. for public review and comment. For purposes and Production Act (42 U.S.C. 6834(a)) is ‘‘(2) EXCEPTIONS.—The head of an executive of this section, a hardware device or primary amended— agency is not required to procure an Energy refrigerant shall not be considered an addi- (1) in paragraph (2)(A), by striking ‘‘CABO Star product or FEMP designated product tive. Model Energy Code, 1992’’ and inserting ‘‘the under paragraph (1) if the head of the execu- ‘‘(e) REGULATIONS.—Not later than 180 days 2003 International Energy Conservation tive agency finds in writing that— after the date of the enactment of this sec- Code’’; and ‘‘(A) an Energy Star product or FEMP des- tion, the Secretary shall issue guidelines to (2) by adding at the end the following: ignated product is not cost-effective over the carry out this section.’’. ‘‘(3) REVISED FEDERAL BUILDING ENERGY EF- life of the product taking energy cost sav- (b) CONFORMING AMENDMENT.—The table of FICIENCY PERFORMANCE STANDARDS.— ings into account; or contents of the National Energy Conserva- ‘‘(A) IN GENERAL.—Not later than 1 year ‘‘(B) no Energy Star product or FEMP des- tion Policy Act is further amended by insert- after the date of enactment of this para- ignated product is reasonably available that ing after the item relating to section 552 the graph, the Secretary of Energy shall estab- meets the functional requirements of the ex- following new item: lish, by rule, revised Federal building energy ecutive agency. ‘‘Sec. 553. Federal procurement of energy ef- efficiency performance standards that re- ‘‘(3) PROCUREMENT PLANNING.—The head of ficient products.’’. quire that— an executive agency shall incorporate into ‘‘(i) if life-cycle cost-effective, for new Fed- SEC. 105. VOLUNTARY COMMITMENTS TO RE- the specifications for all procurements in- DUCE INDUSTRIAL ENERGY INTEN- eral buildings— volving energy consuming products and sys- SITY. ‘‘(I) such buildings be designed so as to tems, including guide specifications, project (a) VOLUNTARY AGREEMENTS.—The Sec- achieve energy consumption levels at least specifications, and construction, renovation, retary of Energy is authorized to enter into 30 percent below those of the version current and services contracts that include provision voluntary agreements with 1 or more persons as of the date of enactment of this paragraph of energy consuming products and systems, in industrial sectors that consume signifi- of the ASHRAE Standard or the Inter- and into the factors for the evaluation of of- cant amounts of primary energy per unit of national Energy Conservation Code, as ap- fers received for the procurement, criteria physical output to reduce the energy inten- propriate; and for energy efficiency that are consistent sity of their production activities by a sig- ‘‘(II) sustainable design principles are ap- with the criteria used for rating Energy Star nificant amount relative to improvements in plied to the siting, design, and construction products and for rating FEMP designated each sector in recent years. of all new and replacement buildings; and products. (b) RECOGNITION.—The Secretary of En- ‘‘(ii) where water is used to achieve energy ‘‘(c) LISTING OF ENERGY EFFICIENT PROD- ergy, in cooperation with the Administrator efficiency, water conservation technologies UCTS IN FEDERAL CATALOGS.—Energy Star of the Environmental Protection Agency and shall be applied to the extent they are life- products and FEMP designated products other appropriate Federal agencies, shall cycle cost effective. shall be clearly identified and prominently recognize and publicize the achievements of ‘‘(B) ADDITIONAL REVISIONS.—Not later displayed in any inventory or listing of prod- participants in voluntary agreements under than 1 year after the date of approval of each ucts by the General Services Administration this section. subsequent revision of the ASHRAE Stand- or the Defense Logistics Agency. The Gen- (c) DEFINITION.—In this section, the term ard or the International Energy Conserva- eral Services Administration or the Defense ‘‘energy intensity’’ means the primary en- tion Code, as appropriate, the Secretary of Logistics Agency shall supply only Energy ergy consumed per unit of physical output in Energy shall determine, based on the cost-ef- Star products or FEMP designated products an industrial process. fectiveness of the requirements under the for all product categories covered by the En- amendments, whether the revised standards ergy Star program or the Federal Energy SEC. 106. ADVANCED BUILDING EFFICIENCY TESTBED. established under this paragraph should be Management Program, except in cases where (a) ESTABLISHMENT.—The Secretary of En- updated to reflect the amendments. the agency ordering a product specifies in ergy, in consultation with the Administrator ‘‘(C) STATEMENT ON COMPLIANCE OF NEW writing that no Energy Star product or BUILDINGS.—In the budget request of the Fed- FEMP designated product is available to of General Services, shall establish an Ad- vanced Building Efficiency Testbed program eral agency for each fiscal year and each re- meet the buyer’s functional requirements, or port submitted by the Federal agency under that no Energy Star product or FEMP des- for the development, testing, and demonstration of advanced engineering systems, com- section 548(a) of the National Energy Con- ignated product is cost-effective for the in- servation Policy Act (42 U.S.C. 8258(a)), the tended application over the life of the prod- ponents, and materials to enable innovations in building technologies. The program shall head of each Federal agency shall include— uct, taking energy cost savings into account. ‘‘(i) a list of all new Federal buildings ‘‘(d) SPECIFIC PRODUCTS.—(1) In the case of evaluate efficiency concepts for government owned, operated, or controlled by the Fed- electric motors of 1 to 500 horsepower, agen- and industry buildings, and demonstrate the eral agency; and cies shall select only premium efficient mo- ability of next generation buildings to sup- ‘‘(ii) a statement concerning whether the tors that meet a standard designated by the port individual and organizational produc- Federal buildings meet or exceed the revised Secretary. The Secretary shall designate tivity and health (including by improving in- such a standard not later than 120 days after door air quality) as well as flexibility and standards established under this para- the date of the enactment of this section, technological change to improve environ- graph.’’. after considering the recommendations of as- mental sustainability. Such program shall SEC. 108. INCREASED USE OF RECOVERED MIN- sociated electric motor manufacturers and complement and not duplicate existing na- ERAL COMPONENT IN FEDERALLY tional programs. FUNDED PROJECTS INVOLVING PRO- energy efficiency groups. CUREMENT OF CEMENT OR CON- (b) PARTICIPANTS.—The program estab- ‘‘(2) All Federal agencies are encouraged to CRETE. take actions to maximize the efficiency of lished under subsection (a) shall be led by a (a) AMENDMENT.—Subtitle F of the Solid air conditioning and refrigeration equip- university with the ability to combine the Waste Disposal Act (42 U.S.C. 6961 et seq.) is ment, including appropriate cleaning and expertise from numerous academic fields in- amended by adding at the end the following maintenance, including the use of any sys- cluding, at a minimum, intelligent work- new section: tem treatment or additive that will reduce places and advanced building systems and the electricity consumed by air conditioning engineering, electrical and computer engi- ‘‘INCREASED USE OF RECOVERED MINERAL COM- and refrigeration equipment. Any such treat- neering, computer science, architecture, PONENT IN FEDERALLY FUNDED PROJECTS IN- ment or additive must be— urban design, and environmental and me- VOLVING PROCUREMENT OF CEMENT OR CON- ‘‘(A) determined by the Secretary to be ef- chanical engineering. Such university shall CRETE fective in increasing the efficiency of air partner with other universities and entities ‘‘SEC. 6005. (a) DEFINITIONS.—In this sec- conditioning and refrigeration equipment who have established programs and the capa- tion: without having an adverse impact on air bility of advancing innovative building effi- ‘‘(1) AGENCY HEAD.—The term ‘agency head’ conditioning performance (including cooling ciency technologies. means— capacity) or equipment useful life; (c) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(A) the Secretary of Transportation; and ‘‘(B) determined by the Administrator of There are authorized to be appropriated to ‘‘(B) the head of each other Federal agency the Environmental Protection Agency to be the Secretary of Energy to carry out this that on a regular basis procures, or provides environmentally safe; and section $6,000,000 for each of the fiscal years Federal funds to pay or assist in paying the ‘‘(C) shown to increase seasonal energy ef- 2004 through 2006, to remain available until cost of procuring, material for cement or ficiency ratio (SEER) or energy efficiency expended. For any fiscal year in which funds concrete projects. ratio (EER) when tested by the National In- are expended under this section, the Sec- ‘‘(2) CEMENT OR CONCRETE PROJECT.—The stitute of Standards and Technology accord- retary shall provide 1⁄3 of the total amount to term ‘cement or concrete project’ means a ing to Department of Energy test procedures the lead university described in subsection project for the construction or maintenance

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of a highway or other transportation facility ‘‘(d) ADDITIONAL PROCUREMENT REQUIRE- servation Act (42 U.S.C. 6325(f)) is amended or a Federal, State, or local government MENTS.—Unless the study conducted under by striking ‘‘for fiscal years 1999 through 2003 building or other public facility that— subsection (c) identifies any effects or other such sums as may be necessary’’ and insert- ‘‘(A) involves the procurement of cement problems described in subsection (c)(2)(C)(iii) ing ‘‘$100,000,000 for each of the fiscal years or concrete; and that warrant further review or delay, the Ad- 2004 and 2005 and $125,000,000 for fiscal year ‘‘(B) is carried out in whole or in part ministrator and each agency head shall, not 2006’’. using Federal funds. later than 1 year after the release of the re- SEC. 124. ENERGY EFFICIENT APPLIANCE RE- ‘‘(3) RECOVERED MINERAL COMPONENT.—The port in accordance with subsection (c)(3), BATE PROGRAMS. term ‘recovered mineral component’ means— take additional actions authorized under (a) DEFINITIONS.—In this section: ‘‘(A) ground granulated blast furnace slag; this Act to establish procurement require- (1) ELIGIBLE STATE.—The term ‘‘eligible ‘‘(B) coal combustion fly ash; and ments and incentives that provide for the State’’ means a State that meets the re- ‘‘(C) any other waste material or byprod- use of cement and concrete with increased quirements of subsection (b). uct recovered or diverted from solid waste substitution of recovered mineral component (2) ENERGY STAR PROGRAM.—The term ‘‘En- that the Administrator, in consultation with in the construction and maintenance of ce- ergy Star program’’ means the program es- an agency head, determines should be treatment or concrete projects, so as to— tablished by section 324A of the Energy Pol- ed as recovered mineral component under ‘‘(1) realize more fully the energy savings icy and Conservation Act. this section for use in cement or concrete and environmental benefits associated with (3) RESIDENTIAL ENERGY STAR PRODUCT.— projects paid for, in whole or in part, by the increased substitution; and The term ‘‘residential Energy Star product’’ agency head. ‘‘(2) eliminate barriers identified under means a product for a residence that is rated ‘‘(b) IMPLEMENTATION OF REQUIREMENTS.— subsection (c). for energy efficiency under the Energy Star ‘‘(1) IN GENERAL.—Not later than 1 year ‘‘(e) EFFECT OF SECTION.—Nothing in this program. after the date of enactment of this section, section affects the requirements of section (4) SECRETARY.—The term ‘‘Secretary’’ the Administrator and each agency head 6002 (including the guidelines and specifica- means the Secretary of Energy. shall take such actions as are necessary to tions for implementing those require- (5) STATE ENERGY OFFICE.—The term implement fully all procurement requirements).’’. ‘‘State energy office’’ means the State agen- ments and incentives in effect as of the date (b) TABLE OF CONTENTS AMENDMENT.—The cy responsible for developing State energy of enactment of this section (including table of contents of the Solid Waste Disposal conservation plans under section 362 of the guidelines under section 6002) that provide Act is amended by adding after the item re- Energy Policy and Conservation Act (42 for the use of cement and concrete incor- lating to section 6004 the following new item: U.S.C. 6322). porating recovered mineral component in ce- ‘‘Sec. 6005. Increased use of recovered min- (6) STATE PROGRAM.—The term ‘‘State pro- ment or concrete projects. eral component in federally gram’’ means a State energy efficient appli- ‘‘(2) PRIORITY.—In carrying out paragraph funded projects involving pro- ance rebate program described in subsection (1) an agency head shall give priority to curement of cement or con- (b)(1). achieving greater use of recovered mineral crete.’’. (b) ELIGIBLE STATES.—A State shall be eli- component in cement or concrete projects Subtitle B—Energy Assistance and State gible to receive an allocation under sub- for which recovered mineral components his- Programs section (c) if the State— torically have not been used or have been (1) establishes (or has established) a State SEC. 121. LOW INCOME HOME ENERGY ASSIST- used only minimally. ANCE PROGRAM. energy efficient appliance rebate program to ‘‘(3) CONFORMANCE.—The Administrator Section 2602(b) of the Low-Income Home provide rebates to residential consumers for and each agency head shall carry out this Energy Assistance Act of 1981 (42 U.S.C. the purchase of residential Energy Star prod- subsection in accordance with section 6002. 8621(b)) is amended by striking ‘‘and ucts to replace used appliances of the same ‘‘(c) FULL IMPLEMENTATION STUDY.— $2,000,000,000 for each of fiscal years 2002 type; ‘‘(1) IN GENERAL.—The Administrator, in through 2004’’ and inserting ‘‘$2,000,000,000 for (2) submits an application for the alloca- cooperation with the Secretary of Transpor- fiscal years 2002 and 2003, and $3,400,000,000 tion at such time, in such form, and con- tation and the Secretary of Energy, shall for each of fiscal years 2004 through 2006’’. taining such information as the Secretary conduct a study to determine the extent to may require; and SEC. 122. WEATHERIZATION ASSISTANCE. which current procurement requirements, (3) provides assurances satisfactory to the Section 422 of the Energy Conservation and when fully implemented in accordance with Secretary that the State will use the alloca- Production Act (42 U.S.C. 6872) is amended subsection (b), may realize energy savings tion to supplement, but not supplant, funds by striking ‘‘for fiscal years 1999 through 2003 and environmental benefits attainable with made available to carry out the State pro- such sums as may be necessary’’ and insert- substitution of recovered mineral component gram. ing ‘‘$325,000,000 for fiscal year 2004, in cement used in cement or concrete (c) AMOUNT OF ALLOCATIONS.— $400,000,000 for fiscal year 2005, and projects. (1) IN GENERAL.—Subject to paragraph (2), $500,000,000 for fiscal year 2006’’. ‘‘(2) MATTERS TO BE ADDRESSED.—The study for each fiscal year, the Secretary shall allo- shall— SEC. 123. STATE ENERGY PROGRAMS. cate to the State energy office of each eligi- ‘‘(A) quantify the extent to which recov- (a) STATE ENERGY CONSERVATION PLANS.— ble State to carry out subsection (d) an ered mineral components are being sub- Section 362 of the Energy Policy and Con- amount equal to the product obtained by stituted for Portland cement, particularly as servation Act (42 U.S.C. 6322) is amended by multiplying the amount made available a result of current procurement require- inserting at the end the following new sub- under subsection (f) for the fiscal year by the ments, and the energy savings and environ- section: ratio that the population of the State in the mental benefits associated with that substi- ‘‘(g) The Secretary shall, at least once most recent calendar year for which data are tution; every 3 years, invite the Governor of each available bears to the total population of all ‘‘(B) identify all barriers in procurement State to review and, if necessary, revise the eligible States in that calendar year. energy conservation plan of such State sub- requirements to greater realization of energy (2) MINIMUM ALLOCATIONS.—For each fiscal savings and environmental benefits, includ- mitted under subsection (b) or (e). Such re- year, the amounts allocated under this sub- ing barriers resulting from exceptions from views should consider the energy conserva- section shall be adjusted proportionately so current law; and tion plans of other States within the region, that no eligible State is allocated a sum that ‘‘(C)(i) identify potential mechanisms to and identify opportunities and actions car- is less than an amount determined by the achieve greater substitution of recovered ried out in pursuit of common energy con- Secretary. servation goals.’’. mineral component in types of cement or (d) USE OF ALLOCATED FUNDS.—The alloca- concrete projects for which recovered min- (b) STATE ENERGY EFFICIENCY GOALS.—Sec- tion to a State energy office under sub- eral components historically have not been tion 364 of the Energy Policy and Conserva- section (c) may be used to pay up to 50 per- used or have been used only minimally; tion Act (42 U.S.C. 6324) is amended to read cent of the cost of establishing and carrying ‘‘(ii) evaluate the feasibility of estab- as follows: out a State program. lishing guidelines or standards for optimized ‘‘STATE ENERGY EFFICIENCY GOALS (e) ISSUANCE OF REBATES.—Rebates may be substitution rates of recovered mineral com- ‘‘SEC. 364. Each State energy conservation provided to residential consumers that meet ponent in those cement or concrete projects; plan with respect to which assistance is the requirements of the State program. The and made available under this part on or after amount of a rebate shall be determined by ‘‘(iii) identify any potential environmental the date of enactment of the Energy Policy the State energy office, taking into consider- or economic effects that may result from Act of 2003 shall contain a goal, consisting of ation— greater substitution of recovered mineral an improvement of 25 percent or more in the (1) the amount of the allocation to the component in those cement or concrete efficiency of use of energy in the State con- State energy office under subsection (c); projects. cerned in calendar year 2010 as compared to (2) the amount of any Federal or State tax ‘‘(3) REPORT.—Not later than 30 months calendar year 1990, and may contain interim incentive available for the purchase of the after the date of enactment of this section, goals.’’. residential Energy Star product; and the Administrator shall submit to Congress (c) AUTHORIZATION OF APPROPRIATIONS.— (3) the difference between the cost of the a report on the study. Section 365(f) of the Energy Policy and Con- residential Energy Star product and the cost

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.083 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4513 of an appliance that is not a residential En- dian tribe, band, nation, or other organized business owners concerning the energy sav- ergy Star product, but is of the same type as, group or community, including any Alaskan ings resulting from properly conducted and is the nearest capacity, performance, Native village or regional or village corpora- maintenance of air conditioning, heating, and other relevant characteristics (as deter- tion as defined in or established pursuant to and ventilating systems. The Secretary shall mined by the State energy office) to, the res- the Alaska Native Claims Settlement Act (43 carry out the program in a cost-shared man- idential Energy Star product. U.S.C. 1601 et seq.), that is recognized as eli- ner in cooperation with the Administrator of (f) AUTHORIZATION OF APPROPRIATIONS.— gible for the special programs and services the Environmental Protection Agency and There are authorized to be appropriated to provided by the United States to Indians be- such other entities as the Secretary con- the Secretary to carry out this section cause of their status as Indians. siders appropriate, including industry trade $50,000,000 for each of the fiscal years 2004 (d) AUTHORIZATION OF APPROPRIATIONS.— associations, industry members, and energy through 2008. For the purposes of this section there are au- efficiency organizations. SEC. 125. ENERGY EFFICIENT PUBLIC BUILD- thorized to be appropriated to the Secretary ‘‘(d) SMALL BUSINESS EDUCATION AND AS- INGS. of Energy $20,000,000 for each of fiscal years SISTANCE.—The Administrator of the Small (a) GRANTS.—The Secretary of Energy may 2004 through 2006. Business Administration, in consultation make grants to the State agency responsible with the Secretary of Energy and the Admin- Subtitle C—Energy Efficient Products for developing State energy conservation istrator of the Environmental Protection plans under section 362 of the Energy Policy SEC. 131. ENERGY STAR PROGRAM. Agency, shall develop and coordinate a Gov- and Conservation Act (42 U.S.C. 6322), or, if (a) AMENDMENT.—The Energy Policy and ernment-wide program, building on the ex- no such agency exists, a State agency des- Conservation Act (42 U.S.C. 6201 et seq.) is isting Energy Star for Small Business Pro- ignated by the Governor of the State, to as- amended by inserting the following after sec- gram, to assist small businesses to become sist units of local government in the State in tion 324: more energy efficient, understand the cost improving the energy efficiency of public ‘‘SEC. 324A. ENERGY STAR PROGRAM. savings obtainable through efficiencies, and buildings and facilities— ‘‘There is established at the Department of identify financing options for energy efficiency upgrades. The Secretary and the Ad- (1) through construction of new energy ef- Energy and the Environmental Protection ministrator of the Small Business Adminis- ficient public buildings that use at least 30 Agency a voluntary program to identify and tration shall make the program information percent less energy than a comparable public promote energy-efficient products and build- available directly to small businesses and building constructed in compliance with ings in order to reduce energy consumption, through other Federal agencies, including standards prescribed in the most recent improve energy security, and reduce pollu- the Federal Emergency Management Pro- version of the International Energy Con- tion through voluntary labeling of or other gram and the Department of Agriculture.’’. servation Code, or a similar State code in- forms of communication about products and tended to achieve substantially equivalent buildings that meet the highest energy effi- SEC. 133. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS. efficiency levels; or ciency standards. Responsibilities under the (a) DEFINITIONS.—Section 321 of the Energy (2) through renovation of existing public program shall be divided between the De- Policy and Conservation Act (42 U.S.C. 6291) buildings to achieve reductions in energy use partment of Energy and the Environmental is amended— of at least 30 percent as compared to the Protection Agency consistent with the terms (1) in paragraph (30)(S), by striking the pe- baseline energy use in such buildings prior to of agreements between the 2 agencies. The riod and adding at the end the following: renovation, assuming a 3-year, weather-nor- Administrator and the Secretary shall— ‘‘but does not include any lamp specifically malized average for calculating such base- ‘‘(1) promote Energy Star compliant tech- designed to be used for special purpose appli- line. nologies as the preferred technologies in the cations and that is unlikely to be used in (b) ADMINISTRATION.—State energy offices marketplace for achieving energy efficiency receiving grants under this section shall— general purpose applications such as those and to reduce pollution; described in subparagraph (D), and also does (1) maintain such records and evidence of ‘‘(2) work to enhance public awareness of compliance as the Secretary may require; not include any lamp not described in sub- the Energy Star label, including special out- paragraph (D) that is excluded by the Sec- and reach to small businesses; (2) develop and distribute information and retary, by rule, because the lamp is designed ‘‘(3) preserve the integrity of the Energy for special applications and is unlikely to be materials and conduct programs to provide Star label; technical services and assistance to encour- used in general purpose applications.’’; and ‘‘(4) solicit comments from interested par- (2) by adding at the end the following: age planning, financing, and design of energy ties prior to establishing or revising an En- efficient public buildings by units of local ‘‘(32) The term ‘battery charger’ means a ergy Star product category, specification, or device that charges batteries for consumer government. criterion (or effective dates for any of the (c) AUTHORIZATION OF APPROPRIATIONS.— products and includes battery chargers em- foregoing); bedded in other consumer products. For the purposes of this section, there are ‘‘(5) upon adoption of a new or revised authorized to be appropriated to the Sec- ‘‘(33) The term ‘commercial refrigerators, product category, specification, or criterion, freezers, and refrigerator-freezers’ means re- retary of Energy $30,000,000 for each of fiscal provide reasonable notice to interested par- years 2004 through 2008. Not more than 10 frigerators, freezers, or refrigerator-freezers ties of any changes (including effective that— percent of appropriated funds shall be used dates) in product categories, specifications, for administration. ‘‘(A) are not consumer products regulated or criteria along with an explanation of such under this Act; and SEC. 126. LOW INCOME COMMUNITY ENERGY EF- changes and, where appropriate, responses to FICIENCY PILOT PROGRAM. ‘‘(B) incorporate most components in- comments submitted by interested parties; volved in the vapor-compression cycle and (a) GRANTS.—The Secretary of Energy is and authorized to make grants to units of local the refrigerated compartment in a single ‘‘(6) provide appropriate lead time (which package. government, private, non-profit community shall be 9 months, unless the Agency or De- development organizations, and Indian tribe ‘‘(34) The term ‘external power supply’ partment determines otherwise) prior to the means an external power supply circuit that economic development entities to improve effective date for a new or a significant revi- energy efficiency; identify and develop alter- is used to convert household electric current sion to a product category, specification, or into either DC current or lower-voltage AC native, renewable, and distributed energy criterion, taking into account the timing re- supplies; and increase energy conservation in current to operate a consumer product. quirements of the manufacturing, product ‘‘(35) The term ‘illuminated exit sign’ low income rural and urban communities. marketing, and distribution process for the (b) PURPOSE OF GRANTS.—The Secretary means a sign that— specific product addressed.’’. may make grants on a competitive basis ‘‘(A) is designed to be permanently fixed in (b) TABLE OF CONTENTS AMENDMENT.—The for— place to identify an exit; and table of contents of the Energy Policy and (1) investments that develop alternative, ‘‘(B) consists of an electrically powered in- Conservation Act is amended by inserting renewable, and distributed energy supplies; tegral light source that illuminates the leg- after the item relating to section 324 the fol- (2) energy efficiency projects and energy end ‘EXIT’ and any directional indicators lowing new item: conservation programs; and provides contrast between the legend, (3) studies and other activities that im- ‘‘Sec. 324A. Energy Star program.’’. any directional indicators, and the back- prove energy efficiency in low income rural SEC. 132. HVAC MAINTENANCE CONSUMER EDU- ground. and urban communities; CATION PROGRAM. ‘‘(36)(A) Except as provided in subpara- (4) planning and development assistance Section 337 of the Energy Policy and Con- graph (B), the term ‘distribution trans- for increasing the energy efficiency of build- servation Act (42 U.S.C. 6307) is amended by former’ means a transformer that— ings and facilities; and adding at the end the following: ‘‘(i) has an input voltage of 34.5 kilovolts (5) technical and financial assistance to ‘‘(c) HVAC MAINTENANCE.—For the purpose or less; local government and private entities on de- of ensuring that installed air conditioning ‘‘(ii) has an output voltage of 600 volts or veloping new renewable and distributed and heating systems operate at their max- less; and sources of power or combined heat and power imum rated efficiency levels, the Secretary ‘‘(iii) is rated for operation at a frequency generation. shall, not later than 180 days after the date of 60 Hertz. (c) DEFINITION.—For purposes of this sec- of enactment of this subsection, carry out a ‘‘(B) The term ‘distribution transformer’ tion, the term ‘‘Indian tribe’’ means any In- program to educate homeowners and small does not include—

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.083 S28PT1 S4514 CONGRESSIONAL RECORD — SENATE April 28, 2004 ‘‘(i) transformers with multiple voltage tion transformers for which the Secretary ergy conservation standards pursuant to this taps, with the highest voltage tap equaling makes a determination that energy con- section should be revised, the Secretary shall at least 20 percent more than the lowest servation standards would be technologically consider, for covered products that are major voltage tap; feasible and economically justified, and sources of standby mode energy consump- ‘‘(ii) transformers, such as those commonly would result in significant energy savings. tion, whether to incorporate standby mode known as drive transformers, rectifier trans- ‘‘(11) Test procedures for traffic signal into such test procedures and energy con- formers, auto-transformers, Uninterruptible modules shall be based on the test method servation standards, taking into account, Power System transformers, impedance used under the Energy Star program of the among other relevant factors, standby mode transformers, harmonic transformers, regu- Environmental Protection Agency for traffic power consumption compared to overall lating transformers, sealed and nonven- signal modules, as in effect on the date of en- product energy consumption. tilating transformers, machine tool trans- actment of this paragraph. ‘‘(3) RULEMAKING.—The Secretary shall not formers, welding transformers, grounding ‘‘(12) Test procedures for medium base propose a standard under this section unless transformers, or testing transformers, that compact fluorescent lamps shall be based on the Secretary has issued applicable test pro- are designed to be used in a special purpose the test methods used under the August 9, cedures for each product pursuant to section application and are unlikely to be used in 2001, version of the Energy Star program of 323. general purpose applications; or the Environmental Protection Agency and ‘‘(4) EFFECTIVE DATE.—Any standard issued ‘‘(iii) any transformer not listed in clause Department of Energy for compact fluores- under this subsection shall be applicable to (ii) that is excluded by the Secretary by rule cent lamps. Covered products shall meet all products manufactured or imported 3 years because— test requirements for regulated parameters after the date of issuance. ‘‘(I) the transformer is designed for a spe- in section 325(bb). However, covered products ‘‘(5) VOLUNTARY PROGRAMS.—The Secretary cial application; may be marketed prior to completion of and the Administrator shall collaborate and ‘‘(II) the transformer is unlikely to be used lamp life and lumen maintenance at 40 per- develop programs, including programs pursu- in general purpose applications; and cent of rated life testing provided manufac- ant to section 324A (relating to Energy Star ‘‘(III) the application of standards to the turers document engineering predictions and Programs) and other voluntary industry transformer would not result in significant analysis that support expected attainment of agreements or codes of conduct, that are de- energy savings. lumen maintenance at 40 percent rated life signed to reduce standby mode energy use. ‘‘(37) The term ‘low-voltage dry-type dis- and lamp life time.’’; and ‘‘(v) SUSPENDED CEILING FANS, VENDING tribution transformer’ means a distribution (2) by adding at the end the following: MACHINES, AND COMMERCIAL REFRIGERATORS, transformer that— ‘‘(f) ADDITIONAL CONSUMER AND COMMER- FREEZERS, AND REFRIGERATOR-FREEZERS.— ‘‘(A) has an input voltage of 600 volts or CIAL PRODUCTS.—The Secretary shall, not The Secretary shall not later than 36 months less; later than 24 months after the date of enact- after the date on which testing requirements ‘‘(B) is air-cooled; and ment of this subsection, prescribe testing re- are prescribed by the Secretary pursuant to ‘‘(C) does not use oil as a coolant. quirements for suspended ceiling fans, refrig- section 323(f), prescribe, by rule, energy con- ‘‘(38) The term ‘standby mode’ means the erated bottled or canned beverage vending servation standards for suspended ceiling lowest power consumption mode that— machines, and commercial refrigerators, fans, refrigerated bottled or canned beverage ‘‘(A) cannot be switched off or influenced freezers, and refrigerator-freezers. Such test- vending machines, and commercial refrig- by the user; and ing requirements shall be based on existing erators, freezers, and refrigerator-freezers. In ‘‘(B) may persist for an indefinite time test procedures used in industry to the ex- establishing standards under this subsection, when an appliance is connected to the main tent practical and reasonable. In the case of the Secretary shall use the criteria and pro- electricity supply and used in accordance suspended ceiling fans, such test procedures cedures contained in subsections (o) and (p). with the manufacturer’s instructions, shall include efficiency at both maximum Any standard prescribed under this sub- output and at an output no more than 50 per- as defined on an individual product basis by section shall apply to products manufactured cent of the maximum output.’’. 3 years after the date of publication of a the Secretary. (c) NEW STANDARDS.—Section 325 of the En- ‘‘(39) The term ‘torchiere’ means a portable final rule establishing such standard. ergy Policy and Conservation Act (42 U.S.C. ‘‘(w) ILLUMINATED EXIT SIGNS.—Illumi- electric lamp with a reflector bowl that di- 6295) is amended by adding at the end the fol- nated exit signs manufactured on or after rects light upward so as to give indirect illu- lowing: January 1, 2005, shall meet the Version 2.0 mination. ‘‘(u) BATTERY CHARGER AND EXTERNAL Energy Star Program performance require- ‘‘(40) The term ‘traffic signal module’ POWER SUPPLY ELECTRIC ENERGY CONSUMP- ments for illuminated exit signs prescribed means a standard 8-inch (200mm) or 12-inch TION.— by the Environmental Protection Agency. (300mm) traffic signal indication, consisting ‘‘(1) INITIAL RULEMAKING.—(A) The Sec- ‘‘(x) TORCHIERES.—Torchieres manufac- of a light source, a lens, and all other parts retary shall, within 18 months after the date tured on or after January 1, 2005— necessary for operation, that communicates of enactment of this subsection, prescribe by ‘‘(1) shall consume not more than 190 watts movement messages to drivers through red, notice and comment, definitions and test of power; and amber, and green colors. procedures for the power use of battery char- ‘‘(2) shall not be capable of operating with ‘‘(41) The term ‘transformer’ means a de- gers and external power supplies. In estab- lamps that total more than 190 watts. vice consisting of 2 or more coils of insulated lishing these test procedures, the Secretary ‘‘(y) LOW VOLTAGE DRY-TYPE DISTRIBUTION wire that transfers alternating current by shall consider, among other factors, existing TRANSFORMERS.—The efficiency of low volt- electromagnetic induction from 1 coil to an- definitions and test procedures used for age dry-type distribution transformers man- other to change the original voltage or cur- measuring energy consumption in standby ufactured on or after January 1, 2005, shall be rent value. mode and other modes and assess the current the Class I Efficiency Levels for distribution ‘‘(42) The term ‘unit heater’ means a self- and projected future market for battery transformers specified in Table 4–2 of the contained fan-type heater designed to be in- chargers and external power supplies. This ‘Guide for Determining Energy Efficiency for stalled within the heated space, except that assessment shall include estimates of the Distribution Transformers’ published by the such term does not include a warm air fur- significance of potential energy savings from National Electrical Manufacturers Associa- nace.’’. technical improvements to these products tion (NEMA TP–1–2002). (b) TEST PROCEDURES.—Section 323 of the and suggested product classes for standards. ‘‘(z) TRAFFIC SIGNAL MODULES.—Traffic sig- Energy Policy and Conservation Act (42 Prior to the end of this time period, the Sec- nal modules manufactured on or after Janu- U.S.C. 6293) is amended— retary shall hold a scoping workshop to dis- ary 1, 2006, shall meet the performance re- (1) in subsection (b), by adding at the end cuss and receive comments on plans for de- quirements used under the Energy Star pro- the following: veloping energy conservation standards for gram of the Environmental Protection Agen- ‘‘(9) Test procedures for illuminated exit energy use for these products. cy for traffic signals, as in effect on the date signs shall be based on the test method used ‘‘(B) The Secretary shall, within 3 years of enactment of this subsection, and shall be under Version 2.0 of the Energy Star pro- after the date of enactment of this sub- installed with compatible, electrically con- gram of the Environmental Protection Agen- section, issue a final rule that determines nected signal control interface devices and cy for illuminated exit signs. whether energy conservation standards shall conflict monitoring systems. ‘‘(10) Test procedures for distribution be issued for battery chargers and external ‘‘(aa) UNIT HEATERS.—Unit heaters manu- transformers and low voltage dry-type dis- power supplies or classes thereof. For each factured on or after the date that is 3 years tribution transformers shall be based on the product class, any such standards shall be after the date of enactment of this sub- ‘Standard Test Method for Measuring the set at the lowest level of energy use that— section shall be equipped with an intermit- Energy Consumption of Distribution Trans- ‘‘(i) meets the criteria and procedures of tent ignition device and shall have either formers’ prescribed by the National Elec- subsections (o), (p), (q), (r), (s), and (t); and power venting or an automatic flue damper. trical Manufacturers Association (NEMA TP ‘‘(ii) will result in significant overall an- ‘‘(bb) MEDIUM BASE COMPACT FLUORESCENT 2–1998). The Secretary may review and revise nual energy savings, considering both stand- LAMPS.—Bare lamp and covered lamp (no re- this test procedure. For purposes of section by mode and other operating modes. flector) medium base compact fluorescent 346(a), this test procedure shall be deemed to ‘‘(2) REVIEW OF STANDBY ENERGY USE IN COV- lamps manufactured on or after January 1, be testing requirements prescribed by the ERED PRODUCTS.—In determining pursuant to 2005, shall meet the following requirements Secretary under section 346(a)(1) for distribu- section 323 whether test procedures and en- prescribed by the August 9, 2001, version of

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.084 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4515 the Energy Star Program Requirements for turers Association (NEMA TP–3) as in effect SEC. 144. PUBLIC HOUSING CAPITAL FUND. Compact Fluorescent Lamps, Energy Star upon the date of enactment of this para- Section 9 of the United States Housing Act Eligibility Criteria, Energy-Efficiency Speci- graph.’’. of 1937 (42 U.S.C. 1437g) is amended— fication issued by the Environmental Protec- Subtitle D—Public Housing (1) in subsection (d)(1)— tion Agency and Department of Energy: min- (A) in subparagraph (I), by striking ‘‘and’’ SEC. 141. CAPACITY BUILDING FOR ENERGY-EFFI- imum initial efficacy; lumen maintenance at CIENT, AFFORDABLE HOUSING. at the end; 1000 hours; lumen maintenance at 40 percent Section 4(b) of the HUD Demonstration (B) in subparagraph (J), by striking the pe- of rated life; rapid cycle stress test; and lamp Act of 1993 (42 U.S.C. 9816 note) is amended— riod at the end and inserting a semicolon; life. The Secretary may, by rule, establish (1) in paragraph (1), by inserting before the and requirements for color quality (CRI); power semicolon at the end the following: ‘‘, includ- (C) by adding at the end the following new factor; operating frequency; and maximum ing capabilities regarding the provision of subparagraphs: allowable start time based on the require- energy efficient, affordable housing and resi- ‘‘(K) improvement of energy and water-use ments prescribed by the August 9, 2001, dential energy conservation measures’’; and efficiency by installing fixtures and fittings version of the Energy Star Program Require- (2) in paragraph (2), by inserting before the that conform to the American Society of Me- ments for Compact Fluorescent Lamps. The semicolon the following: ‘‘, including such chanical Engineers/American National Secretary may, by rule, revise these require- activities relating to the provision of energy Standards Institute standards A112.19.2–1998 ments or establish other requirements con- efficient, affordable housing and residential and A112.18.1–2000, or any revision thereto, sidering energy savings, cost effectiveness, energy conservation measures that benefit applicable at the time of installation, and by and consumer satisfaction. low-income families’’. increasing energy efficiency and water con- ‘‘(cc) EFFECTIVE DATE.—Section 327 shall servation by such other means as the Sec- apply— SEC. 142. INCREASE OF CDBG PUBLIC SERVICES retary determines are appropriate; and CAP FOR ENERGY CONSERVATION ‘‘(1) to products for which standards are to AND EFFICIENCY ACTIVITIES. ‘‘(L) integrated utility management and be established under subsections (u) and (v) Section 105(a)(8) of the Housing and Com- capital planning to maximize energy con- on the date on which a final rule is issued by munity Development Act of 1974 (42 U.S.C. servation and efficiency measures.’’; and the Department of Energy, except that any 5305(a)(8)) is amended— (2) in subsection (e)(2)(C)— State or local standards prescribed or en- (1) by inserting ‘‘or efficiency’’ after ‘‘en- (A) by striking ‘‘The’’ and inserting the acted for any such product prior to the date ergy conservation’’; following: on which such final rule is issued shall not (2) by striking ‘‘, and except that’’ and in- ‘‘(i) IN GENERAL.—The’’; and be preempted until the standard established serting ‘‘; except that’’; and (B) by adding at the end the following: under subsection (u) or (v) for that product (3) by inserting before the semicolon at the ‘‘(ii) THIRD PARTY CONTRACTS.—Contracts takes effect; and end the following: ‘‘; and except that each described in clause (i) may include contracts ‘‘(2) to products for which standards are es- percentage limitation under this paragraph for equipment conversions to less costly util- tablished under subsections (w) through (bb) on the amount of assistance provided under ity sources, projects with resident-paid utili- on the date of enactment of those sub- this title that may be used for the provision ties, and adjustments to frozen base year sections, except that any State or local of public services is hereby increased by 10 consumption, including systems repaired to standards prescribed or enacted prior to the percent, but such percentage increase may meet applicable building and safety codes date of enactment of those subsections shall be used only for the provision of public serv- and adjustments for occupancy rates in- not be preempted until the standards estab- ices concerning energy conservation or effi- creased by rehabilitation. lished under subsections (w) through (bb) ciency’’. ‘‘(iii) TERM OF CONTRACT.—The total term take effect.’’. of a contract described in clause (i) shall not SEC. 143. FHA MORTGAGE INSURANCE INCEN- ESIDENTIAL URNACE ANS (d) R F F .—Section TIVES FOR ENERGY EFFICIENT exceed 20 years to allow longer payback peri- 325(f)(3) of the Energy Policy and Conserva- HOUSING. ods for retrofits, including windows, heating tion Act (42 U.S.C. 6295(f)(3)) is amended by (a) SINGLE FAMILY HOUSING MORTGAGE IN- system replacements, wall insulation, site- adding the following new subparagraph at SURANCE.—Section 203(b)(2) of the National based generation, advanced energy savings the end: Housing Act (12 U.S.C. 1709(b)(2)) is amended, technologies, including renewable energy ‘‘(D) Notwithstanding any provision of this in the first undesignated paragraph begin- generation, and other such retrofits.’’. Act, the Secretary may consider, and pre- ning after subparagraph (B)(ii)(IV) (relating SEC. 145. GRANTS FOR ENERGY-CONSERVING IM- scribe, if the requirements of subsection (o) to solar energy systems), by striking ‘‘20 per- PROVEMENTS FOR ASSISTED HOUS- of this section are met, energy efficiency or cent’’ and inserting ‘‘30 percent’’. ING. energy use standards for electricity used for (b) MULTIFAMILY HOUSING MORTGAGE IN- Section 251(b)(1) of the National Energy purposes of circulating air through duct SURANCE.—Section 207(c) of the National Conservation Policy Act (42 U.S.C. 8231(1)) is work.’’. Housing Act (12 U.S.C. 1713(c)) is amended, in amended— SEC. 134. ENERGY LABELING. the last undesignated paragraph beginning (1) by striking ‘‘financed with loans’’ and (a) RULEMAKING ON EFFECTIVENESS OF CON- after paragraph (3) (relating to solar energy inserting ‘‘assisted’’; SUMER PRODUCT LABELING.—Section 324(a)(2) systems and residential energy conservation (2) by inserting after ‘‘1959,’’ the following: of the Energy Policy and Conservation Act measures), by striking ‘‘20 percent’’ and in- ‘‘which are eligible multifamily housing (42 U.S.C. 6294(a)(2)) is amended by adding at serting ‘‘30 percent’’. projects (as such term is defined in section the end the following: (c) COOPERATIVE HOUSING MORTGAGE INSUR- 512 of the Multifamily Assisted Housing Re- ‘‘(F) Not later than 3 months after the date ANCE.—Section 213(p) of the National Hous- form and Affordability Act of 1997 (42 U.S.C. of enactment of this subparagraph, the Com- ing Act (12 U.S.C. 1715e(p)) is amended by 1437f note)) and are subject to mortgage remission shall initiate a rulemaking to con- striking ‘‘20 per centum’’ and inserting ‘‘30 structuring and rental assistance sufficiency sider the effectiveness of the current con- percent’’. plans under such Act,’’; and sumer products labeling program in assisting (d) REHABILITATION AND NEIGHBORHOOD (3) by inserting after the period at the end consumers in making purchasing decisions CONSERVATION HOUSING MORTGAGE INSUR- of the first sentence the following new sen- and improving energy efficiency and to con- ANCE.—Section 220(d)(3)(B)(iii)(IV) of the Na- tence: ‘‘Such improvements may also include sider changes to the labeling rules that tional Housing Act (12 U.S.C. the installation of energy and water con- would improve the effectiveness of consumer 1715k(d)(3)(B)(iii)(IV)) is amended— serving fixtures and fittings that conform to product labels. Such rulemaking shall be (1) by striking ‘‘with respect to rehabilita- the American Society of Mechanical Engi- completed not later than 2 years after the tion projects involving not more than five neers/American National Standards Institute date of enactment of this subparagraph.’’. family units,’’; and standards A112.19.2–1998 and A112.18.1–2000, or (b) RULEMAKING ON LABELING FOR ADDI- (2) by striking ‘‘20 per centum’’ and insert- any revision thereto, applicable at the time TIONAL PRODUCTS.—Section 324(a) of the En- ing ‘‘30 percent’’. of installation.’’. ergy Policy and Conservation Act (42 U.S.C. (e) LOW-INCOME MULTIFAMILY HOUSING SEC. 146. NORTH AMERICAN DEVELOPMENT 6294(a)) is further amended by adding at the MORTGAGE INSURANCE.—Section 221(k) of the BANK. end the following: National Housing Act (12 U.S.C. 1715l(k)) is Part 2 of subtitle D of title V of the North ‘‘(5) The Secretary or the Commission, as amended by striking ‘‘20 per centum’’ and in- American Free Trade Agreement Implemen- appropriate, may, for covered products re- serting ‘‘30 percent’’. tation Act (22 U.S.C. 290m–290m–3) is amend- ferred to in subsections (u) through (aa) of (f) ELDERLY HOUSING MORTGAGE INSUR- ed by adding at the end the following: section 325, prescribe, by rule, pursuant to ANCE.—Section 231(c)(2)(C) of the National ‘‘SEC. 545. SUPPORT FOR CERTAIN ENERGY POLI- this section, labeling requirements for such Housing Act (12 U.S.C. 1715v(c)(2)(C)) is CIES. products after a test procedure has been set amended by striking ‘‘20 per centum’’ and in- ‘‘Consistent with the focus of the Bank’s pursuant to section 323. In the case of prod- serting ‘‘30 percent’’. Charter on environmental infrastructure ucts to which TP–1 standards under section (g) CONDOMINIUM HOUSING MORTGAGE IN- projects, the Board members representing 325(y) apply, labeling requirements shall be SURANCE.—Section 234(j) of the National the United States should use their voice and based on the ‘Standard for the Labeling of Housing Act (12 U.S.C. 1715y(j)) is amended vote to encourage the Bank to finance Distribution Transformer Efficiency’ pre- by striking ‘‘20 per centum’’ and inserting projects related to clean and efficient en- scribed by the National Electrical Manufac- ‘‘30 percent’’. ergy, including energy conservation, that

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prevent, control, or reduce environmental necessary, taking into account changes in ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— pollutants or contaminants.’’. market conditions, available technologies, ‘‘(1) IN GENERAL.—Subject to paragraph (2), SEC. 147. ENERGY-EFFICIENT APPLIANCES. and other relevant factors. there are authorized to be appropriated such In purchasing appliances, a public housing (b) CONTENTS OF REPORTS.—Not later than sums as may be necessary to carry out this agency shall purchase energy-efficient appli- 1 year after the date of enactment of this section for fiscal years 2003 through 2023. ances that are Energy Star products or Act, and each year thereafter, the Secretary ‘‘(2) AVAILABILITY OF FUNDS.—Funds made FEMP-designated products, as such terms shall publish a report based on the assess- available under paragraph (1) shall remain are defined in section 553 of the National En- ment under subsection (a). The report shall available until expended.’’. ergy Conservation Policy Act (as amended contain— SEC. 203. FEDERAL PURCHASE REQUIREMENT. by this title), unless the purchase of energy- (1) a detailed inventory describing the (a) REQUIREMENT.—The President, acting efficient appliances is not cost-effective to available amount and characteristics of the through the Secretary of Energy, shall seek the agency. renewable energy resources; and to ensure that, to the extent economically (2) such other information as the Secretary SEC. 148. ENERGY EFFICIENCY STANDARDS. feasible and technically practicable, of the believes would be useful in developing such Section 109 of the Cranston-Gonzalez Na- total amount of electric energy the Federal renewable energy resources, including de- tional Affordable Housing Act (42 U.S.C. Government consumes during any fiscal scriptions of surrounding terrain, population 12709) is amended— year, the following amounts shall be renew- and load centers, nearby energy infrastruc- (1) in subsection (a)— able energy: ture, location of energy and water resources, (A) in paragraph (1)— (1) Not less than 3 percent in fiscal years and available estimates of the costs needed (i) by striking ‘‘1 year after the date of the 2005 through 2007. to develop each resource, together with an enactment of the Energy Policy Act of 1992’’ (2) Not less than 5 percent in fiscal years identification of any barriers to providing and inserting ‘‘September 30, 2004’’; 2008 through 2010. adequate transmission for remote sources of (ii) in subparagraph (A), by striking ‘‘and’’ (3) Not less than 7.5 percent in fiscal year renewable energy resources to current and at the end; 2011 and each fiscal year thereafter. emerging markets, recommendations for re- (iii) in subparagraph (B), by striking the (b) DEFINITIONS.—In this section: moving or addressing such barriers, and period at the end and inserting ‘‘; and’’; and (1) BIOMASS.—The term ‘‘biomass’’ means ways to provide access to the grid that do (iv) by adding at the end the following: any solid, nonhazardous, cellulosic material not unfairly disadvantage renewable or other ‘‘(C) rehabilitation and new construction of that is derived from— energy producers. public and assisted housing funded by HOPE (A) any of the following forest-related re- (c) AUTHORIZATION OF APPROPRIATIONS.— VI revitalization grants under section 24 of sources: mill residues, precommercial For the purposes of this section, there are thinnings, slash, and brush, or nonmerchant- the United States Housing Act of 1937 (42 authorized to be appropriated to the Sec- U.S.C. 1437v), where such standards are de- able material; retary of Energy $10,000,000 for each of fiscal (B) solid wood waste materials, including termined to be cost effective by the Sec- years 2004 through 2008. retary of Housing and Urban Development.’’; waste pallets, crates, dunnage, manufac- SEC. 202. RENEWABLE ENERGY PRODUCTION IN- turing and construction wood wastes (other and CENTIVE. (B) in paragraph (2), by striking ‘‘Council than pressure-treated, chemically-treated, or (a) INCENTIVE PAYMENTS.—Section 1212(a) painted wood wastes), and landscape or of American’’ and all that follows through of the Energy Policy Act of 1992 (42 U.S.C. ‘‘90.1–1989’)’’ and inserting ‘‘2003 Inter- right-of-way tree trimmings, but not includ- 13317(a)) is amended by striking ‘‘and which ing municipal solid waste (garbage), gas de- national Energy Conservation Code’’; satisfies’’ and all that follows through ‘‘Sec- (2) in subsection (b)— rived from the biodegradation of solid waste, retary shall establish.’’ and inserting ‘‘. If or paper that is commonly recycled; (A) by striking ‘‘within 1 year after the there are insufficient appropriations to date of the enactment of the Energy Policy (C) agriculture wastes, including orchard make full payments for electric production tree crops, vineyard, grain, legumes, sugar, Act of 1992’’ and inserting ‘‘by September 30, from all qualified renewable energy facilities 2004’’; and and other crop by-products or residues, and in any given year, the Secretary shall assign livestock waste nutrients; or (B) by striking ‘‘CABO’’ and all that fol- 60 percent of appropriated funds for that lows through ‘‘1989’’ and inserting ‘‘the 2003 (D) a plant that is grown exclusively as a year to facilities that use solar, wind, geo- fuel for the production of electricity. International Energy Conservation Code’’; thermal, or closed-loop (dedicated energy (2) RENEWABLE ENERGY.—The term ‘‘renew- and crops) biomass technologies to generate elec- (3) in subsection (c)— able energy’’ means electric energy gen- tricity, and assign the remaining 40 percent erated from solar, wind, biomass, landfill (A) in the heading, by striking ‘‘MODEL EN- to other projects. The Secretary may, after ERGY CODE’’ and inserting ‘‘THE INTER- gas, geothermal, municipal solid waste, or transmitting to Congress an explanation of new hydroelectric generation capacity NATIONAL ENERGY CONSERVATION CODE’’; and the reasons therefor, alter the percentage re- (B) by striking ‘‘CABO’’ and all that fol- achieved from increased efficiency or addi- quirements of the preceding sentence.’’. tions of new capacity at an existing hydro- lows through ‘‘1989’’ and inserting ‘‘the 2003 (b) QUALIFIED RENEWABLE ENERGY FACIL- electric project. International Energy Conservation Code’’. ITY.—Section 1212(b) of the Energy Policy (c) CALCULATION.—For purposes of deter- SEC. 149. ENERGY STRATEGY FOR HUD. Act of 1992 (42 U.S.C. 13317(b)) is amended— mining compliance with the requirement of The Secretary of Housing and Urban Devel- (1) by striking ‘‘a State or any political’’ this section, the amount of renewable energy opment shall develop and implement an inte- and all that follows through ‘‘nonprofit elec- shall be doubled if— grated strategy to reduce utility expenses trical cooperative’’ and inserting ‘‘a not-for- (1) the renewable energy is produced and through cost-effective energy conservation profit electric cooperative, a public utility used on-site at a Federal facility; and efficiency measures and energy efficient described in section 115 of the Internal Rev- (2) the renewable energy is produced on design and construction of public and as- enue Code of 1986, a State, Commonwealth, Federal lands and used at a Federal facility; sisted housing. The energy strategy shall in- territory, or possession of the United States or clude the development of energy reduction or the District of Columbia, or a political (3) the renewable energy is produced on In- goals and incentives for public housing agen- subdivision thereof, or an Indian tribal gov- dian land as defined in title XXVI of the En- cies. The Secretary shall submit a report to ernment or subdivision thereof,’’; and ergy Policy Act of 1992 (25 U.S.C. 3501 et seq.) Congress, not later than 1 year after the date (2) by inserting ‘‘landfill gas,’’ after ‘‘wind, and used at a Federal facility. of the enactment of this Act, on the energy biomass,’’. (d) REPORT.—Not later than April 15, 2005, strategy and the actions taken by the De- (c) ELIGIBILITY WINDOW.—Section 1212(c) of and every 2 years thereafter, the Secretary partment of Housing and Urban Development the Energy Policy Act of 1992 (42 U.S.C. of Energy shall provide a report to Congress to monitor the energy usage of public hous- 13317(c)) is amended by striking ‘‘during the on the progress of the Federal Government ing agencies and shall submit an update 10-fiscal year period beginning with the first in meeting the goals established by this sec- every 2 years thereafter on progress in im- full fiscal year occurring after the enact- tion. plementing the strategy. ment of this section’’ and inserting ‘‘after SEC. 204. INSULAR AREAS ENERGY SECURITY. TITLE II—RENEWABLE ENERGY October 1, 2003, and before October 1, 2013’’. (d) AMOUNT OF PAYMENT.—Section Section 604 of the Act entitled ‘‘An Act to Subtitle A—General Provisions 1212(e)(1) of the Energy Policy Act of 1992 (42 authorize appropriations for certain insular SEC. 201. ASSESSMENT OF RENEWABLE ENERGY U.S.C. 13317(e)(1)) is amended by inserting areas of the United States, and for other pur- RESOURCES. ‘‘landfill gas,’’ after ‘‘wind, biomass,’’. poses’’, approved December 24, 1980 (48 U.S.C. (a) RESOURCE ASSESSMENT.—Not later than (e) SUNSET.—Section 1212(f) of the Energy 1492), is amended— 6 months after the date of enactment of this Policy Act of 1992 (42 U.S.C. 13317(f)) is (1) in subsection (a)(4) by striking the pe- Act, and each year thereafter, the Secretary amended by striking ‘‘the expiration of’’ and riod and inserting a semicolon; of Energy shall review the available assess- all that follows through ‘‘of this section’’ (2) by adding at the end of subsection (a) ments of renewable energy resources within and inserting ‘‘September 30, 2023’’. the following new paragraphs: the United States, including solar, wind, bio- (f) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(5) electric power transmission and dis- mass, ocean (tidal, wave, current, and ther- Section 1212(g) of the Energy Policy Act of tribution lines in insular areas are inad- mal), geothermal, and hydroelectric energy 1992 (42 U.S.C. 13317(g)) is amended to read as equate to withstand damage caused by the resources, and undertake new assessments as follows: hurricanes and typhoons which frequently

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occur in insular areas and such damage often ‘‘(C) PRIORITY.—When making grants under ‘‘(b) PHOTOVOLTAIC SYSTEMS EVALUATION costs millions of dollars to repair; and this paragraph, the Secretary shall give pri- PROGRAM.— ‘‘(6) the refinement of renewable energy ority to grants for projects which are likely ‘‘(1) IN GENERAL.—Not later than 60 days technologies since the publication of the 1982 to— after the date of enactment of this section, Territorial Energy Assessment prepared pur- ‘‘(i) have the greatest impact on reducing the Administrator, in consultation with the suant to subsection (c) reveals the need to future disaster losses; and Secretary of Energy, shall establish a photo- reassess the state of energy production, con- ‘‘(ii) best conform with plans that have voltaic solar energy systems evaluation pro- sumption, infrastructure, reliance on im- been approved by the Federal Government or gram to evaluate such photovoltaic solar en- ported energy, opportunities for energy con- the government of the insular area where the ergy systems as are required in public build- servation and increased energy efficiency, project is to be carried out for development ings. and indigenous sources in regard to the insu- or hazard mitigation for that insular area. ‘‘(2) PROGRAM REQUIREMENT.—In evaluating lar areas.’’; ‘‘(D) MATCHING REQUIREMENT.—The Federal photovoltaic solar energy systems under the (3) by amending subsection (e) to read as share of the cost for a project for which a program, the Administrator shall ensure follows: grant is provided under this paragraph shall that such systems reflect the most advanced ‘‘(e)(1) The Secretary of the Interior, in not exceed 75 percent of the total cost of technology. consultation with the Secretary of Energy that project. The non-Federal share of the ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— and the head of government of each insular cost may be provided in the form of cash or ‘‘(1) PHOTOVOLTAIC ENERGY COMMERCIALIZA- TION PROGRAM.—There are authorized to be area, shall update the plans required under services. appropriated to carry out subsection (a) subsection (c) by— ‘‘(E) TREATMENT OF FUNDS FOR CERTAIN $50,000,000 for each of fiscal years 2004 ‘‘(A) updating the contents required by PURPOSES.—Grants provided under this para- through 2008. Such sums shall remain avail- subsection (c); graph shall not be considered as income, a able until expended. ‘‘(B) drafting long-term energy plans for resource, or a duplicative program when de- ‘‘(2) PHOTOVOLTAIC SYSTEMS EVALUATION such insular areas with the objective of re- termining eligibility or benefit levels for PROGRAM.—There are authorized to be appro- ducing, to the extent feasible, their reliance Federal major disaster and emergency as- priated to carry out subsection (b) $10,000,000 on energy imports by the year 2010, increas- sistance. ‘‘(F) AUTHORIZATION OF APPROPRIATIONS.— for each of fiscal years 2004 through 2008. ing energy conservation and energy effi- There are authorized to be appropriated to Such sums shall remain available until ex- ciency, and maximizing, to the extent fea- carry out this paragraph $5,000,000 for each pended.’’. sible, use of indigenous energy sources; and fiscal year beginning after the date of the en- (b) CONFORMING AMENDMENT.—The section ‘‘(C) drafting long-term energy trans- actment of this paragraph.’’. analysis for such chapter is amended by in- mission line plans for such insular areas serting after the item relating to section 3176 with the objective that the maximum per- SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS. the following: centage feasible of electric power trans- (a) IN GENERAL.—Subchapter VI of chapter ‘‘3177. Use of photovoltaic energy in public mission and distribution lines in each insu- 31 of title 40, United States Code, is amended buildings.’’. lar area be protected from damage caused by by adding at the end the following: SEC. 206. GRANTS TO IMPROVE THE COMMER- hurricanes and typhoons. ‘‘§ 3177. Use of photovoltaic energy in public CIAL VALUE OF FOREST BIOMASS ‘‘(2) Not later than December 31, 2005, the buildings FOR ELECTRIC ENERGY, USEFUL Secretary of the Interior shall submit to HEAT, TRANSPORTATION FUELS, PE- ‘‘(a) PHOTOVOLTAIC ENERGY COMMER- Congress the updated plans for each insular TROLEUM-BASED PRODUCT SUB- CIALIZATION PROGRAM.— area required by this subsection.’’; and STITUTES, AND OTHER COMMER- ‘‘(1) IN GENERAL.—The Administrator of (4) by amending subsection (g)(4) to read as CIAL PURPOSES. General Services may establish a photo- (a) FINDINGS.—Congress finds the fol- follows: voltaic energy commercialization program lowing: ‘‘(4) POWER LINE GRANTS FOR INSULAR for the procurement and installation of pho- (1) Thousands of communities in the AREAS.— tovoltaic solar electric systems for electric United States, many located near Federal ‘‘(A) IN GENERAL.—The Secretary of the In- production in new and existing public build- lands, are at risk to wildfire. Approximately terior is authorized to make grants to gov- ings. 190,000,000 acres of land managed by the Sec- ernments of insular areas of the United ‘‘(2) PURPOSES.—The purposes of the pro- retary of Agriculture and the Secretary of States to carry out eligible projects to program shall be to accomplish the following: the Interior are at risk of catastrophic fire tect electric power transmission and dis- ‘‘(A) To accelerate the growth of a com- in the near future. The accumulation of tribution lines in such insular areas from mercially viable photovoltaic industry to heavy forest fuel loads continues to increase damage caused by hurricanes and typhoons. make this energy system available to the as a result of disease, insect infestations, and ‘‘(B) ELIGIBLE PROJECTS.—The Secretary general public as an option which can reduce drought, further raising the risk of fire each may award grants under subparagraph (A) the national consumption of fossil fuel. year. only to governments of insular areas of the ‘‘(B) To reduce the fossil fuel consumption (2) In addition, more than 70,000,000 acres United States that submit written project and costs of the Federal Government. across all land ownerships are at risk to plans to the Secretary for projects that meet ‘‘(C) To attain the goal of installing solar higher than normal mortality over the next the following criteria: energy systems in 20,000 Federal buildings by 15 years from insect infestation and disease. ‘‘(i) The project is designed to protect elec- 2010, as contained in the Federal Govern- High levels of tree mortality from insects tric power transmission and distribution ment’s Million Solar Roof Initiative of 1997. and disease result in increased fire risk, loss lines located in 1 or more of the insular areas ‘‘(D) To stimulate the general use within of old growth, degraded watershed condi- of the United States from damage caused by the Federal Government of life-cycle costing tions, and changes in species diversity and hurricanes and typhoons. and innovative procurement methods. productivity, as well as diminished fish and ‘‘(ii) The project is likely to substantially ‘‘(E) To develop program performance data wildlife habitat and decreased timber values. reduce the risk of future damage, hardship, to support policy decisions on future incen- (3) Preventive treatments such as remov- loss, or suffering. tive programs with respect to energy. ing fuel loading, ladder fuels, and hazard ‘‘(iii) The project addresses 1 or more prob- ‘‘(3) ACQUISITION OF PHOTOVOLTAIC SOLAR trees, planting proper species mix and restor- lems that have been repetitive or that pose a ELECTRIC SYSTEMS.— ing and protecting early successional habi- significant risk to public health and safety. ‘‘(A) IN GENERAL.—The program shall pro- tat, and other specific restoration treat- ‘‘(iv) The project is not likely to cost more vide for the acquisition of photovoltaic solar ments designed to reduce the susceptibility than the value of the reduction in direct electric systems and associated storage ca- of forest land, woodland, and rangeland to damage and other negative impacts that the pability for use in public buildings. insect outbreaks, disease, and catastrophic project is designed to prevent or mitigate. ‘‘(B) ACQUISITION LEVELS.—The acquisition fire present the greatest opportunity for The cost benefit analysis required by this of photovoltaic electric systems shall be at a long-term forest health by creating a mosaic criterion shall be computed on a net present level substantial enough to allow use of low- of species-mix and age distribution. Such value basis. cost production techniques with at least 150 prevention treatments are widely acknowl- ‘‘(v) The project design has taken into con- megawatts (peak) cumulative acquired dur- edged to be more successful and cost effec- sideration long-term changes to the areas ing the 5 years of the program. tive than suppression treatments in the case and persons it is designed to protect and has ‘‘(4) ADMINISTRATION.—The Administrator of insects, disease, and fire. manageable future maintenance and modi- shall administer the program and shall— (4) The byproducts of preventive treatment fication requirements. ‘‘(A) issue such rules and regulations as (wood, brush, thinnings, chips, slash, and ‘‘(vi) The project plan includes an analysis may be appropriate to monitor and assess other hazardous fuels) removed from forest of a range of options to address the problem the performance and operation of photo- lands, woodlands and rangelands represent it is designed to prevent or mitigate and a voltaic solar electric systems installed pur- an abundant supply of biomass for biomass- justification for the selection of the project suant to this subsection; to-energy facilities and raw material for in light of that analysis. ‘‘(B) develop innovative procurement strat- business. There are currently few markets ‘‘(vii) The applicant has demonstrated to egies for the acquisition of such systems; and for the extraordinary volumes of byproducts the Secretary that the matching funds re- ‘‘(C) transmit to Congress an annual report being generated as a result of the necessary quired by subparagraph (D) are available. on the results of the program. large-scale preventive treatment activities.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.084 S28PT1 S4518 CONGRESSIONAL RECORD — SENATE April 28, 2004 (5) The United States should— the representative reasonable access to the a geothermal resource that could be pro- (A) promote economic and entrepreneurial facility that purchases or uses biomass and duced as 1 unit can reasonably be expected to opportunities in using byproducts removed an opportunity to examine the inventory and underlie more than 1 parcel to be offered in through preventive treatment activities re- records of the facility. a competitive lease sale, the parcels for such lated to hazardous fuels reduction, disease, (d) IMPROVED BIOMASS USE GRANT PRO- a resource may be offered for bidding as a and insect infestation; and GRAM.— block in the competitive lease sale. (B) develop and expand markets for tradi- (1) IN GENERAL.—The Secretary concerned ‘‘(e) PENDING LEASE APPLICATIONS ON APRIL tionally underused wood and biomass as an may make grants to persons to offset the 1, 2003.—It shall be a priority for the Sec- outlet for byproducts of preventive treat- cost of projects to develop or research oppor- retary of the Interior, and for the Secretary ment activities. tunities to improve the use of, or add value of Agriculture with respect to National For- (b) DEFINITIONS.—In this section: to, biomass. In making such grants, the Sec- est Systems lands, to ensure timely comple- (1) BIOMASS.—The term ‘‘biomass’’ means retary concerned shall give preference to tion of administrative actions necessary to trees and woody plants, including limbs, persons in preferred communities. process applications for geothermal leasing tops, needles, and other woody parts, and by- (2) SELECTION.—The Secretary concerned pending on April 1, 2003. Such an application, products of preventive treatment, such as shall select a grant recipient under para- and any lease issued pursuant to such an ap- wood, brush, thinnings, chips, and slash, that graph (1) after giving consideration to the plication— are removed— anticipated public benefits of the project, in- ‘‘(1) except as provided in paragraph (2), (A) to reduce hazardous fuels; or cluding the potential to develop thermal or shall be subject to this section as in effect on (B) to reduce the risk of or to contain dis- electric energy resources or affordable en- April 1, 2003; or ease or insect infestation. ergy, opportunities for the creation or ex- ‘‘(2) at the election of the applicant, shall (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ pansion of small businesses and micro-busi- be subject to this section as in effect on the has the meaning given the term in section nesses, and the potential for new job cre- effective date of this paragraph.’’. 4(e) of the Indian Self-Determination and ation. Education Assistance Act (25 U.S.C. 450b(e)). SEC. 213. DIRECT USE. (3) GRANT AMOUNT.—A grant under this EES FOR IRECT SE (3) PERSON.—The term ‘‘person’’ includes— (a) F D U .—Section 5 of the subsection may not exceed $500,000. Geothermal Steam Act of 1970 (30 U.S.C. 1004) (A) an individual; (e) AUTHORIZATION OF APPROPRIATIONS.— (B) a community (as determined by the is amended— There are authorized to be appropriated (1) in paragraph (c) by redesignating sub- Secretary concerned); $50,000,000 for each of the fiscal years 2004 (C) an Indian tribe; paragraphs (1) and (2) as subparagraphs (A) through 2014 to carry out this section. and (B); (D) a small business, micro-business, or a (f) REPORT.—Not later than October 1, 2010, (2) by redesignating paragraphs (a) through corporation that is incorporated in the the Secretary of Agriculture, in consultation (d) in order as paragraphs (1) through (4); United States; and with the Secretary of the Interior, shall sub- (3) by inserting ‘‘(a) IN GENERAL.—’’ after (E) a nonprofit organization. mit to the Committee on Energy and Nat- ‘‘SEC. 5.’’; and (4) PREFERRED COMMUNITY.—The term ural Resources and the Committee on Agri- (4) by adding at the end the following: ‘‘preferred community’’ means— culture, Nutrition, and Forestry of the Sen- ‘‘(b) DIRECT USE.—Notwithstanding sub- (A) any town, township, municipality, or ate and the Committee on Resources, the section (a)(1), with respect to the direct use other similar unit of local government (as Committee on Energy and Commerce, and of geothermal resources for purposes other determined by the Secretary concerned) the Committee on Agriculture of the House than the commercial generation of elec- that— of Representatives a report describing the re- tricity, the Secretary of the Interior shall (i) has a population of not more than 50,000 sults of the grant programs authorized by establish a schedule of fees and collect fees individuals; and this section. The report shall include the fol- pursuant to such a schedule in lieu of royal- (ii) the Secretary concerned, in the sole lowing: ties based upon the total amount of the geo- discretion of the Secretary concerned, deter- (1) An identification of the size, type, and thermal resources used. The schedule of fees mines contains or is located near land, the the use of biomass by persons that receive shall ensure that there is a fair return to the condition of which is at significant risk of grants under this section. public for the use of a geothermal resource catastrophic wildfire, disease, or insect in- (2) The distance between the land from based upon comparable fees charged for di- festation or which suffers from disease or in- which the biomass was removed and the fa- rect use of geothermal resources by States or sect infestation; or cility that used the biomass. private persons. For direct use by a State or (B) any county that— (3) The economic impacts, particularly new local government for public purposes there (i) is not contained within a metropolitan job creation, resulting from the grants to shall be no royalty and the fee charged shall statistical area; and and operation of the eligible operations. (ii) the Secretary concerned, in the sole be nominal. Leases in existence on the date SEC. 207. BIOBASED PRODUCTS. discretion of the Secretary concerned, deter- of enactment of the Energy Policy Act of Section 9002(c)(1) of the Farm Security and mines contains or is located near land, the 2003 shall be modified in order to reflect the Rural Investment Act of 2002 (7 U.S.C. condition of which is at significant risk of provisions of this subsection.’’. 8102(c)(1)) is amended by inserting ‘‘or such catastrophic wildfire, disease, or insect in- (b) LEASING FOR DIRECT USE.—Section 4 of items that comply with the regulations festation or which suffers from disease or in- the Geothermal Steam Act of 1970 (30 U.S.C. issued under section 103 of Public Law 100– sect infestation. 1003) is further amended by adding at the end 556 (42 U.S.C. 6914b–1)’’ after ‘‘practicable’’. (5) SECRETARY CONCERNED.—The term ‘‘Sec- the following: retary concerned’’ means— Subtitle B—Geothermal Energy ‘‘(f) LEASING FOR DIRECT USE OF GEO- (A) the Secretary of Agriculture with re- SEC. 211. SHORT TITLE. THERMAL RESOURCES.—Lands leased under spect to National Forest System lands; and This subtitle may be cited as the ‘‘John this Act exclusively for direct use of geo- (B) the Secretary of the Interior with re- Rishel Geothermal Steam Act Amendments thermal resources shall be leased to any spect to Federal lands under the jurisdiction of 2003’’. qualified applicant who first applies for such of the Secretary of the Interior and Indian SEC. 212. COMPETITIVE LEASE SALE REQUIRE- a lease under regulations issued by the Sec- lands. MENTS. retary, if— (c) BIOMASS COMMERCIAL USE GRANT PRO- Section 4 of the Geothermal Steam Act of ‘‘(1) the Secretary publishes a notice of the GRAM.— 1970 (30 U.S.C. 1003) is amended to read as fol- lands proposed for leasing 60 days before the (1) IN GENERAL.—The Secretary concerned lows: date of the issuance of the lease; and may make grants to any person that owns or ‘‘SEC. 4. LEASING PROCEDURES. ‘‘(2) the Secretary does not receive in the operates a facility that uses biomass as a ‘‘(a) NOMINATIONS.—The Secretary shall ac- 60-day period beginning on the date of such raw material to produce electric energy, sen- cept nominations of lands to be leased at any publication any nomination to include the sible heat, transportation fuels, or sub- time from qualified companies and individ- lands concerned in the next competitive stitutes for petroleum-based products to off- uals under this Act. lease sale. set the costs incurred to purchase biomass ‘‘(b) COMPETITIVE LEASE SALE REQUIRED.— ‘‘(g) AREA SUBJECT TO LEASE FOR DIRECT for use by such facility. The Secretary shall hold a competitive lease USE.—A geothermal lease for the direct use (2) GRANT AMOUNTS.—A grant under this sale at least once every 2 years for lands in of geothermal resources shall embrace not subsection may not exceed $20 per green ton a State which has nominations pending more than the amount of acreage determined of biomass delivered. under subsection (a) if such lands are other- by the Secretary to be reasonably necessary (3) MONITORING OF GRANT RECIPIENT ACTIVI- wise available for leasing. for such proposed utilization.’’. TIES.—As a condition of a grant under this ‘‘(c) NONCOMPETITIVE LEASING.—The Sec- (c) EXISTING LEASES WITH A DIRECT USE subsection, the grant recipient shall keep retary shall make available for a period of 2 FACILITY.— such records as the Secretary concerned may years for noncompetitive leasing any tract (1) APPLICATION TO CONVERT.—Any lessee require to fully and correctly disclose the for which a competitive lease sale is held, under a lease under the Geothermal Steam use of the grant funds and all transactions but for which the Secretary does not receive Act of 1970 that was issued before the date of involved in the purchase of biomass. Upon any bids in a competitive lease sale. the enactment of this Act may apply to the notice by a representative of the Secretary ‘‘(d) LEASES SOLD ASABLOCK.—If informa- Secretary of the Interior, by not later than concerned, the grant recipient shall afford tion is available to the Secretary indicating 18 months after the date of the enactment of

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.084 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4519 this Act, to convert such lease to a lease for 35 of the Mineral Leasing Act (30 U.S.C. (1) identify areas with geothermal poten- direct utilization of geothermal resources in 191(b)) and section 5(a)(2) of this Act— tial on lands included in the National Forest accordance with the amendments made by ‘‘(1) 50 percent shall be paid to the State System and, when necessary, require review this section. within the boundaries of which the leased of management plans to consider leasing (2) CONVERSION.—The Secretary shall ap- lands or geothermal resources are or were lo- under the Geothermal Steam Act of 1970 (30 prove such an application and convert such a cated; and U.S.C. 1001 et seq.) as a land use; and lease to a lease in accordance with the ‘‘(2) 25 percent shall be paid to the County (2) establish an administrative procedure amendments by not later than 180 days after within the boundaries of which the leased for processing geothermal lease applications, receipt of such application, unless the Sec- lands or geothermal resources are or were lo- including lines of authority, steps in applica- retary determines that the applicant is not a cated. tion processing, and time limits for applica- qualified applicant with respect to the lease. ‘‘(b) USE OF PAYMENTS.—Amounts paid to a tion procession. (3) APPLICATION OF NEW LEASE TERMS.—The State or county under subsection (a) shall be (c) DATA RETRIEVAL SYSTEM.—The memo- amendment made by subsection (a)(4) shall used consistent with the terms of section 35 randum of understanding shall establish a apply with respect to payments under a lease of the Mineral Leasing Act (30 U.S.C. 191).’’. joint data retrieval system that is capable of converted under this subsection that are due (c) NEAR-TERM PRODUCTION INCENTIVE FOR tracking lease and permit applications and and owing to the United States on or after EXISTING LEASES.— providing to the applicant information as to (1) IN GENERAL.—Notwithstanding section July 16, 2003. their status within the Departments of the 5(a) of the Geothermal Steam Act of 1970, the Interior and Agriculture, including an esti- SEC. 214. ROYALTIES AND NEAR-TERM PRODUC- royalty required to be paid shall be 50 per- TION INCENTIVES. mate of the time required for administrative cent of the amount of the royalty otherwise action. (a) ROYALTY.—Section 5 of the Geothermal required, on any lease issued before the date SEC. 216. REVIEW AND REPORT TO CONGRESS. Steam Act of 1970 (30 U.S.C. 1004) is further of enactment of this Act that does not con- The Secretary of the Interior shall prompt- amended— vert to new royalty terms under subsection ly review and report to Congress not later (1) in subsection (a) by striking paragraph (e)— than 3 years after the date of the enactment (1) and inserting the following: (A) with respect to commercial production of this Act regarding the status of all with- ‘‘(1) a royalty on electricity produced using of energy from a facility that begins such drawals from leasing under the Geothermal geothermal steam and associated geothermal production in the 6-year period beginning on Steam Act of 1970 (30 U.S.C. 1001 et seq.) of resources, other than direct use of geo- the date of the enactment of this Act; or Federal lands, specifying for each such area thermal resources, that shall be— (B) on qualified expansion geothermal en- whether the basis for such withdrawal still ‘‘(A) not less than 1 percent and not more ergy. applies. than 2.5 percent of the gross proceeds from (2) 4-YEAR APPLICATION.—Paragraph (1) ap- the sale of electricity produced from such re- plies only to new commercial production of SEC. 217. REIMBURSEMENT FOR COSTS OF NEPA sources during the first 10 years of produc- energy from a facility in the first 4 years of ANALYSES, DOCUMENTATION, AND STUDIES. tion under the lease; and such production. (a) IN GENERAL.—The Geothermal Steam ‘‘(B) not less than 2 and not more than 5 (3) EFFECTIVE DATE.—This subsection takes percent of the gross proceeds from the sale of Act of 1970 (30 U.S.C. 1001 et seq.) is amended effect on October 1, 2004. by adding at the end the following: electricity produced from such resources (d) DEFINITION OF QUALIFIED EXPANSION ‘‘SEC. 30. REIMBURSEMENT FOR COSTS OF CER- during each year after such 10-year period;’’; GEOTHERMAL ENERGY.—In this section, the and TAIN ANALYSES, DOCUMENTATION, term ‘‘qualified expansion geothermal en- AND STUDIES. (2) by adding at the end the following: ergy’’ means geothermal energy produced ‘‘(a) IN GENERAL.—The Secretary of the In- ‘‘(c) FINAL REGULATION ESTABLISHING ROY- from a generation facility for which— terior may reimburse a person that is a les- ALTY RATES.—In issuing any final regulation (1) the production is increased by more see, operator, operating rights owner, or ap- than 10 percent as a result of expansion of establishing royalty rates under this section, plicant for any lease under this Act for rea- the facility carried out in the 6-year period the Secretary shall seek— sonable amounts paid by the person for prep- beginning on the date of the enactment of ‘‘(1) to provide lessees a simplified admin- aration for the Secretary by a contractor or this Act; and istrative system; other person selected by the Secretary of (2) such production increase is greater than ‘‘(2) to encourage new development; and any project-level analysis, documentation, 10 percent of the average production by the ‘‘(3) to achieve the same long-term level of or related study required pursuant to the Na- facility during the 5-year period preceding royalty revenues to States and counties as tional Environmental Policy Act of 1969 (42 the regulation in effect on the date of enact- the expansion of the facility. (e) ROYALTY UNDER EXISTING LEASES.— U.S.C. 4321 et seq.) with respect to the lease. ment of this subsection. ‘‘(b) CONDITIONS.—The Secretary may pro- ‘‘(d) CREDITS FOR IN-KIND PAYMENTS OF (1) IN GENERAL.—Any lessee under a lease issued under the Geothermal Steam Act of vide reimbursement under subsection (a) ELECTRICITY.—The Secretary may provide to only if— a lessee a credit against royalties owed 1970 before the date of the enactment of this Act may modify the terms of the lease relat- ‘‘(1) adequate funding to enable the Sec- under this Act, in an amount equal to the retary to timely prepare the analysis, docu- value of electricity provided under contract ing to payment of royalties to comply with the amendment made by subsection (a), by mentation, or related study is not appro- to a State or county government that is en- priated; titled to a portion of such royalties under applying to the Secretary of the Interior by not later than 18 months after the date of ‘‘(2) the person paid the costs voluntarily; section 20 of this Act, section 35 of the Min- ‘‘(3) the person maintains records of its eral Leasing Act (30 U.S.C. 191), or section 6 the enactment of this Act. (2) APPLICATION OF MODIFICATION.—Such costs in accordance with regulations issued of the Mineral Leasing Act for Acquired by the Secretary; Lands (30 U.S.C. 355), if— modification shall apply to any use of geothermal steam and any associated geo- ‘‘(4) the reimbursement is in the form of a ‘‘(1) the Secretary has approved in advance reduction in the Federal share of the royalty the contract between the lessee and the thermal resources to which the amendment applies that occurs after the date of that ap- required to be paid for the lease for which State or county government for such in-kind the analysis, documentation, or related payments; plication. (3) CONSULTATION.—The Secretary— study is conducted, and is agreed to by the ‘‘(2) the contract establishes a specific Secretary and the person reimbursed prior to methodology to determine the value of such (A) shall consult with the State and local governments affected by any proposed commencing the analysis, documentation, or credits; and changes in lease royalty terms under this related study; and ‘‘(3) the maximum credit will be equal to subsection; and ‘‘(5) the agreement required under para- the royalty value owed to the State or coun- (B) may establish a gross proceeds percent- graph (4) contains provisions— ty that is a party to the contract and the age within the range specified in the amend- ‘‘(A) reducing royalties owed on lease pro- electricity received will serve as the royalty ment made by subsection (a)(1) and with the duction based on market prices; payment from the Federal Government to concurrence of the lessee and the State. ‘‘(B) stipulating an automatic termination that entity.’’. SEC. 215. GEOTHERMAL LEASING AND PERMIT- of the royalty reduction upon recovery of (b) DISPOSAL OF MONEYS FROM SALES, BO- TING ON FEDERAL LANDS. documented costs; and NUSES, ROYALTIES, AND RENTALS.—Section 20 (a) IN GENERAL.—Not later than 180 days ‘‘(C) providing a process by which the les- of the Geothermal Steam Act of 1970 (30 after the date of the enactment of this sec- see may seek reimbursement for cir- U.S.C. 1019) is amended to read as follows: tion, the Secretary of the Interior and the cumstances in which production from the ‘‘SEC. 20. DISPOSAL OF MONEYS FROM SALES, BO- Secretary of Agriculture shall enter into and specified lease is not possible.’’. NUSES, RENTALS, AND ROYALTIES. submit to Congress a memorandum of under- (b) APPLICATION.—The amendment made by ‘‘(a) IN GENERAL.—Except with respect to standing in accordance with this section re- this section shall apply with respect to an lands in the State of Alaska, all monies regarding leasing and permitting for geo- analysis, documentation, or a related study ceived by the United States from sales, bo- thermal development of public lands and Na- conducted on or after October 1, 2004, for any nuses, rentals, and royalties under this Act tional Forest System lands under their release entered into before, on, or after the shall be paid into the Treasury of the United spective jurisdictions. date of enactment of this Act. States. Of amounts deposited under this sub- (b) LEASE AND PERMIT APPLICATIONS.—The (c) DEADLINE FOR REGULATIONS.—The Sec- section, subject to the provisions of section memorandum of understanding shall— retary shall issue regulations implementing

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the amendment made by this section by not ‘‘(e) POOLING OF CERTAIN LANDS.—If sepa- (4) by adding at the end the following: later than 1 year after the date of enactment rate tracts of lands cannot be independently ‘‘(e) CREDITING OF RENTAL TOWARD ROY- of this Act. developed and operated to use geothermal ALTY.—Any annual rental under this section SEC. 218. ASSESSMENT OF GEOTHERMAL ENERGY steam and associated geothermal resources that is paid with respect to a lease before the POTENTIAL. pursuant to any section of this Act— first day of the year for which the annual The Secretary of Interior, acting through ‘‘(1) such lands, or a portion thereof, may rental is owed shall be credited to the the Director of the United States Geological be pooled with other lands, whether or not amount of royalty that is required to be paid Survey and in cooperation with the States, owned by the United States, for purposes of under the lease for that year.’’. shall update the 1978 Assessment of Geo- development and operation under a SEC. 223. LEASE DURATION AND WORK COMMIT- thermal Resources, and submit that updated Communitization Agreement providing for MENT REQUIREMENTS. assessment to Congress— an apportionment of production or royalties Section 6 of the Geothermal Steam Act of (1) not later than 3 years after the date of among the separate tracts of land com- 1970 (30 U.S.C. 1005) is amended— enactment of this Act; and prising the production unit, if such pooling (1) by striking so much as precedes sub- (2) thereafter as the availability of data is determined by the Secretary to be in the section (c), and striking subsections (e), (g), and developments in technology warrant. public interest; and (h), (i), and (j); SEC. 219. COOPERATIVE OR UNIT PLANS. ‘‘(2) operation or production pursuant to (2) by redesignating subsections (c), (d), Section 18 of the Geothermal Steam Act of such an Agreement shall be treated as oper- and (f) in order as subsections (g), (h), and 1970 (30 U.S.C. 1017) is amended to read as fol- ation or production with respect to each (i); and lows: tract of land that is subject to the agree- (3) by inserting before subsection (g), as so redesignated, the following: ‘‘SEC. 18. UNIT AND COMMUNITIZATION AGREE- ment. MENTS. ‘‘(f) UNIT AGREEMENT REVIEW.—No more ‘‘SEC. 6. LEASE TERM AND WORK COMMITMENT ‘‘(a) ADOPTION OF UNITS BY LESSEES.— than 5 years after approval of any coopera- REQUIREMENTS. ‘‘(1) IN GENERAL.—For the purpose of more tive or Unit Agreement and at least every 5 ‘‘(a) IN GENERAL.— properly conserving the natural resources of years thereafter, the Secretary shall review ‘‘(1) PRIMARY TERM.—A geothermal lease any geothermal reservoir, field, or like area, each such Agreement and, after notice and shall be for a primary term of 10 years. or any part thereof (whether or not any part opportunity for comment, eliminate from in- ‘‘(2) INITIAL EXTENSION.—The Secretary of the geothermal field, or like area, is then clusion in such Agreement any lands that shall extend the primary term of a geo- subject to any Unit Agreement (cooperative the Secretary determines are not reasonably thermal lease for 5 years if, for each year plan of development or operation)), lessees necessary for Unit operations under the after the fifth year of the lease— thereof and their representatives may unite Agreement. Such elimination shall be based ‘‘(A) the Secretary determined under sub- with each other, or jointly or separately on scientific evidence, and shall occur only if section (c) that the lessee satisfied the work with others, in collectively adopting and op- it is determined by the Secretary to be for commitment requirements that applied to erating under a Unit Agreement for such the purpose of conserving and properly man- the lease for that year; or field, or like area, or any part thereof includ- aging the geothermal resource. Any land so ‘‘(B) the lessee paid in accordance with ing direct use resources, if determined and eliminated shall be eligible for an extension subsection (d) the value of any work that certified by the Secretary to be necessary or under subsection (g) of section 6 if it meets was not completed in accordance with those advisable in the public interest. A majority the requirements for such an extension. requirements. interest of owners of any single lease shall ‘‘(g) DRILLING OR DEVELOPMENT CON- ‘‘(3) ADDITIONAL EXTENSION.—The Sec- have the authority to commit that lease to TRACTS.— The Secretary may, on such condi- retary shall extend the primary term of a a Unit Agreement. The Secretary of the Inte- tions as the Secretary may prescribe, ap- geothermal lease (after an initial extension rior may also initiate the formation of a prove drilling or development contracts under paragraph (2)) for an additional 5 years Unit Agreement if in the public interest. made by 1 or more lessees of geothermal if, for each year of the initial extension under paragraph (2), the Secretary deter- ‘‘(2) MODIFICATION OF LEASE REQUIREMENTS leases, with 1 or more persons, associations, mined under subsection (c) that the lessee BY SECRETARY.—The Secretary may, in the or corporations if, in the discretion of the discretion of the Secretary, and with the Secretary, the conservation of natural re- satisfied the work commitment require- consent of the holders of leases involved, es- sources or the public convenience or neces- ments that applied to the lease for that year. ‘‘(b) REQUIREMENT TO SATISFY ANNUAL tablish, alter, change, or revoke rates of op- sity may require or the interests of the WORK COMMITMENT REQUIREMENT.— erations (including drilling, operations, pro- United States may be best served thereby. ‘‘(1) IN GENERAL.—The lessee for a geo- duction, and other requirements) of such All leases operated under such approved thermal lease shall, for each year after the leases and make conditions with reference to drilling or development contracts, and inter- fifth year of the lease, satisfy work commit- such leases, with the consent of the lessees, ests thereunder, shall be excepted in deter- ment requirements prescribed by the Sec- in connection with the creation and oper- mining holdings or control under section 7. retary that apply to the lease for that year. ation of any such Unit Agreement as the ‘‘(h) COORDINATION WITH STATE GOVERN- ‘‘(2) PRESCRIPTION OF WORK COMMITMENT RE- Secretary may deem necessary or proper to MENTS.—The Secretary shall coordinate QUIREMENTS.—The Secretary shall issue reg- secure the proper protection of the public in- unitization and pooling activities with the ulations prescribing minimum equivalent terest. Leases with unlike lease terms or appropriate State agencies and shall ensure dollar value work commitment requirements royalty rates do not need to be modified to that State leases included in any unitization for geothermal leases, that— be in the same unit. or pooling arrangement are treated equally ‘‘(A) require that a lessee, in each year ‘‘(b) REQUIREMENT OF PLANS UNDER NEW with Federal leases.’’. after the fifth year of the primary term of a LEASES.—The Secretary— SEC. 220. ROYALTY ON BYPRODUCTS. ‘‘(1) may provide that geothermal leases Section 5 of the Geothermal Steam Act of geothermal lease, diligently work to achieve issued under this Act shall contain a provi- 1970 (30 U.S.C. 1004) is further amended in commercial production or utilization of sion requiring the lessee to operate under subsection (a) by striking paragraph (2) and steam under the lease; such a reasonable Unit Agreement; and inserting the following: ‘‘(B) require that in each year to which ‘‘(2) may prescribe such an Agreement ‘‘(2) a royalty on any byproduct that is a work commitment requirements under the under which such lessee shall operate, which mineral named in the first section of the regulations apply, the lessee shall signifi- shall adequately protect the rights of all par- Mineral Leasing Act (30 U.S.C. 181), and that cantly reduce the amount of work that re- ties in interest, including the United States. is derived from production under the lease, mains to be done to achieve such production ‘‘(c) MODIFICATION OF RATE OF at the rate of the royalty that applies under or utilization; PROSPECTING, DEVELOPMENT, AND PRODUC- that Act to production of such mineral under ‘‘(C) describe specific work that must be TION.—The Secretary may require that any a lease under that Act;’’. completed by a lessee by the end of each year Agreement authorized by this section that SEC. 221. REPEAL OF AUTHORITIES OF SEC- to which the work commitment require- applies to lands owned by the United States RETARY TO READJUST TERMS, CON- ments apply and factors, such as force contain a provision under which authority is DITIONS, RENTALS, AND ROYALTIES. majeure events, that suspend or modify the vested in the Secretary, or any person, com- Section 8 of the Geothermal Steam Act of work commitment obligation; mittee, or State or Federal officer or agency 1970 (30 U.S.C. 1007) is amended by repealing ‘‘(D) carry forward and apply to work com- as may be designated in the Agreement to subsection (b), and by redesignating sub- mitment requirements for a year, work com- alter or modify from time to time the rate of section (c) as subsection (b). pleted in any year in the preceding 3-year pe- prospecting and development and the quan- SEC. 222. CREDITING OF RENTAL TOWARD ROY- riod that was in excess of the work required tity and rate of production under such an ALTY. to be performed in that preceding year; Agreement. Section 5 of the Geothermal Steam Act of ‘‘(E) establish transition rules for leases ‘‘(d) EXCLUSION FROM DETERMINATION OF 1970 (30 U.S.C. 1004) is further amended— issued before the date of the enactment of HOLDING OR CONTROL.—Any lands that are (1) in subsection (a)(2) by inserting ‘‘and’’ this subsection, including terms under which subject to any Agreement approved or pre- after the semicolon at the end; a lease that is near the end of its term on the scribed by the Secretary under this section (2) in subsection (a)(3) by striking ‘‘; and’’ date of enactment of this subsection may be shall not be considered in determining hold- and inserting a period; extended for up to 2 years— ings or control under any provision of this (3) by striking paragraph (4) of subsection ‘‘(i) to allow achievement of production Act. (a); and under the lease; or

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.085 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4521 ‘‘(ii) to allow the lease to be included in a SEC. 224. ADVANCED ROYALTIES REQUIRED FOR tives of the geothermal industry, and other producing unit; and SUSPENSION OF PRODUCTION. persons, shall submit to Congress a joint re- ‘‘(F) establish an annual payment that, at Section 5 of the Geothermal Steam Act of port concerning leasing and permitting ac- the option of the lessee, may be exercised in 1970 (30 U.S.C. 1004) is further amended by tivities for geothermal energy on Federal lieu of meeting any work requirement for a adding at the end the following: lands withdrawn for military purposes. Such limited number of years that the Secretary ‘‘(f) ADVANCED ROYALTIES REQUIRED FOR report shall include the following: determines will not impair achieving dili- SUSPENSION OF PRODUCTION.— (1) A description of the Military Geo- gent development of the geothermal re- ‘‘(1) CONTINUATION OF LEASE FOLLOWING thermal Program, including any differences source. CESSATION OF PRODUCTION.—If, at any time between it and the non-Military Geothermal ‘‘(3) TERMINATION OF APPLICATION OF RE- after commercial production under a lease is Program, including required security proce- QUIREMENTS.—Work commitment require- achieved, production ceases for any cause dures, and operational considerations, and ments prescribed under this subsection shall the lease shall remain in full force and ef- discussions as to the differences, and why not apply to a geothermal lease after the fect— they are important. Further, the report shall date on which geothermal steam is produced ‘‘(A) during the 1-year period beginning on describe revenues or energy provided to the or utilized under the lease in commercial the date production ceases; and Department of Defense and its facilities, roy- quantities. ‘‘(B) after such period if, and so long as, alty structures, where applicable, and any the lessee commences and continues dili- revenue sharing with States and counties or ‘‘(c) DETERMINATION OF WHETHER REQUIRE- gently and in good faith until such produc- other benefits between— MENTS SATISFIED.—The Secretary shall, by tion is resumed the steps, operations, or pro- (A) the implementation of the Geothermal not later than 90 days after the end of each cedures necessary to cause a resumption of Steam Act of 1970 (30 U.S.C 1001 et seq.) and year for which work commitment require- such production. other applicable Federal law by the Sec- ments under subsection (b) apply to a geo- ‘‘(2) If production of heat or energy under retary of the Interior; and thermal lease— a geothermal lease is suspended after the (B) the administration of geothermal leas- ‘‘(1) determine whether the lessee has sat- date of any such production for which roy- ing under section 2689 of title 10, United isfied the requirements that apply for that alty is required under subsection (a) and the States Code, by the Secretary of Defense. year; terms of paragraph (1) are not met, the Sec- (2) If appropriate, a description of the cur- ‘‘(2) notify the lessee of that determina- retary shall require the lessee, until the end rent methods and procedures used to ensure tion; and of such suspension, to pay royalty in ad- interagency coordination, where needed, in ‘‘(3) in the case of a notification that the vance at the monthly pro-rata rate of the av- developing renewable energy sources on Fed- lessee did not satisfy work commitment re- erage annual rate at which such royalty was eral lands withdrawn for military purposes, quirements for the year, include in the noti- paid each year in the 5-year-period preceding and an identification of any new procedures fication— the date of suspension. that might be required in the future for the ‘‘(A) a description of the specific work that ‘‘(3) Paragraph (2) shall not apply if the improvement of interagency coordination to was not completed by the lessee in accord- suspension is required or otherwise caused ensure efficient processing and administra- ance with the requirements; and by the Secretary, the Secretary of a military tion of leases or contracts for geothermal en- ‘‘(B) the amount of the dollar value of such department, a State or local government, or ergy on Federal lands withdrawn for mili- work that was not completed, reduced by the a force majeure.’’. tary purposes, consistent with the defense amount of expenditures made for work com- SEC. 225. ANNUAL RENTAL. purposes of such withdrawals. pleted in a prior year that is carried forward (a) ANNUAL RENTAL RATE.—Section 5 of the (3) Recommendations for any legislative or pursuant to subsection (b)(2)(D). Geothermal Steam Act of 1970 (30 U.S.C. 1004) administrative actions that might better achieve increased geothermal production, in- ‘‘(d) PAYMENT OF VALUE OF UNCOMPLETED is further amended in subsection (a) in paragraph (3) by striking ‘‘$1 per acre or fraction cluding a common royalty structure, leasing WORK.— thereof for each year of the lease’’ and all procedures, or other changes that increase ‘‘(1) IN GENERAL.—If the Secretary notifies production, offset military operation costs, a lessee that the lessee failed to satisfy work that follows through the end of the paragraph and inserting ‘‘$1 per acre or fraction or enhance the Federal agencies’ ability to commitment requirements under subsection develop geothermal resources. (b), the lessee shall pay to the Secretary, by thereof for each year of the lease through Except as provided in this section, nothing not later than the end of the 60-day period the tenth year in the case of a lease awarded in this subtitle shall affect the legal status beginning on the date of the notification, the in a noncompetitive lease sale; or $2 per acre or fraction thereof for the first year, $3 per of the Department of the Interior and the dollar value of work that was not completed Department of the Defense with respect to by the lessee, in the amount stated in the acre or fraction thereof for each of the second through tenth years, in the case of a each other regarding geothermal leasing and notification (as reduced under subsection development until such status is changed by (c)(3)(B)). lease awarded in a competitive lease sale; and $5 per acre or fraction thereof for each law. ‘‘(2) FAILURE TO PAY VALUE OF year after the 10th year thereof for all SEC. 227. TECHNICAL AMENDMENTS. UNCOMPLETED WORK.—If a lessee fails to pay The Geothermal Steam Act of 1970 (30 such amount to the Secretary before the end leases.’’. (b) TERMINATION OF LEASE FOR FAILURE TO U.S.C. 1001 et seq.) is further amended as fol- of that period, the lease shall terminate PAY RENTAL.—Section 5 of the Geothermal lows: upon the expiration of the period. Steam Act of 1970 (30 U.S.C. 1004) is further (1) By striking ‘‘geothermal steam and as- ‘‘(e) CONTINUATION AFTER COMMERCIAL PRO- amended by adding at the end the following: sociated geothermal resources’’ each place it DUCTION OR UTILIZATION.—If geothermal ‘‘(g) TERMINATION OF LEASE FOR FAILURE appears and inserting ‘‘geothermal re- steam is produced or utilized in commercial TO PAY RENTAL.—– sources’’. quantities within the primary term of the ‘‘(1) IN GENERAL.—The Secretary shall ter- (2) Section 2(e) (30 U.S.C. 1001(e)) is amend- lease under subsection (a) (including any ex- minate any lease with respect to which rent- ed to read as follows: tension of the lease under subsection (a)), al is not paid in accordance with this Act ‘‘(e) ‘direct use’ means utilization of geo- such lease shall continue until the date on and the terms of the lease under which the thermal resources for commercial, residen- which geothermal steam is no longer pro- rental is required, upon the expiration of the tial, agricultural, public facilities, or other duced or utilized in commercial quantities. 45-day period beginning on the date of the energy needs other than the commercial pro- failure to pay such rental. duction of electricity; and’’. ‘‘(f) CONVERSION OF GEOTHERMAL LEASE TO ‘‘(2) NOTIFICATION.—The Secretary shall (3) Section 21 (30 U.S.C. 1020) is amended by MINERAL LEASE.—The lessee under a lease promptly notify a lessee that has not paid striking ‘‘(a) Within one hundred’’ and all that has produced geothermal steam for elec- rental required under the lease that the lease that follows through ‘‘(b) Geothermal’’ and trical generation, has been determined by will be terminated at the end of the period inserting ‘‘Geothermal’’. the Secretary to be incapable of any further referred to in paragraph (1). (4) The first section (30 U.S.C. 1001 note) is commercial production or utilization of geo- ‘‘(3) REINSTATEMENT.—A lease that would amended by striking ‘‘That this’’ and insert- thermal steam, and that is producing any otherwise terminate under paragraph (1) ing the following: valuable byproduct in payable quantities shall not terminate under that paragraph if ‘‘SECTION 1. SHORT TITLE. may, within 6 months after such determina- the lessee pays to the Secretary, before the ‘‘This’’. tion— end of the period referred to in paragraph (1), (5) Section 2 (30 U.S.C. 1001) is amended by ‘‘(1) convert the lease to a mineral lease the amount of rental due plus a late fee striking ‘‘SEC. 2. As’’ and inserting the fol- under the Mineral Leasing Act (30 U.S.C. 181 equal to 10 percent of such amount.’’. lowing: et seq.) or under the Mineral Leasing Act for SEC. 226. LEASING AND PERMITTING ON FED- ‘‘SEC. 2. DEFINITIONS. Acquired Lands (30 U.S.C. 351 et seq.), if the ERAL LANDS WITHDRAWN FOR MILI- ‘‘As’’. lands that are subject to the lease can be TARY PURPOSES. (6) Section 3 (30 U.S.C. 1002) is amended by leased under that Act for the production of Not later than 2 years after the date of en- striking ‘‘SEC. 3. Subject’’ and inserting the such byproduct; or actment of this Act, the Secretary of the In- following: ‘‘(2) convert the lease to a mining claim terior and the Secretary of Defense, in con- ‘‘SEC. 3. LANDS SUBJECT TO GEOTHERMAL LEAS- under the general mining laws, if the byprod- sultation with each military service and ING. uct is a locatable mineral.’’. with interested States, counties, representa- ‘‘Subject’’.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.085 S28PT1 S4522 CONGRESSIONAL RECORD — SENATE April 28, 2004 (7) Section 5 (30 U.S.C. 1004) is further ‘‘SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY. tion, if the Secretary determines, based on amended by striking ‘‘SEC. 5.’’, and by insert- ‘‘(a) All’’. substantial evidence provided by the license ing immediately before and above subsection (23) Section 24 (30 U.S.C. 1023) is amended applicant or otherwise available to the Sec- (a) the following: by striking ‘‘SEC. 24. The’’ and inserting the retary, that such alternative condition— ‘‘SEC. 5. RENTS AND ROYALTIES.’’. following: ‘‘(A) provides for the adequate protection (8) Section 7 (30 U.S.C. 1006) is amended by ‘‘SEC. 24. RULES AND REGULATIONS. and utilization of the reservation; and striking ‘‘SEC. 7. A geothermal’’ and insert- ‘‘The’’. ‘‘(B) will either— ing the following: (24) Section 25 (30 U.S.C. 1024) is amended ‘‘(i) cost less to implement; or ‘‘SEC. 7. ACREAGE OF GEOTHERMAL LEASE. by striking ‘‘SEC. 25. As’’ and inserting the ‘‘(ii) result in improved operation of the ‘‘A geothermal’’. following: project works for electricity production— (9) Section 8 (30 U.S.C. 1007) is amended by ‘‘SEC. 25. INCLUSION OF GEOTHERMAL LEASING as compared to the condition initially striking ‘‘SEC. 8. (a) The’’ and inserting the UNDER CERTAIN OTHER LAWS. deemed necessary by the Secretary. following: ‘‘As’’. ‘‘(3) The Secretary shall submit into the ‘‘SEC. 8. READJUSTMENT OF LEASE TERMS AND (25) Section 26 is amended by striking public record of the Commission proceeding CONDITIONS. ‘‘SEC. 26. The’’ and inserting the following: with any condition under section 4(e) or al- ‘‘(a) The’’. ‘‘SEC. 26. AMENDMENT. ternative condition it accepts under this sec- (10) Section 9 (30 U.S.C. 1008) is amended by ‘‘The’’. tion, a written statement explaining the striking ‘‘SEC. 9. If’’ and inserting the fol- (26) Section 27 (30 U.S.C. 1025) is amended basis for such condition, and reason for not lowing: by striking ‘‘SEC. 27. The’’ and inserting the accepting any alternative condition under ‘‘SEC. 9. BYPRODUCTS. following: this section. The written statement must demonstrate that the Secretary gave equal ‘‘If’’. ‘‘SEC. 27. FEDERAL RESERVATION OF CERTAIN consideration to the effects of the condition (11) Section 10 (30 U.S.C. 1009) is amended MINERAL RIGHTS. adopted and alternatives not accepted on en- by striking ‘‘SEC. 10. The’’ and inserting the ‘‘The’’. ergy supply, distribution, cost, and use; flood following: (27) Section 28 (30 U.S.C. 1026) is amended control; navigation; water supply; and air by striking ‘‘SEC. 28. (a)(1) The’’ and insert- ‘‘SEC. 10. RELINQUISHMENT OF GEOTHERMAL quality (in addition to the preservation of RIGHTS. ing the following: other aspects of environmental quality); ‘‘The’’. ‘‘SEC. 28. SIGNIFICANT THERMAL FEATURES. based on such information as may be avail- (12) Section 11 (30 U.S.C. 1010) is amended ‘‘(a)(1) The’’. able to the Secretary, including information by striking ‘‘SEC. 11. The’’ and inserting the (28) Section 29 (30 U.S.C. 1027) is amended voluntarily provided in a timely manner by following: by striking ‘‘SEC. 29. The’’ and inserting the the applicant and others. The Secretary ‘‘SEC. 11. SUSPENSION OF OPERATIONS AND PRO- following: shall also submit, together with the afore- DUCTION. ‘‘SEC. 29. LAND SUBJECT TO PROHIBITION ON mentioned written statement, all studies, ‘‘The’’. LEASING. data, and other factual information avail- (13) Section 12 (30 U.S.C. 1011) is amended ‘‘The’’. able to the Secretary and relevant to the by striking ‘‘SEC. 12. Leases’’ and inserting Subtitle C—Hydroelectric Secretary’s decision. the following: PART I—ALTERNATIVE CONDITIONS ‘‘(4) Nothing in this section shall prohibit ‘‘SEC. 12. TERMINATION OF LEASES. other interested parties from proposing al- ‘‘Leases’’. SEC. 231. ALTERNATIVE CONDITIONS AND ternative conditions. (14) Section 13 (30 U.S.C. 1012) is amended FISHWAYS. ‘‘(5) If the Secretary does not accept an ap- (a) FEDERAL RESERVATIONS.—Section 4(e) by striking ‘‘SEC. 13. The’’ and inserting the plicant’s alternative condition under this following: of the Federal Power Act (16 U.S.C. 797(e)) is section, and the Commission finds that the amended by inserting after ‘‘adequate pro- ‘‘SEC. 13. WAIVER, SUSPENSION, OR REDUCTION Secretary’s condition would be inconsistent OF RENTAL OR ROYALTY. tection and utilization of such reservation.’’ with the purposes of this part, or other appli- ‘‘The’’. at the end of the first proviso the following: cable law, the Commission may refer the dis- (15) Section 14 (30 U.S.C. 1013) is amended ‘‘The license applicant shall be entitled to a pute to the Commission’s Dispute Resolution determination on the record, after oppor- by striking ‘‘SEC. 14. Subject’’ and inserting Service. The Dispute Resolution Service the following: tunity for an expedited agency trial-type shall consult with the Secretary and the hearing of any disputed issues of material ‘‘SEC. 14. SURFACE LAND USE. Commission and issue a non-binding advi- fact, with respect to such conditions. Such ‘‘Subject’’. sory within 90 days. The Secretary may ac- hearing may be conducted in accordance (16) Section 15 (30 U.S.C. 1014) is amended cept the Dispute Resolution Service advisory with procedures established by agency regu- by striking ‘‘SEC. 15. (a) Geothermal’’ and in- unless the Secretary finds that the rec- lation in consultation with the Federal En- serting the following: ommendation will not provide for the ade- ergy Regulatory Commission.’’. quate protection and utilization of the res- ‘‘SEC. 15. LANDS SUBJECT TO GEOTHERMAL (b) FISHWAYS.—Section 18 of the Federal LEASING. ervation. The Secretary shall submit the ad- Power Act (16 U.S.C. 811) is amended by in- visory and the Secretary’s final written de- ‘‘(a) Geothermal’’. serting after ‘‘and such fishways as may be (17) Section 16 (30 U.S.C. 1015) is amended termination into the record of the Commis- prescribed by the Secretary of Commerce.’’ sion’s proceeding. by striking ‘‘SEC. 16. Leases’’ and inserting the following: ‘‘The license applicant shall the following: ‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) be entitled to a determination on the record, Whenever the Secretary of the Interior or ‘‘SEC. 16. REQUIREMENT FOR LESSEES. after opportunity for an expedited agency the Secretary of Commerce prescribes a ‘‘Leases’’. trial-type hearing of any disputed issues of fishway under section 18, the license appli- (18) Section 17 (30 U.S.C. 1016) is amended material fact, with respect to such fishways. cant or licensee may propose an alternative by striking ‘‘SEC. 17. Administration’’ and Such hearing may be conducted in accord- to such prescription to construct, maintain, inserting the following: ance with procedures established by agency or operate a fishway. ‘‘SEC. 17. ADMINISTRATION. regulation in consultation with the Federal ‘‘(2) Notwithstanding section 18, the Sec- ‘‘Administration’’. Energy Regulatory Commission.’’. retary of the Interior or the Secretary of (19) Section 19 (30 U.S.C. 1018) is amended (c) ALTERNATIVE CONDITIONS AND PRESCRIP- Commerce, as appropriate, shall accept and by striking ‘‘SEC. 19. Upon’’ and inserting the TIONS.—Part I of the Federal Power Act (16 prescribe, and the Commission shall require, following: U.S.C. 791a et seq.) is amended by adding the the proposed alternative referred to in para- ‘‘SEC. 19. DATA FROM FEDERAL AGENCIES. following new section at the end thereof: graph (1), if the Secretary of the appropriate ‘‘Upon’’. ‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRE- department determines, based on substantial (20) Section 21 (30 U.S.C. 1020) is further SCRIPTIONS. evidence provided by the licensee or other- amended by striking ‘‘SEC. 21.’’, and by in- ‘‘(a) ALTERNATIVE CONDITIONS.—(1) When- wise available to the Secretary, that such al- serting immediately before and above the re- ever any person applies for a license for any ternative— mainder of that section the following: project works within any reservation of the ‘‘(A) will be no less protective than the ‘‘SEC. 21. PUBLICATION IN FEDERAL REGISTER; United States, and the Secretary of the de- fishway initially prescribed by the Sec- RESERVATION OF MINERAL partment under whose supervision such res- retary; and RIGHTS.’’. ervation falls (referred to in this subsection ‘‘(B) will either— (21) Section 22 (30 U.S.C. 1021) is amended as ‘the Secretary’) deems a condition to such ‘‘(i) cost less to implement; or by striking ‘‘SEC. 22. Nothing’’ and inserting license to be necessary under the first pro- ‘‘(ii) result in improved operation of the the following: viso of section 4(e), the license applicant project works for electricity production, ‘‘SEC. 22. FEDERAL EXEMPTION FROM STATE may propose an alternative condition. as compared to the fishway initially deemed WATER LAWS. ‘‘(2) Notwithstanding the first proviso of necessary by the Secretary. ‘‘Nothing’’. section 4(e), the Secretary shall accept the ‘‘(3) The Secretary concerned shall submit (22) Section 23 (30 U.S.C. 1022) is amended proposed alternative condition referred to in into the public record of the Commission by striking ‘‘SEC. 23. (a) All’’ and inserting paragraph (1), and the Commission shall in- proceeding with any prescription under sec- the following: clude in the license such alternative condition 18 or alternative prescription it accepts

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.085 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4523 under this section, a written statement ex- The terms defined in this subsection shall 2708(a)(6)) is amended by striking ‘‘April 20, plaining the basis for such prescription, and apply without regard to the hydroelectric 1977’’ and inserting ‘‘March 4, 2003’’. reason for not accepting any alternative pre- kilowatt capacity of the facility concerned, SEC. 244. INCREASED HYDROELECTRIC GENERA- scription under this section. The written without regard to whether the facility uses a TION AT EXISTING FEDERAL FACILI- statement must demonstrate that the Sec- dam owned by a governmental or nongovern- TIES. retary gave equal consideration to the ef- mental entity, and without regard to wheth- (a) IN GENERAL.—The Secretary of the In- fects of the condition adopted and alter- er the facility begins operation on or after terior and the Secretary of Energy, in con- natives not accepted on energy supply, dis- the date of the enactment of this section. sultation with the Secretary of the Army, tribution, cost, and use; flood control; navi- (c) ELIGIBILITY WINDOW.—Payments may be shall jointly conduct a study of the potential gation; water supply; and air quality (in ad- made under this section only for electric en- for increasing electric power production ca- dition to the preservation of other aspects of ergy generated from a qualified hydro- pability at federally owned or operated water environmental quality); based on such infor- electric facility which begins operation dur- regulation, storage, and conveyance facili- mation as may be available to the Secretary, ing the period of 10 fiscal years beginning ties. (b) CONTENT.—The study under this section including information voluntarily provided with the first full fiscal year occurring after shall include identification and description in a timely manner by the applicant and oth- the date of enactment of this subtitle. in detail of each facility that is capable, with ers. The Secretary shall also submit, to- (d) INCENTIVE PERIOD.—A qualified hydro- or without modification, of producing addi- gether with the aforementioned written electric facility may receive payments under tional hydroelectric power, including esti- statement, all studies, data, and other fac- this section for a period of 10 fiscal years (re- mation of the existing potential for the facil- tual information available to the Secretary ferred to in this section as the ‘‘incentive pe- ity to generate hydroelectric power. and relevant to the Secretary’s decision. riod’’). Such period shall begin with the fis- (c) REPORT.—The Secretaries shall submit ‘‘(4) Nothing in this section shall prohibit cal year in which electric energy generated to the Committees on Energy and Com- other interested parties from proposing al- from the facility is first eligible for such merce, Resources, and Transportation and ternative prescriptions. payments. Infrastructure of the House of Representa- ‘‘(5) If the Secretary concerned does not ac- (e) AMOUNT OF PAYMENT.— tives and the Committee on Energy and Nat- cept an applicant’s alternative prescription (1) IN GENERAL.—Payments made by the ural Resources of the Senate a report on the under this section, and the Commission finds Secretary under this section to the owner or findings, conclusions, and recommendations that the Secretary’s prescription would be operator of a qualified hydroelectric facility of the study under this section by not later inconsistent with the purposes of this part, shall be based on the number of kilowatt than 18 months after the date of the enact- or other applicable law, the Commission may hours of hydroelectric energy generated by ment of this Act. The report shall include refer the dispute to the Commission’s Dis- the facility during the incentive period. For each of the following: pute Resolution Service. The Dispute Reso- any such facility, the amount of such pay- (1) The identifications, descriptions, and lution Service shall consult with the Sec- ment shall be 1.8 cents per kilowatt hour (ad- estimations referred to in subsection (b). retary and the Commission and issue a non- justed as provided in paragraph (2)), subject (2) A description of activities currently binding advisory within 90 days. The Sec- to the availability of appropriations under conducted or considered, or that could be retary may accept the Dispute Resolution subsection (g), except that no facility may considered, to produce additional hydro- Service advisory unless the Secretary finds receive more than $750,000 in 1 calendar year. electric power from each identified facility. that the recommendation will be less protec- (2) ADJUSTMENTS.—The amount of the pay- (3) A summary of prior actions taken by tive than the fishway initially prescribed by ment made to any person under this section the Secretaries to produce additional hydro- the Secretary. The Secretary shall submit as provided in paragraph (1) shall be adjusted electric power from each identified facility. the advisory and the Secretary’s final writ- for inflation for each fiscal year beginning (4) The costs to install, upgrade, or modify ten determination into the record of the after calendar year 2003 in the same manner equipment or take other actions to produce Commission’s proceeding.’’. as provided in the provisions of section additional hydroelectric power from each PART II—ADDITIONAL HYDROPOWER 29(d)(2)(B) of the Internal Revenue Code of identified facility and the level of Federal 1986, except that in applying such provisions power customer involvement in the deter- SEC. 241. HYDROELECTRIC PRODUCTION INCEN- mination of such costs. TIVES. the calendar year 2003 shall be substituted (5) The benefits that would be achieved by (a) INCENTIVE PAYMENTS.—For electric en- for calendar year 1979. such installation, upgrade, modification, or ergy generated and sold by a qualified hydro- (f) SUNSET.—No payment may be made other action, including quantified estimates electric facility during the incentive period, under this section to any qualified hydro- of any additional energy or capacity from the Secretary of Energy (referred to in this electric facility after the expiration of the each facility identified under subsection (b). section as the ‘‘Secretary’’) shall make, sub- period of 20 fiscal years beginning with the (6) A description of actions that are ject to the availability of appropriations, in- first full fiscal year occurring after the date planned, underway, or might reasonably be centive payments to the owner or operator of of enactment of this subtitle, and no payment may be made under this section to any considered to increase hydroelectric power such facility. The amount of such payment production by replacing turbine runners, by made to any such owner or operator shall be such facility after a payment has been made with respect to such facility for a period of performing generator upgrades or rewinds, or as determined under subsection (e) of this construction of pumped storage facilities. section. Payments under this section may 10 fiscal years. (g) AUTHORIZATION OF APPROPRIATIONS.— (7) The impact of increased hydroelectric only be made upon receipt by the Secretary power production on irrigation, fish, wildlife, of an incentive payment application which There are authorized to be appropriated to the Secretary to carry out the purposes of Indian tribes, river health, water quality, establishes that the applicant is eligible to navigation, recreation, fishing, and flood receive such payment and which satisfies this section $10,000,000 for each of the fiscal years 2004 through 2013. control. such other requirements as the Secretary (8) Any additional recommendations to in- deems necessary. Such application shall be SEC. 242. HYDROELECTRIC EFFICIENCY IM- crease hydroelectric power production from, PROVEMENT. in such form, and shall be submitted at such and reduce costs and improve efficiency at, (a) INCENTIVE PAYMENTS.—The Secretary of time, as the Secretary shall establish. federally owned or operated water regula- Energy shall make incentive payments to (b) DEFINITIONS.—For purposes of this section, storage, and conveyance facilities. tion: the owners or operators of hydroelectric facilities at existing dams to be used to make SEC. 245. SHIFT OF PROJECT LOADS TO OFF- (1) QUALIFIED HYDROELECTRIC FACILITY.— PEAK PERIODS. capital improvements in the facilities that The term ‘‘qualified hydroelectric facility’’ (a) IN GENERAL.—The Secretary of the In- means a turbine or other generating device are directly related to improving the effi- terior shall— owned or solely operated by a non-Federal ciency of such facilities by at least 3 percent. (1) review electric power consumption by entity which generates hydroelectric energy (b) LIMITATIONS.—Incentive payments Bureau of Reclamation facilities for water for sale and which is added to an existing under this section shall not exceed 10 percent pumping purposes; and dam or conduit. of the costs of the capital improvement con- (2) make such adjustments in such pump- (2) EXISTING DAM OR CONDUIT.—The term cerned and not more than 1 payment may be ing as possible to minimize the amount of ‘‘existing dam or conduit’’ means any dam or made with respect to improvements at a sin- electric power consumed for such pumping conduit the construction of which was com- gle facility. No payment in excess of $750,000 during periods of peak electric power con- pleted before the date of the enactment of may be made with respect to improvements sumption, including by performing as much this section and which does not require any at a single facility. of such pumping as possible during off-peak construction or enlargement of impound- (c) AUTHORIZATION OF APPROPRIATIONS.— hours at night. ment or diversion structures (other than re- There are authorized to be appropriated to (b) CONSENT OF AFFECTED IRRIGATION CUS- pair or reconstruction) in connection with carry out this section not more than TOMERS REQUIRED.—The Secretary may not the installation of a turbine or other gener- $10,000,000 for each of the fiscal years 2004 under this section make any adjustment in ating device. through 2013. pumping at a facility without the consent of (3) CONDUIT.—The term ‘‘conduit’’ has the SEC. 243. SMALL HYDROELECTRIC POWER each person that has contracted with the same meaning as when used in section PROJECTS. United States for delivery of water from the 30(a)(2) of the Federal Power Act (16 U.S.C. Section 408(a)(6) of the Public Utility Reg- facility for use for irrigation and that would 823a(a)(2)). ulatory Policies Act of 1978 (16 U.S.C. be affected by such adjustment.

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(c) EXISTING OBLIGATIONS NOT AFFECTED.— may be necessary to carry out this part and (1) SATISFACTION OF ROYALTY OBLIGATION.— This section shall not be construed to affect part D, to remain available until expended.’’; Delivery by, or on behalf of, the lessee of the any existing obligation of the Secretary to (2) by striking section 186 (42 U.S.C. 6250e); royalty amount and quality due under the provide electric power, water, or other bene- and lease satisfies the lessee’s royalty obligation fits from Bureau of Reclamation facilities, (3) by striking part E (42 U.S.C. 6251; relat- for the amount delivered, except that trans- including recreational releases. ing to the expiration of title I of the Act). portation and processing reimbursements SEC. 246. LIMITATION ON CERTAIN CHARGES AS- (b) AMENDMENT TO TITLE II OF THE ENERGY paid to, or deductions claimed by, the lessee SESSED TO THE FLINT CREEK POLICY AND CONSERVATION ACT.—Title II of shall be subject to review and audit. PROJECT, MONTANA. the Energy Policy and Conservation Act (42 (2) MARKETABLE CONDITION.— Notwithstanding section 10(e)(1) of the U.S.C. 6271 et seq.) is amended— (A) IN GENERAL.—Royalty production shall Federal Power Act (16 U.S.C. 803(e)(1)) or any (1) by inserting before section 273 (42 U.S.C. be placed in marketable condition by the les- other provision of Federal law providing for 6283) the following: see at no cost to the United States. the payment to the United States of charges ‘‘PART C—SUMMER FILL AND FUEL BUDGETING (B) DEFINITION OF MARKETABLE CONDITION.— for the use of Federal land for the purposes PROGRAMS’’; In this paragraph, the term ‘‘in marketable of operating and maintaining a hydroelectric (2) by striking section 273(e) (42 U.S.C. condition’’ means sufficiently free from im- development licensed by the Federal Energy 6283(e); relating to the expiration of summer purities and otherwise in a condition that Regulatory Commission (referred to in this fill and fuel budgeting programs); and the royalty production will be accepted by a section as the ‘‘Commission’’), any political (3) by striking part D (42 U.S.C. 6285; relat- purchaser under a sales contract typical of subdivision of the State of Montana that ing to the expiration of title II of the Act). the field or area in which the royalty produc- holds a license for Commission Project No. (c) TECHNICAL AMENDMENTS.—The table of tion was produced. 1473 in Granite and Deer Lodge Counties, contents for the Energy Policy and Con- (3) DISPOSITION BY THE SECRETARY.—The Montana, shall be required to pay to the servation Act is amended— Secretary may— United States for the use of that land for (1) by inserting after the items relating to (A) sell or otherwise dispose of any royalty each year during which the political subdivi- part C of title I the following: production taken in-kind (other than oil or sion continues to hold the license for the gas transferred under section 27(a)(3) of the ‘‘PART D—NORTHEAST HOME HEATING OIL project, the lesser of— Outer Continental Shelf Lands Act (43 U.S.C. RESERVE (1) $25,000; or 1353(a)(3)) for not less than the market price; (2) such annual charge as the Commission ‘‘Sec. 181. Establishment. and or any other department or agency of the ‘‘Sec. 182. Authority. (B) transport or process (or both) any roy- Federal Government may assess. ‘‘Sec. 183. Conditions for release; plan. alty production taken in-kind. ‘‘Sec. 184. Northeast Home Heating Oil Re- SEC. 247. REINSTATEMENT AND TRANSFER. (4) RETENTION BY THE SECRETARY.—The serve Account. (a) REINSTATEMENT AND TRANSFER OF FED- Secretary may, notwithstanding section 3302 ‘‘Sec. 185. Exemptions.’’; ERAL LICENSE FOR PROJECT NUMBERED 2696.— of title 31, United States Code, retain and (2) by amending the items relating to part Notwithstanding section 8 of the Federal use a portion of the revenues from the sale of C of title II to read as follows: Power Act (16 U.S.C. 801) or any other provi- oil and gas taken in-kind that otherwise sion of such Act, the Federal Energy Regu- ‘‘PART C—SUMMER FILL AND FUEL BUDGETING would be deposited to miscellaneous re- latory Commission shall reinstate the li- PROGRAMS ceipts, without regard to fiscal year limita- cense for Project No. 2696 and transfer the li- ‘‘Sec. 273. Summer fill and fuel budgeting tion, or may use oil or gas received as roy- cense, without delay or the institution of programs.’’; alty taken in-kind (in this paragraph re- any proceedings, to the Town of Stuyvesant, and ferred to as ‘‘royalty production’’) to pay the New York, holder of Federal Energy Regu- (3) by striking the items relating to part D cost of— latory Commission Preliminary Permit No. of title II. (A) transporting the royalty production; 11787, within 30 days after the date of enact- (d) AMENDMENT TO THE ENERGY POLICY AND (B) processing the royalty production; ment of this Act. CONSERVATION ACT.—Section 183(b)(1) of the (C) disposing of the royalty production; or (b) HYDROELECTRIC INCENTIVES.—Project Energy Policy and Conservation Act (42 (D) any combination of transporting, proc- No. 2696 shall be entitled to the full benefit U.S.C. 6250(b)(1)) is amended by striking all essing, and disposing of the royalty produc- of any Federal legislation that promotes hy- after ‘‘increases’’ through to ‘‘mid-October tion. droelectric development that is enacted through March’’ and inserting ‘‘by more than (5) LIMITATION.— within 2 years either before or after the date 60 percent over its 5-year rolling average for (A) IN GENERAL.—Except as provided in of enactment of this Act. the months of mid-October through March subparagraph (B), the Secretary may not use (c) PROJECT DEVELOPMENT AND FINANC- (considered as a heating season average)’’. revenues from the sale of oil and gas taken ING.—The Federal Energy Regulatory Com- (e) FILL STRATEGIC PETROLEUM RESERVE TO in-kind to pay for personnel, travel, or other mission shall permit the Town of Stuyvesant CAPACITY.—The Secretary of Energy shall, as administrative costs of the Federal Govern- to add as a colicensee any private or public expeditiously as practicable, acquire petro- ment. entity or entities to the reinstated license at leum in amounts sufficient to fill the Stra- (B) EXCEPTION.—Notwithstanding subpara- any time, notwithstanding the issuance of a tegic Petroleum Reserve to the 1,000,000,000 graph (A), the Secretary may use a portion preliminary permit to the Town of barrel capacity authorized under section of the revenues from the sale of oil taken in- Stuyvesant and any consideration of munic- 154(a) of the Energy Policy and Conservation kind, without fiscal year limitation, to pay ipal preference. The town shall be entitled, Act (42 U.S.C. 6234(a)), consistent with the transportation costs, salaries, and other ad- to the extent that funds are available or provisions of sections 159 and 160 of such Act ministrative costs directly related to filling shall be made available, to receive loans (42 U.S.C. 6239, 6240). the Strategic Petroleum Reserve. under sections 402 and 403 of the Public Util- SEC. 302. NATIONAL OILHEAT RESEARCH ALLI- (c) REIMBURSEMENT OF COST.—If the lessee, ity Regulatory Policies Act of 1978 (16 U.S.C. ANCE. pursuant to an agreement with the United 2702 and 2703), or similar programs, for the Section 713 of the Energy Act of 2000 (42 States or as provided in the lease, processes reimbursement of feasibility studies or de- U.S.C. 6201 note) is amended by striking ‘‘4’’ the royalty gas or delivers the royalty oil or velopment costs, or both, incurred since Jan- and inserting ‘‘9’’. gas at a point not on or adjacent to the lease uary 1, 2001, through and including December Subtitle B—Production Incentives area, the Secretary shall— 31, 2006. All power produced by the project SEC. 311. DEFINITION OF SECRETARY. (1) reimburse the lessee for the reasonable shall be deemed incremental hydropower for In this subtitle, the term ‘‘Secretary’’ costs of transportation (not including gath- purpose of qualifying for any energy credit means the Secretary of the Interior. ering) from the lease to the point of delivery or similar benefits. SEC. 312. PROGRAM ON OIL AND GAS ROYALTIES or for processing costs; or TITLE III—OIL AND GAS IN-KIND. (2) allow the lessee to deduct the transpor- Subtitle A—Petroleum Reserve and Home (a) APPLICABILITY OF SECTION.—Notwith- tation or processing costs in reporting and Heating Oil standing any other provision of law, this sec- paying royalties in-value for other Federal SEC. 301. PERMANENT AUTHORITY TO OPERATE tion applies to all royalty in-kind accepted oil and gas leases. THE STRATEGIC PETROLEUM RE- by the Secretary on or after October 1, 2004, (d) BENEFIT TO THE UNITED STATES RE- SERVE AND OTHER ENERGY PRO- under any Federal oil or gas lease or permit QUIRED.—The Secretary may receive oil or GRAMS. under section 36 of the Mineral Leasing Act gas royalties in-kind only if the Secretary (a) AMENDMENT TO TITLE I OF THE ENERGY (30 U.S.C. 192), section 27 of the Outer Conti- determines that receiving royalties in-kind POLICY AND CONSERVATION ACT.—Title I of nental Shelf Lands Act (43 U.S.C. 1353), or provides benefits to the United States that the Energy Policy and Conservation Act (42 any other Federal law governing leasing of are greater than or equal to the benefits that U.S.C. 6211 et seq.) is amended— Federal land for oil and gas development. are likely to have been received had royal- (1) by striking section 166 (42 U.S.C. 6246) (b) TERMS AND CONDITIONS.—All royalty ac- ties been taken in-value. and inserting the following: cruing to the United States shall, on the de- (e) REPORTS.— ‘‘AUTHORIZATION OF APPROPRIATIONS mand of the Secretary, be paid in oil or gas. (1) IN GENERAL.—Not later than September ‘‘SEC. 166. There are authorized to be ap- If the Secretary makes such a demand, the 30, 2005, the Secretary shall submit to Con- propriated to the Secretary such sums as following provisions apply to such payment: gress a report that addresses—

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(A) actions taken to develop businesses (2) PRORATION AMONG REFINERIES IN PRO- (1) with respect to oil production from a processes and automated systems to fully DUCTION AREA.—In disposing of oil under this marginal property, on the first day of the support the royalty-in-kind capability to be subsection, the Secretary of Energy may, at production month following the date on used in tandem with the royalty-in-value ap- the discretion of the Secretary, prorate the which— proach in managing Federal oil and gas rev- oil among refineries described in paragraph (A) the spot price of West Texas Inter- enue; and (1) in the area in which the oil is produced. mediate crude oil at Cushing, Oklahoma, on (B) future royalty-in-kind businesses oper- (i) DISPOSITION TO FEDERAL AGENCIES.— average, exceeds $15 per barrel for 90 con- ation plans and objectives. (1) ONSHORE ROYALTY.—Any royalty oil or secutive trading days; or (2) REPORTS ON OIL OR GAS ROYALTIES TAKEN gas taken by the Secretary in-kind from on- (B) the property no longer qualifies as a IN-KIND.—For each of fiscal years 2004 shore oil and gas leases may be sold at not marginal property; and through 2013 in which the United States less than the market price to any Federal (2) with respect to gas production from a takes oil or gas royalties in-kind from pro- agency. marginal property, on the first day of the duction in any State or from the Outer Con- (2) OFFSHORE ROYALTY.—Any royalty oil or production month following the date on tinental Shelf, excluding royalties taken in- gas taken in-kind from a Federal oil or gas which— kind and sold to refineries under subsection lease on the Outer Continental Shelf may be (A) the spot price of natural gas delivered (h), the Secretary shall submit to Congress a disposed of only under section 27 of the Outer at Henry Hub, Louisiana, on average, ex- report that describes— Continental Shelf Lands Act (43 U.S.C. 1353). ceeds $2.00 per million British thermal units (A) the methodology or methodologies used (j) FEDERAL LOW-INCOME ENERGY ASSIST- for 90 consecutive trading days; or by the Secretary to determine compliance ANCE PROGRAMS.— (B) the property no longer qualifies as a with subsection (d), including the perform- (1) PREFERENCE.—In disposing of royalty marginal property. ance standard for comparing amounts re- oil or gas taken in-kind under this section, (e) REGULATIONS PRESCRIBING DIFFERENT ceived by the United States derived from the Secretary may grant a preference to any RELIEF.— royalties in-kind to amounts likely to have person, including any Federal or State agen- (1) DISCRETIONARY REGULATIONS.—The Sec- been received had royalties been taken in- cy, for the purpose of providing additional retary may by regulation prescribe different value; resources to any Federal low-income energy parameters, standards, and requirements for, (B) an explanation of the evaluation that assistance program. and a different degree or extent of, royalty led the Secretary to take royalties in-kind (2) REPORT.—Not later than 3 years after relief for marginal properties in lieu of those from a lease or group of leases, including the the date of enactment of this Act, the Sec- prescribed in subsections (a) through (d). expected revenue effect of taking royalties retary shall transmit a report to Congress, (2) MANDATORY REGULATIONS.—Not later in-kind; assessing the effectiveness of granting pref- than 18 months after the date of enactment (C) actual amounts received by the United erences specified in paragraph (1) and proof this Act, the Secretary shall by regula- States derived from taking royalties in-kind viding a specific recommendation on the tion— and costs and savings incurred by the United continuation of authority to grant pref- (A) prescribe standards and requirements States associated with taking royalties in- erences. for, and the extent of royalty relief for, mar- kind, including, but not limited to, adminis- (k) EFFECTIVE DATE.—This section takes ginal properties for oil and gas leases on the trative savings and any new or increased ad- effect on October 1, 2004. Outer Continental Shelf; and ministrative costs; and SEC. 313. MARGINAL PROPERTY PRODUCTION IN- (B) define what constitutes a marginal (D) an evaluation of other relevant public CENTIVES. property on the Outer Continental Shelf for benefits or detriments associated with tak- (a) DEFINITION OF MARGINAL PROPERTY.— purposes of this section. ing royalties in-kind. Until such time as the Secretary issues regu- (3) CONSIDERATIONS.—In promulgating reg- (f) DEDUCTION OF EXPENSES.— lations under subsection (e) that prescribe a ulations under this subsection, the Secretary (1) IN GENERAL.—Before making payments different definition, in this section the term may consider— under section 35 of the Mineral Leasing Act ‘‘marginal property’’ means an onshore unit, (A) oil and gas prices and market trends; (30 U.S.C. 191) or section 8(g) of the Outer communitization agreement, or lease not (B) production costs; Continental Shelf Lands Act (43 U.S.C. within a unit or communitization agree- (C) abandonment costs; 1337(g)) of revenues derived from the sale of ment, that produces on average the com- (D) Federal and State tax provisions and royalty production taken in-kind from a bined equivalent of less than 15 barrels of oil the effects of those provisions on production lease, the Secretary shall deduct amounts per well per day or 90 million British ther- economics; paid or deducted under subsections (b)(4) and mal units of gas per well per day calculated (E) other royalty relief programs; (c) and deposit the amount of the deductions based on the average over the 3 most recent (F) regional differences in average well- in the miscellaneous receipts of the United production months, including only wells that head prices; States Treasury. produce on more than half of the days during (G) national energy security issues; and (2) ACCOUNTING FOR DEDUCTIONS.—When the those 3 production months. (H) other relevant matters. Secretary allows the lessee to deduct trans- (b) CONDITIONS FOR REDUCTION OF ROYALTY (f) SAVINGS PROVISION.—Nothing in this portation or processing costs under sub- RATE.—Until such time as the Secretary section prevents a lessee from receiving roy- section (c), the Secretary may not reduce issues regulations under subsection (e) that alty relief or a royalty reduction pursuant to any payments to recipients of revenues de- prescribe different thresholds or standards, any other law (including a regulation) that rived from any other Federal oil and gas the Secretary shall reduce the royalty rate provides more relief than the amounts pro- lease as a consequence of that deduction. on— vided by this section. (g) CONSULTATION WITH STATES.—The Sec- (1) oil production from marginal properties (g) EFFECTIVE DATE.—This section takes retary— as prescribed in subsection (c) when the spot effect on October 1, 2004. (1) shall consult with a State before con- price of West Texas Intermediate crude oil at SEC. 314. INCENTIVES FOR NATURAL GAS PRO- ducting a royalty in-kind program under this Cushing, Oklahoma, is, on average, less than DUCTION FROM DEEP WELLS IN THE subtitle within the State, and may delegate $15 per barrel for 90 consecutive trading SHALLOW WATERS OF THE GULF OF management of any portion of the Federal days; and MEXICO. royalty in-kind program to the State except (2) gas production from marginal prop- (a) ROYALTY INCENTIVE REGULATIONS.—The as otherwise prohibited by Federal law; and erties as prescribed in subsection (c) when Secretary shall publish a final regulation to (2) shall consult annually with any State the spot price of natural gas delivered at complete the rulemaking begun by the No- from which Federal oil or gas royalty is Henry Hub, Louisiana, is, on average, less tice of Proposed Rulemaking entitled ‘‘Relief being taken in-kind to ensure, to the max- than $2.00 per million British thermal units or Reduction in Royalty Rates—Deep Gas imum extent practicable, that the royalty for 90 consecutive trading days. Provisions’’, published in the Federal Reg- in-kind program provides revenues to the (c) REDUCED ROYALTY RATE.— ister on March 26, 2003 (Federal Register, vol- State greater than or equal to those likely (1) IN GENERAL.—When a marginal property ume 68, number 58, 14868-14886). to have been received had royalties been meets the conditions specified in subsection (b) ROYALTY INCENTIVE REGULATIONS FOR taken in-value. (b), the royalty rate shall be the lesser of— ULTRA DEEP GAS WELLS.— (h) SMALL REFINERIES.— (A) 5 percent; or (1) IN GENERAL.—Not later than 180 days (1) PREFERENCE.—If the Secretary finds (B) the applicable rate under any other after the date of enactment of this section, that sufficient supplies of crude oil are not statutory or regulatory royalty relief provi- in addition to any other regulations that available in the open market to refineries sion that applies to the affected production. may provide royalty incentives for natural that do not have their own source of supply (2) PERIOD OF EFFECTIVENESS.—The reduced gas produced from deep wells on oil and gas for crude oil, the Secretary may grant pref- royalty rate under this subsection shall be leases issued pursuant to the Outer Conti- erence to such refineries in the sale of any effective beginning on the first day of the nental Shelf Lands Act (43 U.S.C. 1331 et royalty oil accruing or reserved to the production month following the date on seq.), the Secretary shall issue regulations, United States under Federal oil and gas which the applicable condition specified in in accordance with the regulations published leases issued under any mineral leasing law, subsection (b) is met. pursuant to subsection (a), granting royalty for processing or use in such refineries at (d) TERMINATION OF REDUCED ROYALTY relief suspension volumes of not less than private sale at not less than the market RATE.—A royalty rate prescribed in sub- 35,000,000,000 cubic feet with respect to the price. section (d)(1)(A) shall terminate— production of natural gas from ultra deep

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wells on leases issued before January 1, 2001, National Petroleum Reserve in Alaska (re- ‘‘(2) PARTICIPATION BY STATE OF ALASKA.— in shallow waters less than 200 meters deep ferred to in this section as the ‘Reserve’). The Secretary shall ensure that the State of located in the Gulf of Mexico wholly west of ‘‘(b) MITIGATION OF ADVERSE EFFECTS.—Ac- Alaska is provided the opportunity for active 87 degrees, 30 minutes West longitude. Regu- tivities’’; participation concerning creation and man- lations issued under this subsection shall be (2) by striking ‘‘Alaska (the Reserve); (2) agement of units formed or expanded under retroactive to the date that the Notice of the’’ and inserting ‘‘Alaska. this subsection that include acreage in which Proposed Rulemaking is published in the ‘‘(c) LAND USE PLANNING; BLM WILDERNESS the State of Alaska has an interest in the Federal Register. STUDY.—The’’; mineral estate. (2) DEFINITION OF ULTRA DEEP WELL.—In (3) by striking ‘‘Reserve; (3) the’’ and in- ‘‘(3) PARTICIPATION BY REGIONAL CORPORA- this subsection, the term ‘‘ultra deep well’’ serting ‘‘Reserve. TIONS.—The Secretary shall ensure that any means a well drilled with a perforated inter- ‘‘(d) FIRST LEASE SALE.—The’’; Regional Corporation (as defined in section 3 val, the top of which is at least 20,000 feet (4) by striking ‘‘4332); (4) the’’ and inserting of the Alaska Native Claims Settlement Act ‘‘4321 et seq.). true vertical depth below the datum at mean (43 U.S.C. 1602)) is provided the opportunity ‘‘(e) WITHDRAWALS.—The’’; sea level. for active participation concerning creation (5) by striking ‘‘herein; (5) bidding’’ and in- (c) EFFECTIVE DATE.—This section takes ef- serting ‘‘under this section. and management of units that include acre- fect on October 1, 2004. ‘‘(f) BIDDING SYSTEMS.—Bidding’’; age in which the Regional Corporation has SEC. 315. ROYALTY RELIEF FOR DEEP WATER (6) by striking ‘‘629); (6) lease’’ and insert- an interest in the mineral estate. PRODUCTION. ing ‘‘629). ‘‘(4) PRODUCTION ALLOCATION METHOD- (a) IN GENERAL.—For all tracts located in ‘‘(g) GEOLOGICAL STRUCTURES.—Lease’’; OLOGY.—The Secretary may use a production water depths of greater than 400 meters in (7) by striking ‘‘structures; (7) the’’ and in- allocation methodology for each partici- the Western and Central Planning Area of serting ‘‘structures. pating area within a unit created for land in the Gulf of Mexico, including the portion of ‘‘(h) SIZE OF LEASE TRACTS.—The’’; the Reserve, State of Alaska land, or Re- the Eastern Planning Area of the Gulf of (8) by striking ‘‘Secretary; (8)’’ and all that gional Corporation land shall, when appro- Mexico encompassing whole lease blocks follows through ‘‘Drilling, production,’’ and priate, be based on the characteristics of lying west of 87 degrees, 30 minutes West lon- inserting ‘‘Secretary. each specific oil or gas pool, field, reservoir, gitude, any oil or gas lease sale under the ‘‘(i) TERMS.— or like area to take into account reservoir Outer Continental Shelf Lands Act (43 U.S.C. ‘‘(1) IN GENERAL.—Each lease shall be— heterogeneity and a real variation in res- 1331 et seq.) occurring within 5 years after ‘‘(A) issued for an initial period of not ervoir producibility across diverse leasehold the date of enactment of this Act shall use more than 10 years; and interests. the bidding system authorized in section ‘‘(B) renewed for successive 10-year terms ‘‘(5) BENEFIT OF OPERATIONS.—Drilling, pro- 8(a)(1)(H) of the Outer Continental Shelf if— duction,’’; Lands Act (43 U.S.C. 1337(a)(1)(H)), except ‘‘(i) oil or gas is produced from the lease in (9) by striking ‘‘When separate’’ and insert- that the suspension of royalties shall be set paying quantities; ing the following: at a volume of not less than— ‘‘(ii) oil or gas is capable of being produced ‘‘(6) POOLING.—If separate’’; (1) 5,000,000 barrels of oil equivalent for in paying quantities; or (10) by inserting ‘‘(in consultation with the each lease in water depths of 400 to 800 me- ‘‘(iii) drilling or reworking operations, as owners of the other land)’’ after ‘‘determined ters; approved by the Secretary, are conducted on by the Secretary of the Interior’’; (2) 9,000,000 barrels of oil equivalent for the leased land. (11) by striking ‘‘thereto; (10) to’’ and all each lease in water depths of 800 to 1,600 me- ‘‘(2) RENEWAL OF NONPRODUCING LEASES.— that follows through ‘‘the terms provided ters; and The Secretary shall renew for an additional therein’’ and inserting ‘‘to the agreement. (3) 12,000,000 barrels of oil equivalent for 10-year term a lease that does not meet the ‘‘(k) EXPLORATION INCENTIVES.— each lease in water depths greater than 1,600 requirements of paragraph (1)(B) if the lessee ‘‘(1) IN GENERAL.— meters. submits to the Secretary an application for ‘‘(A) WAIVER, SUSPENSION, OR REDUCTION.— (b) LIMITATION.—The Secretary may place renewal not later than 60 days before the ex- To encourage the greatest ultimate recovery limitations on the suspension of royalty re- piration of the primary lease and— of oil or gas or in the interest of conserva- lief granted based on market price. ‘‘(A) the lessee certifies, and the Secretary tion, the Secretary may waive, suspend, or agrees, that hydrocarbon resources were dis- reduce the rental fees or minimum royalty, SEC. 316. ALASKA OFFSHORE ROYALTY SUSPEN- covered on 1 or more wells drilled on the SION. or reduce the royalty on an entire leasehold leased land in such quantities that a prudent Section 8(a)(3)(B) of the Outer Continental (including on any lease operated pursuant to operator would hold the lease for potential Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is a unit agreement), if (after consultation with future development; amended by inserting ‘‘and in the Planning the State of Alaska and the North Slope Bor- ‘‘(B) the lessee— ough of Alaska and the concurrence of any Areas offshore Alaska’’ after ‘‘West lon- ‘‘(i) pays the Secretary a renewal fee of Regional Corporation for leases that include gitude’’. $100 per acre of leased land; and lands available for acquisition by the Re- SEC. 317. OIL AND GAS LEASING IN THE NA- ‘‘(ii) provides evidence, and the Secretary gional Corporation under the provisions of TIONAL PETROLEUM RESERVE IN agrees that, the lessee has diligently pursued ALASKA. section 1431(o) of the Alaska National Inter- exploration that warrants continuation with est Lands Conservation Act (16 U.S.C. 3101 et (a) TRANSFER OF AUTHORITY.— the intent of continued exploration or future seq.)) the Secretary determines that the (1) REDESIGNATION.—The Naval Petroleum development of the leased land; or waiver, suspension, or reduction is in the Reserves Production Act of 1976 (42 U.S.C. ‘‘(C) all or part of the lease— 6501 et seq.) is amended by redesignating sec- ‘‘(i) is part of a unit agreement covering a public interest. tion 107 (42 U.S.C. 6507) as section 108. lease described in subparagraph (A) or (B); ‘‘(B) APPLICABILITY.—This paragraph ap- (2) TRANSFER.—The matter under the head- and plies to a lease that— ing ‘‘EXPLORATION OF NATIONAL PETROLEUM ‘‘(ii) has not been previously contracted ‘‘(i) is entered into before, on, or after the RESERVE IN ALASKA’’ under the heading ‘‘EN- out of the unit. date of enactment of the Energy Policy Act of 2003; and ERGY AND MINERALS’’ of title I of Public ‘‘(3) APPLICABILITY.—This subsection ap- Law 96–514 (42 U.S.C. 6508) is— plies to a lease that— ‘‘(ii) is effective on or after the date of en- (A) transferred to the Naval Petroleum Re- ‘‘(A) is entered into before, on, or after the actment of that Act.’’; serves Production Act of 1976 (42 U.S.C. 6501 date of enactment of the Energy Policy Act (12) by striking ‘‘The Secretary is author- et seq.); of 2003; and ized to’’ and inserting the following: (B) redesignated as section 107 of that Act; ‘‘(B) is effective on or after the date of en- ‘‘(2) SUSPENSION OF OPERATIONS AND PRO- and actment of that Act. DUCTION.—The Secretary may’’; (C) moved so as to appear after section 106 ‘‘(j) UNIT AGREEMENTS.— (13) by striking ‘‘In the event’’ and insert- of that Act (42 U.S.C. 6506). ‘‘(1) IN GENERAL.—For the purpose of con- ing the following: (b) COMPETITIVE LEASING.—Section 107 of servation of the natural resources of all or ‘‘(3) SUSPENSION OF PAYMENTS.—If’’; the Naval Petroleum Reserves Production part of any oil or gas pool, field, reservoir, or (14) by striking ‘‘thereto; and (11) all’’ and Act of 1976 (as amended by subsection (a) of like area, lessees (including representatives) inserting ‘‘to the lease. this section) is amended— of the pool, field, reservoir, or like area may ‘‘(l) RECEIPTS.—All’’; (1) by striking the heading and all that fol- unite with each other, or jointly or sepa- (15) by redesignating clauses (A), (B), and lows through ‘‘Provided, That (1) activities’’ rately with others, in collectively adopting (C) as clauses (1), (2), and (3), respectively; and inserting the following: and operating under a unit agreement for all (16) by striking ‘‘Any agency’’ and insert- ‘‘SEC. 107. COMPETITIVE LEASING OF OIL AND or part of the pool, field, reservoir, or like ing the following: GAS. area (whether or not any other part of the oil ‘‘(m) EXPLORATIONS.—Any agency’’; ‘‘(a) IN GENERAL.—Notwithstanding any or gas pool, field, reservoir, or like area is al- (17) by striking ‘‘Any action’’ and inserting other provision of law and pursuant to regu- ready subject to any cooperative or unit plan the following: lations issued by the Secretary, the Sec- of development or operation), if the Sec- ‘‘(n) ENVIRONMENTAL IMPACT STATE- retary shall conduct an expeditious program retary determines the action to be necessary MENTS.— of competitive leasing of oil and gas in the or advisable in the public interest. ‘‘(1) JUDICIAL REVIEW.—Any action’’;

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(18) by striking ‘‘The detailed’’ and insert- (e) IDLED WELL.—For the purposes of this claims, or closes an abandoned, orphaned, or ing the following: section, a well is idled if— idled well pursuant to this subsection. ‘‘(2) INITIAL LEASE SALES.—The detailed’’; (1) the well has been nonoperational for at (B) GENERAL RULE.—A remediating party (19) by striking ‘‘of the Naval Petroleum least 7 years; and who remediates, reclaims, or closes an aban- Reserves Production Act of 1976 (90 Stat. 304; (2) there is no anticipated beneficial use doned, orphaned, or idled well in accordance 42 U.S.C. 6504)’’; and for the well. with a detailed written remediation plan ap- (20) by adding at the end the following: (f) TECHNICAL ASSISTANCE PROGRAM FOR proved by the Secretary under this sub- ‘‘(o) WAIVER OF ADMINISTRATION FOR CON- NON-FEDERAL LAND.— section, shall be immune from civil liability VEYED LANDS.—Notwithstanding section (1) IN GENERAL.—The Secretary of Energy under Federal environmental laws, for— 14(g) of the Alaska Native Claims Settlement shall establish a program to provide tech- (i) pre-existing environmental conditions Act (43 U.S.C. 1613(g)) or any other provision nical and financial assistance to oil and gas at or associated with the well, unless the re- of law— producing States to facilitate State efforts mediating party owns or operates, in the ‘‘(1) the Secretary of the Interior shall over a 10-year period to ensure a practical past owned or operated, or is related to a waive administration of any oil and gas lease and economical remedy for environmental person that owns or operates or in the past insofar as such lease covers any land in the problems caused by orphaned or abandoned owned or operated, the well or the land on National Petroleum Reserve in Alaska in oil and gas exploration or production well which the well is located; or which the subsurface estate is conveyed to sites on State or private land. (ii) any remaining releases of pollutants the Arctic Slope Regional Corporation; and (2) ASSISTANCE.—The Secretary of Energy from the well during or after completion of ‘‘(2) if any such conveyance of such sub- shall work with the States, through the the remediation, reclamation, or closure of surface estate does not cover all the land em- Interstate Oil and Gas Compact Commission, the well, unless the remediating party causes braced within any such oil and gas lease— to assist the States in quantifying and miti- increased pollution as a result of activities ‘‘(A) the person who owns the subsurface gating environmental risks of onshore or- that are not in accordance with the approved estate in any particular portion of the land phaned or abandoned oil or gas wells on remediation plan. covered by such lease shall be entitled to all State and private land. (C) LIMITATIONS.—Nothing in this section of the revenues reserved under such lease as shall limit in any way the liability of a re- to such portion, including, without limita- (3) ACTIVITIES.—The program under para- mediating party for injury, damage, or pollution, all the royalty payable with respect to graph (1) shall include— tion resulting from the remediating party’s oil or gas produced from or allocated to such (A) mechanisms to facilitate identifica- acts or omissions that are not in accordance particular portion of the land covered by tion, if feasible, of the persons currently pro- with the approved remediation plan, are such lease; and viding a bond or other form of financial as- reckless or willful, constitute gross neg- ‘‘(B) the Secretary of the Interior shall surance required under State or Federal law ligence or wanton misconduct, or are unlaw- segregate such lease into 2 leases, 1 of which for an oil or gas well that is orphaned or ful. shall cover only the subsurface estate con- abandoned; (4) REGULATIONS.—The Secretary may issue veyed to the Arctic Slope Regional Corpora- (B) criteria for ranking orphaned or aban- such regulations as are appropriate to carry tion, and operations, production, or other doned well sites based on factors such as circumstances (other than payment of rent- public health and safety, potential environ- out this subsection. (h) AUTHORIZATION OF APPROPRIATIONS.— als or royalties) that satisfy obligations of mental harm, and other land use priorities; the lessee under, or maintain, either of the (C) information and training programs on (1) IN GENERAL.—There are authorized to be segregated leases shall likewise satisfy obli- best practices for remediation of different appropriated to carry out this section gations of the lessee under, or maintain, the types of sites; and $25,000,000 for each of fiscal years 2005 other segregated lease to the same extent as (D) funding of State mitigation efforts on a through 2009. if such segregated leases remained a part of cost-shared basis. (2) USE.—Of the amounts authorized under the original unsegregated lease.’’. (g) FEDERAL REIMBURSEMENT FOR OR- paragraph (1), $5,000,000 are authorized for each fiscal year for activities under sub- SEC. 318. ORPHANED, ABANDONED, OR IDLED PHANED WELL RECLAMATION PILOT PRO- WELLS ON FEDERAL LAND. GRAM.— section (f). (a) IN GENERAL.—The Secretary, in co- (1) REIMBURSEMENT FOR REMEDIATING, RE- SEC. 319. COMBINED HYDROCARBON LEASING. operation with the Secretary of Agriculture, CLAIMING, AND CLOSING WELLS ON LAND SUB- (a) SPECIAL PROVISIONS REGARDING LEAS- shall establish a program not later than 1 JECT TO A NEW LEASE.—The Secretary shall ING.—Section 17(b)(2) of the Mineral Leasing year after the date of enactment of this Act carry out a pilot program under which, in Act (30 U.S.C. 226(b)(2)) is amended— to remediate, reclaim, and close orphaned, issuing a new oil and gas lease on federally (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and abandoned, or idled oil and gas wells located owned land on which 1 or more orphaned (2) by adding at the end the following: on land administered by the land manage- wells are located, the Secretary— ‘‘(B) For any area that contains any comment agencies within the Department of the (A) may require, but not as a condition of bination of tar sand and oil or gas (or both), Interior and the Department of Agriculture. the lease, that the lessee remediate, reclaim, the Secretary may issue under this Act, sep- (b) ACTIVITIES.—The program under sub- and close in accordance with standards es- arately— section (a) shall— tablished by the Secretary, all orphaned ‘‘(i) a lease for exploration for and extrac- (1) include a means of ranking orphaned, wells on the land leased; and tion of tar sand; and abandoned, or idled wells sites for priority in (B) shall develop a program to reimburse a ‘‘(ii) a lease for exploration for and devel- remediation, reclamation, and closure, based lessee, through a royalty credit against the opment of oil and gas. on public health and safety, potential envi- Federal share of royalties owed or other ‘‘(C) A lease issued for tar sand shall be ronmental harm, and other land use prior- means, for the reasonable actual costs of re- issued using the same bidding process, an- ities; mediating, reclaiming, and closing the or- nual rental, and posting period as a lease (2) provide for identification and recovery phaned well pursuant to that requirement. issued for oil and gas, except that the min- of the costs of remediation, reclamation, and (2) REIMBURSEMENT FOR RECLAIMING OR- imum acceptable bid required for a lease closure from persons or other entities cur- PHANED WELLS ON OTHER LAND.—In carrying issued for tar sand shall be $2 per acre. rently providing a bond or other financial as- out this subsection, the Secretary— ‘‘(D) The Secretary may waive, suspend, or surance required under State or Federal law (A) may authorize any lessee under an oil alter any requirement under section 26 that for an oil or gas well that is orphaned, aban- and gas lease on federally owned land to re- a permittee under a permit authorizing doned, or idled; and claim in accordance with the Secretary’s prospecting for tar sand must exercise due (3) provide for recovery from the persons or standards— diligence, to promote any resource covered entities identified under paragraph (2), or (i) an orphaned well on unleased federally by a combined hydrocarbon lease.’’. their sureties or guarantors, of the costs of owned land; or (b) CONFORMING AMENDMENT.—Section remediation, reclamation, and closure of (ii) an orphaned well located on an existing 17(b)(1)(B) of the Mineral Leasing Act (30 such wells. U.S.C. 226(b)(1)(B)) is amended in the second (c) COOPERATION AND CONSULTATIONS.—In lease on federally owned land for the rec- sentence by inserting ‘‘, subject to paragraph carrying out the program under subsection lamation of which the lessee is not legally (2)(B),’’ after ‘‘Secretary’’. (a), the Secretary shall— responsible; and (c) REGULATIONS.—Not later than 45 days (1) work cooperatively with the Secretary (B) shall develop a program to provide re- after the date of enactment of this Act, the of Agriculture and the States within which imbursement of 115 percent of the reasonable Secretary shall issue final regulations to im- Federal land is located; and actual costs of remediating, reclaiming, and plement this section. (2) consult with the Secretary of Energy closing the orphaned well, through credits and the Interstate Oil and Gas Compact against the Federal share of royalties or SEC. 320. LIQUIFIED NATURAL GAS. Commission. other means. Section 3 of the Natural Gas Act (15 U.S.C. (d) PLAN.—Not later than 1 year after the (3) EFFECT OF REMEDIATION, RECLAMATION, 717b) is amended by adding at the end the date of enactment of this Act, the Secretary, OR CLOSURE OF WELL PURSUANT TO AN AP- following: in cooperation with the Secretary of Agri- PROVED REMEDIATION PLAN.— ‘‘(d) LIMITATION ON COMMISSION AUTHOR- culture, shall submit to Congress a plan for (A) DEFINITION OF REMEDIATING PARTY.—In ITY.—If an applicant under this section pro- carrying out the program under subsection this paragraph the term ‘‘remediating poses to construct or expand a liquified nat- (a). party’’ means a person who remediates, re- ural gas terminal either onshore or in State

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00083 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.086 S28PT1 S4528 CONGRESSIONAL RECORD — SENATE April 28, 2004 waters for the purpose of importing liquified tection of national security interests, and being given to archiving data in the State in natural gas into the United States, the Com- protection of correlative rights in the Outer which the data were collected; and mission shall not deny or condition the ap- Continental Shelf. (B) consistent with all applicable law and plication solely on the basis that the appli- ‘‘(6) SECURITY.—The Secretary shall re- requirements relating to confidentiality and cant proposes to utilize the terminal exclu- quire the holder of a lease, easement, or proprietary data. sively or partially for gas that the applicant right-of-way granted under this subsection (e) NATIONAL CATALOG.— or any affiliate thereof will supply thereto. to furnish a surety bond or other form of se- (1) IN GENERAL.—As soon as practicable In all other respects, subsection (a) shall re- curity, as prescribed by the Secretary, and after the date of enactment of this Act, the main applicable to any such proposal.’’. to comply with such other requirements as Secretary shall develop and maintain, as a SEC. 321. ALTERNATE ENERGY-RELATED USES ON the Secretary considers necessary to protect component of the Program, a national cata- THE OUTER CONTINENTAL SHELF. the interests of the United States. (a) AMENDMENT TO OUTER CONTINENTAL log that identifies— FFECT OF SUBSECTION.—Nothing in ‘‘(7) E (A) data and samples available in the data SHELF LANDS ACT.—Section 8 of the Outer this subsection displaces, supersedes, limits, archive system established under subsection Continental Shelf Lands Act (43 U.S.C. 1337) or modifies the jurisdiction, responsibility, is amended by adding at the end the fol- (d); or authority of any Federal or State agency lowing: (B) the repository for particular material under any other Federal law. ‘‘(p) LEASES, EASEMENTS, OR RIGHTS-OF- in the system; and ‘‘(8) APPLICABILITY.—This subsection does WAY FOR ENERGY AND RELATED PURPOSES.— (C) the means of accessing the material. not apply to any area on the Outer Conti- ‘‘(1) IN GENERAL.—The Secretary, in con- (2) AVAILABILITY.—The Secretary shall nental Shelf designated as a National Marine sultation with the Secretary of the Depart- make the national catalog accessible to the ment in which the Coast Guard is operating Sanctuary.’’. (b) CONFORMING AMENDMENT.—Section 8 of public on the site of the Survey on the Inter- and other relevant departments and agencies the Outer Continental Shelf Lands Act (43 net, consistent with all applicable require- of the Federal Government, may grant a U.S.C. 1337) is amended by striking the sec- ments related to confidentiality and propri- lease, easement, or right-of-way on the Outer tion heading and inserting the following: etary data. Continental Shelf for activities not other- ‘‘LEASES, EASEMENTS, AND RIGHTS-OF-WAY ON (f) ADVISORY COMMITTEE.— wise authorized in this Act, the Deepwater THE OUTER CONTINENTAL SHELF.—’’. (1) IN GENERAL.—The Advisory Committee Port Act of 1974 (33 U.S.C. 1501 et seq.), or the (c) SAVINGS PROVISION.—Nothing in the shall advise the Secretary on planning and Ocean Thermal Energy Conversion Act of amendment made by subsection (a) requires, 1980 (42 U.S.C. 9101 et seq.), or other applica- with respect to any project— implementation of the Program. ble law, if those activities— (1) for which offshore test facilities have (2) NEW DUTIES.—In addition to its duties ‘‘(A) support exploration, development, been constructed before the date of enact- under the National Geologic Mapping Act of production, transportation, or storage of oil, ment of this Act; or 1992 (43 U.S.C. 31a et seq.), the Advisory Com- natural gas, or other minerals; (2) for which a request for proposals has mittee shall perform the following duties: ‘‘(B) produce or support production, trans- been issued by a public authority, (A) Advise the Secretary on developing portation, or transmission of energy from any resubmittal of documents previously guidelines and procedures for providing as- sources other than oil and gas; or submitted or any reauthorization of actions sistance for facilities under subsection (g)(1). ‘‘(C) use, for energy-related or marine-re- previously authorized. (B) Review and critique the draft imple- lated purposes, facilities currently or pre- SEC. 322. PRESERVATION OF GEOLOGICAL AND mentation plan prepared by the Secretary viously used for activities authorized under GEOPHYSICAL DATA. under subsection (c). this Act. (a) SHORT TITLE.—This section may be (C) Identify useful studies of data archived ‘‘(2) PAYMENTS.—The Secretary shall estab- cited as the ‘‘National Geological and Geo- under the Program that will advance under- lish reasonable forms of payments for any physical Data Preservation Program Act of standing of the Nation’s energy and mineral easement or right-of-way granted under this 2003’’. resources, geologic hazards, and engineering (b) PROGRAM.—The Secretary shall carry subsection. Such payments shall not be as- geology. out a National Geological and Geophysical sessed on the basis of throughput or produc- (D) Review the progress of the Program in Data Preservation Program in accordance tion. The Secretary may establish fees, rent- archiving significant data and preventing with this section— als, bonus, or other payments by rule or by the loss of such data, and the scientific (1) to archive geologic, geophysical, and agreement with the party to which the lease, progress of the studies funded under the Pro- engineering data, maps, well logs, and sam- easement, or right-of-way is granted. gram. ples; ‘‘(3) CONSULTATION.—Before exercising au- (E) Include in the annual report to the Sec- (2) to provide a national catalog of such ar- thority under this subsection, the Secretary retary required under section 5(b)(3) of the chival material; and shall consult with the Secretary of Defense National Geologic Mapping Act of 1992 (43 (3) to provide technical and financial as- and other appropriate agencies concerning U.S.C. 31d(b)(3)) an evaluation of the sistance related to the archival material. issues related to national security and navi- (c) PLAN.—Not later than 1 year after the progress of the Program toward fulfilling the gational obstruction. date of enactment of this Act, the Secretary purposes of the Program under subsection ‘‘(4) COMPETITIVE OR NONCOMPETITIVE shall submit to Congress a plan for the im- (b). BASIS.— plementation of the Program. (g) FINANCIAL ASSISTANCE.— ‘‘(A) IN GENERAL.—The Secretary may (d) DATA ARCHIVE SYSTEM.— (1) ARCHIVE FACILITIES.—Subject to the issue a lease, easement, or right-of-way for (1) ESTABLISHMENT.—The Secretary shall availability of appropriations, the Secretary energy and related purposes as described in establish, as a component of the Program, a shall provide financial assistance to a State paragraph (1) on a competitive or non- data archive system to provide for the stor- agency that is designated under subsection competitive basis. age, preservation, and archiving of sub- (d)(2) for providing facilities to archive en- ‘‘(B) CONSIDERATIONS.—In determining surface, surface, geological, geophysical, and ergy material. whether a lease, easement, or right-of-way engineering data and samples. The Sec- (2) STUDIES.—Subject to the availability of shall be granted competitively or non- retary, in consultation with the Advisory appropriations, the Secretary shall provide competitively, the Secretary shall consider Committee, shall develop guidelines relating financial assistance to any State agency des- such factors as— to the data archive system, including the ignated under subsection (d)(2) for studies ‘‘(i) prevention of waste and conservation types of data and samples to be preserved. and technical assistance activities that en- of natural resources; (2) SYSTEM COMPONENTS.—The system shall hance understanding, interpretation, and use ‘‘(ii) the economic viability of an energy be comprised of State agencies that elect to of materials archived in the data archive project; be part of the system and agencies within system established under subsection (d). ‘‘(iii) protection of the environment; the Department of the Interior that main- (3) FEDERAL SHARE.—The Federal share of ‘‘(iv) the national interest and national se- tain geological and geophysical data and the cost of an activity carried out with as- curity; samples that are designated by the Secretary sistance under this subsection shall be not ‘‘(v) human safety; in accordance with this subsection. The Pro- more than 50 percent of the total cost of the ‘‘(vi) protection of correlative rights; and gram shall provide for the storage of data activity. ‘‘(vii) potential return for the lease, ease- and samples through data repositories oper- (4) PRIVATE CONTRIBUTIONS.—The Secretary ment, or right-of-way. ated by such agencies. shall apply to the non-Federal share of the ‘‘(5) REGULATIONS.—Not later than 270 days (3) LIMITATION OF DESIGNATION.—The Sec- cost of an activity carried out with assist- after the date of enactment of the Energy retary may not designate a State agency as ance under this subsection the value of pri- Policy Act of 2003, the Secretary, in con- a component of the data archive system un- vate contributions of property and services sultation with the Secretary of the Depart- less that agency is the agency that acts as used for that activity. ment in which the Coast Guard is operating the geological survey in the State. and other relevant agencies of the Federal (4) DATA FROM FEDERAL LAND.—The data (h) REPORT.—The Secretary shall include Government and affected States, shall issue archive system shall provide for the in each report under section 8 of the Na- any necessary regulations to ensure safety, archiving of relevant subsurface data and tional Geologic Mapping Act of 1992 (43 protection of the environment, prevention of samples obtained from Federal land— U.S.C. 31g)— waste, and conservation of the natural re- (A) in the most appropriate repository des- (1) a description of the status of the Pro- sources of the Outer Continental Shelf, pro- ignated under paragraph (2), with preference gram;

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00084 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.086 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4529 (2) an evaluation of the progress achieved (B) siting and facility configuration for on- Act initiated or filed before the date of en- in developing the Program during the period shore and offshore liquified natural gas re- actment of this Act, the Secretary of Com- covered by the report; and ceiving terminals; merce shall receive no more filings on the (3) any recommendations for legislative or (C) the factors described in subparagraphs appeal and the administrative record regard- other action the Secretary considers nec- (B) through (F) of paragraph (3); and ing the appeal shall be closed not later than essary and appropriate to fulfill the purposes (D) other economic factors; 120 days after the date of enactment of this of the Program under subsection (b). (5) the technical and economic feasibility Act. (i) MAINTENANCE OF STATE EFFORT.—It is of using renewable energy sources (including SEC. 326. REIMBURSEMENT FOR COSTS OF NEPA the intent of Congress that the States not hydrogen) for ground, marine, and air trans- ANALYSES, DOCUMENTATION, AND STUDIES. use this section as an opportunity to reduce portation energy applications to displace the (a) IN GENERAL.—The Mineral Leasing Act State resources applied to the activities that use of refined petroleum products, on an is- is amended by inserting after section 37 (30 are the subject of the Program. land-by-island basis, and the economic im- U.S.C. 193) the following: (j) DEFINITIONS.—In this section: pact of the displacement on the relationship ‘‘REIMBURSEMENT FOR COSTS OF CERTAIN (1) ADVISORY COMMITTEE.—The term ‘‘Advi- described in (2); and ANALYSES, DOCUMENTATION, AND STUDIES sory Committee’’ means the advisory com- (6) an island-by-island approach to— mittee established under section 5 of the Na- (A) the development of hydrogen from re- ‘‘SEC. 38. (a) IN GENERAL.—The Secretary tional Geologic Mapping Act of 1992 (43 newable resources; and of the Interior may reimburse a person that U.S.C. 31d). (B) the application of hydrogen to the en- is a lessee, operator, operating rights owner, or applicant for any lease under this Act for (2) PROGRAM.—The term ‘‘Program’’ means ergy needs of Hawaii. reasonable amounts paid by the person for the National Geological and Geophysical (b) CONTRACTING AUTHORITY.—The Sec- preparation for the Secretary by a con- Data Preservation Program carried out retary of Energy may carry out the assess- tractor or other person selected by the Sec- under this section. ment under subsection (a) directly or, in retary of any project-level analysis, docu- (3) SECRETARY.—The term ‘‘Secretary’’ whole or in part, through 1 or more contracts mentation, or related study required pursu- means the Secretary of the Interior, acting with qualified public or private entities. ant to the National Environmental Policy through the Director of the United States (c) REPORT.—Not later than 300 days after Act of 1969 (42 U.S.C. 4321 et seq.) with re- Geological Survey. the date of enactment of this Act, the Sec- spect to the lease. URVEY retary of Energy shall prepare, in consulta- (4) S .—The term ‘‘Survey’’ means ‘‘(b) CONDITIONS.—The Secretary may pro- the United States Geological Survey. tion with agencies of the State of Hawaii and other stakeholders, as appropriate, and sub- vide reimbursement under subsection (a) (k) AUTHORIZATION OF APPROPRIATIONS.— mit to Congress, a report detailing the find- only if— There are authorized to be appropriated to ings, conclusions, and recommendations re- ‘‘(1) adequate funding to enable the Sec- carry out this section $30,000,000 for each of sulting from the assessment. retary to timely prepare the analysis, docu- fiscal years 2004 through 2008. (d) AUTHORIZATION OF APPROPRIATIONS.— mentation, or related study is not appro- SEC. 323. OIL AND GAS LEASE ACREAGE LIMITA- There are authorized to be appropriated such priated; TIONS. sums as are necessary to carry out this sec- ‘‘(2) the person paid the costs voluntarily; Section 27(d)(1) of the Mineral Leasing Act tion. ‘‘(3) the person maintains records of its costs in accordance with regulations issued (30 U.S.C. 184(d)(1)) is amended by inserting SEC. 325. DEADLINE FOR DECISION ON APPEALS after ‘‘acreage held in special tar sand areas’’ OF CONSISTENCY DETERMINATION by the Secretary; the following: ‘‘, and acreage under any lease UNDER THE COASTAL ZONE MAN- ‘‘(4) the reimbursement is in the form of a any portion of which has been committed to AGEMENT ACT OF 1972. reduction in the Federal share of the royalty a federally approved unit or cooperative plan (a) IN GENERAL.—Section 319 of the Coastal required to be paid for the lease for which or communitization agreement or for which Zone Management Act of 1972 (16 U.S.C. 1465) the analysis, documentation, or related royalty (including compensatory royalty or is amended to read as follows: study is conducted, and is agreed to by the Secretary and the person reimbursed prior to royalty in-kind) was paid in the preceding ‘‘APPEALS TO THE SECRETARY calendar year,’’. commencing the analysis, documentation, or ‘‘SEC. 319. (a) NOTICE.—The Secretary shall related study; and SEC. 324. ASSESSMENT OF DEPENDENCE OF publish an initial notice in the Federal Reg- STATE OF HAWAII ON OIL. ‘‘(5) the agreement required under para- ister not later than 30 days after the date of graph (4) contains provisions— (a) ASSESSMENT.—The Secretary of Energy the filing of any appeal to the Secretary of a ‘‘(A) reducing royalties owed on lease pro- shall assess the economic implication of the consistency determination under section 307. duction based on market prices; dependence of the State of Hawaii on oil as ‘‘(b) CLOSURE OF RECORD.— ‘‘(B) stipulating an automatic termination the principal source of energy for the State, ‘‘(1) IN GENERAL.—Not later than the end of of the royalty reduction upon recovery of including— the 120-day period beginning on the date of documented costs; and (1) the short- and long-term prospects for publication of an initial notice under sub- ‘‘(C) providing a process by which the les- crude oil supply disruption and price vola- section (a), the Secretary shall receive no see may seek reimbursement for cir- tility and potential impacts on the economy more filings on the appeal and the adminis- cumstances in which production from the of Hawaii; trative record regarding the appeal shall be specified lease is not possible.’’. (2) the economic relationship between oil- closed. (b) APPLICATION.—The amendment made by fired generation of electricity from residual ‘‘(2) NOTICE.—Upon the closure of the ad- this section shall apply with respect to an fuel and refined petroleum products con- ministrative record, the Secretary shall im- analysis, documentation, or a related study sumed for ground, marine, and air transpor- mediately publish a notice that the adminis- conducted on or after October 1, 2008, for any tation; trative record has been closed. lease entered into before, on, or after the (3) the technical and economic feasibility ‘‘(c) DEADLINE FOR DECISION.—The Sec- date of enactment of this Act. of increasing the contribution of renewable retary shall issue a decision in any appeal (c) DEADLINE FOR REGULATIONS.—The Sec- energy resources for generation of elec- filed under section 307 not later than 120 retary shall issue regulations implementing tricity, on an island-by-island basis, includ- days after the closure of the administrative the amendment made by this section by not ing— record. later than 1 year after the date of enactment (A) siting and facility configuration; ‘‘(d) APPLICATION.—This section applies to of this Act. (B) environmental, operational, and safety appeals initiated by the Secretary and ap- SEC. 327. HYDRAULIC FRACTURING. considerations; peals filed by an applicant.’’. Paragraph (1) of section 1421(d) of the Safe (C) the availability of technology; (b) APPLICATION.— Drinking Water Act (42 U.S.C. 300h(d)) is (D) effects on the utility system including (1) IN GENERAL.—Except as provided in amended to read as follows: reliability; paragraph (2), the amendment made by sub- ‘‘(1) UNDERGROUND INJECTION.—The term (E) infrastructure and transport require- section (a) shall apply with respect to any ‘underground injection’— ments; appeal initiated or filed before, on, or after ‘‘(A) means the subsurface emplacement of (F) community support; and the date of enactment of this Act. fluids by well injection; and (G) other factors affecting the economic (2) LIMITATION.—Subsection (a) of section ‘‘(B) excludes— impact of such an increase and any effect on 319 of the Coastal Zone Management Act of ‘‘(i) the underground injection of natural the economic relationship described in para- 1972 (as amended by subsection (a)) shall not gas for purposes of storage; and graph (2); apply with respect to an appeal initiated or ‘‘(ii) the underground injection of fluids or (4) the technical and economic feasibility filed before the date of enactment of this propping agents pursuant to hydraulic frac- of using liquified natural gas to displace re- Act. turing operations related to oil or gas pro- sidual fuel oil for electric generation, includ- (c) CLOSURE OF RECORD FOR APPEAL FILED duction activities.’’. ing neighbor island opportunities, and the ef- BEFORE DATE OF ENACTMENT.—Notwith- SEC. 328. OIL AND GAS EXPLORATION AND PRO- fect of the displacement on the economic re- standing section 319(b)(1) of the Coastal Zone DUCTION DEFINED. lationship described in paragraph (2), includ- Management Act of 1972 (as amended by this Section 502 of the Federal Water Pollution ing— section), in the case of an appeal of a consist- Control Act (33 U.S.C. 1362) is amended by (A) the availability of supply; ency determination under section 307 of that adding at the end the following:

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00085 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.086 S28PT1 S4530 CONGRESSIONAL RECORD — SENATE April 28, 2004

‘‘(24) OIL AND GAS EXPLORATION AND PRO- (except for the filing of pleadings) the record ‘‘(B) willfully to make or cause to be made DUCTION.—The term ‘oil and gas exploration, compiled by the relevant Federal permitting to such other person any false report or production, processing, or treatment oper- agency. statement or willfully to enter or cause to be ations or transmission facilities’ means all SEC. 331. BILATERAL INTERNATIONAL OIL SUP- entered for such other person any false field activities or operations associated with PLY AGREEMENTS. record; exploration, production, processing, or treat- (a) IN GENERAL.—Notwithstanding any ‘‘(C) willfully to deceive or attempt to de- ment operations, or transmission facilities, other provision of law, the President may ex- ceive such other person by any means what- including activities necessary to prepare a port oil to, or secure oil for, any country soever in regard to any order or contract or site for drilling and for the movement and pursuant to a bilateral international oil sup- the disposition or execution of any order or placement of drilling equipment, whether or ply agreement entered into by the United contract, or in regard to any act of agency not such field activities or operations may States with the country before June 25, 1979, performed, with respect to any order or con- be considered to be construction activities.’’. or to any country pursuant to the Inter- tract for or, in the case of subsection (a)(2), SEC. 329. OUTER CONTINENTAL SHELF PROVI- national Emergency Oil Sharing Plan of the with such other person; or SIONS. International Energy Agency. ‘‘(D)(i) to bucket an order if such order is (a) STORAGE ON THE OUTER CONTINENTAL (b) MEMORANDUM OF AGREEMENT.—The fol- either represented by such person as an order SHELF.—Section 5(a)(5) of the Outer Conti- lowing agreements are deemed to have en- to be executed, or required to be executed, on nental Shelf Lands Act (43 U.S.C. 1334(a)(5)) tered into force by operation of law and are or subject to the rules of a designated con- is amended by inserting ‘‘from any source’’ deemed to have no termination date: tract market; or after ‘‘oil and gas’’. (1) The agreement entitled ‘‘Agreement ‘‘(ii) to fill an order by offset against the (b) DEEPWATER PROJECTS.—Section 6 of the amending and extending the memorandum of order or orders of any other person, or will- Deepwater Port Act of 1974 (33 U.S.C. 1505) is agreement of June 22, 1979’’, entered into fully and knowingly and without the prior amended by adding at the end the following: force November 13, 1994 (TIAS 12580). consent of such other person to become the ‘‘(d) RELIANCE ON ACTIVITIES OF OTHER (2) The agreement entitled ‘‘Agreement buyer in respect to any selling order of such AGENCIES.—In fulfilling the requirements of amending the contingency implementing ar- other person, or become the seller in respect section 5(f)— rangements of October 17, 1980’’, entered into to any buying order of such other person, if ‘‘(1) to the extent that other Federal agen- force June 27, 1995 (TIAS 12670). such order is either represented by such per- cies have prepared environmental impact SEC. 332. NATURAL GAS MARKET REFORM. son as an order to be executed, or required to statements, are conducting studies, or are (a) CLARIFICATION OF EXISTING CFTC AU- be executed, on or subject to the rules of a monitoring the affected human, marine, or THORITY.— designated contract market. coastal environment, the Secretary may use (1) FALSE REPORTING.—Section 9(a)(2) of ‘‘(b) Subsection (a)(2) shall not obligate the information derived from those activi- the Commodity Exchange Act (7 U.S.C. any person, in connection with a transaction ties in lieu of directly conducting such ac- 13(a)(2)) is amended by striking ‘‘false or in a contract of sale of a commodity for fu- tivities; and misleading or knowingly inaccurate reports’’ ture delivery, or other agreement, contract ‘‘(2) the Secretary may use information ob- and inserting ‘‘knowingly false or knowingly or transaction subject to section 5a(g) (1) and tained from any State or local government misleading or knowingly inaccurate re- (2) of this Act, with another person, to dis- or from any person.’’. ports’’. close to such other person nonpublic infor- (c) NATURAL GAS DEFINED.—Section 3(13) of (2) COMMISSION ADMINISTRATIVE AND CIVIL mation that may be material to the market the Deepwater Port Act of 1974 (33 U.S.C. AUTHORITY.—Section 9 of the Commodity Ex- price of such commodity or transaction, ex- 1502(13)) is amended to read as follows: change Act (7 U.S.C. 13) is amended by redes- cept as necessary to make any statement ‘‘(13) natural gas means— ignating subsection (f) as subsection (e), and made to such other person in connection ‘‘(A) natural gas unmixed; or adding: with such transaction, not misleading in any ‘‘(B) any mixture of natural or artificial ‘‘(f) COMMISSION ADMINISTRATIVE AND CIVIL material respect.’’. gas, including compressed or liquefied nat- AUTHORITY.—The Commission may bring ad- (c) JURISDICTION OF THE CFTC.—The Nat- ural gas, natural gas liquids, liquefied petro- ministrative or civil actions as provided in ural Gas Act (15 U.S.C. 717 et seq.) is amend- leum gas, and condensate recovered from this Act against any person for a violation of ed by adding at the end: natural gas;’’. any provision of this section including, but ‘‘SEC. 26. JURISDICTION. SEC. 330. APPEALS RELATING TO PIPELINE CON- not limited to, false reporting under sub- ‘‘This Act shall not affect the exclusive ju- STRUCTION OR OFFSHORE MINERAL section (a)(2).’’. risdiction of the Commodity Futures Trad- DEVELOPMENT PROJECTS. (3) EFFECT OF AMENDMENTS.—The amending Commission with respect to accounts, (a) AGENCY OF RECORD, PIPELINE CONSTRUC- ments made by paragraphs (1) and (2) re- agreements, contracts, or transactions in TION PROJECTS.—Any Federal administrative state, without substantive change, existing commodities under the Commodity Ex- agency proceeding that is an appeal or re- burden of proof provisions and existing Com- change Act (7 U.S.C. 1 et seq.). Any request view under section 319 of the Coastal Zone mission civil enforcement authority, respec- for information by the Commission to a des- Management Act of 1972 (16 U.S.C. 1465), as tively. These clarifying changes do not alter ignated contract market, registered deriva- amended by this Act, related to Federal au- any existing burden of proof or grant any tives transaction execution facility, board of thority for an interstate natural gas pipeline new statutory authority. The provisions of trade, exchange, or market involving ac- construction project, including construction this section, as restated herein, continue to counts, agreements, contracts, or trans- of natural gas storage and liquefied natural apply to any action pending on or com- actions in commodities (including natural gas facilities, shall use as its exclusive menced after the date of enactment of this gas, electricity, and other energy commod- record for all purposes the record compiled Act for any act, omission, or violation occur- ities) within the exclusive jurisdiction of the by the Federal Energy Regulatory Commis- ring before, on, or after, such date of enact- Commodity Futures Trading Commission sion pursuant to the Commission’s pro- ment. shall be directed to the Commodity Futures ceeding under sections 3 and 7 of the Natural (b) FRAUD AUTHORITY.—Section 4b of the Trading Commission, which shall cooperate Gas Act (15 U.S.C. 717b, 717f). Commodity Exchange Act (7 U.S.C. 6b) is in responding to any information request by (b) SENSE OF CONGRESS.—It is the sense of amended— the Commission.’’. Congress that all Federal and State agencies (1) by redesignating subsections (b) and (c) (d) INCREASED PENALTIES.—Section 21 of with jurisdiction over interstate natural gas as subsections (c) and (d), respectively; and the Natural Gas Act (15 U.S.C. 717t) is pipeline construction activities should co- (2) by striking subsection (a) and inserting amended— ordinate their proceedings within the time- the following: (1) in subsection (a)— frames established by the Federal Energy ‘‘(a) It shall be unlawful— (A) by striking ‘‘$5,000’’ and inserting Regulatory Commission when the Commis- ‘‘(1) for any person, in or in connection ‘‘$1,000,000’’; and sion is acting under sections 3 and 7 of the with any order to make, or the making of, (B) by striking ‘‘two years’’ and inserting Natural Gas Act (15 U.S.C. 717b, 717f) to de- any contract of sale of any commodity for ‘‘5 years’’; and termine whether a certificate of public con- future delivery or in interstate commerce, (2) in subsection (b), by striking ‘‘$500’’ and venience and necessity should be issued for a that is made, or to be made, on or subject to inserting ‘‘$50,000’’. proposed interstate natural gas pipeline. the rules of a designated contract market, SEC. 333. NATURAL GAS MARKET TRANS- (c) AGENCY OF RECORD, OFFSHORE MINERAL for or on behalf of any other person; or PARENCY. DEVELOPMENT PROJECTS.—Any Federal ad- ‘‘(2) for any person, in or in connection The Natural Gas Act (15 U.S.C 717 et seq.) ministrative agency proceeding that is an with any order to make, or the making of, is amended— appeal or review under section 319 of the any contract of sale of any commodity for (1) by redesignating section 24 as section Coastal Zone Management Act of 1972 (16 future delivery, or other agreement, con- 25; and U.S.C. 1465), as amended by this Act, related tract, or transaction subject to section 5a(g) (2) by inserting after section 23 the fol- to Federal authority for the permitting, ap- (1) and (2) of this Act, that is made, or to be lowing: proval, or other authorization of energy made, for or on behalf of, or with, any other ‘‘SEC. 24. NATURAL GAS MARKET TRANS- projects, including projects to explore, de- person, other than on or subject to the rules PARENCY. velop, or produce mineral resources in or un- of a designated contract market— ‘‘(a) AUTHORIZATION.—(1) Not later than 180 derlying the Outer Continental Shelf shall ‘‘(A) to cheat or defraud or attempt to days after the date of enactment of the En- use as its exclusive record for all purposes cheat or defraud such other person; ergy Policy Act of 2003, the Federal Energy

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00086 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.087 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4531 Regulatory Commission shall issue rules di- of Land Management with respect to a Fed- randum of understanding regarding oil and recting all entities subject to the Commis- eral oil or gas lease; gas leasing on— sion’s jurisdiction as provided under this Act (C) considering surface use plans of oper- (1) public lands under the jurisdiction of to timely report information about the ation, including the timeframes in which the the Secretary of the Interior; and availability and prices of natural gas sold at plans are considered, and any recommenda- (2) National Forest System lands under the wholesale in interstate commerce to the tions for improving and expediting the proc- jurisdiction of the Secretary of Agriculture. Commission and price publishers. ess; and (b) CONTENTS.—The memorandum of under- ‘‘(2) The Commission shall evaluate the (D) identifying stipulations to address site- standing shall include provisions that— data for adequate price transparency and ac- specific concerns and conditions, including (1) establish administrative procedures and curacy. those stipulations relating to the environ- lines of authority that ensure timely proc- ‘‘(3) Rules issued under this subsection re- ment and resource use conflicts. essing of oil and gas lease applications, sur- quiring the reporting of information to the (b) REPORT.—Not later than 180 days after face use plans of operation, and applications Commission that may become publicly avail- the date of enactment of this Act, the Sec- for permits to drill, including steps for proc- able shall be limited to aggregate data and retary of the Interior and the Secretary of essing surface use plans and applications for transaction-specific data that are otherwise Agriculture shall transmit a report to Con- permits to drill consistent with the required by the Commission to be made pub- gress that describes— timelines established by the amendment lic. (1) actions taken under section 3 of Execu- made by section 348; ‘‘(4) In exercising its authority under this tive Order No. 13212 (42 U.S.C. 13201 note); (2) eliminate duplication of effort by pro- section, the Commission shall not— and viding for coordination of planning and envi- ‘‘(A) compete with, or displace from the (2) actions taken or any plans to improve ronmental compliance efforts; and market place, any price publisher; or the Federal onshore oil and gas leasing pro- (3) ensure that lease stipulations are— ‘‘(B) regulate price publishers or impose gram. (A) applied consistently; (B) coordinated between agencies; and any requirements on the publication of infor- SEC. 343. MANAGEMENT OF FEDERAL OIL AND mation. GAS LEASING PROGRAMS. (C) only as restrictive as necessary to protect the resource for which the stipulations ‘‘(b) TIMELY ENFORCEMENT.—No person (a) TIMELY ACTION ON LEASES AND PER- are applied. shall be subject to any penalty under this MITS.—To ensure timely action on oil and (c) DATA RETRIEVAL SYSTEM.— section with respect to a violation occurring gas leases and applications for permits to (1) IN GENERAL.—Not later than 1 year after more than 3 years before the date on which drill on land otherwise available for leasing, the date of enactment of this Act, the Sec- the Federal Energy Regulatory Commission the Secretary of the Interior (in this section retary of the Interior and the Secretary of seeks to assess a penalty. referred to as the ‘‘Secretary’’) shall— Agriculture shall establish a joint data re- ‘‘(c) LIMITATION ON COMMISSION AUTHOR- (1) ensure expeditious compliance with sec- trieval system that is capable of— ITY.—(1) The Commission shall not condition tion 102(2)(C) of the National Environmental (A) tracking applications and formal re- access to interstate pipeline transportation Policy Act of 1969 (42 U.S.C. 4332(2)(C)); quests made in accordance with procedures upon the reporting requirements authorized (2) improve consultation and coordination of the Federal onshore oil and gas leasing under this section. with the States and the public; and program; and ‘‘(2) Natural gas sales by a producer that (3) improve the collection, storage, and re- (B) providing information regarding the are attributable to volumes of natural gas trieval of information relating to the leasing status of the applications and requests with- produced by such producer shall not be sub- activities. in the Department of the Interior and the ject to the rules issued pursuant to this sec- (b) BEST MANAGEMENT PRACTICES.— Department of Agriculture. tion. (1) IN GENERAL.—Not later than 18 months (2) RESOURCE MAPPING.—Not later than 2 ‘‘(3) The Commission shall not require nat- after the date of enactment of this Act, the years after the date of enactment of this ural gas producers, processors, or users who Secretary shall develop and implement best Act, the Secretary of the Interior and the have a de minimis market presence to par- management practices to— Secretary of Agriculture shall establish a ticipate in the reporting requirements pro- (A) improve the administration of the on- joint Geographic Information System map- vided in this section.’’. shore oil and gas leasing program under the ping system for use in— Subtitle C—Access to Federal Land Mineral Leasing Act (30 U.S.C. 181 et seq.); (A) tracking surface resource values to aid and SEC. 341. OFFICE OF FEDERAL ENERGY PROJECT in resource management; and COORDINATION. (B) ensure timely action on oil and gas (B) processing surface use plans of oper- leases and applications for permits to drill (a) ESTABLISHMENT.—The President shall ation and applications for permits to drill. establish the Office of Federal Energy on lands otherwise available for leasing. SEC. 345. ESTIMATES OF OIL AND GAS RE- (2) CONSIDERATIONS.—In developing the Project Coordination (referred to in this sec- SOURCES UNDERLYING ONSHORE tion as the ‘‘Office’’) within the Executive best management practices under paragraph FEDERAL LAND. Office of the President in the same manner (1), the Secretary shall consider any rec- (a) ASSESSMENT.—Section 604 of the Energy and with the same mission as the White ommendations from the review under section Act of 2000 (42 U.S.C. 6217) is amended— House Energy Projects Task Force estab- 342. (1) in subsection (a)— lished by Executive Order No. 13212 (42 U.S.C. (3) REGULATIONS.—Not later than 180 days (A) in paragraph (1)— 13201 note). after the development of best management (i) by striking ‘‘reserve’’; and (b) STAFFING.—The Office shall be staffed practices under paragraph (1), the Secretary (ii) by striking ‘‘and’’ after the semicolon; by functional experts from relevant Federal shall publish, for public comment, proposed and agencies on a nonreimbursable basis to carry regulations that set forth specific time- (B) by striking paragraph (2) and inserting out the mission of the Office. frames for processing leases and applications the following: (c) REPORT.—The Office shall transmit an in accordance with the practices, including ‘‘(2) the extent and nature of any restric- annual report to Congress that describes the deadlines for— tions or impediments to the development of activities put in place to coordinate and ex- (A) approving or disapproving resource the resources, including— pedite Federal decisions on energy projects. management plans and related documents, ‘‘(A) impediments to the timely granting The report shall list accomplishments in im- lease applications, and surface use plans; and of leases; proving the Federal decisionmaking process (B) related administrative appeals. ‘‘(B) post-lease restrictions, impediments, and shall include any additional rec- (c) IMPROVED ENFORCEMENT.—The Sec- or delays on development for conditions of ommendations or systemic changes needed retary shall improve inspection and enforce- approval, applications for permits to drill, or to establish a more effective and efficient ment of oil and gas activities, including en- processing of environmental permits; and Federal permitting process. forcement of terms and conditions in permits ‘‘(C) permits or restrictions associated SEC. 342. FEDERAL ONSHORE OIL AND GAS LEAS- to drill. with transporting the resources for entry ING AND PERMITTING PRACTICES. (d) AUTHORIZATION OF APPROPRIATIONS.—In into commerce; and (a) REVIEW OF ONSHORE OIL AND GAS LEAS- addition to amounts authorized to be appro- ‘‘(3) the quantity of resources not produced ING PRACTICES.— priated to carry out section 17 of the Mineral or introduced into commerce because of the (1) IN GENERAL.—The Secretary of the Inte- Leasing Act (30 U.S.C. 226), there are author- restrictions.’’; rior, in consultation with the Secretary of ized to be appropriated to the Secretary for (2) in subsection (b)— Agriculture with respect to National Forest each of fiscal years 2004 through 2007— (A) by striking ‘‘reserve’’ and inserting System lands under the jurisdiction of the (1) $40,000,000 to carry out subsections (a) ‘‘resource’’; and Department of Agriculture, shall perform an and (b); and (B) by striking ‘‘publically’’ and inserting internal review of current Federal onshore (2) $20,000,000 to carry out subsection (c). ‘‘publicly’’; and oil and gas leasing and permitting practices. SEC. 344. CONSULTATION REGARDING OIL AND (3) by striking subsection (d) and inserting (2) INCLUSIONS.—The review shall include GAS LEASING ON PUBLIC LAND. the following: the process for— (a) IN GENERAL.—Not later than 180 days ‘‘(d) ASSESSMENTS.—Using the inventory, (A) accepting or rejecting offers to lease; after the date of enactment of this Act, the the Secretary of Energy shall make periodic (B) administrative appeals of decisions or Secretary of the Interior and the Secretary assessments of economically recoverable re- orders of officers or employees of the Bureau of Agriculture shall enter into a memo- sources accounting for a range of parameters

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00087 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.087 S28PT1 S4532 CONGRESSIONAL RECORD — SENATE April 28, 2004 such as current costs, commodity prices, (B) be responsible for all issues relating to date of completion of the requirements de- technology, and regulations.’’. the jurisdiction of the home office or agency scribed in subparagraph (A). (b) METHODOLOGY.—The Secretary of the of the employee; and ‘‘(C) DENIAL OF PERMIT.—If the applicant Interior shall use the same assessment meth- (C) participate as part of the team of per- does not complete the requirements within odology across all geological provinces, sonnel working on proposed energy projects, the period specified in subparagraph (A), the areas, and regions in preparing and issuing planning, and environmental analyses. Secretary shall deny the permit. national geological assessments to ensure (d) FIELD OFFICES.—The following Bureau ‘‘(q) REPORT.—On a quarterly basis, each accurate comparisons of geological re- of Land Management Field Offices shall field office of the Bureau of Land Manage- sources. serve as the Pilot Project offices: ment and the Forest Service shall transmit SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER (1) Rawlins, Wyoming. to the Secretary of the Interior or the Sec- 13211; ACTIONS CONCERNING REGU- (2) Buffalo, Wyoming. retary of Agriculture, respectively, a report LATIONS THAT SIGNIFICANTLY AF- (3) Miles City, Montana. that— FECT ENERGY SUPPLY, DISTRIBU- (4) Farmington, New Mexico. ‘‘(1) specifies the number of applications TION, OR USE. (5) Carlsbad, New Mexico. for permits to drill received by the field of- (a) REQUIREMENT.—The head of each Fed- (6) Glenwood Springs, Colorado. fice in the period covered by the report; and eral agency shall require that before the (7) Vernal, Utah. ‘‘(2) describes how each of the applications Federal agency takes any action that could (e) REPORTS.—Not later than 3 years after was disposed of by the field office.’’. have a significant adverse effect on the sup- the date of enactment of this Act, the Sec- SEC. 349. CLARIFICATION OF FAIR MARKET ply of domestic energy resources from Fed- retary shall transmit to Congress a report RENTAL VALUE DETERMINATIONS eral public land, the Federal agency taking that— FOR PUBLIC LAND AND FOREST the action shall comply with Executive (1) outlines the results of the Pilot Project SERVICE RIGHTS-OF-WAY. Order No. 13211 (42 U.S.C. 13201 note). to date; and (a) LINEAR RIGHTS-OF-WAY UNDER FEDERAL (b) GUIDANCE.—Not later than 180 days (2) makes a recommendation to the Presi- LAND POLICY AND MANAGEMENT ACT OF after the date of enactment of this Act, the dent regarding whether the Pilot Project 1976.—Section 504 of the Federal Land Policy Secretary of Energy shall publish guidance should be implemented throughout the and Management Act of 1976 (43 U.S.C. 1764) for purposes of this section describing what United States. is amended by adding at the end the fol- constitutes a significant adverse effect on (f) ADDITIONAL PERSONNEL.—The Secretary lowing: the supply of domestic energy resources shall assign to each field office identified in ‘‘(k) DETERMINATION OF FAIR MARKET under Executive Order No. 13211 (42 U.S.C. subsection (d) any additional personnel that VALUE OF LINEAR RIGHTS-OF-WAY.— 13201 note). are necessary to ensure the effective imple- ‘‘(1) IN GENERAL.—Effective beginning on (c) MEMORANDUM OF UNDERSTANDING.—The mentation of— the date of the issuance of the rules required Secretary of the Interior and the Secretary (1) the Pilot Project; and by paragraph (2), for purposes of subsection of Agriculture shall include in the memo- (2) other programs administered by the (g), the Secretary concerned shall determine randum of understanding under section 344 field offices, including inspection and en- the fair market value for the use of land en- provisions for implementing subsection (a) of forcement relating to energy development on cumbered by a linear right-of-way granted, this section. Federal land, in accordance with the mul- issued, or renewed under this title using the SEC. 347. PILOT PROJECT TO IMPROVE FEDERAL tiple use mandate of the Federal Land Policy valuation method described in paragraphs PERMIT COORDINATION. and Management Act of 1976 (43 U.S.C. 1701 et (2), (3), and (4). (a) ESTABLISHMENT.—The Secretary of the seq). ‘‘(2) REVISIONS.—Not later than 1 year after Interior (in this section referred to as the (g) SAVINGS PROVISION.—Nothing in this the date of enactment of this subsection— ‘‘Secretary’’) shall establish a Federal Per- section affects— ‘‘(A) the Secretary of the Interior shall mit Streamlining Pilot Project (in this sec- (1) the operation of any Federal or State amend section 2803.1–2 of title 43, Code of tion referred to as the ‘‘Pilot Project’’). law; or Federal Regulations, as in effect on the date (b) MEMORANDUM OF UNDERSTANDING.— (2) any delegation of authority made by of enactment of this subsection, to revise the (1) IN GENERAL.—Not later than 90 days the head of a Federal agency whose employ- per acre rental fee zone value schedule by after the date of enactment of this Act, the ees are participating in the Pilot Project. State, county, and type of linear right-of- Secretary shall enter into a memorandum of SEC. 348. DEADLINE FOR CONSIDERATION OF AP- way use to reflect current values of land in understanding with the Secretary of Agri- PLICATIONS FOR PERMITS. each zone; and culture, the Administrator of the Environ- Section 17 of the Mineral Leasing Act (30 ‘‘(B) the Secretary of Agriculture shall mental Protection Agency, and the Chief of U.S.C. 226) is amended by adding at the end make the same revision for linear rights-of- Engineers of the Army Corps of Engineers the following: way granted, issued, or renewed under this for purposes of this section. ‘‘(p) DEADLINES FOR CONSIDERATION OF AP- title on National Forest System land. (2) STATE PARTICIPATION.—The Secretary PLICATIONS FOR PERMITS.— ‘‘(3) UPDATES.—The Secretary concerned may request that the Governors of Wyoming, ‘‘(1) IN GENERAL.—Not later than 10 days shall annually update the schedule revised Montana, Colorado, Utah, and New Mexico after the date on which the Secretary re- under paragraph (2) by multiplying the cur- be signatories to the memorandum of under- ceives an application for any permit to drill, rent year’s rental per acre by the annual standing. the Secretary shall— change, second quarter to second quarter (c) DESIGNATION OF QUALIFIED STAFF.— ‘‘(A) notify the applicant that the applica- (June 30 to June 30) in the Gross National (1) IN GENERAL.—Not later than 30 days tion is complete; or Product Implicit Price Deflator Index pub- after the date of the signing of the memo- ‘‘(B) notify the applicant that information lished in the Survey of Current Business of randum of understanding under subsection is missing and specify any information that the Department of Commerce, Bureau of (b), all Federal signatory parties shall assign is required to be submitted for the applica- Economic Analysis. to each of the field offices identified in sub- tion to be complete. ‘‘(4) REVIEW.—If the cumulative change in section (d), on a nonreimbursable basis, an ‘‘(2) ISSUANCE OR DEFERRAL.—Not later the index referred to in paragraph (3) exceeds employee who has expertise in the regu- than 30 days after the applicant for a permit 30 percent, or the change in the 3-year aver- latory issues relating to the office in which has submitted a complete application, the age of the 1-year Treasury interest rate used the employee is employed, including, as ap- Secretary shall— to determine per acre rental fee zone values plicable, particular expertise in— ‘‘(A) issue the permit; or exceeds plus or minus 50 percent, the Sec- (A) the consultations and the preparation ‘‘(B)(i) defer decision on the permit; and retary concerned shall conduct a review of of biological opinions under section 7 of the ‘‘(ii) provide to the applicant a notice that the zones and rental per acre figures to de- Endangered Species Act of 1973 (16 U.S.C. specifies any steps that the applicant could termine whether the value of Federal land 1536); take for the permit to be issued. has differed sufficiently from the index re- (B) permits under section 404 of Federal ‘‘(3) REQUIREMENTS FOR DEFERRED APPLICA- ferred to in paragraph (3) to warrant a revi- Water Pollution Control Act (33 U.S.C. 1344); TIONS.— sion in the base zones and rental per acre fig- (C) regulatory matters under the Clean Air ‘‘(A) IN GENERAL.—If the Secretary pro- ures. If, as a result of the review, the Sec- Act (42 U.S.C. 7401 et seq.); vides notice under paragraph (2)(B)(ii), the retary concerned determines that such a re- (D) planning under the National Forest applicant shall have a period of 2 years from vision is warranted, the Secretary concerned Management Act of 1976 (16 U.S.C. 472a et the date of receipt of the notice in which to shall revise the base zones and rental per seq.); and complete all requirements specified by the acre figures accordingly. Any revision of (E) the preparation of analyses under the Secretary, including providing information base zones and rental per acre figure shall National Environmental Policy Act of 1969 needed for compliance with the National En- only affect lease rental rates at inception or (42 U.S.C. 4321 et seq.). vironmental Policy Act of 1969 (42 U.S.C. 4321 renewal.’’. (2) DUTIES.—Each employee assigned under et seq.). (b) RIGHTS-OF-WAY UNDER MINERAL LEAS- paragraph (1) shall— ‘‘(B) ISSUANCE OF DECISION ON PERMIT.—If ING ACT.—Section 28(l) of the Mineral Leas- (A) not later than 90 days after the date of the applicant completes the requirements ing Act (30 U.S.C. 185(l)) is amended by in- assignment, report to the Bureau of Land within the period specified in subparagraph serting before the period at the end the fol- Management Field Managers in the office to (A), the Secretary shall issue a decision on lowing: ‘‘using the valuation method de- which the employee is assigned; the permit not later than 10 days after the scribed in section 2803.1–2 of title 43, Code of

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00088 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.087 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4533 Federal Regulations, as revised in accord- Secretary of Energy, and the Secretary of separate permitting and environmental re- ance with section 504(k) of the Federal Land the Interior, in consultation with the Fed- views of the affected utility facility. Policy and Management Act of 1976 (43 eral Energy Regulatory Commission and the (2) CONTENTS.—The memorandum of under- U.S.C. 1764(k))’’. affected utility industries, shall jointly— standing shall include provisions that— SEC. 350. ENERGY FACILITY RIGHTS-OF-WAY AND (A) identify corridors for oil and gas pipe- (A) establish— CORRIDORS ON FEDERAL LAND. lines and electricity transmission and dis- (i) a unified right-of-way application form; (a) REPORT TO CONGRESS.— tribution facilities on Federal land in the and (1) IN GENERAL.—Not later than 1 year after States other than those described in para- (ii) an administrative procedure for proc- the date of enactment of this Act, the Sec- graph (1); and essing right-of-way applications, including retary of Agriculture and the Secretary of (B) schedule prompt action to identify, lines of authority, steps in application proc- the Interior, in consultation with the Sec- designate, and incorporate the corridors into essing, and timeframes for application proc- retary of Commerce, the Secretary of De- the land use plan. essing; fense, the Secretary of Energy, and the Fed- (3) ONGOING RESPONSIBILITIES.—After com- (B) provide for coordination of planning re- eral Energy Regulatory Commission, shall pleting the requirements under paragraphs lating to the granting of the rights-of-way; submit to Congress a joint report— (1) and (2), the Secretary of Agriculture, the (C) provide for an agreement among the af- (A) that addresses— Secretary of Commerce, the Secretary of De- fected Federal agencies to prepare a single (i) the location of existing rights-of-way fense, the Secretary of Energy, and the Sec- environmental review document to be used and designated and de facto corridors for oil retary of the Interior, with respect to lands as the basis for all Federal authorization de- and gas pipelines and electric transmission under their respective jurisdictions, in con- cisions; and and distribution facilities on Federal land; sultation with the Federal Energy Regu- (D) provide for coordination of use of right- and latory Commission and the affected utility of-way stipulations to achieve consistency. (ii) opportunities for additional oil and gas industries, shall establish procedures that— (b) NATURAL GAS PIPELINES.— pipeline and electric transmission capacity (A) ensure that additional corridors for oil (1) IN GENERAL.—With respect to permit- within those rights-of-way and corridors; and and gas pipelines and electricity trans- ting activities for interstate natural gas (B) that includes a plan for making avail- mission and distribution facilities on Fed- pipelines, the May 2002 document entitled able, on request, to the appropriate Federal, eral land are promptly identified and des- ‘‘Interagency Agreement On Early Coordina- State, and local agencies, tribal govern- ignated; and tion Of Required Environmental And His- ments, and other persons involved in the (B) expedite applications to construct or toric Preservation Reviews Conducted In siting of oil and gas pipelines and electricity modify oil and gas pipelines and electricity Conjunction With The Issuance Of Author- transmission facilities Geographic Informa- transmission and distribution facilities with- izations To Construct And Operate Inter- tion System-based information regarding the in the corridors, taking into account prior state Natural Gas Pipelines Certificated By location of the existing rights-of-way and analyses and environmental reviews under- The Federal Energy Regulatory Commis- corridors and any planned rights-of-way and taken during the designation of corridors. sion’’ shall constitute compliance with sub- corridors. (c) CONSIDERATIONS.—In carrying out this section (a). (2) CONSULTATIONS AND CONSIDERATIONS.— section, the Secretaries shall take into ac- (2) REPORT.— In preparing the report, the Secretary of the count the need for upgraded and new elec- (A) IN GENERAL.—Not later than 1 year Interior and the Secretary of Agriculture tricity transmission and distribution facili- after the date of enactment of this Act, and shall consult with— ties to— every 2 years thereafter, agencies that are (A) other agencies of Federal, State, tribal, (1) improve reliability; signatories to the document referred to in or local units of government, as appropriate; (2) relieve congestion; and paragraph (1) shall transmit to Congress a (B) persons involved in the siting of oil and (3) enhance the capability of the national report on how the agencies under the juris- gas pipelines and electric transmission fa- grid to deliver electricity. diction of the Secretaries are incorporating cilities; and (d) DEFINITION OF CORRIDOR.— and implementing the provisions of the docu- (C) other interested members of the public. (1) IN GENERAL.—In this section and title V ment referred to in paragraph (1). (3) LIMITATION.—The Secretary of the Inte- of the Federal Land Policy and Management (B) CONTENTS.—The report shall address— rior and the Secretary of Agriculture shall Act of 1976 (43 U.S.C. 1761 et seq.), the term (i) efforts to implement the provisions of limit the distribution of the report and Geo- ‘‘corridor’’ means— the document referred to in paragraph (1); graphic Information System-based informa- (A) a linear strip of land— (ii) whether the efforts have had a stream- tion referred to in paragraph (1) as necessary (i) with a width determined with consider- lining effect; for national and infrastructure security rea- ation given to technological, environmental, (iii) further improvements to the permit- sons, if either Secretary determines that the and topographical factors; and ting process of the agency; and information may be withheld from public (ii) that contains, or may in the future (iv) recommendations for inclusion of disclosure under a national security or other contain, 1 or more utility, communication, State and tribal governments in a coordi- exception under section 552(b) of title 5, or transportation facilities; nated permitting process. United States Code. (B) a land use designation that is estab- (c) DEFINITION OF UTILITY FACILITY.—In (b) CORRIDOR DESIGNATIONS.— lished— this section, the term ‘‘utility facility’’ (1) 11 CONTIGUOUS WESTERN STATES.—Not (i) by law; means any privately, publicly, or coopera- later than 2 years after the date of enact- (ii) by Secretarial Order; tively owned line, facility, or system— ment of this Act, the Secretary of Agri- (iii) through the land use planning process; (1) for the transportation of— culture, the Secretary of Commerce, the Sec- or (A) oil, natural gas, synthetic liquid fuel, retary of Defense, the Secretary of Energy, (iv) by other management decision; and or gaseous fuel; and the Secretary of the Interior, in con- (C) a designation made for the purpose of (B) any refined product produced from oil, sultation with the Federal Energy Regu- establishing the preferred location of com- natural gas, synthetic liquid fuel, or gaseous latory Commission and the affected utility patible linear facilities and land uses. fuel; or industries, shall jointly— (2) SPECIFICATIONS OF CORRIDOR.—On des- (C) products in support of the production of (A) designate, under title V of the Federal ignation of a corridor under this section, the material referred to in subparagraph (A) or Land Policy and Management Act of 1976 (43 centerline, width, and compatible uses of a (B); U.S.C. 1761 et seq.) and other applicable Fed- corridor shall be specified. (2) for storage and terminal facilities in eral laws, corridors for oil and gas pipelines SEC. 351. CONSULTATION REGARDING ENERGY connection with the production of material and electricity transmission and facilities on RIGHTS-OF-WAY ON PUBLIC LAND. referred to in paragraph (1); or Federal land in the eleven contiguous West- (a) MEMORANDUM OF UNDERSTANDING.— (3) for the generation, transmission, and ern States (as defined in section 103 of the (1) IN GENERAL.—Not later than 6 months distribution of electric energy. Federal Land Policy and Management Act of after the date of enactment of this Act, the SEC. 352. RENEWABLE ENERGY ON FEDERAL 1976 (43 U.S.C. 1702)); Secretary of Energy, in consultation with LAND. (B) perform any environmental reviews the Secretary of the Interior, the Secretary (a) REPORT.— that may be required to complete the des- of Agriculture, and the Secretary of Defense (1) IN GENERAL.—Not later than 24 months ignations of corridors for the facilities on with respect to lands under their respective after the date of enactment of this Act, the Federal land in the eleven contiguous West- jurisdictions, shall enter into a memo- Secretary of the Interior, in cooperation ern States; and randum of understanding to coordinate all with the Secretary of Agriculture, shall de- (C) incorporate the designated corridors applicable Federal authorizations and envi- velop and transmit to Congress a report that into— ronmental reviews relating to a proposed or includes recommendations on opportunities (i) the relevant departmental and agency existing utility facility. To the maximum to develop renewable energy on— land use and resource management plans; or extent practicable under applicable law, the (A) public lands under the jurisdiction of (ii) equivalent plans. Secretary of Energy shall, to ensure timely the Secretary of the Interior; and (2) OTHER STATES.—Not later than 4 years review and permit decisions, coordinate such (B) National Forest System lands under after the date of enactment of this Act, the authorizations and reviews with any Indian the jurisdiction of the Secretary of Agri- Secretary of Agriculture, the Secretary of tribes, multi-State entities, and State agen- culture. Commerce, the Secretary of Defense, the cies that are responsible for conducting any (2) CONTENTS.—The report shall include—

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00089 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.087 S28PT1 S4534 CONGRESSIONAL RECORD — SENATE April 28, 2004 (A) 5-year plans developed by the Secretary erating capacity that may be developed in lands constituting Padre Island National of the Interior and the Secretary of Agri- the region. Seashore would be conducted with full rights culture, respectively, for encouraging the de- (b) PROTECTION OF WILDERNESS AREAS.— of ingress and egress under the laws of the velopment of renewable energy consistent The Secretary of the Interior and the Sec- State of Texas. with applicable law and management plans; retary of Agriculture shall not allow any (b) SENSE OF CONGRESS.—It is the sense of (B) an analysis of— portion of a transmission line right-of-way Congress that with regard to Federal law, (i) the use of rights-of-way, leases, or other corridor identified in subsection (a) to enter any regulation of the development of oil, methods to develop renewable energy on any identified wilderness area in existence as gas, or other minerals in the subsurface of such lands; of the date of enactment of this Act. the lands constituting Padre Island National (ii) the anticipated benefits of grants, (c) ENVIRONMENTAL AND ADMINISTRATIVE Seashore should be made as if those lands re- loans, tax credits, or other provisions to pro- REVIEWS.— tained the status that the lands had on Sep- mote renewable energy development on such (1) DEPARTMENT OF INTERIOR OR LOCAL tember 27, 1962. AGENCY lands; and .—The Secretary of the Interior, act- SEC. 355. ENCOURAGING PROHIBITION OF OFF- (iii) any issues that the Secretary of the ing through the Director of the Bureau of SHORE DRILLING IN THE GREAT Interior or the Secretary of Agriculture have Land Management, shall be the lead Federal LAKES. encountered in managing renewable energy agency with overall responsibility to ensure Congress encourages— projects on such lands, believe are likely to completion of required environmental and (1) the States of Illinois, Michigan, New arise in relation to the development of re- other reviews of the approvals to be issued York, Pennsylvania, and Wisconsin to con- newable energy on such lands; under subsection (a). tinue to prohibit offshore drilling in the (C) a list, developed in consultation with (2) NATIONAL FOREST SYSTEM LAND.—For Great Lakes for oil and gas; and the Secretary of Energy and the Secretary of the portions of the corridor on National For- (2) the States of Indiana, Minnesota, and Defense, of lands under the jurisdiction of est System lands, the Secretary of Agri- Ohio to enact a prohibition of such drilling. the Department of Energy or the Depart- culture shall complete all required environ- SEC. 356. FINGER LAKES NATIONAL FOREST ment of Defense that would be suitable for mental reviews and administrative actions WITHDRAWAL. development for renewable energy, and any in coordination with the Secretary of the In- All Federal land within the boundary of recommended statutory and regulatory terior. Finger Lakes National Forest in the State of mechanisms for such development; and (3) EXPEDITIOUS COMPLETION.—The reviews New York is withdrawn from— (D) any recommendations relating to the required for issuance of the approvals under (1) all forms of entry, appropriation, or dis- issues addressed in the report. subsection (a) shall be completed not later posal under the public land laws; and (b) NATIONAL ACADEMY OF SCIENCES than 1 year after the date of the enactment (2) disposition under all laws relating to oil STUDY.— of this Act. and gas leasing. (1) IN GENERAL.—Not later than 90 days (d) OTHER TERMS AND CONDITIONS.—The transmission line right-of-way shall be sub- SEC. 357. STUDY ON LEASE EXCHANGES IN THE after the date of enactment of this Act, the ROCKY MOUNTAIN FRONT. Secretary of the Interior shall contract with ject to such terms and conditions as the Sec- retary of the Interior and the Secretary of (a) DEFINITIONS.—For the purposes of this the National Academy of Sciences to— section: (A) study the potential for the develop- Agriculture consider necessary, based on the (1) BADGER-TWO MEDICINE AREA.—The term ment of wind, solar, and ocean energy (in- environmental reviews under subsection (c), to protect the value of historic, cultural, and ‘‘Badger-Two Medicine Area’’ means the For- cluding tidal, wave, and thermal energy) on est Service land located in— the Outer Continental Shelf; natural resources under the jurisdiction of the Secretary of the Interior or the Sec- (A) T. 31 N., R. 12–13 W.; (B) assess existing Federal authorities for (B) T. 30 N., R. 11–13 W.; the development of such resources; and retary of Agriculture. (e) PREFERENCE AMONG PROPOSALS.—The (C) T. 29 N., R. 10–16 W.; and (C) recommend statutory and regulatory (D) T. 28 N., R. 10–14 W. mechanisms for such development. Secretary of the Interior and the Secretary (2) BLACKLEAF AREA.—The term ‘‘Blackleaf (2) TRANSMITTAL.—The results of the study of Agriculture shall give a preference to any application or preapplication proposal for a Area’’ means the Federal land owned by the shall be transmitted to Congress not later Forest Service and Bureau of Land Manage- than 2 years after the date of enactment of transmission line right-of-way referred to in subsection (a) that was submitted before De- ment that is located in— this Act. (A) T. 27 N., R. 9 W.; (c) GENERATION CAPACITY OF ELECTRICITY cember 31, 2002, over all other applications (B) T. 26 N., R. 9–10 W.; FROM RENEWABLE ENERGY RESOURCES ON and proposals for the same or a similar (C) T. 25 N., R. 8–10 W.; and PUBLIC LAND.—The Secretary of the Interior right-of-way submitted on or after that date. (D) T. 24 N., R. 8–9 W. shall, not later than 10 years after the date SEC. 354. SENSE OF CONGRESS REGARDING DE- of enactment of this Act, seek to approve re- VELOPMENT OF MINERALS UNDER (3) ELIGIBLE LESSEE.—The term ‘‘eligible newable energy projects located (or to be lo- PADRE ISLAND NATIONAL SEA- lessee’’ means a lessee under a nonproducing cated) on public lands with a generation ca- SHORE. lease. pacity of at least 10,000 megawatts of elec- (a) FINDINGS.—Congress finds the fol- (4) NONPRODUCING LEASE.—The term ‘‘non- tricity. lowing: producing lease’’ means a Federal oil or gas SEC. 353. ELECTRICITY TRANSMISSION LINE (1) Pursuant to Public Law 87–712 (16 U.S.C. lease— RIGHT-OF-WAY, CLEVELAND NA- 459d et seq.; popularly known as the ‘‘Federal (A) that is in existence and in good stand- TIONAL FOREST AND ADJACENT Enabling Act’’) and various deeds and ac- ing on the date of enactment of this Act; and PUBLIC LAND, CALIFORNIA. tions under that Act, the United States is (B) that is located in the Badger-Two Medi- (a) ISSUANCE.— the owner of only the surface estate of cer- cine Area or the Blackleaf Area. (1) IN GENERAL.—Not later than 60 days tain lands constituting the Padre Island Na- (5) SECRETARY.—The term ‘‘Secretary’’ after the completion of the environmental tional Seashore. means the Secretary of the Interior. reviews under subsection (c), the Secretary (2) Ownership of the oil, gas, and other (6) STATE.—The term ‘‘State’’ means the of the Interior and the Secretary of Agri- minerals in the subsurface estate of the State of Montana. culture shall issue all necessary grants, ease- lands constituting the Padre Island National (b) EVALUATION.— ments, permits, plan amendments, and other Seashore was never acquired by the United (1) IN GENERAL.—The Secretary, in con- approvals to allow for the siting and con- States, and ownership of those interests is sultation with the Governor of the State, struction of a high-voltage electricity trans- held by the State of Texas and private par- and the eligible lessees, shall evaluate oppor- mission line right-of-way running approxi- ties. tunities for domestic oil and gas production mately north to south through the Trabuco (3) Public Law 87–712 (16 U.S.C. 459d et through the exchange of the nonproducing Ranger District of the Cleveland National seq.)— leases. Forest in the State of California and adja- (A) expressly contemplated that the United (2) REQUIREMENTS.—In carrying out the cent lands under the jurisdiction of the Bu- States would recognize the ownership and fu- evaluation under subsection (a), the Sec- reau of Land Management and the Forest ture development of the oil, gas, and other retary shall— Service. minerals in the subsurface estate of the (A) consider opportunities for domestic (2) INCLUSIONS.—The right-of-way approv- lands constituting the Padre Island National production of oil and gas through— als under paragraph (1) shall provide all nec- Seashore by the owners and their mineral (i) the exchange of the nonproducing leases essary Federal authorization from the Sec- lessees; and for oil and gas lease tracts of comparable retary of the Interior and the Secretary of (B) recognized that approval of the State of value in the State; and Agriculture for the routing, construction, Texas was required to create Padre Island (ii) the issuance of bidding, royalty, or operation, and maintenance of a 500-kilovolt National Seashore. rental credits for Federal oil and gas leases transmission line capable of meeting the (4) Approval was given for the creation of in the State in exchange for the cancellation long-term electricity transmission needs of Padre Island National Seashore by the State of the nonproducing leases; the region between the existing Valley- of Texas through Tex. Rev. Civ. Stat. Ann. (B) consider any other appropriate means Serrano transmission line to the north and Art. 6077(t) (Vernon 1970), which expressly to exchange, or provide compensation for the the Telega-Escondido transmission line to recognized that development of the oil, gas, cancellation of, nonproducing leases, subject the south, and for connecting to future gen- and other minerals in the subsurface of the to the consent of the eligible lessees;

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00090 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.087 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4535 (C) consider the views of any interested (A) the Alaska Natural Gas Transportation (2) enters Canada at any point north of 68 persons, including the State; Act of 1976 (15 U.S.C. 719 et seq.); or degrees north latitude. (D) determine the level of interest of the (B) section 373. (e) OPEN SEASON.— eligible lessees in exchanging the nonpro- (3) ALASKA NATURAL GAS TRANSPORTATION (1) IN GENERAL.—Not later than 120 days ducing leases; SYSTEM.—The term ‘‘Alaska natural gas after the date of enactment of this Act, the (E) assess the economic impact on the les- transportation system’’ means the Alaska Commission shall issue regulations gov- sees and the State of lease exchange, lease natural gas transportation project author- erning the conduct of open seasons for Alas- cancellation, and final judicial or adminis- ized under the Alaska Natural Gas Transpor- ka natural gas transportation projects (in- trative decisions related to the nonproducing tation Act of 1976 (15 U.S.C. 719 et seq.) and cluding procedures for the allocation of ca- leases; and designated and described in section 2 of the pacity). (F) provide recommendations on— President’s decision. (2) REGULATIONS.—The regulations referred (i) whether to pursue an exchange of the (4) COMMISSION.—The term ‘‘Commission’’ to in paragraph (1) shall— nonproducing leases; means the Federal Energy Regulatory Com- (A) include the criteria for and timing of (ii) any changes in laws (including regula- mission. any open seasons; tions) that are necessary for the Secretary (5) FEDERAL COORDINATOR.—The term ‘‘Fed- (B) promote competition in the explo- to carry out the exchange; and eral Coordinator’’ means the head of the Of- ration, development, and production of Alas- (iii) any other appropriate means to ex- fice of the Federal Coordinator for Alaska ka natural gas; and change or provide compensation for the can- Natural Gas Transportation Projects estab- (C) for any open season for capacity ex- cellation of a nonproducing lease, subject to lished by section 376(a). ceeding the initial capacity, provide the op- the consent of the eligible lessee. (6) PRESIDENT’S DECISION.—The term portunity for the transportation of natural (c) VALUATION OF NONPRODUCING LEASES.— ‘‘President’s decision’’ means the decision gas other than from the Prudhoe Bay and For the purpose of the evaluation under sub- and report to Congress on the Alaska natural Point Thomson units. section (a), the value of a nonproducing lease gas transportation system— (3) APPLICABILITY.—Except in a case in shall be an amount equal to the difference (A) issued by the President on September which an expansion is ordered in accordance between— 22, 1977, in accordance with section 7 of the with section 375, initial or expansion capac- (1) the sum of— Alaska Natural Gas Transportation Act of ity on any Alaska natural gas transportation (A) the amount paid by the eligible lessee 1976 (15 U.S.C. 719e); and project shall be allocated in accordance with for the nonproducing lease; (B) approved by Public Law 95–158 (15 procedures to be established by the Commis- (B) any direct expenditures made by the el- U.S.C. 719f note; 91 Stat. 1268). sion in regulations issued under paragraph igible lessee before the transmittal of the re- (7) SECRETARY.—The term ‘‘Secretary’’ (1). port in subsection (c) associated with the ex- means the Secretary of Energy. (f) PROJECTS IN THE CONTIGUOUS UNITED ploration and development of the nonpro- (8) STATE.—The term ‘‘State’’ means the STATES.— ducing lease; and State of Alaska. (1) IN GENERAL.—An application for addi- (C) interest on any amounts under sub- SEC. 373. ISSUANCE OF CERTIFICATE OF PUBLIC tional or expanded pipeline facilities that paragraphs (A) and (B) during the period be- CONVENIENCE AND NECESSITY. may be required to transport Alaska natural ginning on the date on which the amount (a) AUTHORITY OF THE COMMISSION.—Not- gas from Canada to markets in the contig- was paid and ending on the date on which withstanding the Alaska Natural Gas Trans- uous United States may be made in accord- credits are issued under subsection portation Act of 1976 (15 U.S.C. 719 et seq.), ance with the Natural Gas Act (15 U.S.C. 717a (b)(2)(A)(ii); and the Commission may, in accordance with et seq.). (2) the sum of the revenues from the non- section 7(c) of the Natural Gas Act (15 U.S.C. (2) EXPANSION.—To the extent that a pipe- producing lease. 717f(c)), consider and act on an application line facility described in paragraph (1) in- (d) REPORT TO CONGRESS.—Not later than 2 for the issuance of a certificate of public cludes the expansion of any facility con- years after the date of the enactment of this convenience and necessity authorizing the structed in accordance with the Alaska Nat- Act, the Secretary shall initiate the evalua- construction and operation of an Alaska natural Gas Transportation Act of 1976 (15 tion in subsection (b) and transmit to Con- ural gas transportation project other than U.S.C. 719 et seq.), that Act shall continue to gress a report on the evaluation. the Alaska natural gas transportation sys- apply. SEC. 358. FEDERAL COALBED METHANE REGULA- tem. (g) STUDY OF IN-STATE NEEDS.—The holder TION. (b) ISSUANCE OF CERTIFICATE.— of the certificate of public convenience and Any State currently on the list of Affected (1) IN GENERAL.—The Commission shall necessity issued, modified, or amended by States established under section 1339(b) of issue a certificate of public convenience and the Commission for an Alaska natural gas the Energy Policy Act of 1992 (42 U.S.C. necessity authorizing the construction and transportation project shall demonstrate 13368(b)) shall be removed from the list if, operation of an Alaska natural gas transpor- that the holder has conducted a study of not later than 3 years after the date of enact- tation project under this section if the appli- Alaska in-State needs, including tie-in ment of this Act, the State takes, or prior to cant has satisfied the requirements of sec- points along the Alaska natural gas trans- the date of enactment has taken, any of the tion 7(e) of the Natural Gas Act (15 U.S.C. portation project for in-State access. actions required for removal from the list 717f(e)). (h) ALASKA ROYALTY GAS.— under such section 1339(b). (2) CONSIDERATIONS.—In considering an ap- (1) IN GENERAL.—Except as provided in SEC. 359. LIVINGSTON PARISH MINERAL RIGHTS plication under this section, the Commission paragraph (2), the Commission, on a request TRANSFER. shall presume that— by the State and after a hearing, may pro- (a) AMENDMENTS.—Section 102 of Public (A) a public need exists to construct and vide for reasonable access to the Alaska nat- Law 102–562 (106 Stat. 4234) is amended— operate the proposed Alaska natural gas ural gas transportation project by the State (1) by striking ‘‘(a) IN GENERAL.— transportation project; and (or State designee) for the transportation of (2) by striking ‘‘and subject to the reserva- (B) sufficient downstream capacity will royalty gas of the State for the purpose of tion in subsection (b),’’; and exist to transport the Alaska natural gas meeting local consumption needs within the (3) by striking subsection (b). moving through the project to markets in State. (b) IMPLEMENTATION OF AMENDMENT.—The the contiguous United States. (2) EXCEPTION.—The rates of shippers of (c) EXPEDITED APPROVAL PROCESS.—Not Secretary of the Interior shall execute the subscribed capacity on an Alaska natural gas later than 60 days after the date of issuance legal instruments necessary to effectuate the transportation project described in para- of the final environmental impact statement amendment made by subsection (a)(3). graph (1), as in effect as of the date on which under section 374 for an Alaska natural gas Subtitle D—Alaska Natural Gas Pipeline access under that paragraph is granted, shall transportation project, the Commission shall not be increased as a result of such access. SEC. 371. SHORT TITLE. issue a final order granting or denying any (i) REGULATIONS.—The Commission may This subtitle may be cited as the ‘‘Alaska application for a certificate of public conven- issue such regulations as are necessary to Natural Gas Pipeline Act’’. ience and necessity for the project under sec- carry out this section. SEC. 372. DEFINITIONS. tion 7(c) of the Natural Gas Act (15 U.S.C. In this subtitle: 717f(c)) and this section. SEC. 374. ENVIRONMENTAL REVIEWS. (1) ALASKA NATURAL GAS.—The term ‘‘Alas- (d) PROHIBITION OF CERTAIN PIPELINE (a) COMPLIANCE WITH NEPA.—The issuance ka natural gas’’ means natural gas derived ROUTE.—No license, permit, lease, right-of- of a certificate of public convenience and ne- from the area of the State of Alaska lying way, authorization, or other approval re- cessity authorizing the construction and op- north of 64 degrees north latitude. quired under Federal law for the construc- eration of any Alaska natural gas transpor- (2) ALASKA NATURAL GAS TRANSPORTATION tion of any pipeline to transport natural gas tation project under section 373 shall be PROJECT.—The term ‘‘Alaska natural gas from land within the Prudhoe Bay oil and treated as a major Federal action signifi- transportation project’’ means any natural gas lease area may be granted for any pipe- cantly affecting the quality of the human en- gas pipeline system that carries Alaska nat- line that follows a route that— vironment within the meaning of section ural gas to the border between Alaska and (1) traverses land beneath navigable waters 102(2)(C) of the National Environmental Pol- Canada (including related facilities subject (as defined in section 2 of the Submerged icy Act of 1969 (42 U.S.C. 4332(2)(C)). to the jurisdiction of the Commission) that Lands Act (43 U.S.C. 1301)) beneath, or the (b) DESIGNATION OF LEAD AGENCY.— is authorized under— adjacent shoreline of, the Beaufort Sea; and (1) IN GENERAL.—The Commission—

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00091 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.087 S28PT1 S4536 CONGRESSIONAL RECORD — SENATE April 28, 2004 (A) shall be the lead agency for purposes of (6) find that the proposed facilities will not (A) override— complying with the National Environmental diminish the contract rights of existing ship- (i) the implementation or enforcement of Policy Act of 1969 (42 U.S.C. 4321 et seq.); and pers to previously subscribed certificated ca- regulations issued by the Commission under (B) shall be responsible for preparing the pacity; section 373; or environmental impact statement required by (7) ensure that all necessary environmental (ii) an order by the Commission to expand section 102(2)(c) of that Act (42 U.S.C. reviews have been completed; and the project under section 375; or 4332(2)(c)) with respect to an Alaska natural (8) find that adequate downstream facili- (B) impose any terms, conditions, or re- gas transportation project under section 373. ties exist or are expected to exist to deliver quirements in addition to those imposed by (2) CONSOLIDATION OF STATEMENTS.—In car- incremental Alaska natural gas to market. the Commission or any agency with respect rying out paragraph (1), the Commission (c) REQUIREMENT FOR A FIRM TRANSPOR- to construction and operation, or an expan- shall prepare a single environmental impact TATION AGREEMENT.—Any order of the Com- sion of, the project. statement, which shall consolidate the envi- mission issued in accordance with this sec- (e) STATE COORDINATION.— ronmental reviews of all Federal agencies tion shall be void unless the person request- (1) IN GENERAL.—The Federal Coordinator considering any aspect of the Alaska natural ing the order executes a firm transportation and the State shall enter into a joint surveil- gas transportation project covered by the en- agreement with the Alaska natural gas lance and monitoring agreement similar to vironmental impact statement. transportation project within such reason- the agreement in effect during construction (c) OTHER AGENCIES.— able period of time as the order may specify. of the Trans-Alaska Pipeline, to be approved (1) IN GENERAL.—Each Federal agency con- (d) LIMITATION.—Nothing in this section by the President and the Governor of the sidering an aspect of the construction and expands or otherwise affects any authority State, for the purpose of monitoring the con- operation of an Alaska natural gas transpor- of the Commission with respect to any nat- struction of the Alaska natural gas transportation project under section 373 shall— ural gas pipeline located outside the State. tation project. (A) cooperate with the Commission; and (e) REGULATIONS.—The Commission may (2) PRIMARY RESPONSIBILITY.—With respect (B) comply with deadlines established by issue such regulations as are necessary to to an Alaska natural gas transportation the Commission in the preparation of the en- carry out this section. project— vironmental impact statement under this SEC. 376. FEDERAL COORDINATOR. (A) the Federal Government shall have pri- section. (a) ESTABLISHMENT.—There is established, mary surveillance and monitoring responsi- (2) SATISFACTION OF NEPA REQUIREMENTS.— as an independent office in the executive bility in areas where the Alaska natural gas The environmental impact statement pre- transportation project crosses Federal land pared under this section shall be adopted by branch, the Office of the Federal Coordinator for Alaska Natural Gas Transportation or private land; and each Federal agency described in paragraph (B) the State government shall have pri- (1) in satisfaction of the responsibilities of Projects. (b) FEDERAL COORDINATOR.— mary surveillance and monitoring responsi- the Federal agency under section 102(2)(C) of bility in areas where the Alaska natural gas the National Environmental Policy Act of (1) APPOINTMENT.—The Office shall be headed by a Federal Coordinator for Alaska transportation project crosses State land. 1969 (42 U.S.C. 4332(2)(C)) with respect to the (f) TRANSFER OF FEDERAL INSPECTOR FUNC- Natural Gas Transportation Projects, who Alaska natural gas transportation project TIONS AND AUTHORITY.—On appointment of shall be appointed by the President, by and covered by the environmental impact state- the Federal Coordinator by the President, all with the advice and consent of the Senate, to ment. of the functions and authority of the Office serve a term to last until 1 year following (d) EXPEDITED PROCESS.—The Commission of Federal Inspector of Construction for the the completion of the project referred to in shall— Alaska Natural Gas Transportation System section 373. (1) not later than 1 year after the Commis- vested in the Secretary under section 3012(b) (2) COMPENSATION.—The Federal Coordi- sion determines that the application under of the Energy Policy Act of 1992 (15 U.S.C. nator shall be compensated at the rate pre- section 373 with respect to an Alaska natural 719e note; Public Law 102–486), including all scribed for level III of the Executive Sched- gas transportation project is complete, issue functions and authority described and enu- a draft environmental impact statement ule (5 U.S.C. 5314). merated in the Reorganization Plan No. 1 of under this section; and (c) DUTIES.—The Federal Coordinator shall 1979 (44 Fed. Reg. 33663), Executive Order No. (2) not later than 180 days after the date of be responsible for— 12142 of June 21, 1979 (44 Fed. Reg. 36927), and issuance of the draft environmental impact (1) coordinating the expeditious discharge section 5 of the President’s decision, shall be statement, issue a final environmental im- of all activities by Federal agencies with retransferred to the Federal Coordinator. pact statement, unless the Commission for spect to an Alaska natural gas transpor- (g) TEMPORARY AUTHORITY.—The functions, good cause determines that additional time tation project; and authorities, duties, and responsibilities of is needed. (2) ensuring the compliance of Federal the Federal Coordinator shall be vested in SEC. 375. PIPELINE EXPANSION. agencies with the provisions of this subtitle. the Secretary until the later of the appoint- (a) AUTHORITY.—With respect to any Alas- (d) REVIEWS AND ACTIONS OF OTHER FED- ment of the Federal Coordinator by the ka natural gas transportation project, on a ERAL AGENCIES.— President, or 18 months after the date of en- request by 1 or more persons and after giving (1) EXPEDITED REVIEWS AND ACTIONS.—All actment of this Act. notice and an opportunity for a hearing, the reviews conducted and actions taken by any SEC. 377. JUDICIAL REVIEW. Commission may order the expansion of the Federal agency relating to an Alaska natural (a) EXCLUSIVE JURISDICTION.—Except for Alaska natural gas project if the Commis- gas transportation project authorized under review by the Supreme Court on writ of cer- sion determines that such an expansion is re- this section shall be expedited, in a manner tiorari, the United States Court of Appeals quired by the present and future public con- consistent with completion of the necessary for the District of Columbia Circuit shall venience and necessity. reviews and approvals by the deadlines under have original and exclusive jurisdiction to (b) RESPONSIBILITIES OF COMMISSION.—Be- this subtitle. determine— fore ordering an expansion under subsection (2) PROHIBITION OF CERTAIN TERMS AND CON- (1) the validity of any final order or action (a), the Commission shall— DITIONS.—No Federal agency may include in (including a failure to act) of any Federal (1) approve or establish rates for the expan- any certificate, right-of-way, permit, lease, agency or officer under this subtitle; sion service that are designed to ensure the or other authorization issued to an Alaska (2) the constitutionality of any provision recovery, on an incremental or rolled-in natural gas transportation project any term of this subtitle, or any decision made or ac- basis, of the cost associated with the expan- or condition that may be permitted, but is tion taken under this subtitle; or sion (including a reasonable rate of return on not required, by any applicable law if the (3) the adequacy of any environmental im- investment); Federal Coordinator determines that the pact statement prepared under the National (2) ensure that the rates do not require ex- term or condition would prevent or impair in Environmental Policy Act of 1969 (42 U.S.C. isting shippers on the Alaska natural gas any significant respect the expeditious con- 4321 et seq.) with respect to any action under transportation project to subsidize expansion struction and operation, or an expansion, of this subtitle. shippers; the Alaska natural gas transportation (b) DEADLINE FOR FILING CLAIM.—A claim (3) find that a proposed shipper will comply project. arising under this subtitle may be brought with, and the proposed expansion and the ex- (3) PROHIBITION OF CERTAIN ACTIONS.—Un- not later than 60 days after the date of the pansion of service will be undertaken and less required by law, no Federal agency shall decision or action giving rise to the claim. implemented based on, terms and conditions add to, amend, or abrogate any certificate, (c) EXPEDITED CONSIDERATION.—The United consistent with the tariff of the Alaska nat- right-of-way, permit, lease, or other author- States Court of Appeals for the District of ural gas transportation project in effect as of ization issued to an Alaska natural gas Columbia Circuit shall set any action the date of the expansion; transportation project if the Federal Coordi- brought under subsection (a) for expedited (4) find that the proposed facilities will not nator determines that the action would pre- consideration, taking into account the na- adversely affect the financial or economic vi- vent or impair in any significant respect the tional interest of enhancing national energy ability of the Alaska natural gas transpor- expeditious construction and operation, or security by providing access to the signifi- tation project; an expansion, of the Alaska natural gas cant gas reserves in Alaska needed to meet (5) find that the proposed facilities will not transportation project. the anticipated demand for natural gas. adversely affect the overall operations of the (4) LIMITATION.—The Federal Coordinator (d) AMENDMENT OF THE ALASKA NATURAL Alaska natural gas transportation project; shall not have authority to— GAS TRANSPORTATION ACT OF 1976.—Section

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10(c) of the Alaska Natural Gas Transpor- (d) REPORT.—On completion of any study determine the extent to which small busi- tation Act of 1976 (15 U.S.C. 719h) is amend- under subsection (a), the Secretary shall sub- ness concerns participate in the construction ed— mit to Congress a report that describes— of oil and gas pipelines in the United States. (1) by striking ‘‘(c)(1) A claim’’ and insert- (1) the results of the study; and (2) REPORT.—Not later than 1 year after ing the following: (2) any recommendations of the Secretary the date of enactment of this Act, the Comp- ‘‘(c) JURISDICTION.— (including proposals for legislation to imple- troller General shall submit to Congress a ‘‘(1) SPECIAL COURTS.— ment the recommendations). report that describes results of the study ‘‘(A) IN GENERAL.—A claim’’; SEC. 380. CLARIFICATION OF ANGTA STATUS AND under paragraph (1). (2) by striking ‘‘Such court shall have’’ and AUTHORITIES. (3) UPDATES.—The Comptroller General inserting the following: (a) SAVINGS CLAUSE.—Nothing in this sub- shall— ‘‘(B) EXCLUSIVE JURISDICTION.—The Special title affects— (A) update the study at least once every 5 Court shall have’’; (1) any decision, certificate, permit, right- years until construction of an Alaska nat- (3) by inserting after paragraph (1) the fol- of-way, lease, or other authorization issued ural gas transportation project is completed; lowing: under section 9 of the Alaska Natural Gas and ‘‘(2) EXPEDITED CONSIDERATION.—The Spe- Transportation Act of 1976 (15 U.S.C. 719g); or (B) on completion of each update, submit cial Court shall set any action brought under (2) any Presidential finding or waiver to Congress a report containing the results this section for expedited consideration, tak- issued in accordance with that Act. of the update. ing into account the national interest de- (b) CLARIFICATION OF AUTHORITY TO AMEND SEC. 383. ALASKA PIPELINE CONSTRUCTION scribed in section 2.’’; and TERMS AND CONDITIONS TO MEET CURRENT TRAINING PROGRAM. (4) in paragraph (3), by striking ‘‘(3) The PROJECT REQUIREMENTS.—Any Federal agen- (a) PROGRAM.— enactment’’ and inserting the following: cy responsible for granting or issuing any (1) ESTABLISHMENT.—The Secretary of ‘‘(3) ENVIRONMENTAL IMPACT STATEMENTS.— certificate, permit, right-of-way, lease, or Labor (in this section referred to as the The enactment’’. other authorization under section 9 of the ‘‘Secretary’’) shall make grants to the Alas- SEC. 378. STATE JURISDICTION OVER IN-STATE Alaska Natural Gas Transportation Act of ka Workforce Investment Board— DELIVERY OF NATURAL GAS. 1976 (15 U.S.C. 719g) may add to, amend, or (A) to recruit and train adult and dis- (a) LOCAL DISTRIBUTION.—Any facility re- rescind any term or condition included in located workers in Alaska, including Alaska ceiving natural gas from an Alaska natural the certificate, permit, right-of-way, lease, Natives, in the skills required to construct gas transportation project for delivery to or other authorization to meet current and operate an Alaska gas pipeline system; consumers within the State— project requirements (including the physical and (1) shall be deemed to be a local distribu- design, facilities, and tariff specifications), if (B) for the design and construction of a tion facility within the meaning of section the addition, amendment, or rescission— training facility to be located in Fairbanks, 1(b) of the Natural Gas Act (15 U.S.C. 717(b)); (1) would not compel any change in the Alaska, to support an Alaska gas pipeline and basic nature and general route of the Alaska training program. (2) shall not be subject to the jurisdiction natural gas transportation system as des- (2) COORDINATION WITH EXISTING PRO- of the Commission. ignated and described in section 2 of the GRAMS.—The training program established (b) ADDITIONAL PIPELINES.—Except as pro- President’s decision; or with the grants authorized under paragraph vided in section 373(d), nothing in this sub- (2) would not otherwise prevent or impair (1) shall be consistent with the vision and title shall preclude or otherwise affect a fu- in any significant respect the expeditious goals set forth in the State of Alaska Unified ture natural gas pipeline that may be con- construction and initial operation of the Plan, as developed pursuant to the Work- structed to deliver natural gas to Fairbanks, Alaska natural gas transportation system. force Investment Act of 1998 (29 U.S.C. 2801 et Anchorage, Matanuska-Susitna Valley, or (c) UPDATED ENVIRONMENTAL REVIEWS.— seq.). the Kenai peninsula or Valdez or any other The Secretary shall require the sponsor of (b) REQUIREMENTS FOR GRANTS.—The Sec- site in the State for consumption within or the Alaska natural gas transportation sys- retary shall make a grant under subsection distribution outside the State. tem to submit such updated environmental (a) only if— (c) RATE COORDINATION.— data, reports, permits, and impact analyses (1) the Governor of the State of Alaska re- (1) IN GENERAL.—In accordance with the as the Secretary determines are necessary to quests the grant funds and certifies in writ- Natural Gas Act (15 U.S.C. 717a et seq.), the develop detailed terms, conditions, and com- Commission shall establish rates for the ing to the Secretary that there is a reason- pliance plans required by section 5 of the able expectation that the construction of the transportation of natural gas on any Alaska President’s decision. natural gas transportation project. Alaska natural gas pipeline system will com- SEC. 381. SENSE OF CONGRESS CONCERNING USE mence by the date that is 2 years after the (2) CONSULTATION.—In carrying out para- OF STEEL MANUFACTURED IN graph (1), the Commission, in accordance date of the certification; and NORTH AMERICA NEGOTIATION OF (2) the Secretary of Energy concurs in with section 17(b) of the Natural Gas Act (15 A PROJECT LABOR AGREEMENT. U.S.C. 717p(b)), shall consult with the State It is the sense of Congress that— writing to the Secretary with the certifi- regarding rates (including rate settlements) (1) an Alaska natural gas transportation cation made under paragraph (1) after con- applicable to natural gas transported on and project would provide significant economic sidering— delivered from the Alaska natural gas trans- benefits to the United States and Canada; (A) the status of necessary Federal and portation project for use within the State. and State permits; (B) the availability of financing for the SEC. 379. STUDY OF ALTERNATIVE MEANS OF (2) to maximize those benefits, the spon- CONSTRUCTION. sors of the Alaska natural gas transportation Alaska natural gas pipeline project; and (C) other relevant factors. (a) REQUIREMENT OF STUDY.—If no applica- project should make every effort to— tion for the issuance of a certificate or (A) use steel that is manufactured in North (c) AUTHORIZATION OF APPROPRIATIONS.— amended certificate of public convenience America; and There are authorized to be appropriated to and necessity authorizing the construction (B) negotiate a project labor agreement to the Secretary to carry out this section and operation of an Alaska natural gas expedite construction of the pipeline. $20,000,000. Not more than 15 percent of the funds may be used for the facility described transportation project has been filed with SEC. 382. SENSE OF CONGRESS AND STUDY CON- the Commission by the date that is 18 CERNING PARTICIPATION BY SMALL in subsection (a)(1)(B). months after the date of enactment of this BUSINESS CONCERNS. SEC. 384. SENSE OF CONGRESS CONCERNING Act, the Secretary shall conduct a study of (a) DEFINITION OF SMALL BUSINESS CON- NATURAL GAS DEMAND. alternative approaches to the construction CERN.—In this section, the term ‘‘small busi- It is the sense of Congress that— and operation of such an Alaska natural gas ness concern’’ has the meaning given the (1) North American demand for natural gas transportation project. term in section 3(a) of the Small Business will increase dramatically over the course of (b) SCOPE OF STUDY.—The study under sub- Act (15 U.S.C. 632(a)). the next several decades; section (a) shall take into consideration the (b) SENSE OF CONGRESS.—It is the sense of (2) both the Alaska Natural Gas Pipeline feasibility of— Congress that— and the Mackenzie Delta Natural Gas project (1) establishing a Federal Government cor- (1) an Alaska natural gas transportation in Canada will be necessary to help meet the poration to construct an Alaska natural gas project would provide significant economic increased demand for natural gas in North transportation project; and benefits to the United States and Canada; America; (2) securing alternative means of providing and (3) Federal and State officials should work Federal financing and ownership (including (2) to maximize those benefits, the spon- together with officials in Canada to ensure alternative combinations of Government and sors of the Alaska natural gas transportation both projects can move forward in a mutu- private corporate ownership) of the Alaska project should maximize the participation of ally beneficial fashion; natural gas transportation project. small business concerns in contracts and (4) Federal and State officials should ac- (c) CONSULTATION.—In conducting the subcontracts awarded in carrying out the knowledge that the smaller scope, fewer per- study under subsection (a), the Secretary project. mitting requirements, and lower cost of the shall consult with the Secretary of the (c) STUDY.— Mackenzie Delta project means it will most Treasury and the Secretary of the Army (1) IN GENERAL.—The Comptroller General likely be completed before the Alaska Nat- (acting through the Chief of Engineers). of the United States shall conduct a study to ural Gas Pipeline;

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00093 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.088 S28PT1 S4538 CONGRESSIONAL RECORD — SENATE April 28, 2004 (5) natural gas production in the 48 contig- project, including interest during construc- section not later than March 31, 2005. The re- uous States and Canada will not be able to tion. port shall include, with respect to subsection meet all domestic demand in the coming dec- (2) The principal amount of loans and other (a), a 10-year plan containing— ades; and debt obligations guaranteed under this sec- (1) a detailed assessment of whether the (6) as a result, natural gas delivered from tion shall not exceed, in the aggregate, aggregate funding levels provided under sub- Alaskan North Slope will not displace or re- $18,000,000,000, which amount shall be indexed section (a) are the appropriate funding levels duce the commercial viability of Canadian for United States dollar inflation from the for that program; natural gas produced from the Mackenzie date of enactment of this Act, as measured (2) a detailed description of how proposals Delta or production from the 48 contiguous by the Consumer Price Index. will be solicited and evaluated, including a States. (d) LOAN TERMS AND FEES.—(1) The Sec- list of all activities expected to be under- SEC. 385. SENSE OF CONGRESS CONCERNING retary may issue Federal guarantee instru- taken; ALASKAN OWNERSHIP. ments under this section that take into ac- (3) a detailed list of technical milestones It is the sense of Congress that— count repayment profiles and grace periods for each coal and related technology that (1) Alaska Native Regional Corporations, justified by project cash flows and project- will be pursued; and companies owned and operated by Alaskans, specific considerations. The term of any loan (4) a detailed description of how the pro- and individual Alaskans should have the op- guaranteed under this section shall not ex- gram will avoid problems enumerated in portunity to own shares of the Alaska nat- ceed 30 years. General Accounting Office reports on the ural gas pipeline in a way that promotes eco- (2) An eligible lender may assess and col- Clean Coal Technology Program, including nomic development for the State; and lect from the borrower such other fees and problems that have resulted in unspent funds (2) to facilitate economic development in costs associated with the application and and projects that failed either financially or the State, all project sponsors should nego- origination of the loan or other debt obliga- scientifically. tiate in good faith with any willing Alaskan tion as are reasonable and customary for a SEC. 402. PROJECT CRITERIA. person that desires to be involved in the project finance transaction in the oil and gas (a) IN GENERAL.—The Secretary shall not project. sector. provide funding under this subtitle for any (e) REGULATIONS.—The Secretary may project that does not advance efficiency, en- SEC. 386. LOAN GUARANTEES. issue regulations to carry out this section. vironmental performance, and cost competi- UTHORITY (a) A .—(1) The Secretary may (f) AUTHORIZATION OF APPROPRIATIONS.— tiveness well beyond the level of tech- enter into agreements with 1 or more holders There are authorized to be appropriated such nologies that are in commercial service or of a certificate of public convenience and ne- sums as may be necessary to cover the cost have been demonstrated on a scale that the cessity issued under section 373(b) or section of loan guarantees under this section, as de- Secretary determines is sufficient to dem- 9 of the Alaska Natural Gas Transportation fined by section 502(5) of the Federal Credit onstrate that commercial service is viable as Act of 1976 (15 U.S.C. 719g) to issue Federal Reform Act of 1990 (2 U.S.C. 661a(5)). Such of the date of enactment of this Act. guarantee instruments with respect to loans sums shall remain available until expended. (b) TECHNICAL CRITERIA FOR CLEAN COAL and other debt obligations for a qualified in- (g) DEFINITIONS.—In this section, the fol- POWER INITIATIVE.— frastructure project. lowing definitions apply: (1) GASIFICATION PROJECTS.— (2) Subject to the requirements of this sec- (1) The term ‘‘Consumer Price Index’’ (A) IN GENERAL.—In allocating the funds tion, the Secretary may also enter into means the Consumer Price Index for all- made available under section 401(a), the Sec- agreements with 1 or more owners of the Ca- urban consumers, United States city aver- retary shall ensure that at least 60 percent of nadian portion of a qualified infrastructure age, as published by the Bureau of Labor the funds are used only for projects on coal- project to issue Federal guarantee instru- Statistics, or if such index shall cease to be based gasification technologies, including ments with respect to loans and other debt published, any successor index or reasonable gasification combined cycle, gasification obligations for a qualified infrastructure substitute thereof. fuel cells, gasification coproduction, and hy- project as though such owner were a holder (2) The term ‘‘eligible lender’’ means any brid gasification/combustion. described in paragraph (1). non-Federal qualified institutional buyer (as (B) TECHNICAL MILESTONES.—The Secretary (3) The authority of the Secretary to issue defined by section 230.144A(a) of title 17, Code shall periodically set technical milestones Federal guarantee instruments under this of Federal Regulations (or any successor reg- specifying the emission and thermal effi- section for a qualified infrastructure project ulation), known as Rule 144A(a) of the Secu- ciency levels that coal gasification projects shall expire on the date that is 2 years after rities and Exchange Commission and issued under this subtitle shall be designed, and the date on which the final certificate of under the Securities Act of 1933), including— reasonably expected, to achieve. The tech- public convenience and necessity (including (A) a qualified retirement plan (as defined nical milestones shall become more restric- any Canadian certificates of public conven- in section 4974(c) of the Internal Revenue tive during the life of the program. The Sec- ience and necessity) is issued for the project. Code of 1986 (26 U.S.C. 4974(c)) that is a quali- retary shall set the periodic milestones so as A final certificate shall be considered to fied institutional buyer; and to achieve by 2020 coal gasification projects have been issued when all certificates of pub- (B) a governmental plan (as defined in sec- able— lic convenience and necessity have been tion 414(d) of the Internal Revenue Code of (i) to remove 99 percent of sulfur dioxide; issued that are required for the initial trans- 1986 (26 U.S.C. 414(d)) that is a qualified insti- (ii) to emit not more than .05 lbs of NOX portation of commercially economic quan- tutional buyer. per million Btu; tities of natural gas from Alaska to the con- (3) The term ‘‘Federal guarantee instru- (iii) to achieve substantial reductions in tinental United States. ment’’ means any guarantee or other pledge mercury emissions; and (b) CONDITIONS.—(1) The Secretary may by the Secretary to pledge the full faith and (iv) to achieve a thermal efficiency of— issue a Federal guarantee instrument for a credit of the United States to pay all of the (I) 60 percent for coal of more than 9,000 qualified infrastructure project only after a principal and interest on any loan or other Btu; certificate of public convenience and neces- debt obligation entered into by a holder of a (II) 59 percent for coal of 7,000 to 9,000 Btu; sity under section 373(b) or an amended cer- certificate of public convenience and neces- and tificate under section 9 of the Alaska Nat- sity. (III) 50 percent for coal of less than 7,000 ural Gas Transportation Act of 1976 (15 (4) The term ‘‘qualified infrastructure Btu. U.S.C. 719g) has been issued for the project. project’’ means an Alaskan natural gas (2) OTHER PROJECTS.—The Secretary shall (2) The Secretary may issue a Federal transportation project consisting of the de- periodically set technical milestones and en- guarantee instrument under this section for sign, engineering, finance, construction, and sure that up to 40 percent of the funds appro- a qualified infrastructure project only if the completion of pipelines and related transpor- priated pursuant to section 401(a) are used loan or other debt obligation guaranteed by tation and production systems (including gas for projects not described in paragraph (1). the instrument has been issued by an eligible treatment plants), and appurtenances there- The milestones shall specify the emission lender. to, that are used to transport natural gas and thermal efficiency levels that projects (3) The Secretary shall not require as a from the Alaska North Slope to the conti- funded under this paragraph shall be de- condition of issuing a Federal guarantee in- nental United States. signed to and reasonably expected to strument under this section any contractual achieve. The technical milestones shall be- commitment or other form of credit support TITLE IV—COAL come more restrictive during the life of the of the sponsors (other than equity contribu- Subtitle A—Clean Coal Power Initiative program. The Secretary shall set the peri- tion commitments and completion guaran- SEC. 401. AUTHORIZATION OF APPROPRIATIONS. odic milestones so as to achieve by 2010 tees), or any throughput or other guarantee (a) CLEAN COAL POWER INITIATIVE.—There projects able— from prospective shippers greater than such are authorized to be appropriated to the Sec- (A) to remove 97 percent of sulfur dioxide; guarantees as shall be required by the retary of Energy (referred to in this title as (B) to emit no more than .08 lbs of NOX per project owners. the ‘‘Secretary’’) to carry out the activities million Btu; (c) LIMITATIONS ON AMOUNTS.—(1) The authorized by this subtitle $200,000,000 for (C) to achieve substantial reductions in amount of loans and other debt obligations each of fiscal years 2004 through 2012, to re- mercury emissions; and guaranteed under this section for a qualified main available until expended. (D) to achieve a thermal efficiency of— infrastructure project shall not exceed 80 (b) REPORT.—The Secretary shall submit to (i) 45 percent for coal of more than 9,000 percent of the total capital costs of the Congress the report required by this sub- Btu;

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00094 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.088 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4539 (ii) 44 percent for coal of 7,000 to 9,000 Btu; progress toward meeting the requirements of Subtitle C—Federal Coal Leases and subsections (b)(1)(B) and (b)(2) of section 402; SEC. 421. REPEAL OF THE 160–ACRE LIMITATION (iii) 40 percent for coal of less than 7,000 and FOR COAL LEASES. Btu. (2) the status of projects funded under this Section 3 of the Mineral Leasing Act (30 (3) CONSULTATION.—Before setting the tech- subtitle. U.S.C. 203) is amended— nical milestones under paragraphs (1)(B) and SEC. 404. CLEAN COAL CENTERS OF EXCEL- (1) in the first sentence— (2), the Secretary shall consult with the Ad- LENCE. (A) by striking ‘‘Any person’’ and inserting ministrator of the Environmental Protection As part of the program authorized in sec- ‘‘(a) Any person’’; Agency and interested entities, including tion 401, the Secretary shall award competi- (B) by inserting a comma after ‘‘may’’; and coal producers, industries using coal, organi- tive, merit-based grants to universities for (C) by striking ‘‘upon’’ and all that follows zations to promote coal or advanced coal the establishment of Centers of Excellence through the period and inserting the fol- technologies, environmental organizations, for Energy Systems of the Future. The Sec- lowing: ‘‘upon a finding by the Secretary and organizations representing workers. retary shall provide grants to universities that the lease— (4) EXISTING UNITS.—In the case of projects that show the greatest potential for advanc- ‘‘(1) would be in the interest of the United at units in existence on the date of enacting new clean coal technologies. States; ment of this Act, in lieu of the thermal effi- Subtitle B—Clean Power Projects ‘‘(2) would not displace a competitive in- ciency requirements set forth in paragraph SEC. 411. COAL TECHNOLOGY LOAN. terest in the land; and (1)(B)(iv) and (2)(D), the milestones shall be There are authorized to be appropriated to ‘‘(3) would not include land or deposits designed to achieve an overall thermal de- the Secretary $125,000,000 to provide a loan to that can be developed as part of another po- sign efficiency improvement, compared to the owner of the experimental plant con- tential or existing operation; the efficiency of the unit as operated, of not structed under United States Department of secure modifications of the original coal less than— Energy cooperative agreement number DE– lease by including additional coal land or (A) 7 percent for coal of more than 9,000 FC–22–91PC90544 on such terms and condi- coal deposits contiguous or cornering to Btu; tions as the Secretary determines, including those embraced in the lease, but in no event (B) 6 percent for coal of 7,000 to 9,000 Btu; interest rates and upfront payments. shall the total area added by any modifica- or SEC. 412. COAL GASIFICATION. tions to an existing coal lease exceed 1,280 (C) 4 percent for coal of less than 7,000 Btu. The Secretary is authorized to provide acres, or add acreage larger than the acreage (5) PERMITTED USES.—In carrying out this loan guarantees for a project to produce en- in the original lease.’’; subtitle, the Secretary may fund projects ergy from a plant using integrated gasifi- (2) in the second sentence, by striking that include, as part of the project, the sepa- cation combined cycle technology of at least ‘‘The Secretary’’ and inserting the following: ration and capture of carbon dioxide. 400 megawatts in capacity that produces ‘‘(b) The Secretary’’; and (c) FINANCIAL CRITERIA.—The Secretary power at competitive rates in deregulated (3) in the third sentence, by striking ‘‘The shall not provide a funding award under this energy generation markets and that does not minimum’’ and inserting the following: subtitle unless the recipient documents to receive any subsidy (direct or indirect) from ‘‘(c) The minimum’’. the satisfaction of the Secretary that— ratepayers. SEC. 422. MINING PLANS. (1) the award recipient is financially viable Section 2(d)(2) of the Mineral Leasing Act without the receipt of additional Federal SEC. 413. INTEGRATED GASIFICATION COMBINED CYCLE TECHNOLOGY. (30 U.S.C. 202a(2)) is amended— funding; The Secretary is authorized to provide (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and (2) the recipient will provide sufficient in- loan guarantees for a project to produce en- (2) by adding at the end the following: formation to the Secretary to enable the ergy from a plant using integrated gasifi- ‘‘(B) The Secretary may establish a period Secretary to ensure that the award funds are cation combined cycle technology located in of more than 40 years if the Secretary deter- spent efficiently and effectively; and a taconite-producing region of the United mines that the longer period— (3) a market exists for the technology States that is entitled under the law of the ‘‘(i) will ensure the maximum economic re- being demonstrated or applied, as evidenced State in which the plant is located to enter covery of a coal deposit; or by statements of interest in writing from po- into a long-term contract approved by a ‘‘(ii) the longer period is in the interest of tential purchasers of the technology. State Public Utility Commission to sell at the orderly, efficient, or economic develop- (d) FINANCIAL ASSISTANCE.—The Secretary shall provide financial assistance to projects least 450 megawatts of output to a utility. ment of a coal resource.’’. that meet the requirements of subsections SEC. 414. PETROLEUM COKE GASIFICATION. SEC. 423. PAYMENT OF ADVANCE ROYALTIES (a), (b), and (c) and are likely to— The Secretary is authorized to provide UNDER COAL LEASES. (1) achieve overall cost reductions in the loan guarantees for at least 1 petroleum coke Section 7(b) of the Mineral Leasing Act (30 utilization of coal to generate useful forms gasification polygeneration project. U.S.C. 207(b)) is amended to read as follows: of energy; SEC. 415. INTEGRATED COAL/RENEWABLE EN- ‘‘(b)(1) Each lease shall be subjected to the (2) improve the competitiveness of coal ERGY SYSTEM. condition of diligent development and con- among various forms of energy in order to The Secretary is authorized, subject to the tinued operation of the mine or mines, ex- maintain a diversity of fuel choices in the availability of appropriations, to provide cept in a case in which operations under the United States to meet electricity generation loan guarantees for a project to produce en- lease are interrupted by strikes, the ele- requirements; and ergy from coal of less than 7,000 btu/lb using ments, or casualties not attributable to the (3) demonstrate methods and equipment appropriate advanced integrated gasification lessee. ‘‘(2)(A) The Secretary of the Interior may that are applicable to 25 percent of the elec- combined cycle technology, including suspend the condition of continued operation tricity generating facilities, using various repowering of existing facilities, that is com- upon the payment of advance royalties, if types of coal, that use coal as the primary bined with wind and other renewable the Secretary determines that the public in- feedstock as of the date of enactment of this sources, minimizes and offers the potential terest will be served by the suspension. Act. to sequester carbon dioxide emissions, and ‘‘(B) Advance royalties required under sub- (e) FEDERAL SHARE.—The Federal share of provides a ready source of hydrogen for near- the cost of a coal or related technology site fuel cell demonstrations. The facility paragraph (A) shall be computed based on— project funded by the Secretary under this may be built in stages, combined output ‘‘(i) the average price for coal sold in the subtitle shall not exceed 50 percent. shall be at least 200 megawatts at succes- spot market from the same region during the (f) APPLICABILITY.—No technology, or level sively more competitive rates, and the facil- last month of each applicable continued op- of emission reduction, shall be treated as ity shall be located in the Upper Great eration year; or adequately demonstrated for purposes of sec- Plains. Section 402(b) technical criteria ‘‘(ii) by using other methods established by tion 111 of the Clean Air Act (42 U.S.C. 7411), apply, and the Federal cost share shall not the Secretary of the Interior to capture the achievable for purposes of section 169 of that exceed 50 percent. The loan guarantees pro- commercial value of coal, Act (42 U.S.C. 7479), or achievable in practice vided under this section do not preclude the and based on commercial quantities, as de- for purposes of section 171 of that Act (42 facility from receiving an allocation for in- fined by regulation by the Secretary of the U.S.C. 7501) solely by reason of the use of vestment tax credits under section 48A of the Interior. such technology, or the achievement of such Internal Revenue Code of 1986. Utilizing this ‘‘(C) The aggregate number of years during emission reduction, by 1 or more facilities investment tax credit does not prohibit the the initial and any extended term of any receiving assistance under this subtitle. use of other Clean Coal Program funding. lease for which advance royalties may be ac- SEC. 403. REPORT. SEC. 416. ELECTRON SCRUBBING DEMONSTRA- cepted in lieu of the condition of continued Not later than 1 year after the date of en- TION. operation shall not exceed 20. actment of this Act, and once every 2 years The Secretary shall use $5,000,000 from ‘‘(3) The amount of any production royalty thereafter through 2012, the Secretary, in amounts appropriated to initiate, through paid for any year shall be reduced (but not consultation with other appropriate Federal the Chicago Operations Office, a project to below 0) by the amount of any advance roy- agencies, shall submit to Congress a report demonstrate the viability of high-energy alties paid under the lease, to the extent describing— electron scrubbing technology on commer- that the advance royalties have not been (1) the technical milestones set forth in cial-scale electrical generation using high- used to reduce production royalties for a section 402 and how those milestones ensure sulfur coal. prior year.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00095 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.088 S28PT1 S4540 CONGRESSIONAL RECORD — SENATE April 28, 2004 ‘‘(4) The Secretary may, upon 6 months’ (1) a report containing the inventory under may be applied to projects under subsection notice to a lessee, cease to accept advance this section by not later than 2 years after (b), in addition to amounts authorized under royalties in lieu of the requirement of con- the effective date of this section; and subsection (b). tinued operation. (2) each update of that inventory. ‘‘(b) GENERATION PROJECTS.—There are au- ‘‘(5) Nothing in this subsection affects the SEC. 427. APPLICATION OF AMENDMENTS. thorized to be appropriated to the Secretary requirement contained in the second sen- The amendments made by this subtitle $150,000,000 for fiscal year 2006, $250,000,000 for tence of subsection (a) relating to com- apply— each of the fiscal years 2007 through 2011, and mencement of production at the end of 10 (1) with respect to any coal lease issued on $100,000,000 for fiscal year 2012, to remain years.’’. or after the date of enactment of this Act; available until expended, for generation SEC. 424. ELIMINATION OF DEADLINE FOR SUB- and projects and air pollution control projects. MISSION OF COAL LEASE OPER- (2) with respect to any coal lease issued be- Such projects may include— ATION AND RECLAMATION PLAN. fore the date of enactment of this Act, upon ‘‘(1) coal-based electrical generation equip- Section 7(c) of the Mineral Leasing Act (30 the earlier of— ment and processes, including gasification U.S.C. 207(c)) is amended in the first sen- (A) the date of readjustment of the lease as combined cycle or other coal-based genera- tence by striking ‘‘and not later than three provided for by section 7(a) of the Mineral tion equipment and processes; years after a lease is issued,’’. Leasing Act (30 U.S.C. 207(a)); or ‘‘(2) associated environmental control SEC. 425. AMENDMENT RELATING TO FINANCIAL (B) the date the lessee requests such appli- equipment, that will be cost-effective and ASSURANCES WITH RESPECT TO cation. that is designed to meet anticipated regu- BONUS BIDS. latory requirements; Section 2(a) of the Mineral Leasing Act (30 Subtitle D—Coal and Related Programs ‘‘(3) coal-based electrical generation equip- U.S.C. 201(a)) is amended by adding at the SEC. 441. CLEAN AIR COAL PROGRAM. ment and processes, including gasification end the following: (a) AMENDMENT.—The Energy Policy Act of fuel cells, gasification coproduction, and hy- ‘‘(4)(A) The Secretary shall not require a 1992 is amended by adding the following new brid gasification/combustion projects; and surety bond or any other financial assurance title at the end thereof: ‘‘(4) advanced coal-based electrical genera- to guarantee payment of deferred bonus bid ‘‘TITLE XXXI—CLEAN AIR COAL PROGRAM tion equipment and processes, including oxi- installments with respect to any coal lease ‘‘SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS. dation combustion techniques, ultra-super- issued on a cash bonus bid to a lessee or suc- ‘‘(a) FINDINGS.—The Congress finds that— critical boilers, and chemical looping, which cessor in interest having a history of a time- ‘‘(1) new environmental regulations the Secretary determines will be cost-effec- ly payment of noncontested coal royalties present additional challenges for coal-fired tive and could substantially contribute to and advanced coal royalties in lieu of pro- electrical generation in the private market- meeting anticipated environmental or en- duction (where applicable) and bonus bid in- place; and ergy needs. stallment payments. ‘‘(2) the Department of Energy, in coopera- ‘‘(c) LIMITATION.—Funds placed at risk dur- ‘‘(B) The Secretary may waive any require- tion with industry, has already fully devel- ing any fiscal year for Federal loans or loan ment that a lessee provide a surety bond or oped and commercialized several new clean- guarantees pursuant to this title may not other financial assurance for a coal lease coal technologies that will allow the clean exceed 30 percent of the total funds obligated issued before the date of the enactment of use of coal. under this title. the Energy Policy Act of 2003 only if the Sec- ‘‘(b) PURPOSES.—The purposes of this title ‘‘SEC. 3104. AIR POLLUTION CONTROL PROJECT retary determines that the lessee has a his- are to— CRITERIA. tory of making timely payments referred to ‘‘(1) promote national energy policy and ‘‘The Secretary shall pursuant to author- in subparagraph (A). energy security, diversity, and economic izations contained in section 3103 provide ‘‘(5) Notwithstanding any other provision competitiveness benefits that result from funding for air pollution control projects de- of law, if the lessee under a coal lease fails to the increased use of coal; signed to facilitate compliance with Federal pay any installment of a deferred cash bonus ‘‘(2) mitigate financial risks, reduce the and State environmental regulations, includ- bid within 10 days after the Secretary pro- cost, and increase the marketplace accepting any regulation that may be established vides written notice that payment of the in- ance of the new clean coal technologies; and with respect to mercury. stallment is past due— ‘‘(3) advance the deployment of pollution ‘‘SEC. 3105. CRITERIA FOR GENERATION ‘‘(A) the lease shall automatically termi- control equipment to meet the current and PROJECTS. nate; and future obligations of coal-fired generation ‘‘(a) CRITERIA.—The Secretary shall estab- ‘‘(B) any bonus payments already made to units regulated under the Clean Air Act (42 lish criteria on which selection of individual the United States with respect to the lease U.S.C. 7402 and following). projects described in section 3103(b) should shall not be returned to the lessee or cred- ‘‘SEC. 3102. AUTHORIZATION OF PROGRAM. be based. The Secretary may modify the cri- ited in any future lease sale.’’. ‘‘The Secretary shall carry out a program teria as appropriate to reflect improvements SEC. 426. INVENTORY REQUIREMENT. to facilitate production and generation of in equipment, except that the criteria shall not be modified to be less stringent. These (a) REVIEW OF ASSESSMENTS.— coal-based power and the installation of pol- selection criteria shall include— (1) IN GENERAL.—The Secretary of the Inte- lution control equipment. ‘‘(1) prioritization of projects whose instal- rior, in consultation with the Secretary of ‘‘SEC. 3103. AUTHORIZATION OF APPROPRIA- Agriculture and the Secretary, shall review TIONS. lation is likely to result in significant air coal assessments and other available data to ‘‘(a) POLLUTION CONTROL PROJECTS.—There quality improvements in nonattainment air identify— are authorized to be appropriated to the Sec- quality areas; (A) public lands, other than National Park retary $300,000,000 for fiscal year 2005, ‘‘(2) prioritization of projects that result in lands, with coal resources; $100,000,000 for fiscal year 2006, $40,000,000 for the repowering or replacement of older, less (B) the extent and nature of any restric- fiscal year 2007, $30,000,000 for fiscal year efficient units; tions or impediments to the development of 2008, and $30,000,000 for fiscal year 2009, to re- ‘‘(3) documented broad interest in the pro- coal resources on public lands identified main available until expended, for carrying curement of the equipment and utilization of under subparagraph (A); and out the program for pollution control the processes used in the projects by elec- (C) with respect to areas of such lands for projects, which may include— trical generator owners or operators; which sufficient data exists, resources of ‘‘(1) pollution control equipment and proc- ‘‘(4) equipment and processes beginning in compliant coal and supercompliant coal. esses for the control of mercury air emis- 2005 through 2010 that are projected to achieve an thermal efficiency of— (2) DEFINITIONS.—In this subsection: sions; ‘‘(A) 40 percent for coal of more than 9,000 (A) COMPLIANT COAL.—The term ‘‘compli- ‘‘(2) pollution control equipment and proc- ant coal’’ means coal that contains not less esses for the control of nitrogen dioxide air Btu per pound based on higher heating val- than 1.0 and not more than 1.2 pounds of sul- emissions or sulfur dioxide emissions; ues; fur dioxide per million Btu. ‘‘(3) pollution control equipment and proc- ‘‘(B) 38 percent for coal of 7,000 to 9,000 Btu per pound based on higher heating values; (B) SUPERCOMPLIANT COAL.—The term esses for the mitigation or collection of more ‘‘supercompliant coal’’ means coal that con- than one pollutant; and tains less than 1.0 pounds of sulfur dioxide ‘‘(4) advanced combustion technology for ‘‘(C) 36 percent for coal of less than 7,000 per million Btu. the control of at least two pollutants, in- Btu per pound based on higher heating val- (b) COMPLETION AND UPDATING OF THE IN- cluding mercury, particulate matter, nitro- ues— VENTORY.—The Secretary of the Interior— gen oxides, and sulfur dioxide, which may except that energy used for coproduction or (1) shall complete the inventory under sub- also be designed to improve the energy effi- cogeneration shall not be counted in calcu- section (a)(1) by not later than 2 years after ciency of the unit; and lating the thermal efficiency under this the date of the enactment of this Act; and ‘‘(5) advanced pollution control equipment paragraph; and (2) shall update the inventory as the avail- and processes designed to allow use of the ‘‘(5) equipment and processes beginning in ability of data and developments in tech- waste byproducts or other byproducts of the 2011 and 2012 that are projected to achieve an nology warrant. equipment or an electrical generation unit thermal efficiency of— (c) REPORT.—The Secretary of the Interior designed to allow the use of byproducts. ‘‘(A) 45 percent for coal of more than 9,000 shall submit to Congress, and make publicly Funds appropriated under this subsection Btu per pound based on higher heating val- available— which are not awarded before fiscal year 2011 ues;

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00096 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.088 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4541 ‘‘(B) 44 percent for coal of 7,000 to 9,000 Btu ‘‘Sec. 3104. Air pollution control project cri- ‘‘(B) any land not located within the per pound based on higher heating values; teria. boundaries of an Indian reservation, pueblo, and ‘‘Sec. 3105. Criteria for generation projects. or rancheria, the title to which is held— ‘‘(C) 40 percent for coal of less than 7,000 ‘‘Sec. 3106. Financial criteria. ‘‘(i) in trust by the United States for the Btu per pound based on higher heating val- ‘‘Sec. 3107. Federal share. benefit of an Indian tribe or an individual In- ues— ‘‘Sec. 3108. Applicability.’’. dian; except that energy used for coproduction or TITLE V—INDIAN ENERGY ‘‘(ii) by an Indian tribe or an individual In- dian, subject to restriction against alien- cogeneration shall not be counted in calcu- SEC. 501. SHORT TITLE. ation under laws of the United States; or lating the thermal efficiency under this This title may be cited as the ‘‘Indian paragraph. ‘‘(iii) by a dependent Indian community; Tribal Energy Development and Self-Deter- and ‘‘(b) SELECTION.—(1) In selecting the mination Act of 2003’’. projects, up to 25 percent of the projects se- ‘‘(C) land that is owned by an Indian tribe SEC. 502. OFFICE OF INDIAN ENERGY POLICY and was conveyed by the United States to a lected may be either coproduction or cogen- AND PROGRAMS. eration or other gasification projects, but at Native Corporation pursuant to the Alaska (a) IN GENERAL.—Title II of the Depart- Native Claims Settlement Act (43 U.S.C. 1601 least 25 percent of the projects shall be for ment of Energy Organization Act (42 U.S.C. the sole purpose of electrical generation, and et seq.), or that was conveyed by the United 7131 et seq.) is amended by adding at the end States to a Native Corporation in exchange priority should be given to equipment and the following: projects less than 600 MW to foster and pro- for such land. ‘‘OFFICE OF INDIAN ENERGY POLICY AND ‘‘(3) The term ‘Indian reservation’ in- mote standard designs. ‘‘(2) The Secretary shall give priority to PROGRAMS cludes— ‘‘(A) an Indian reservation in existence in projects that have been developed and dem- ‘‘SEC. 217. (a) ESTABLISHMENT.—There is es- any State or States as of the date of enact- onstrated that are not yet cost competitive, tablished within the Department an Office of ment of this paragraph; and for coal energy generation projects that Indian Energy Policy and Programs (referred ‘‘(B) a public domain Indian allotment; and advance efficiency, environmental perform- to in this section as the ‘Office’). The Office ‘‘(C) a dependent Indian community lo- ance, or cost competitiveness significantly shall be headed by a Director, who shall be cated within the borders of the United beyond the level of pollution control equip- appointed by the Secretary and compensated States, regardless of whether the community ment that is in operation on a full scale. at a rate equal to that of level IV of the Ex- is located— ‘‘SEC. 3106. FINANCIAL CRITERIA. ecutive Schedule under section 5315 of title 5, United States Code. ‘‘(i) on original or acquired territory of the ‘‘(a) IN GENERAL.—The Secretary shall only community; or provide financial assistance to projects that ‘‘(b) DUTIES OF DIRECTOR.—The Director, in accordance with Federal policies promoting ‘‘(ii) within or outside the boundaries of meet the requirements of sections 3103 and any particular State. 3104 and are likely to— Indian self-determination and the purposes of this Act, shall provide, direct, foster, co- ‘‘(4) The term ‘Indian tribe’ has the mean- ‘‘(1) achieve overall cost reductions in the ing given the term in section 4 of the Indian utilization of coal to generate useful forms ordinate, and implement energy planning, education, management, conservation, and Self-Determination and Education Assist- of energy; and ance Act (25 U.S.C. 450b), except that the delivery programs of the Department that— ‘‘(2) improve the competitiveness of coal in term ‘Indian tribe’, for the purpose of para- ‘‘(1) promote Indian tribal energy develop- order to maintain a diversity of domestic graph (11) and sections 2603(b)(3) and 2604, ment, efficiency, and use; fuel choices in the United States to meet shall not include any Native Corporation. ‘‘(2) reduce or stabilize energy costs; electricity generation requirements. ‘‘(5) The term ‘integration of energy re- ‘‘(3) enhance and strengthen Indian tribal ‘‘(b) CONDITIONS.—The Secretary shall not sources’ means any project or activity that energy and economic infrastructure relating provide a funding award under this title un- promotes the location and operation of a fa- to natural resource development and elec- less— cility (including any pipeline, gathering sys- trification; and ‘‘(1) the award recipient is financially via- tem, transportation system or facility, or ‘‘(4) bring electrical power and service to ble without the receipt of additional Federal electric transmission or distribution facil- funding; and Indian land and the homes of tribal members ity) on or near Indian land to process, refine, ‘‘(2) the recipient provides sufficient infor- located on Indian lands or acquired, con- generate electricity from, or otherwise de- mation to the Secretary for the Secretary to structed, or improved (in whole or in part) velop energy resources on, Indian land. ensure that the award funds are spent effi- with Federal funds.’’. ‘‘(6) The term ‘Native Corporation’ has the ciently and effectively. (b) CONFORMING AMENDMENTS.— meaning given the term in section 3 of the ‘‘(c) EQUAL ACCESS.—The Secretary shall, (1) The table of contents of the Department Alaska Native Claims Settlement Act (43 to the extent practical, utilize cooperative of Energy Organization Act (42 U.S.C. prec. U.S.C. 1602). agreement, loan guarantee, and direct Fed- 7101) is amended— ‘‘(7) The term ‘organization’ means a part- eral loan mechanisms designed to ensure (A) in the item relating to section 209, by nership, joint venture, limited liability com- that all electrical generation owners have striking ‘‘Section’’ and inserting ‘‘Sec.’’; and pany, or other unincorporated association or equal access to these technology deployment (B) by striking the items relating to sec- entity that is established to develop Indian incentives. The Secretary shall develop and tions 213 through 216 and inserting the fol- energy resources. direct a competitive solicitation process for lowing: ‘‘(8) The term ‘Program’ means the Indian the selection of technologies and projects ‘‘Sec. 213. Establishment of policy for Na- energy resource development program estab- under this title. tional Nuclear Security Admin- lished under section 2602(a). ‘‘SEC. 3107. FEDERAL SHARE. istration. ‘‘(9) The term ‘Secretary’ means the Sec- ‘‘The Federal share of the cost of a coal or ‘‘Sec. 214. Establishment of security, coun- retary of the Interior. related technology project funded by the terintelligence, and intel- ‘‘(10) The term ‘tribal energy resource de- Secretary under this title shall not exceed 50 ligence policies. velopment organization’ means an organiza- percent. For purposes of this title, Federal ‘‘Sec. 215. Office of Counterintelligence. tion of 2 or more entities, at least 1 of which funding includes only appropriated funds. ‘‘Sec. 216. Office of Intelligence. is an Indian tribe, that has the written con- ‘‘Sec. 217. Office of Indian Energy Policy ‘‘SEC. 3108. APPLICABILITY. sent of the governing bodies of all Indian and Programs.’’. tribes participating in the organization to ‘‘No technology, or level of emission reduc- apply for a grant, loan, or other assistance tion, shall be treated as adequately dem- (2) Section 5315 of title 5, United States authorized by section 2602. onstrated for purposes of section 111 of the Code, is amended by inserting ‘‘Director, Of- ‘‘(11) The term ‘tribal land’ means any land Clean Air Act (42 U.S.C. 7411), achievable for fice of Indian Energy Policy and Programs, or interests in land owned by any Indian purposes of section 169 of the Clean Air Act Department of Energy.’’ after ‘‘Inspector tribe, title to which is held in trust by the (42 U.S.C. 7479), or achievable in practice for General, Department of Energy.’’. United States or which is subject to a re- purposes of section 171 of the Clean Air Act SEC. 503. INDIAN ENERGY. striction against alienation under laws of (42 U.S.C. 7501) solely by reason of the use of (a) IN GENERAL.—Title XXVI of the Energy the United States. such technology, or the achievement of such Policy Act of 1992 (25 U.S.C. 3501 et seq.) is emission reduction, by one or more facilities amended to read as follows: ‘‘SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT. receiving assistance under this title.’’. ‘‘TITLE XXVI—INDIAN ENERGY ‘‘(a) DEPARTMENT OF THE INTERIOR PRO- (b) TABLE OF CONTENTS AMENDMENT.—The ‘‘SEC. 2601. DEFINITIONS. GRAM.— table of contents of the Energy Policy Act of ‘‘For purposes of this title: ‘‘(1) To assist Indian tribes in the develop- 1992 is amended by adding at the end the fol- ‘‘(1) The term ‘Director’ means the Direc- ment of energy resources and further the lowing: tor of the Office of Indian Energy Policy and goal of Indian self-determination, the Sec- ‘‘TITLE XXXI—CLEAN AIR COAL Programs, Department of Energy. retary shall establish and implement an In- PROGRAM ‘‘(2) The term ‘Indian land’ means— dian energy resource development program ‘‘Sec. 3101. Findings; purposes; definitions. ‘‘(A) any land located within the bound- to assist consenting Indian tribes and tribal ‘‘Sec. 3102. Authorization of program. aries of an Indian reservation, pueblo, or energy resource development organizations ‘‘Sec. 3103. Authorization of appropriations. rancheria; in achieving the purposes of this title.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00097 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.089 S28PT1 S4542 CONGRESSIONAL RECORD — SENATE April 28, 2004 ‘‘(2) In carrying out the Program, the Sec- ‘‘(5) There are authorized to be appro- ‘‘(B) construction or operation of an elec- retary shall— priated such sums as are necessary to carry tric generation, transmission, or distribution ‘‘(A) provide development grants to Indian out this subsection, to remain available facility located on tribal land or a facility to tribes and tribal energy resource develop- until expended. process or refine energy resources developed ment organizations for use in developing or ‘‘(6) Not later than 1 year from the date of on tribal land; and obtaining the managerial and technical ca- enactment of this section, the Secretary of ‘‘(2) such lease or business agreement de- pacity needed to develop energy resources on Energy shall report to Congress on the fi- scribed in paragraph (1) shall not require the Indian land, and to properly account for re- nancing requirements of Indian tribes for en- approval of the Secretary under section 2103 sulting energy production and revenues; ergy development on Indian land. of the Revised Statutes (25 U.S.C. 81) or any ‘‘(B) provide grants to Indian tribes and ‘‘(d) FEDERAL AGENCIES—INDIAN ENERGY other provision of law, if— tribal energy resource development organi- PREFERENCE.— ‘‘(A) the lease or business agreement is ex- zations for use in carrying out projects to ‘‘(1) In purchasing electricity or any other ecuted pursuant to a tribal energy resource promote the integration of energy resources, energy product or byproduct, a Federal agen- agreement approved by the Secretary under and to process, use, or develop those energy cy or department may give preference to an subsection (e); resources, on Indian land; and energy and resource production enterprise, ‘‘(B) the term of the lease or business ‘‘(C) provide low-interest loans to Indian partnership, consortium, corporation, or agreement does not exceed— tribes and tribal energy resource develop- other type of business organization the ma- ‘‘(i) 30 years; or ment organizations for use in the promotion jority of the interest in which is owned and ‘‘(ii) in the case of a lease for the produc- of energy resource development on Indian controlled by 1 or more Indian tribes. tion of oil resources, gas resources, or both, land and integration of energy resources. ‘‘(2) In carrying out this subsection, a Fed- 10 years and as long thereafter as oil or gas ‘‘(3) There are authorized to be appro- eral agency or department shall not— is produced in paying quantities; and priated to carry out this subsection such ‘‘(A) pay more than the prevailing market ‘‘(C) the Indian tribe has entered into a sums as are necessary for each of fiscal years price for an energy product or byproduct; or tribal energy resource agreement with the 2004 through 2014. ‘‘(B) obtain less than prevailing market Secretary, as described in subsection (e), re- ‘‘(b) DEPARTMENT OF ENERGY INDIAN EN- terms and conditions. lating to the development of energy re- ERGY EDUCATION PLANNING AND MANAGEMENT ‘‘SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE sources on tribal land (including the periodic ASSISTANCE PROGRAM.— REGULATION. review and evaluation of the activities of the ‘‘(1) The Director shall establish programs ‘‘(a) GRANTS.—The Secretary may provide Indian tribe under the agreement, to be con- to assist consenting Indian tribes in meeting to Indian tribes, on an annual basis, grants ducted pursuant to the provisions required energy education, research and development, for use in accordance with subsection (b). by subsection (e)(2)(D)(i)). planning, and management needs. ‘‘(b) USE OF FUNDS.—Funds from a grant ‘‘(b) RIGHTS-OF-WAY FOR PIPELINES OR ‘‘(2) In carrying out this subsection, the provided under this section may be used— ELECTRIC TRANSMISSION OR DISTRIBUTION Director may provide grants, on a competi- ‘‘(1) by an Indian tribe for the development tive basis, to an Indian tribe or tribal energy LINES.—An Indian tribe may grant a right- of a tribal energy resource inventory or trib- of-way over tribal land for a pipeline or an resource development organization for use in al energy resource on Indian land; carrying out— electric transmission or distribution line ‘‘(2) by an Indian tribe for the development without approval by the Secretary if— ‘‘(A) energy, energy efficiency, and energy of a feasibility study or other report nec- conservation programs; ‘‘(1) the right-of-way is executed in accord- essary to the development of energy re- ance with a tribal energy resource agree- ‘‘(B) studies and other activities sup- sources on Indian land; porting tribal acquisitions of energy sup- ment approved by the Secretary under sub- ‘‘(3) by an Indian tribe (other than an In- section (e); plies, services, and facilities; dian Tribe in Alaska except the Metlakatla ‘‘(C) planning, construction, development, ‘‘(2) the term of the right-of-way does not Indian Community) for the development and exceed 30 years; operation, maintenance, and improvement of enforcement of tribal laws (including regula- tribal electrical generation, transmission, ‘‘(3) the pipeline or electric transmission tions) relating to tribal energy resource de- or distribution line serves— and distribution facilities located on Indian velopment and the development of technical land; and ‘‘(A) an electric generation, transmission, infrastructure to protect the environment or distribution facility located on tribal ‘‘(D) development, construction, and inter- under applicable law; or connection of electric power transmission fa- land; or ‘‘(4) by a Native Corporation for the devel- ‘‘(B) a facility located on tribal land that cilities located on Indian land with other opment and implementation of corporate electric transmission facilities. processes or refines energy resources devel- policies and the development of technical in- oped on tribal land; and ‘‘(3)(A) The Director may develop, in con- frastructure to protect the environment sultation with Indian tribes, a formula for ‘‘(4) the Indian tribe has entered into a under applicable law; and tribal energy resource agreement with the providing grants under this subsection. ‘‘(5) by an Indian tribe for the training of ‘‘(B) In providing a grant under this sub- Secretary, as described in subsection (e), re- employees that— lating to the development of energy re- section, the Director shall give priority to an ‘‘(A) are engaged in the development of en- application received from an Indian tribe sources on tribal land (including the periodic ergy resources on Indian land; or review and evaluation of the Indian tribe’s with inadequate electric service (as deter- ‘‘(B) are responsible for protecting the en- mined by the Director). activities under such agreement described in vironment. subparagraphs (D) and (E) of subsection ‘‘(4) The Secretary of Energy may issue ‘‘(c) OTHER ASSISTANCE.—In carrying out (e)(2)). such regulations as necessary to carry out the obligations of the United States under ‘‘(c) RENEWALS.—A lease or business agree- this subsection. this title, the Secretary shall ensure, to the ment entered into or a right-of-way granted ‘‘(5) There are authorized to be appro- maximum extent practicable and to the ex- by an Indian tribe under this section may be priated to carry out this subsection tent of available resources, that upon the re- renewed at the discretion of the Indian tribe $20,000,000 for each of fiscal years 2004 quest of an Indian tribe, the Indian tribe in accordance with this section. through 2014. shall have available scientific and technical ‘‘(c) DEPARTMENT OF ENERGY LOAN GUAR- information and expertise, for use in the In- ‘‘(d) VALIDITY.—No lease, business agree- ANTEE PROGRAM.— dian tribe’s regulation, development, and ment, or right-of-way relating to the devel- ‘‘(1) Subject to paragraph (3), the Secretary management of energy resources on Indian opment of tribal energy resources pursuant of Energy may provide loan guarantees (as land. The Secretary may fulfill this responsi- to the provisions of this section shall be defined in section 502 of the Federal Credit bility either directly, through the use of valid unless the lease, business agreement, Reform Act of 1990 (2 U.S.C. 661a)) for not Federal officials, or indirectly, by providing or right-of-way is authorized by the provi- more than 90 percent of the unpaid principal financial assistance to the Indian tribe to se- sions of a tribal energy resource agreement and interest due on any loan made to any In- cure independent assistance. approved by the Secretary under subsection (e)(2). dian tribe for energy development. ‘‘SEC. 2604. LEASES, BUSINESS AGREEMENTS, ‘‘(2) A loan guarantee under this sub- AND RIGHTS-OF-WAY INVOLVING EN- ‘‘(e) TRIBAL ENERGY RESOURCE AGREE- section shall be made by— ERGY DEVELOPMENT OR TRANS- MENTS.— ‘‘(A) a financial institution subject to ex- MISSION. ‘‘(1) On issuance of regulations under para- amination by the Secretary of Energy; or ‘‘(a) LEASES AND BUSINESS AGREEMENTS.— graph (8), an Indian tribe may submit to the ‘‘(B) an Indian tribe, from funds of the In- Subject to the provisions of this section— Secretary for approval a tribal energy re- dian tribe. ‘‘(1) an Indian tribe may, at its discretion, source agreement governing leases, business ‘‘(3) The aggregate outstanding amount enter into a lease or business agreement for agreements, and rights-of-way under this guaranteed by the Secretary of Energy at the purpose of energy resource development section. any time under this subsection shall not ex- on tribal land, including a lease or business ‘‘(2)(A) Not later than 180 days after the ceed $2,000,000,000. agreement for— date on which the Secretary receives a tribal ‘‘(4) The Secretary of Energy may issue ‘‘(A) exploration for, extraction of, proc- energy resource agreement submitted by an such regulations as the Secretary of Energy essing of, or other development of the Indian Indian tribe under paragraph (1), or not later determines are necessary to carry out this tribe’s energy mineral resources located on than 60 days after the Secretary receives a subsection. tribal land; and revised tribal energy resource agreement

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00098 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.089 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4543 submitted by an Indian tribe under para- ‘‘(ii) the identification of proposed mitiga- ‘‘(6)(A) For purposes of the activities to be graph (4)(C), (or such later date as may be tion; undertaken by the Secretary pursuant to agreed to by the Secretary and the Indian ‘‘(iii) a process for ensuring that the public this section, the Secretary shall— tribe), the Secretary shall approve or dis- is informed of and has an opportunity to ‘‘(i) carry out such activities in a manner approve the tribal energy resource agree- comment on the environmental impacts of consistent with the trust responsibility of ment. the proposed action before tribal approval of the United States relating to mineral and ‘‘(B) The Secretary shall approve a tribal the lease, business agreement, or right-of- other trust resources; and energy resource agreement submitted under way; and ‘‘(ii) act in good faith and in the best inter- paragraph (1) if— ‘‘(iv) sufficient administrative support and ests of the Indian tribes. ‘‘(i) the Secretary determines that the In- technical capability to carry out the envi- ‘‘(B) Subject to the provisions of sub- dian tribe has demonstrated that the Indian ronmental review process. sections (a)(2), (b), and (c) waiving the re- tribe has sufficient capacity to regulate the ‘‘(D) A tribal energy resource agreement quirement of Secretarial approval of leases, development of energy resources of the In- negotiated between the Secretary and an In- business agreements, and rights-of-way exe- dian tribe; dian tribe in accordance with this subsection cuted pursuant to tribal energy resource ‘‘(ii) the tribal energy resource agreement shall include— agreements approved under this section, and includes provisions required under subpara- ‘‘(i) provisions requiring the Secretary to the provisions of subparagraph (D), nothing graph (D); and conduct a periodic review and evaluation to in this section shall absolve the United ‘‘(iii) the tribal energy resource agreement monitor the performance of the Indian States from any responsibility to Indians or includes provisions that, with respect to a tribe’s activities associated with the devel- Indian tribes, including, but not limited to, lease, business agreement, or right-of-way opment of energy resources under the tribal those which derive from the trust relation- under this section— energy resource agreement; and ship or from any treaties, statutes, and other ‘‘(I) ensure the acquisition of necessary in- ‘‘(ii) when such review and evaluation re- laws of the United States, Executive Orders, formation from the applicant for the lease, sult in a finding by the Secretary of immi- or agreements between the United States business agreement, or right-of-way; nent jeopardy to a physical trust asset aris- and any Indian tribe. ‘‘(II) address the term of the lease or business agreement or the term of conveyance of ing from a violation of the tribal energy re- ‘‘(C) The Secretary shall continue to have the right-of-way; source agreement or applicable Federal laws, a trust obligation to ensure that the rights ‘‘(III) address amendments and renewals; provisions authorizing the Secretary to take and interests of an Indian tribe are protected ‘‘(IV) address the economic return to the appropriate actions determined by the Sec- in the event that— Indian tribe under leases, business agree- retary to be necessary to protect such asset, ‘‘(i) any other party to any such lease, ments, and rights-of-way; which actions may include reassumption of business agreement, or right-of-way violates ‘‘(V) address technical or other relevant re- responsibility for activities associated with any applicable provision of Federal law or quirements; the development of energy resources on trib- the terms of any lease, business agreement, ‘‘(VI) establish requirements for environ- al land until the violation and conditions or right-of-way under this section; or mental review in accordance with subpara- that gave rise to such jeopardy have been ‘‘(ii) any provision in such lease, business graph (C); corrected. agreement, or right-of-way violates any ex- ‘‘(VII) ensure compliance with all applica- ‘‘(E) The periodic review and evaluation press provision or requirement set forth in ble environmental laws; described in subparagraph (D) shall be con- the tribal energy resource agreement pursu- ‘‘(VIII) identify final approval authority; ducted on an annual basis, except that, after ant to which the lease, business agreement, ‘‘(IX) provide for public notification of the third such annual review and evaluation, or right-of-way was executed. final approvals; the Secretary and the Indian tribe may mu- ‘‘(D) Notwithstanding subparagraph (B), ‘‘(X) establish a process for consultation tually agree to amend the tribal energy re- the United States shall not be liable to any with any affected States concerning off-res- source agreement to authorize the review party (including any Indian tribe) for any of ervation impacts, if any, identified pursuant and evaluation required by subparagraph (D) the negotiated terms of, or any losses result- to the provisions required under subpara- to be conducted once every 2 years. ing from the negotiated terms of, a lease, graph (C)(i); ‘‘(3) The Secretary shall provide notice and business agreement, or right-of-way exe- ‘‘(XI) describe the remedies for breach of opportunity for public comment on tribal en- cuted pursuant to and in accordance with a the lease, business agreement, or right-of- ergy resource agreements submitted for ap- tribal energy resource agreement approved way; proval under paragraph (1). The Secretary’s by the Secretary under paragraph (2). For ‘‘(XII) require each lease, business agree- review of a tribal energy resource agreement the purpose of this subparagraph, the term ment, and right-of-way to include a state- under the National Environmental Policy ‘negotiated terms’ means any terms or provi- ment that, in the event that any of its provi- Act of 1969 (42 U.S.C. 4321 et seq.) shall be sions that are negotiated by an Indian tribe sions violates an express term or require- limited to the direct effects of that approval. and any other party or parties to a lease, ment set forth in the tribal energy resource ‘‘(4) If the Secretary disapproves a tribal business agreement, or right-of-way entered agreement pursuant to which it was exe- energy resource agreement submitted by an into pursuant to an approved tribal energy cuted— Indian tribe under paragraph (1), the Sec- resource agreement. ‘‘(aa) such provision shall be null and void; retary shall, not later than 10 days after the ‘‘(7)(A) In this paragraph, the term ‘inter- and date of disapproval— ested party’ means any person or entity the ‘‘(bb) if the Secretary determines such pro- ‘‘(A) notify the Indian tribe in writing of interests of which have sustained or will sus- vision to be material, the Secretary shall the basis for the disapproval; tain a significant adverse environmental im- have the authority to suspend or rescind the ‘‘(B) identify what changes or other ac- pact as a result of the failure of an Indian lease, business agreement, or right-of-way or tions are required to address the concerns of tribe to comply with a tribal energy resource take other appropriate action that the Sec- the Secretary; and agreement of the Indian tribe approved by retary determines to be in the best interest ‘‘(C) provide the Indian tribe with an op- the Secretary under paragraph (2). of the Indian tribe; portunity to revise and resubmit the tribal ‘‘(B) After exhaustion of tribal remedies, ‘‘(XIII) require each lease, business agree- energy resource agreement. and in accordance with the process and re- ment, and right-of-way to provide that it ‘‘(5) If an Indian tribe executes a lease or quirements set forth in regulations adopted will become effective on the date on which a business agreement or grants a right-of-way by the Secretary pursuant to paragraph (8), copy of the executed lease, business agree- in accordance with a tribal energy resource an interested party may submit to the Sec- ment, or right-of-way is delivered to the Sec- agreement approved under this subsection, retary a petition to review compliance of an retary in accordance with regulations adopt- the Indian tribe shall, in accordance with the Indian tribe with a tribal energy resource ed pursuant to this subsection; and process and requirements set forth in the agreement of the Indian tribe approved by ‘‘(XIV) include citations to tribal laws, Secretary’s regulations adopted pursuant to the Secretary under paragraph (2). regulations, or procedures, if any, that set paragraph (8), provide to the Secretary— ‘‘(C)(i) Not later than 120 days after the out tribal remedies that must be exhausted ‘‘(A) a copy of the lease, business agree- date on which the Secretary receives a peti- before a petition may be submitted to the ment, or right-of-way document (including tion under subparagraph (B), the Secretary Secretary pursuant to paragraph (7)(B). all amendments to and renewals of the docu- shall determine whether the Indian tribe is ‘‘(C) Tribal energy resource agreements ment); and not in compliance with the tribal energy re- submitted under paragraph (1) shall estab- ‘‘(B) in the case of a tribal energy resource source agreement, as alleged in the petition. lish, and include provisions to ensure com- agreement or a lease, business agreement, or ‘‘(ii) The Secretary may adopt procedures pliance with, an environmental review proc- right-of-way that permits payments to be under paragraph (8) authorizing an extension ess that, with respect to a lease, business made directly to the Indian tribe, informa- of time, not to exceed 120 days, for making agreement, or right-of-way under this section and documentation of those payments the determination under clause (i) in any tion, provides for— sufficient to enable the Secretary to dis- case in which the Secretary determines that ‘‘(i) the identification and evaluation of all charge the trust responsibility of the United additional time is necessary to evaluate the significant environmental impacts (as com- States to enforce the terms of, and protect allegations of the petition. pared with a no-action alternative), includ- the Indian tribe’s rights under, the lease, ‘‘(iii) Subject to subparagraph (D), if the ing effects on cultural resources; business agreement, or right-of-way. Secretary determines that the Indian tribe is

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00099 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.089 S28PT1 S4544 CONGRESSIONAL RECORD — SENATE April 28, 2004 not in compliance with the tribal energy re- each of fiscal years 2004 through 2014 to im- retary of Energy shall submit to Congress a source agreement as alleged in the petition, plement the provisions of this section and to report that— the Secretary shall take such action as is make grants or provide other appropriate as- ‘‘(1) describes the use by Indian tribes of necessary to ensure compliance with the pro- sistance to Indian tribes to assist the Indian Federal power allocations of the Western visions of the tribal energy resource agree- tribes in developing and implementing tribal Area Power Administration (or power sold ment, which action may include— energy resource agreements in accordance by the Southwestern Power Administration) ‘‘(I) temporarily suspending some or all ac- with the provisions of this section. and the Bonneville Power Administration to tivities under a lease, business agreement, or ‘‘SEC. 2605. INDIAN MINERAL DEVELOPMENT RE- or for the benefit of Indian tribes in service right-of-way under this section until the In- VIEW. areas of those administrations; and dian tribe or such activities are in compli- ‘‘(a) IN GENERAL.—The Secretary shall con- ‘‘(2) identifies— ance with the provisions of the approved duct a review of all activities being con- ‘‘(A) the quantity of power allocated to, or tribal energy resource agreement; or ducted under the Indian Mineral Develop- used for the benefit of, Indian tribes by the ‘‘(II) rescinding approval of all or part of ment Act of 1982 (25 U.S.C. 2101 et seq.) as of Western Area Power Administration; the tribal energy resource agreement, and if that date. ‘‘(B) the quantity of power sold to Indian all of such agreement is rescinded, re- ‘‘(b) REPORT.—Not later than 1 year after tribes by other power marketing administra- assuming the responsibility for approval of the date of enactment of the Indian Tribal tions; and any future leases, business agreements, or Energy Development and Self-Determination ‘‘(C) barriers that impede tribal access to rights-of-way described in subsections (a) Act of 2003, the Secretary shall submit to and use of Federal power, including an as- and (b). Congress a report that includes— sessment of opportunities to remove those ‘‘(D) Prior to seeking to ensure compliance ‘‘(1) the results of the review; barriers and improve the ability of power with the provisions of the tribal energy re- ‘‘(2) recommendations to ensure that In- marketing administrations to deliver Fed- source agreement of an Indian tribe under dian tribes have the opportunity to develop eral power. subparagraph (C)(iii), the Secretary shall— Indian energy resources; and ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(i) make a written determination that de- ‘‘(3) an analysis of the barriers to the de- There are authorized to be appropriated to scribes the manner in which the tribal en- velopment of energy resources on Indian carry out this section $750,000, which shall ergy resource agreement has been violated; land (including legal, fiscal, market, and remain available until expended and shall ‘‘(ii) provide the Indian tribe with a writ- other barriers), along with recommendations not be reimbursable. ten notice of the violations together with for the removal of those barriers. the written determination; and ‘‘SEC. 2607. WIND AND HYDROPOWER FEASI- ‘‘(iii) before taking any action described in ‘‘SEC. 2606. FEDERAL POWER MARKETING ADMIN- BILITY STUDY. ISTRATIONS. subparagraph (C)(iii) or seeking any other ‘‘(a) STUDY.—The Secretary of Energy, in ‘‘(a) DEFINITIONS.—In this section: remedy, provide the Indian tribe with a hear- coordination with the Secretary of the Army ‘‘(1) The term ‘‘Administrator’’ means the ing and a reasonable opportunity to attain and the Secretary, shall conduct a study of Administrator of the Bonneville Power Ad- compliance with the tribal energy resource the cost and feasibility of developing a dem- ministration and the Administrator of the agreement. onstration project that would use wind en- Western Area Power Administration. ‘‘(E) An Indian tribe described in subpara- ergy generated by Indian tribes and hydro- ‘‘(2) The term ‘‘power marketing adminis- graph (D) shall retain all rights to appeal as power generated by the Army Corps of Engi- tration’’ means— provided in regulations issued by the Sec- neers on the Missouri River to supply firm- ‘‘(A) the Bonneville Power Administration; retary. ing power to the Western Area Power Admin- ‘‘(B) the Western Area Power Administra- ‘‘(8) Not later than 1 year after the date of istration. enactment of the Indian Tribal Energy De- tion; and ‘‘(b) SCOPE OF STUDY.—The study shall— velopment and Self-Determination Act of ‘‘(C) any other power administration the ‘‘(1) determine the feasibility of the blend- 2003, the Secretary shall issue regulations power allocation of which is used by or for ing of wind energy and hydropower gen- that implement the provisions of this sub- the benefit of an Indian tribe located in the erated from the Missouri River dams oper- section, including— service area of the administration. ated by the Army Corps of Engineers; ‘‘(A) criteria to be used in determining the ‘‘(b) ENCOURAGEMENT OF INDIAN TRIBAL EN- ‘‘(2) review historical and projected re- capacity of an Indian tribe described in para- ERGY DEVELOPMENT.—Each Administrator quirements for firming power and the pat- graph (2)(B)(i), including the experience of shall encourage Indian tribal energy develop- terns of availability and use of firming the Indian tribe in managing natural re- ment by taking such actions as are appro- power; sources and financial and administrative re- priate, including administration of programs ‘‘(3) assess the wind energy resource poten- sources available for use by the Indian tribe of the Bonneville Power Administration and tial on tribal land and projected cost savings in implementing the approved tribal energy the Western Area Power Administration, in through a blend of wind and hydropower over resource agreement of the Indian tribe; accordance with this section. a 30-year period; ‘‘(B) a process and requirements in accord- ‘‘(c) ACTION BY THE ADMINISTRATOR.—In ‘‘(4) determine seasonal capacity needs and ance with which an Indian tribe may— carrying out this section, and in accordance associated transmission upgrades for inte- ‘‘(i) voluntarily rescind a tribal energy re- with existing law— gration of tribal wind generation; and source agreement approved by the Secretary ‘‘(1) each Administrator shall consider the ‘‘(5) include an independent tribal engineer under this subsection; and unique relationship that exists between the as a study team member. ‘‘(ii) return to the Secretary the responsi- United States and Indian tribes; bility to approve any future leases, business ‘‘(2) power allocations from the Western ‘‘(c) REPORT.—Not later than 1 year after agreements, and rights-of-way described in Area Power Administration to Indian tribes the date of enactment of the Energy Policy this subsection; may be used to meet firming and reserve Act of 2003, the Secretary and Secretary of ‘‘(C) provisions setting forth the scope of, needs of Indian-owned energy projects on In- the Army shall submit to Congress a report and procedures for, the periodic review and dian land; that describes the results of the study, in- evaluation described in subparagraphs (D) ‘‘(3) the Administrator of the Western Area cluding— and (E) of paragraph (2), including provisions Power Administration may purchase non- ‘‘(1) an analysis of the potential energy for review of transactions, reports, site in- federally generated power from Indian tribes cost or benefits to the customers of the spections, and any other review activities to meet the firming and reserve require- Western Area Power Administration through the Secretary determines to be appropriate; ments of the Western Area Power Adminis- the use of combined wind and hydropower; and tration; and ‘‘(2) an evaluation of whether a combined ‘‘(D) provisions defining final agency ac- ‘‘(4) each Administrator shall not pay more wind and hydropower system can reduce res- tions after exhaustion of administrative ap- than the prevailing market price for an en- ervoir fluctuation, enhance efficient and repeals from determinations of the Secretary ergy product nor obtain less than prevailing liable energy production, and provide Mis- under paragraph (7). market terms and conditions. souri River management flexibility; ‘‘(f) NO EFFECT ON OTHER LAW.—Nothing in ‘‘(d) ASSISTANCE FOR TRANSMISSION SYSTEM ‘‘(3) recommendations for a demonstration this section affects the application of— USE.—(1) An Administrator may provide project that could be carried out by the ‘‘(1) any Federal environment law; technical assistance to Indian tribes seeking Western Area Power Administration in part- ‘‘(2) the Surface Mining Control and Rec- to use the high-voltage transmission system nership with an Indian tribal government or lamation Act of 1977 (30 U.S.C. 1201 et seq.); for delivery of electric power. tribal energy resource development organi- or ‘‘(2) The costs of technical assistance pro- zation to demonstrate the feasibility and po- ‘‘(3) except as otherwise provided in this vided under paragraph (1) shall be funded by tential of using wind energy produced on In- title, the Indian Mineral Development Act of the Secretary of Energy using nonreimburs- dian land to supply firming energy to the 1982 (25 U.S.C. 2101 et seq.) and the National able funds appropriated for that purpose, or Western Area Power Administration or any Environmental Policy Act of 1969 (42 U.S.C. by the applicable Indian tribes. other Federal power marketing agency; and 4321 et seq.). ‘‘(e) POWER ALLOCATION STUDY.—Not later ‘‘(4) an identification of— ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— than 2 years after the date of enactment of ‘‘(A) the economic and environmental costs There are authorized to be appropriated to the Indian Tribal Energy Development and or benefits to be realized through such a Fed- the Secretary such sums as are necessary for Self-Determination Act of 2003, the Sec- eral-tribal partnership; and

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00100 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.089 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4545 ‘‘(B) the manner in which such a partner- (1) in the subsection heading, by striking SEC. 605. INCIDENTS OUTSIDE THE UNITED ship could contribute to the energy security ‘‘LICENSES’’ and inserting ‘‘LICENSEES’’; and STATES. of the United States. (2) by striking ‘‘December 31, 2003’’ each (a) AMOUNT OF INDEMNIFICATION.—Section ‘‘(d) FUNDING.— place it appears and inserting ‘‘December 31, 170 d.(5) of the Atomic Energy Act of 1954 (42 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 2023’’. U.S.C. 2210(d)(5)) is amended by striking There are authorized to be appropriated to (b) INDEMNIFICATION OF DEPARTMENT OF EN- ‘‘$100,000,000’’ and inserting ‘‘$500,000,000’’. carry out this section $500,000, to remain ERGY CONTRACTORS.—Section 170 d.(1)(A) of (b) LIABILITY LIMIT.—Section 170 e.(4) of available until expended. the Atomic Energy Act of 1954 (42 U.S.C. the Atomic Energy Act of 1954 (42 U.S.C. ‘‘(2) NONREIMBURSABILITY.—Costs incurred 2210(d)(1)(A)) is amended by striking ‘‘De- 2210(e)(4)) is amended by striking by the Secretary in carrying out this section cember 31, 2004’’ and inserting ‘‘December 31, ‘‘$100,000,000’’ and inserting ‘‘$500,000,000’’. shall be nonreimbursable.’’. 2023’’. SEC. 606. REPORTS. (b) CONFORMING AMENDMENTS.—The table (c) INDEMNIFICATION OF NONPROFIT EDU- Section 170 p. of the Atomic Energy Act of of contents for the Energy Policy Act of 1992 CATIONAL INSTITUTIONS.—Section 170 k. of the 1954 (42 U.S.C. 2210(p)) is amended by striking is amended by striking the items relating to Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) ‘‘August 1, 1998’’ and inserting ‘‘December 31, title XXVI and inserting the following: is amended by striking ‘‘August 1, 2002’’ each 2019’’. ‘‘Sec. 2601. Definitions. place it appears and inserting ‘‘December 31, SEC. 607. INFLATION ADJUSTMENT. ‘‘Sec. 2602. Indian tribal energy resource 2023’’. Section 170 t. of the Atomic Energy Act of development. SEC. 603. MAXIMUM ASSESSMENT. 1954 (42 U.S.C. 2210(t)) is amended— ‘‘Sec. 2603. Indian tribal energy resource (1) by redesignating paragraph (2) as para- Section 170 of the Atomic Energy Act of regulation. graph (3); and 1954 (42 U.S.C. 2210) is amended— ‘‘Sec. 2604. Leases, business agreements, (2) by inserting after paragraph (1) the fol- (1) in the second proviso of the third sen- and rights-of-way involving en- lowing: tence of subsection b.(1)— ergy development or trans- ‘‘(2) The Secretary shall adjust the amount (A) by striking ‘‘$63,000,000’’ and inserting mission. of indemnification provided under an agree- ‘‘$95,800,000’’; and ‘‘Sec. 2605. Indian mineral development re- ment of indemnification under subsection d. (B) by striking ‘‘$10,000,000 in any 1 year’’ view. not less than once during each 5-year period and inserting ‘‘$15,000,000 in any 1 year (sub- ‘‘Sec. 2606. Federal Power Marketing Ad- following July 1, 2003, in accordance with the ject to adjustment for inflation under sub- ministrations. aggregate percentage change in the Con- section t.)’’; and ‘‘Sec. 2607. Wind and hydropower feasi- sumer Price Index since— (2) in subsection t.(1)— bility study.’’. ‘‘(A) that date, in the case of the first ad- (A) by inserting ‘‘total and annual’’ after justment under this paragraph; or SEC. 504. FOUR CORNERS TRANSMISSION LINE ‘‘amount of the maximum’’; PROJECT. ‘‘(B) the previous adjustment under this (B) by striking ‘‘the date of the enactment The Dine Power Authority, an enterprise paragraph.’’. of the Price-Anderson Amendments Act of of the Navajo Nation, shall be eligible to re- 1988’’ and inserting ‘‘August 20, 2003’’; and SEC. 608. TREATMENT OF MODULAR REACTORS. ceive grants and other assistance as author- (C) in subparagraph (A), by striking ‘‘such Section 170 b. of the Atomic Energy Act of ized by section 217 of the Department of En- date of enactment’’ and inserting ‘‘August 1954 (42 U.S.C. 2210(b)) is amended by adding ergy Organization Act, as added by section 20, 2003’’. at the end the following: 502 of this title, and section 2602 of the En- ‘‘(5)(A) For purposes of this section only, ergy Policy Act of 1992, as amended by this SEC. 604. DEPARTMENT OF ENERGY LIABILITY the Commission shall consider a combina- LIMIT. title, for activities associated with the devel- tion of facilities described in subparagraph opment of a transmission line from the Four (a) INDEMNIFICATION OF DEPARTMENT OF EN- (B) to be a single facility having a rated ca- Corners Area to southern Nevada, including ERGY CONTRACTORS.—Section 170 d. of the pacity of 100,000 electrical kilowatts or more. related power generation opportunities. Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) ‘‘(B) A combination of facilities referred to SEC. 505. ENERGY EFFICIENCY IN FEDERALLY AS- is amended by striking paragraph (2) and in- in subparagraph (A) is 2 or more facilities lo- SISTED HOUSING. serting the following: cated at a single site, each of which has a (a) IN GENERAL.—The Secretary of Housing ‘‘(2) In an agreement of indemnification rated capacity of 100,000 electrical kilowatts and Urban Development shall promote en- entered into under paragraph (1), the Sec- or more but not more than 300,000 electrical ergy conservation in housing that is located retary— kilowatts, with a combined rated capacity of on Indian land and assisted with Federal re- ‘‘(A) may require the contractor to provide not more than 1,300,000 electrical kilo- sources through— and maintain financial protection of such a watts.’’. type and in such amounts as the Secretary (1) the use of energy-efficient technologies SEC. 609. APPLICABILITY. shall determine to be appropriate to cover and innovations (including the procurement The amendments made by sections 603, 604, public liability arising out of or in connec- of energy-efficient refrigerators and other and 605 do not apply to a nuclear incident tion with the contractual activity; and appliances); that occurs before the date of the enactment ‘‘(B) shall indemnify the persons indem- (2) the promotion of shared savings con- of this Act. tracts; and nified against such liability above the amount of the financial protection required, SEC. 610. PROHIBITION ON ASSUMPTION BY (3) the use and implementation of such UNITED STATES GOVERNMENT OF other similar technologies and innovations in the amount of $10,000,000,000 (subject to LIABILITY FOR CERTAIN FOREIGN as the Secretary of Housing and Urban De- adjustment for inflation under subsection t.), INCIDENTS. velopment considers to be appropriate. in the aggregate, for all persons indemnified Section 170 of the Atomic Energy Act of (b) AMENDMENT.—Section 202(2) of the Na- in connection with the contract and for each 1954 (42 U.S.C. 2210) is amended by adding at tive American Housing and Self-Determina- nuclear incident, including such legal costs the end the following new subsection: tion Act of 1996 (25 U.S.C. 4132(2)) is amended of the contractor as are approved by the Sec- ‘‘u. PROHIBITION ON ASSUMPTION OF LIABIL- by inserting ‘‘improvement to achieve great- retary.’’. ITY FOR CERTAIN FOREIGN INCIDENTS.—Not- er energy efficiency,’’ after ‘‘planning,’’. (b) CONTRACT AMENDMENTS.—Section 170 d. withstanding this section or any other provi- SEC. 506. CONSULTATION WITH INDIAN TRIBES. of the Atomic Energy Act of 1954 (42 U.S.C. sion of law, no officer of the United States or In carrying out this title and the amend- 2210(d)) is further amended by striking para- of any department, agency, or instrumen- ments made by this title, the Secretary of graph (3) and inserting the following— tality of the United States Government may Energy and the Secretary shall, as appro- ‘‘(3) All agreements of indemnification enter into any contract or other arrange- priate and to the maximum extent prac- under which the Department of Energy (or ment, or into any amendment or modifica- ticable, involve and consult with Indian its predecessor agencies) may be required to tion of a contract or other arrangement, the tribes in a manner that is consistent with indemnify any person under this section purpose or effect of which would be to di- the Federal trust and the government-to- shall be deemed to be amended, on the date rectly or indirectly impose liability on the government relationships between Indian of enactment of the Price-Anderson Amend- United States Government, or any depart- tribes and the United States. ments Act of 2003, to reflect the amount of ment, agency, or instrumentality of the indemnity for public liability and any appli- TITLE VI—NUCLEAR MATTERS United States Government, or to otherwise cable financial protection required of the directly or indirectly require an indemnity Subtitle A—Price-Anderson Act Amendments contractor under this subsection.’’. by the United States Government, for nu- SEC. 601. SHORT TITLE. (c) LIABILITY LIMIT.—Section 170 e.(1)(B) of clear incidents occurring in connection with This subtitle may be cited as the ‘‘Price- the Atomic Energy Act of 1954 (42 U.S.C. the design, construction, or operation of a Anderson Amendments Act of 2003’’. 2210(e)(1)(B)) is amended— production facility or utilization facility in SEC. 602. EXTENSION OF INDEMNIFICATION AU- (1) by striking ‘‘the maximum amount of any country whose government has been THORITY. financial protection required under sub- identified by the Secretary of State as en- (a) INDEMNIFICATION OF NUCLEAR REGU- section b. or’’; and gaged in state sponsorship of terrorist activi- LATORY COMMISSION LICENSEES.—Section 170 (2) by striking ‘‘paragraph (3) of subsection ties (specifically including any country the c. of the Atomic Energy Act of 1954 (42 U.S.C. d., whichever amount is more’’ and inserting government of which, as of September 11, 2210(c)) is amended— ‘‘paragraph (2) of subsection d.’’. 2001, had been determined by the Secretary

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00101 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.089 S28PT1 S4546 CONGRESSIONAL RECORD — SENATE April 28, 2004 of State under section 620A(a) of the Foreign ‘‘y. Exempt from the application of sec- of Energy sites in existence on the date of Assistance Act of 1961 (22 U.S.C. 2371(a)), sections 8344 and 8468 of title 5, United States enactment of this Act. tion 6(j)(1) of the Export Administration Act Code, an annuitant who was formerly an em- SEC. 630. URANIUM SALES. of 1979 (50 U.S.C. App. 2405(j)(1)), or section ployee of the Commission who is hired by the (a) SALES, TRANSFERS, AND SERVICES.—Sec- 40(d) of the Arms Export Control Act (22 Commission as a consultant, if the Commis- tion 3112 of the USEC Privatization Act (42 U.S.C. 2780(d)) to have repeatedly provided sion finds that the annuitant has a skill that U.S.C. 2297h–10) is amended by striking sub- support for acts of international terrorism). is critical to the performance of the duties of sections (d), (e), and (f) and inserting the fol- This subsection shall not apply to nuclear the Commission.’’. lowing: incidents occurring as a result of missions, SEC. 625. ANTITRUST REVIEW. ‘‘(d) INVENTORY SALES.—(1) In addition to carried out under the direction of the Sec- Section 105 c. of the Atomic Energy Act of the transfers and sales authorized under sub- retary of Energy, the Secretary of Defense, 1954 (42 U.S.C. 2135(c)) is amended by adding sections (b) and (c) and under paragraph (5) or the Secretary of State, that are necessary at the end the following: of this subsection, the United States Govern- to safely secure, store, transport, or remove ‘‘(9) APPLICABILITY.—This subsection does ment may transfer or sell uranium in any nuclear materials for nuclear safety or non- not apply to an application for a license to form subject to paragraphs (2), (3), and (4). proliferation purposes.’’. construct or operate a utilization facility or ‘‘(2) Except as provided in subsections (b) SEC. 611. CIVIL PENALTIES. production facility under section 103 or 104 b. and (c) and paragraph (5) of this subsection, (a) REPEAL OF AUTOMATIC REMISSION.—Sec- that is filed on or after the date of enact- no sale or transfer of uranium shall be made tion 234A b.(2) of the Atomic Energy Act of ment of this paragraph.’’. under this subsection by the United States 1954 (42 U.S.C. 2282a(b)(2)) is amended by SEC. 626. DECOMMISSIONING. Government unless— striking the last sentence. Section 161 i. of the Atomic Energy Act of ‘‘(A) the President determines that the ma- (b) LIMITATION FOR NOT-FOR-PROFIT INSTI- 1954 (42 U.S.C. 2201(i)) is amended— terial is not necessary for national security TUTIONS.—Subsection d. of section 234A of (1) by striking ‘‘and (3)’’ and inserting needs and the sale or transfer has no adverse the Atomic Energy Act of 1954 (42 U.S.C. ‘‘(3)’’; and impact on implementation of existing gov- 2282a(d)) is amended to read as follows: ‘‘d.(1) Notwithstanding subsection a., in (2) by inserting before the semicolon at the ernment-to-government agreements; the case of any not-for-profit contractor, end the following: ‘‘, and (4) to ensure that ‘‘(B) the price paid to the appropriate Fed- subcontractor, or supplier, the total amount sufficient funds will be available for the de- eral agency, if the transaction is a sale, will of civil penalties paid under subsection a. commissioning of any production or utiliza- not be less than the fair market value of the may not exceed the total amount of fees paid tion facility licensed under section 103 or 104 material; and within any 1-year period (as determined by b., including standards and restrictions gov- ‘‘(C) the sale or transfer to commercial nu- the Secretary) under the contract under erning the control, maintenance, use, and clear power end users is made pursuant to a which the violation occurs. disbursement by any former licensee under contract of at least 3 years’ duration. ‘‘(2) For purposes of this section, the term this Act that has control over any fund for ‘‘(3) Except as provided in paragraph (5), ‘‘not-for-profit’’ means that no part of the the decommissioning of the facility’’. the United States Government shall not net earnings of the contractor, subcon- SEC. 627. LIMITATION ON LEGAL FEE REIM- make any transfer or sale of uranium in any tractor, or supplier inures to the benefit of BURSEMENT. form under this subsection that would cause any natural person or for-profit artificial The Department of Energy shall not, ex- the total amount of uranium transferred or person.’’. cept as required under a contract entered sold pursuant to this subsection that is de- (c) EFFECTIVE DATE.—The amendments into before the date of enactment of this livered for consumption by commercial nu- made by this section shall not apply to any Act, reimburse any contractor or subcon- clear power end users to exceed— violation of the Atomic Energy Act of 1954 tractor of the Department for any legal fees ‘‘(A) 3,000,000 pounds of U3O8 equivalent in (42 U.S.C. 2011 et seq.) occurring under a con- or expenses incurred with respect to a com- fiscal year 2004, 2005, 2006, 2007, 2008, or 2009; tract entered into before the date of enact- plaint subsequent to— ‘‘(B) 5,000,000 pounds of U3O8 equivalent in ment of this section. (1) an adverse determination on the merits fiscal year 2010 or 2011; Subtitle B—General Nuclear Matters with respect to such complaint against the ‘‘(C) 7,000,000 pounds of U3O8 equivalent in SEC. 621. LICENSES. contractor or subcontractor by the Director fiscal year 2012; and Section 103 c. of the Atomic Energy Act of of the Department of Energy’s Office of ‘‘(D) 10,000,000 pounds of U3O8 equivalent in 1954 (42 U.S.C. 2133(c)) is amended by insert- Hearings and Appeals pursuant to part 708 of fiscal year 2013 or any fiscal year thereafter. ing ‘‘from the authorization to commence title 10, Code of Federal Regulations, or by a ‘‘(4) Except for sales or transfers under operations’’ after ‘‘forty years’’. Department of Labor Administrative Law paragraph (5), for the purposes of this sub- SEC. 622. NRC TRAINING PROGRAM. Judge pursuant to section 211 of the Energy section, the recovery of uranium from ura- (a) IN GENERAL.—In order to maintain the Reorganization Act of 1974 (42 U.S.C. 5851); or nium bearing materials transferred or sold human resource investment and infrastruc- (2) an adverse final judgment by any State by the United States Government to the do- ture of the United States in the nuclear or Federal court with respect to such com- mestic uranium industry shall be the pre- sciences, health physics, and engineering plaint against the contractor or subcon- ferred method of making uranium available. fields, in accordance with the statutory au- tractor for wrongful termination or retalia- The recovered uranium shall be counted thorities of the Nuclear Regulatory Commis- tion due to the making of disclosures pro- against the annual maximum deliveries set sion relating to the civilian nuclear energy tected under chapter 12 of title 5, United forth in this section, when such uranium is program, the Nuclear Regulatory Commis- States Code, section 211 of the Energy Reor- sold to end users. sion shall carry out a training and fellowship ganization Act of 1974 (42 U.S.C. 5851), or any ‘‘(5) The United States Government may program to address shortages of individuals comparable State law, make the following sales and transfers: with critical nuclear safety regulatory unless the adverse determination or final ‘‘(A) Sales or transfers to a Federal agency skills. judgment is reversed upon further adminis- if the material is transferred for the use of (b) AUTHORIZATION OF APPROPRIATIONS.— trative or judicial review. the receiving agency without any resale or (1) IN GENERAL.—There are authorized to be SEC. 628. DECOMMISSIONING PILOT PROGRAM. transfer to another entity and the material does not meet commercial specifications. appropriated to the Nuclear Regulatory (a) PILOT PROGRAM.—The Secretary of En- Commission to carry out this section ergy shall establish a decommissioning pilot ‘‘(B) Sales or transfers to any person for $1,000,000 for each of fiscal years 2004 through program to decommission and decontami- national security purposes, as determined by 2008. nate the sodium-cooled fast breeder experi- the Secretary. (2) AVAILABILITY.—Funds made available mental test-site reactor located in northwest ‘‘(C) Sales or transfers to any State or under paragraph (1) shall remain available Arkansas in accordance with the decommis- local agency or nonprofit, charitable, or edu- until expended. sioning activities contained in the August 31, cational institution for use other than the SEC. 623. COST RECOVERY FROM GOVERNMENT 1998, Department of Energy report on the re- generation of electricity for commercial use. AGENCIES. actor. ‘‘(D) Sales or transfers to the Department Section 161 w. of the Atomic Energy Act of (b) AUTHORIZATION OF APPROPRIATIONS.— of Energy research reactor sales program. 1954 (42 U.S.C. 2201(w)) is amended— There are authorized to be appropriated to ‘‘(E) Sales or transfers, at fair market (1) by striking ‘‘for or is issued’’ and all the Secretary of Energy to carry out this value, for emergency purposes in the event of that follows through ‘‘1702’’ and inserting section $16,000,000. a disruption in supply to commercial nuclear ‘‘to the Commission for, or is issued by the power end users in the United States. SEC. 629. REPORT ON FEASIBILITY OF DEVEL- Commission, a license or certificate’’; OPING COMMERCIAL NUCLEAR EN- ‘‘(F) Sales or transfers, at fair market (2) by striking ‘‘483a’’ and inserting ‘‘9701’’; ERGY GENERATION FACILITIES AT value, for use in a commercial reactor in the and EXISTING DEPARTMENT OF ENERGY United States with nonstandard fuel require- (3) by striking ‘‘, of applicants for, or hold- SITES. ments. ers of, such licenses or certificates’’. Not later than 1 year after the date of the ‘‘(G) Sales or transfers provided for under SEC. 624. ELIMINATION OF PENSION OFFSET. enactment of this Act, the Secretary of En- law for use by the Tennessee Valley Author- Section 161 of the Atomic Energy Act of ergy shall submit to Congress a report on the ity in relation to the Department of Ener- 1954 (42 U.S.C. 2201) is amended by adding at feasibility of developing commercial nuclear gy’s highly enriched uranium or tritium pro- the end the following: energy generation facilities at Department grams.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00102 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.090 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4547 ‘‘(6) For purposes of this subsection, the complaint under paragraph (1), and there is additional physical protection requirements term ‘‘United States Government’’ does not no showing that such delay is due to the bad are necessary (including a limit on the quan- include the Tennessee Valley Authority. faith of the person seeking relief under this tity of highly enriched uranium that may be ‘‘(e) SAVINGS PROVISION.—Nothing in this paragraph, such person may bring an action contained in a single shipment), the Com- subchapter modifies the terms of the Russian at law or equity for de novo review in the ap- mission shall impose such requirements as HEU Agreement. propriate district court of the United States, license conditions or through other appro- ‘‘(f) SERVICES.—Notwithstanding any other which shall have jurisdiction over such an priate means. provision of this section, if the Secretary de- action without regard to the amount in con- ‘‘(4) FIRST REPORT TO CONGRESS.— termines that the Corporation has failed, or troversy.’’. ‘‘(A) NAS STUDY.—The Secretary shall may fail, to perform any obligation under SEC. 633. MEDICAL ISOTOPE PRODUCTION. enter into an arrangement with the National the Agreement between the Department of Section 134 of the Atomic Energy Act of Academy of Sciences to conduct a study to Energy and the Corporation dated June 17, 1954 (42 U.S.C. 2160d) is amended— determine— 2002, and as amended thereafter, which fail- (1) in subsection a., by striking ‘‘a. The ‘‘(i) the feasibility of procuring supplies of ure could result in termination of the Agree- Commission’’ and inserting ‘‘a. IN GEN- medical isotopes from commercial sources ment, the Secretary shall notify Congress, in ERAL.—Except as provided in subsection b., that do not use highly enriched uranium; such a manner that affords Congress an op- the Commission’’; ‘‘(ii) the current and projected demand and portunity to comment, prior to a determina- (2) by redesignating subsection b. as sub- availability of medical isotopes in regular tion by the Secretary whether termination, section c.; and waiver, or modification of the Agreement is current domestic use; (3) by inserting after subsection a. the fol- ‘‘(iii) the progress that is being made by required. The Secretary is authorized to take lowing: such action as he determines necessary the Department of Energy and others to ‘‘b. MEDICAL ISOTOPE PRODUCTION.— under the Agreement to terminate, waive, or eliminate all use of highly enriched uranium ‘‘(1) DEFINITIONS.—In this subsection: modify provisions of the Agreement to in reactor fuel, reactor targets, and medical ‘‘(A) HIGHLY ENRICHED URANIUM.—The term isotope production facilities; and achieve its purposes.’’. ‘highly enriched uranium’ means uranium (b) REPORT.—Not later than 3 years after ‘‘(iv) the potential cost differential in med- enriched to include concentration of U–235 the date of enactment of this Act, the Sec- ical isotope production in the reactors and above 20 percent. retary of Energy shall report to Congress on target processing facilities if the products ‘‘(B) MEDICAL ISOTOPE.—The term ‘medical the implementation of this section. The re- were derived from production systems that isotope’ includes Molybdenum 99, Iodine 131, port shall include a discussion of available do not involve fuels and targets with highly Xenon 133, and other radioactive materials excess uranium inventories; all sales or enriched uranium. used to produce a radiopharmaceutical for transfers made by the United States Govern- ‘‘(B) FEASIBILITY.—For the purpose of this diagnostic, therapeutic procedures or for re- ment; the impact of such sales or transfers subsection, the use of low enriched uranium search and development. on the domestic uranium industry, the spot to produce medical isotopes shall be deter- ‘‘(C) RADIOPHARMACEUTICAL.—The term market uranium price, and the national se- mined to be feasible if— ‘radiopharmaceutical’ means a radioactive curity interests of the United States; and ‘‘(i) low enriched uranium targets have isotope that— any steps taken to remediate any adverse been developed and demonstrated for use in ‘‘(i) contains byproduct material combined impacts of such sales or transfers. the reactors and target processing facilities with chemical or biological material; and that produce significant quantities of med- SEC. 631. COOPERATIVE RESEARCH AND DEVEL- ‘‘(ii) is designed to accumulate temporarily OPMENT AND SPECIAL DEMONSTRA- ical isotopes to serve United States needs for TION PROJECTS FOR THE URANIUM in a part of the body for therapeutic pur- such isotopes; MINING INDUSTRY. poses or for enabling the production of a use- ‘‘(ii) sufficient quantities of medical iso- (a) AUTHORIZATION OF APPROPRIATIONS.— ful image for use in a diagnosis of a medical topes are available from low enriched ura- condition. There are authorized to be appropriated to nium targets and fuel to meet United States ‘‘(D) RECIPIENT COUNTRY.—The term ‘re- the Secretary of Energy $10,000,000 for each domestic needs; and cipient country’ means Canada, Belgium, of fiscal years 2004, 2005, and 2006 for— ‘‘(iii) the average anticipated total cost in- France, Germany, and the Netherlands. (1) cooperative, cost-shared agreements be- crease from production of medical isotopes ‘‘(2) LICENSES.—The Commission may issue tween the Department of Energy and domes- in such facilities without use of highly en- a license authorizing the export (including tic uranium producers to identify, test, and riched uranium is less than 10 percent. shipment to and use at intermediate and ul- develop improved in situ leaching mining ‘‘(C) REPORT BY THE SECRETARY.—Not later timate consignees specified in the license) to technologies, including low-cost environ- than 5 years after the date of enactment of a recipient country of highly enriched ura- mental restoration technologies that may be the Energy Policy Act of 2003, the Secretary nium for medical isotope production if, in applied to sites after completion of in situ shall submit to Congress a report that— addition to any other requirements of this leaching operations; and ‘‘(i) contains the findings of the National (2) funding for competitively selected dem- Act (except subsection a.), the Commission determines that— Academy of Sciences made in the study onstration projects with domestic uranium under subparagraph (A); and producers relating to— ‘‘(A) a recipient country that supplies an assurance letter to the United States Gov- ‘‘(ii) discloses the existence of any commit- (A) enhanced production with minimal en- ments from commercial producers to provide vironmental impacts; ernment in connection with the consider- domestic requirements for medical isotopes (B) restoration of well fields; and ation by the Commission of the export li- without use of highly enriched uranium con- (C) decommissioning and decontamination cense application has informed the United sistent with the feasibility criteria described activities. States Government that any intermediate in subparagraph (B) not later than the date (b) DOMESTIC URANIUM PRODUCER.—For consignees and the ultimate consignee speci- purposes of this section, the term ‘‘domestic fied in the application are required to use that is 4 years after the date of submission of uranium producer’’ has the meaning given the highly enriched uranium solely to the report. that term in section 1018(4) of the Energy produce medical isotopes; and ‘‘(5) SECOND REPORT TO CONGRESS.—If the Policy Act of 1992 (42 U.S.C. 2296b–7(4)), ex- ‘‘(B) the highly enriched uranium for med- study of the National Academy of Sciences cept that the term shall not include any pro- ical isotope production will be irradiated determines under paragraph (4)(A)(i) that the ducer that has not produced uranium from only in a reactor in a recipient country procurement of supplies of medical isotopes domestic reserves on or after July 30, 1998. that— from commercial sources that do not use (c) LIMITATION.—No activities funded under ‘‘(i) uses an alternative nuclear reactor highly enriched uranium is feasible, but the this section may be carried out in the State fuel; or Secretary is unable to report the existence of of New Mexico. ‘‘(ii) is the subject of an agreement with commitments under paragraph (4)(C)(ii), not SEC. 632. WHISTLEBLOWER PROTECTION. the United States Government to convert to later than the date that is 6 years after the (a) DEFINITION OF EMPLOYER.—Section an alternative nuclear reactor fuel when al- date of enactment of the Energy Policy Act 211(a)(2) of the Energy Reorganization Act of ternative nuclear reactor fuel can be used in of 2003, the Secretary shall submit to Con- 1974 (42 U.S.C. 5851(a)(2)) is amended— the reactor. gress a report that describes options for de- (1) in subparagraph (C), by striking ‘‘and’’ ‘‘(3) REVIEW OF PHYSICAL PROTECTION RE- veloping domestic supplies of medical iso- at the end; QUIREMENTS.— topes in quantities that are adequate to (2) in subparagraph (D), by striking the pe- ‘‘(A) IN GENERAL.—The Commission shall meet domestic demand without the use of riod at the end and inserting ‘‘; and’’; and review the adequacy of physical protection highly enriched uranium consistent with the (3) by adding at the end the following: requirements that, as of the date of an appli- cost increase described in paragraph ‘‘(E) a contractor or subcontractor of the cation under paragraph (2), are applicable to (4)(B)(iii). Commission.’’. the transportation and storage of highly en- ‘‘(6) CERTIFICATION.—At such time as com- (b) DE NOVO REVIEW.—Subsection (b) of riched uranium for medical isotope produc- mercial facilities that do not use highly en- such section 211 is amended by adding at the tion or control of residual material after ir- riched uranium are capable of meeting do- end the following new paragraph: radiation and extraction of medical isotopes. mestic requirements for medical isotopes, ‘‘(4) If the Secretary has not issued a final ‘‘(B) IMPOSITION OF ADDITIONAL REQUIRE- within the cost increase described in para- decision within 540 days after the filing of a MENTS.—If the Commission determines that graph (4)(B)(iii) and without impairing the

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00103 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.090 S28PT1 S4548 CONGRESSIONAL RECORD — SENATE April 28, 2004 reliable supply of medical isotopes for do- Regulatory Commission, an identification of adequate, verifiable assurances that it will mestic utilization, the Secretary shall sub- any new regulatory guidance needed for the cease its support for acts of international mit to Congress a certification to that effect. disposal of GTCC waste. terrorism; ‘‘(7) SUNSET PROVISION.—After the Sec- (3) REPORT ON COST AND SCHEDULE FOR COM- ‘‘(C) the waiver of that paragraph is in the retary submits a certification under para- PLETION OF ENVIRONMENTAL IMPACT STATE- vital national security interest of the United graph (6), the Commission shall, by rule, ter- MENT AND RECORD OF DECISION.—Not later States; or minate its review of export license applica- than 180 days after the date of submission of ‘‘(D) such a waiver is essential to prevent tions under this subsection.’’. the update required under paragraph (2), the or respond to a serious radiological hazard in SEC. 634. FERNALD BYPRODUCT MATERIAL. Secretary of Energy shall submit to Con- the country receiving the waiver that may Notwithstanding any other law, the mate- gress a report containing an estimate of the or does threaten public health and safety.’’. rial in the concrete silos at the Fernald ura- cost and schedule to complete a draft and (b) APPLICABILITY TO EXPORTS APPROVED nium processing facility managed on the final environmental impact statement and FOR TRANSFER BUT NOT TRANSFERRED.—Sub- date of enactment of this Act by the Depart- to issue a record of decision for a permanent section b. of section 129 of Atomic Energy ment of Energy shall be considered byprod- disposal facility, utilizing either a new or ex- Act of 1954, as added by subsection (a) of this uct material (as defined by section 11 e.(2) of isting facility, for GTCC waste. section, shall apply with respect to exports the Atomic Energy Act of 1954 (42 U.S.C. SEC. 636. PROHIBITION ON NUCLEAR EXPORTS that have been approved for transfer as of 2014(e)(2))). The Department of Energy may TO COUNTRIES THAT SPONSOR TER- the date of the enactment of this Act but RORISM. dispose of the material in a facility regu- have not yet been transferred as of that date. lated by the Nuclear Regulatory Commission (a) IN GENERAL.—Section 129 of the Atomic or by an Agreement State. If the Department Energy Act of 1954 (42 U.S.C. 2158) is amend- SEC. 637. URANIUM ENRICHMENT FACILITIES. ed— of Energy disposes of the material in such a (a) NUCLEAR REGULATORY COMMISSION RE- (1) by inserting ‘‘a.’’ before ‘‘No nuclear facility, the Nuclear Regulatory Commission VIEW OF APPLICATIONS.— materials and equipment’’; and or the Agreement State shall regulate the (1) IN GENERAL.—In order to facilitate a (2) by adding at the end the following new material as byproduct material under that timely review and approval of an application subsection: Act. This material shall remain subject to ‘‘b.(1) Notwithstanding any other provision in a proceeding for a license for the construc- the jurisdiction of the Department of Energy of law, including specifically section 121 of tion and operation of a uranium enrichment until it is received at a commercial, Nuclear this Act, and except as provided in para- facility under sections 53 and 63 of the Atom- Regulatory Commission-licensed, or Agree- graphs (2) and (3), no nuclear materials and ic Energy Act of 1954 (42 U.S.C. 2073, 2093) (re- ment State-licensed facility, at which time equipment or sensitive nuclear technology, ferred to in this subsection as a ‘‘covered the material shall be subject to the health including items and assistance authorized by proceeding’’), the Nuclear Regulatory Com- and safety requirements of the Nuclear Reg- section 57 b. of this Act and regulated under mission shall, not later than 30 days after ulatory Commission or the Agreement State part 810 of title 10, Code of Federal Regula- the receipt of the application, establish, by with jurisdiction over the disposal site. tions, and nuclear-related items on the Com- order, the schedule for the conduct of any SEC. 635. SAFE DISPOSAL OF GREATER-THAN- merce Control List maintained under part hearing that may be requested by any person CLASS C RADIOACTIVE WASTE. 774 of title 15 of the Code of Federal Regula- whose interest may be affected by the cov- (a) DESIGNATION OF RESPONSIBILITY.—The tions, shall be exported or reexported, or ered proceeding. Secretary of Energy shall designate an Office transferred or retransferred whether directly (2) FINAL AGENCY DECISION.—The schedule within the Department of Energy to have the or indirectly, and no Federal agency shall shall provide that a final decision by the responsibility for activities needed to de- issue any license, approval, or authorization Commission on the application shall be made velop a new, or use an existing, facility for for the export or reexport, or transfer, or re- not later than the date that is 2 years after safely disposing of all low-level radioactive transfer, whether directly or indirectly, of the date of submission of the application by waste with concentrations of radionuclides these items or assistance (as defined in this the applicant. that exceed the limits established by the Nu- paragraph) to any country whose govern- (3) COMPLIANCE WITH SCHEDULE.— clear Regulatory Commission for Class C ra- ment has been identified by the Secretary of (A) IN GENERAL.—The Commission shall es- dioactive waste (referred to in this section as State as engaged in state sponsorship of ter- tablish a process to assess compliance with ‘‘GTCC waste’’). rorist activities (specifically including any the schedule established under paragraph (1) (b) COMPREHENSIVE PLAN.—The Secretary country the government of which has been on an ongoing basis during the course of the of Energy shall develop a comprehensive determined by the Secretary of State under review of the application, including ensuring plan for permanent disposal of GTCC waste section 620A(a) of the Foreign Assistance Act compliance with schedules and milestones which includes plans for a disposal facility. of 1961 (22 U.S.C. 2371(a)), section 6(j)(1) of the that are established for the conduct of any This plan shall be transmitted to Congress in Export Administration Act of 1979 (50 U.S.C. covered proceeding by the Atomic Safety and a series of reports, including the following: App. 2405(j)(1)), or section 40(d) of the Arms Licensing Board. (1) REPORT ON SHORT-TERM PLAN.—Not later Export Control Act (22 U.S.C. 2780(d)) to have (B) REPORT.—The Commission shall submit than 180 days after the date of enactment of repeatedly provided support for acts of inter- to Congress on a bimonthly basis a report de- this Act, the Secretary of Energy shall sub- national terrorism). scribing the status of compliance with the ‘‘(2) This subsection shall not apply to ex- mit to Congress a plan describing the Sec- schedule established under paragraph (1), in- ports, reexports, transfers, or retransfers of retary’s operational strategy for continued cluding a description of the status of actions radiation monitoring technologies, surveil- recovery and storage of GTCC waste until a required to be completed pursuant to the lance equipment, seals, cameras, tamper-in- permanent disposal facility is available. schedule by officers and employees of— dication devices, nuclear detectors, moni- (2) UPDATE OF 1987 REPORT.— toring systems, or equipment necessary to (i) the Commission in undertaking the (A) IN GENERAL.—Not later than 1 year safely store, transport, or remove hazardous safety and environmental review of applica- after the date of enactment of this Act, the materials, whether such items, services, or tions; and Secretary of Energy shall submit to Con- information are regulated by the Depart- (ii) the Atomic Safety and Licensing Board gress an update of the Secretary’s February ment of Energy, the Department of Com- in the conduct of any covered proceeding. 1987 report submitted to Congress that made merce, or the Nuclear Regulatory Commis- (4) ENVIRONMENTAL REVIEW.— comprehensive recommendations for the dis- sion, except to the extent that such tech- (A) IN GENERAL.—In evaluating an applica- posal of GTCC waste. nologies, equipment, seals, cameras, devices, tion under the National Environmental Pol- (B) CONTENTS.—The update under this detectors, or systems are available for use in icy Act of 1969 (42 U.S.C. 4321 et seq.) for li- paragraph shall contain— the design or construction of nuclear reac- censing of a facility in a covered proceeding, (i) a detailed description and identification tors or nuclear weapons. the Commission shall limit the consider- of the GTCC waste that is to be disposed; ‘‘(3) The President may waive the applica- ation of need to whether the licensing of the (ii) a description of current domestic and tion of paragraph (1) to a country if the facility would advance the national interest international programs, both Federal and President determines and certifies to Con- of encouraging in the United States— commercial, for management and disposition gress that the waiver will not result in any (i) additional secure, reliable uranium en- of GTCC waste; increased risk that the country receiving the richment capacity; (iii) an identification of the Federal and waiver will acquire nuclear weapons, nuclear (ii) diverse supplies and suppliers of ura- private options and costs for the safe dis- reactors, or any materials or components of nium enrichment capacity; and posal of GTCC waste; nuclear weapons and— (iii) the deployment of advanced centrifuge (iv) an identification of the options for en- ‘‘(A) the government of such country has enrichment technology. suring that, wherever possible, generators not within the preceding 12-month period (B) COMMENT.—In carrying out subpara- and users of GTCC waste bear all reasonable willfully aided or abetted the international graph (A), the Commission shall consider and costs of waste disposal; proliferation of nuclear explosive devices to solicit the views of other affected Federal (v) an identification of any new statutory individuals or groups or willfully aided and agencies. authority required for disposal of GTCC abetted an individual or groups in acquiring (C) ATOMIC SAFETY AND LICENSING BOARD.— waste; and unsafeguarded nuclear materials; (i) IN GENERAL.—Except as provided in (vi) in coordination with the Environ- ‘‘(B) in the judgment of the President, the clause (ii), in any covered proceeding, the mental Protection Agency and the Nuclear government of such country has provided Commission shall allow the litigation and

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resolution by the Atomic Safety and Licens- (i) the memorandum of agreement between (3) ALTERNATIVES.—The project shall be de- ing Board of issues arising under the Na- the United States Department of Energy and signed to explore technical, environmental, tional Environmental Policy Act of 1969 (42 the United States Enrichment Corporation and economic feasibility of alternative ap- U.S.C. 4321 et seq.), on the basis of informa- Relating to Depleted Uranium, dated June proaches for reactor-based hydrogen production submitted by the applicant in its envi- 30, 1998; and tion. ronmental report, prior to publication of any (ii) the Agreement Between the U.S. De- (4) INDUSTRIAL LEAD.—The industrial lead required environmental impact statement. partment of Energy and USEC Inc., dated for the project shall be a company incor- (ii) EXCEPTIONS.—On the publication of any June 17, 2002. porated in the United States. required environmental impact statement, SEC. 638. NATIONAL URANIUM STOCKPILE. (b) INTERNATIONAL COLLABORATION.— issues may be proffered for resolution by the (a) STOCKPILE CREATION.—The Secretary of (1) IN GENERAL.—The Secretary shall seek Atomic Safety and Licensing Board only if Energy may create a national low-enriched international cooperation, participation, and information or conclusions in the environ- uranium stockpile with the goals to— financial contribution in this project. mental impact statement differ significantly (1) enhance national energy security; and (2) ASSISTANCE FROM INTERNATIONAL PART- from the information or conclusions in the (2) reduce global proliferation threats. NERS.—The Secretary may contract for as- environmental report submitted by the ap- (b) SOURCE OF MATERIAL.—The Secretary sistance from specialists or facilities from plicant. shall obtain material for the stockpile member countries of the Generation IV (D) ENVIRONMENTAL JUSTICE.—In a covered from— International Forum, the Russian Federa- proceeding, the Commission shall apply the (1) material derived from blend-down of tion, or other international partners where criteria in Appendix C of the final report en- Russian highly enriched uranium derived such specialists or facilities provide access titled ‘‘Environmental Review Guidance for from weapons materials; and to cost-effective and relevant skills or test Licensing Actions Associated with NMSS (2) domestically mined and enriched ura- capabilities. Programs’’ (NUREG–1748), published in Au- nium. (3) GENERATION IV INTERNATIONAL FORUM.— gust 2003, in any required review of environ- (c) LIMITATION ON SALES OR TRANSFERS.— International activities shall be coordinated mental justice. Sales or transfer of materials in the stock- with the Generation IV International (5) LOW-LEVEL WASTE.—In any covered pro- pile shall occur pursuant to section 3112 of Forum. ceeding, the Commission shall— the USEC Privitization Act (42 U.S.C. 2297h– (4) GENERATION IV NUCLEAR ENERGY SYS- (A) deem the obligation of the Secretary of 10), as amended by section 630. TEMS PROGRAM.—The Secretary may combine Energy pursuant to section 3113 of the USEC Subtitle C—Advanced Reactor Hydrogen this project with the Generation IV Nuclear Privitization Act (42 U.S.C. 2297 h–11) to con- Cogeneration Project Energy Systems Program. stitute a plausible strategy with regard to (c) DEMONSTRATION.—The overall project, the disposition of depleted uranium gen- SEC. 651. PROJECT ESTABLISHMENT. which may involve demonstration of selected erated by such facility; and The Secretary of Energy (in this subtitle project objectives in a partner nation, must (B) treat any residual material that re- referred to as the ‘‘Secretary’’) is directed to demonstrate both electricity and hydrogen mains following the extraction of any usable establish an Advanced Reactor Hydrogen Co- production and may provide flexibility, resource value from depleted uranium as generation Project. where technically and economically feasible low-level radioactive waste under part 61 of SEC. 652. PROJECT DEFINITION. in the design and construction, to enable title 10, Code of Federal Regulations. The project shall consist of the research, tests of alternative reactor core and cooling (6) ADJUDICATORY HEARING ON LICENSING OF development, design, construction, and oper- configurations. URANIUM ENRICHMENT FACILITIES.—Section ation of a hydrogen production cogeneration (d) PARTNERSHIPS.—The Secretary shall es- 193(b) of the Atomic Energy Act of 1954 (42 research facility that, relative to the current tablish cost-shared partnerships with domes- U.S.C. 2243(b)) is amended by striking para- commercial reactors, enhances safety fea- tic industry or international participants for graph (2) and inserting the following: tures, reduces waste production, enhances the research, development, design, construc- ‘‘(2) TIMING.—On the issuance of a final de- thermal efficiencies, increases proliferation tion, and operation of the research facility, cision on the application by the Atomic resistance, and has the potential for im- and preference in determining the final Safety and Licensing Board, the Commission proved economics and physical security in project structure shall be given to an overall shall issue and make immediately effective reactor siting. This facility shall be con- project which retains United States leader- any license for the construction and oper- structed so as to enable research and devel- ship while maximizing cost sharing opportu- ation of a uranium enrichment facility under opment on advanced reactors of the type se- nities and minimizing Federal funding re- sections 53 and 63, on a determination by the lected and on alternative approaches for responsibilities. Commission that the issuance of the license actor-based production of hydrogen. (e) TARGET DATE.—The Secretary shall se- would not cause irreparable injury to the SEC. 653. PROJECT MANAGEMENT. lect technologies and develop the project to public health and safety or the common de- (a) MANAGEMENT.—The project shall be provide initial testing of either hydrogen fense and security, notwithstanding the managed within the Department by the Of- production or electricity generation by 2010, pendency before the Commission of any ap- fice of Nuclear Energy, Science, and Tech- or provide a report to Congress explaining peal or petition for review of any decision of nology. why this date is not feasible. the Atomic Safety and Licensing Board.’’. (b) LEAD LABORATORY.—The lead labora- (f) WAIVER OF CONSTRUCTION TIMELINES.— (b) DEPARTMENT OF ENERGY RESPONSIBIL- tory for the project, providing the site for The Secretary is authorized to conduct the ITIES.— the reactor construction, shall be the Idaho Advanced Reactor Hydrogen Cogeneration (1) IN GENERAL.—Not later than 180 days National Engineering and Environmental Project without the constraints of DOE after a request is made to the Secretary of Laboratory (in this subtitle referred to as Order 413.3, relating to program and project Energy by an applicant for or recipient of a ‘‘INEEL’’). management for the acquisition of capital license for a uranium enrichment facility (c) STEERING COMMITTEE.—The Secretary assets, as necessary to meet the specified under section 53, 63, or 193 of the Atomic En- shall establish a national steering com- operational date. ergy Act of 1954 (42 U.S.C. 2073, 2093, 2243), mittee with membership from the national (g) COMPETITION.—The Secretary may fund the Secretary shall enter into a memo- laboratories, universities, and industry to up to 2 teams for up to 1 year to develop de- randum of agreement with the applicant or provide advice to the Secretary and the Di- tailed proposals for competitive evaluation licensee that provides a schedule for the rector of the Office of Nuclear Energy, and selection of a single proposal and con- transfer to the Secretary, not later than 5 Science, and Technology on technical and cept for further progress. The Secretary years after the generation of any depleted program management aspects of the project. shall define the format of the competitive uranium hexafluoride, of title and possession (d) COLLABORATION.—Project activities evaluation of proposals. of the depleted uranium hexafluoride to be shall be conducted at INEEL, other national (h) USE OF FACILITIES.—Research facilities generated by the applicant or licensee. laboratories, universities, domestic industry, in industry, national laboratories, or univer- (2) COST.— and international partners. sities either within the United States or (A) IN GENERAL.—Subject to subparagraphs SEC. 654. PROJECT REQUIREMENTS. with cooperating international partners may (B) and (C), the memorandum of agreement (a) RESEARCH AND DEVELOPMENT.— be used to develop the enabling technologies shall specify the cost to be assessed by the (1) IN GENERAL.—The project shall include for the research facility. Utilization of do- Secretary for the transfer to the Secretary planning, research and development, design, mestic university-based facilities shall be of the depleted uranium hexafluoride. and construction of an advanced, next-gen- encouraged to provide educational opportu- (B) NONDISCRIMINATORY BASIS.—The cost eration, nuclear energy system suitable for nities for student development. shall be determined by the Secretary on a enabling further research and development (i) ROLE OF NUCLEAR REGULATORY COMMIS- nondiscriminatory basis. on advanced reactor technologies and alter- SION.— (C) COST.—Taking into account the phys- native approaches for reactor-based genera- (1) IN GENERAL.—The Nuclear Regulatory ical and chemical characteristics of such de- tion of hydrogen. Commission shall have licensing and regu- pleted uranium hexafluoride, the cost shall (2) REACTOR TEST CAPABILITIES AT INEEL.— latory authority for any reactor authorized not exceed the cost assessed by the Sec- The project shall utilize, where appropriate, under this subtitle, pursuant to section 202 of retary for the acceptance of depleted ura- extensive reactor test capabilities resident the Energy Reorganization Act of 1974 (42 nium hexafluoride under— at INEEL. U.S.C. 5842).

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(2) RISK-BASED CRITERIA.—The Secretary (B) involving the type of risks that Com- ‘‘(1) REQUIREMENTS.— shall seek active participation of the Nu- mission licensees should be responsible for ‘‘(A) IN GENERAL.— The Commission shall clear Regulatory Commission throughout guarding against. require each individual or entity— the project to develop risk-based criteria for (c) FEDERAL ACTION REPORT.—Not later ‘‘(i) that is licensed or certified to engage any future commercial development of a than 90 days after the date on which a report in an activity subject to regulation by the similar reactor architecture. is transmitted under subsection (b), the Commission; (j) REPORT—The Secretary shall develop President shall transmit to Congress a re- ‘‘(ii) that has filed an application for a li- and transmit to Congress a comprehensive port on actions taken, or to be taken, to ad- cense or certificate to engage in an activity project plan not later than April 30, 2004. The dress the types of threats identified under subject to regulation by the Commission; or project plan shall be updated annually with subsection (b)(2)(A), including identification ‘‘(iii) that has notified the Commission, in each annual budget submission. of the Federal, State, and local agencies re- writing, of an intent to file an application SEC. 655. AUTHORIZATION OF APPROPRIATIONS. sponsible for carrying out the obligations for licensing, certification, permitting, or (a) RESEARCH, DEVELOPMENT, AND DESIGN and authorities of the United States. Such approval of a product or activity subject to PROGRAMS.—The following sums are author- report may include a classified annex, as ap- regulation by the Commission, ized to be appropriated to the Secretary for propriate. to fingerprint each individual described in (d) REGULATIONS.—Not later than 180 days all activities under this subtitle except for subparagraph (B) before the individual is after the date on which a report is trans- construction activities described in sub- permitted unescorted access or access, mitted under subsection (b), the Commission section (b): whichever is applicable, as described in sub- may revise, by rule, the design basis threats (1) For fiscal year 2004, $35,000,000. paragraph (B). issued before the date of enactment of this (2) For each of fiscal years 2005 through ‘‘(B) INDIVIDUALS REQUIRED TO BE section as the Commission considers appro- 2008, $150,000,000. FINGERPRINTED.—The Commission shall re- priate based on the summary and classifica- (3) For fiscal years beyond 2008, such sums quire to be fingerprinted each individual tion report. as are necessary. who— (e) PHYSICAL SECURITY PROGRAM.—The (b) CONSTRUCTION.—There are authorized to ‘‘(i) is permitted unescorted access to— Commission shall establish an operational be appropriated to the Secretary for all ‘‘(I) a utilization facility; or safeguards response evaluation program that project-related construction activities, to be ‘‘(II) radioactive material or other prop- ensures that the physical protection capa- available until expended, $500,000,000. erty subject to regulation by the Commis- bility and operational safeguards response Subtitle D—Nuclear Security sion that the Commission determines to be for sensitive nuclear facilities, as determined of such significance to the public health and SEC. 661. NUCLEAR FACILITY THREATS. by the Commission consistent with the pro- safety or the common defense and security (a) STUDY.—The President, in consultation tection of public health and the common de- as to warrant fingerprinting and background with the Nuclear Regulatory Commission fense and security, shall be tested periodi- checks; or (referred to in this subtitle as the ‘‘Commis- cally through Commission approved or de- ‘‘(ii) is permitted access to safeguards in- sion’’) and other appropriate Federal, State, signed, observed, and evaluated force-on- formation under section 147.’’; and local agencies and private entities, shall force exercises to determine whether the (2) by striking ‘‘All fingerprints obtained conduct a study to identify the types of ability to defeat the design basis threat is by a licensee or applicant as required in the threats that pose an appreciable risk to the being maintained. For purposes of this sub- preceding sentence’’ and inserting the fol- security of the various classes of facilities li- section, the term ‘‘sensitive nuclear facili- lowing: censed by the Commission under the Atomic ties’’ includes at a minimum commercial nu- ‘‘(2) SUBMISSION TO THE ATTORNEY GEN- Energy Act of 1954 (42 U.S.C. 2011 et seq.). clear power plants and category I fuel cycle ERAL.—All fingerprints obtained by an indi- Such study shall take into account, but not facilities. be limited to— (f) CONTROL OF INFORMATION.—Notwith- vidual or entity as required in paragraph (1) the events of September 11, 2001; standing any other provision of law, the (1)’’; (2) an assessment of physical, cyber, bio- Commission may undertake any rulemaking (3) by striking ‘‘The costs of any identifica- chemical, and other terrorist threats; under this subtitle in a manner that will tion and records check conducted pursuant (3) the potential for attack on facilities by fully protect safeguards and classified na- to the preceding sentence shall be paid by multiple coordinated teams of a large num- tional security information. the licensee or applicant.’’ and inserting the ber of individuals; (g) FEDERAL SECURITY COORDINATORS.— following: (4) the potential for assistance in an attack (1) REGIONAL OFFICES.—Not later than 18 ‘‘(3) COSTS.—The costs of any identifica- from several persons employed at the facil- months after the date of enactment of this tion and records check conducted pursuant ity; Act, the Commission shall assign a Federal to paragraph (1) shall be paid by the indi- (5) the potential for suicide attacks; security coordinator, under the employment vidual or entity required to conduct the (6) the potential for water-based and air- of the Commission, to each region of the fingerprinting under paragraph (1)(A).’’; and based threats; Commission. (4) by striking ‘‘Notwithstanding any other (7) the potential use of explosive devices of (2) RESPONSIBILITIES.—The Federal secu- provision of law, the Attorney General may considerable size and other modern weap- rity coordinator shall be responsible for— provide all the results of the search to the onry; (A) communicating with the Commission Commission, and, in accordance with regula- (8) the potential for attacks by persons and other Federal, State, and local authori- tions prescribed under this section, the Com- with a sophisticated knowledge of facility ties concerning threats, including threats mission may provide such results to licensee operations; against such classes of facilities as the Com- or applicant submitting such fingerprints.’’ (9) the potential for fires, especially fires mission determines to be appropriate; and inserting the following: of long duration; (B) ensuring that such classes of facilities ‘‘(4) PROVISION TO INDIVIDUAL OR ENTITY RE- (10) the potential for attacks on spent fuel as the Commission determines to be appro- QUIRED TO CONDUCT FINGERPRINTING.—Not- shipments by multiple coordinated teams of priate maintain security consistent with the withstanding any other provision of law, the a large number of individuals; security plan in accordance with the appro- Attorney General may provide all the results (11) the adequacy of planning to protect priate threat level; and of the search to the Commission, and, in ac- the public health and safety at and around (C) assisting in the coordination of secu- cordance with regulations prescribed under nuclear facilities, as appropriate, in the rity measures among the private security this section, the Commission may provide event of a terrorist attack against a nuclear forces at such classes of facilities as the such results to the individual or entity re- facility; and Commission determines to be appropriate quired to conduct the fingerprinting under (12) the potential for theft and diversion of and Federal, State, and local authorities, as paragraph (1)(A).’’. nuclear materials from such facilities. appropriate. (b) ADMINISTRATION.—Subsection c. of sec- (b) SUMMARY AND CLASSIFICATION RE- (h) TRAINING PROGRAM.—The President tion 149 of the Atomic Energy Act of 1954 (42 PORT.—Not later than 180 days after the date shall establish a program to provide tech- U.S.C. 2169(c)) is amended— of the enactment of this Act, the President nical assistance and training to Federal (1) by striking ‘‘, subject to public notice shall transmit to Congress and the Commis- agencies, the National Guard, and State and and comment, regulations—’’ and inserting sion a report— local law enforcement and emergency re- ‘‘requirements—’’; and (1) summarizing the types of threats iden- sponse agencies in responding to threats (2) by striking, in paragraph (2)(B), tified under subsection (a); and against a designated nuclear facility. ‘‘unescorted access to the facility of a li- (2) classifying each type of threat identi- SEC. 662. FINGERPRINTING FOR CRIMINAL HIS- censee or applicant’’ and inserting fied under subsection (a), in accordance with TORY RECORD CHECKS. ‘‘unescorted access to a utilization facility, existing laws and regulations, as either— (a) IN GENERAL.—Subsection a. of section radioactive material, or other property de- (A) involving attacks and destructive acts, 149 of the Atomic Energy Act of 1954 (42 scribed in subsection a.(1)(B)’’. including sabotage, directed against the fa- U.S.C. 2169(a)) is amended— (c) BIOMETRIC METHODS.—Subsection d. of cility by an enemy of the United States, (1) by striking ‘‘a. The Nuclear’’ and all section 149 of the Atomic Energy Act of 1954 whether a foreign government or other per- that follows through ‘‘section 147.’’ and in- (42 U.S.C. 2169(d)) is redesignated as sub- son, or otherwise falling under the respon- serting the following: section e., and the following is inserted after sibilities of the Federal Government; or ‘‘a. IN GENERAL.— subsection c.:

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‘‘d. USE OF OTHER BIOMETRIC METHODS.— SEC. 664. UNAUTHORIZED INTRODUCTION OF level radioactive waste (as defined in section The Commission may satisfy any require- DANGEROUS WEAPONS. 2(16) of the Nuclear Waste Policy Act of 1982 ment for a person to conduct fingerprinting Section 229 a. of the Atomic Energy Act of (42 U.S.C. 10101(16))).’’. under this section using any other biometric 1954 (42 U.S.C. 2278a(a)) is amended in the (b) REGULATIONS.—Not later than 1 year method for identification approved for use by first sentence by inserting ‘‘or subject to the after the date of the enactment of this Act, the Attorney General, after the Commission licensing authority of the Commission or to and from time to time thereafter as it con- has approved the alternative method by certification by the Commission under this siders necessary, the Nuclear Regulatory rule.’’. Act or any other Act’’ before the period at Commission shall issue regulations identi- SEC. 663. USE OF FIREARMS BY SECURITY PER- the end. fying radioactive materials or classes of in- SONNEL OF LICENSEES AND CER- SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR dividuals that, consistent with the protec- TIFICATE HOLDERS OF THE COM- FUEL. MISSION. tion of public health and safety and the com- (a) IN GENERAL.—Section 236 a. of the Section 161 of the Atomic Energy Act of mon defense and security, are appropriate Atomic Energy Act of 1954 (42 U.S.C. 2284(a)) 1954 (42 U.S.C. 2201) is amended by adding at exceptions to the requirements of section the end the following subsection: is amended— 170C of the Atomic Energy Act of 1954, as ‘‘(z)(1) notwithstanding section 922(o), (v), (1) in paragraph (2), by striking ‘‘storage added by subsection (a) of this section. and (w) of title 18, United States Code, or facility’’ and inserting ‘‘storage, treatment, (c) EFFECTIVE DATE.—The amendment any similar provision of any State law or or disposal facility’’; made by subsection (a) shall take effect upon any similar rule or regulation of a State or (2) in paragraph (3)— the issuance of regulations under subsection any political subdivision of a State prohib- (A) by striking ‘‘such a utilization facil- (b), except that the background check re- iting the transfer or possession of a handgun, ity’’ and inserting ‘‘a utilization facility li- quirement shall become effective on a date a rifle or shotgun, a short-barreled shotgun, censed under this Act’’; and established by the Commission. (B) by striking ‘‘or’’ at the end; a short-barreled rifle, a machinegun, a semi- (d) EFFECT ON OTHER LAW.—Nothing in this automatic assault weapon, ammunition for (3) in paragraph (4)— section or the amendment made by this sec- the foregoing, or a large capacity ammuni- (A) by striking ‘‘facility licensed’’ and in- tion shall waive, modify, or affect the appli- tion feeding device, authorize security per- serting ‘‘, uranium conversion, or nuclear cation of chapter 51 of title 49, United States sonnel of licensees and certificate holders of fuel fabrication facility licensed or cer- Code, part A of subtitle V of title 49, United the Commission (including employees of con- tified’’; and States Code, part B of subtitle VI of title 49, tractors of licensees and certificate holders) (B) by striking the comma at the end and United States Code, and title 23, United to receive, possess, transport, import, and inserting a semicolon; and States Code. (4) by inserting after paragraph (4) the fol- use 1 or more of those weapons, ammunition, (e) TABLE OF SECTIONS AMENDMENT.—The lowing: or devices, if the Commission determines table of sections for chapter 14 of the Atomic ‘‘(5) any production, utilization, waste that— Energy Act of 1954 is amended by adding at storage, waste treatment, waste disposal, ‘‘(A) such authorization is necessary to the the end the following new item: discharge of the security personnel’s official uranium enrichment, uranium conversion, or duties; and nuclear fuel fabrication facility subject to li- ‘‘Sec. 170C. Secure transfer of nuclear mate- ‘‘(B) the security personnel— censing or certification under this Act dur- rials.’’. ‘‘(i) are not otherwise prohibited from pos- ing construction of the facility, if the de- SEC. 667. DEPARTMENT OF HOMELAND SECURITY sessing or receiving a firearm under Federal struction or damage caused or attempted to CONSULTATION. or State laws pertaining to possession of be caused could adversely affect public Before issuing a license for a utilization fa- firearms by certain categories of persons; health and safety during the operation of the cility, the Nuclear Regulatory Commission ‘‘(ii) have successfully completed require- facility; shall consult with the Department of Home- ments established through guidelines imple- ‘‘(6) any primary facility or backup facility land Security concerning the potential menting this subsection for training in use from which a radiological emergency pre- vulnerabilities of the location of the proof firearms and tactical maneuvers; paredness alert and warning system is acti- posed facility to terrorist attack. vated; or ‘‘(iii) are engaged in the protection of— SEC. 668. AUTHORIZATION OF APPROPRIATIONS. ‘‘(I) facilities owned or operated by a Com- ‘‘(7) any radioactive material or other (a) IN GENERAL.—There are authorized to mission licensee or certificate holder that property subject to regulation by the Nu- be appropriated such sums as are necessary are designated by the Commission; or clear Regulatory Commission that, before to carry out this subtitle and the amend- ‘‘(II) radioactive material or other prop- the date of the offense, the Nuclear Regu- ments made by this subtitle. erty owned or possessed by a person that is latory Commission determines, by order or a licensee or certificate holder of the Com- regulation published in the Federal Register, (b) AGGREGATE AMOUNT OF CHARGES.—Sec- mission, or that is being transported to or is of significance to the public health and tion 6101(c)(2)(A) of the Omnibus Budget Rec- from a facility owned or operated by such a safety or to common defense and security,’’. onciliation Act of 1990 (42 U.S.C. licensee or certificate holder, and that has (b) PENALTIES.—Section 236 of the Atomic 2214(c)(2)(A)) is amended— been determined by the Commission to be of Energy Act of 1954 (42 U.S.C. 2284) is amended (1) in clause (i), by striking ‘‘and’’ at the significance to the common defense and se- by striking ‘‘$10,000 or imprisoned for not end; curity or public health and safety; and more than 20 years, or both, and, if death re- (2) in clause (ii), by striking the period at ‘‘(iv) are discharging their official duties. sults to any person, shall be imprisoned for the end and inserting ‘‘; and’’ and ‘‘(2) Such receipt, possession, transpor- any term of years or for life’’ both places it (3) by adding at the end the following: tation, importation, or use shall be subject appears and inserting ‘‘$1,000,000 or impris- ‘‘(iii) amounts appropriated to the Com- to— oned for up to life without parole’’. mission for homeland security activities of ‘‘(A) chapter 44 of title 18, United States SEC. 666. SECURE TRANSFER OF NUCLEAR MATE- the Commission for the fiscal year, except Code, except for section 922(a)(4), (o), (v), and RIALS. for the costs of fingerprinting and back- (w); (a) AMENDMENT.—Chapter 14 of the Atomic ground checks required by section 149 of the ‘‘(B) chapter 53 of title 26, United States Energy Act of 1954 (42 U.S.C. 2201–2210b) is Atomic Energy Act of 1954 (42 U.S.C. 2169) Code, except for section 5844; and amended by adding at the end the following and the costs of conducting security inspec- ‘‘(C) a background check by the Attorney new section: tions.’’. General, based on fingerprints and including ‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MA- TITLE VII—VEHICLES AND FUELS TERIALS. a check of the system established under sec- Subtitle A—Existing Programs tion 103(b) of the Brady Handgun Violence ‘‘a. The Nuclear Regulatory Commission Prevention Act (18 U.S.C. 922 note) to deter- shall establish a system to ensure that mate- SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL- mine whether the person applying for the au- rials described in subsection b., when trans- FUELED VEHICLES. thority is prohibited from possessing or referred or received in the United States by Section 400AA(a)(3)(E) of the Energy Pol- ceiving a firearm under Federal or State law. any party pursuant to an import or export li- icy and Conservation Act (42 U.S.C. ‘‘(3) This subsection shall become effective cense issued pursuant to this Act, are accom- 6374(a)(3)(E)) is amended to read as follows: upon the issuance of guidelines by the Com- panied by a manifest describing the type and ‘‘(E)(i) Dual fueled vehicles acquired pursu- mission, with the approval of the Attorney amount of materials being transferred or re- ant to this section shall be operated on alter- General, to govern the implementation of ceived. Each individual receiving or accom- native fuels unless the Secretary determines this subsection. panying the transfer of such materials shall that an agency qualifies for a waiver of such ‘‘(4) In this subsection, the terms ‘‘hand- be subject to a security background check requirement for vehicles operated by the gun’’, ‘‘rifle’’, ‘‘shotgun’’, ‘‘firearm’’, ‘‘am- conducted by appropriate Federal entities. agency in a particular geographic area in munition’’, ‘‘machinegun’’, ‘‘semiautomatic ‘‘b. Except as otherwise provided by the which— assault weapon’’, ‘‘large capacity ammuni- Commission by regulation, the materials re- ‘‘(I) the alternative fuel otherwise required tion feeding device’’, ‘‘short-barreled shot- ferred to in subsection a. are byproduct ma- to be used in the vehicle is not reasonably gun’’, and ‘‘short-barreled rifle’’ shall have terials, source materials, special nuclear ma- available to retail purchasers of the fuel, as the meanings given those terms in section terials, high-level radioactive waste, spent certified to the Secretary by the head of the 921(a) of title 18, United States Code.’’. nuclear fuel, transuranic waste, and low- agency; or

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‘‘(II) the cost of the alternative fuel other- (1) IN GENERAL.—Title V of the Energy Pol- ‘‘(1) DEFINITION OF QUALIFYING INFRASTRUC- wise required to be used in the vehicle is un- icy Act of 1992 (42 U.S.C. 13251 et seq.) is TURE.—In this subsection, the term ‘quali- reasonably more expensive compared to gas- amended— fying infrastructure’ means— oline, as certified to the Secretary by the (A) by redesignating section 514 as section ‘‘(A) equipment required to refuel or re- head of the agency. 515; and charge alternative fueled vehicles; ‘‘(ii) The Secretary shall monitor compli- (B) by inserting after section 513 the fol- ‘‘(B) facilities or equipment required to ance with this subparagraph by all such lowing: maintain, repair, or operate alternative fleets and shall report annually to Congress ‘‘SEC. 514. ALTERNATIVE COMPLIANCE. fueled vehicles; and on the extent to which the requirements of ‘‘(a) APPLICATION FOR WAIVER.—Any cov- ‘‘(C) such other activities as the Secretary this subparagraph are being achieved. The ered person subject to section 501 and any considers to constitute an appropriate ex- report shall include information on annual State subject to section 507(o) may petition penditure in support of the operation, main- reductions achieved from the use of petro- the Secretary for a waiver of the applicable tenance, or further widespread adoption of or leum-based fuels and the problems, if any, requirements of section 501 or 507(o). utilization of alternative fueled vehicles. encountered in acquiring alternative fuels.’’. ‘‘(b) GRANT OF WAIVER.—The Secretary ‘‘(2) ISSUANCE OF CREDITS.—The Secretary SEC. 702. NEIGHBORHOOD ELECTRIC VEHICLES. may grant a waiver of the requirements of shall issue a credit to a fleet or covered per- (a) AMENDMENTS.—Section 301 of the En- section 501 or 507(o) upon a showing that the son under this title for investment in quali- ergy Policy Act of 1992 (42 U.S.C. 13211) is fleet owned, operated, leased, or otherwise fying infrastructure if the qualifying infra- amended— controlled by the State or covered person— structure is open to the general public dur- (1) in paragraph (3), by striking ‘‘or a dual ‘‘(1) will achieve a reduction in its annual ing regular business hours. fueled vehicle’’ and inserting ‘‘, a dual fueled consumption of petroleum fuels equal to the ‘‘(3) AMOUNT.—For the purpose of credits vehicle, or a neighborhood electric vehicle’’; reduction in consumption of petroleum that under this subsection— (2) in paragraph (13), by striking ‘‘and’’ at would result from 100 percent compliance ‘‘(A) 1 credit shall be equal to a minimum the end; with fuel use requirements in section 501, or, investment of $25,000 in cash or equivalent (3) in paragraph (14), by striking the period for entities covered under section 507(o), a expenditure, as determined by the Secretary; at the end and inserting ‘‘; and’’; and reduction equal to the covered State entity’s and (4) by adding at the end the following: consumption of alternative fuels if all its al- ‘‘(B) except in the case of a Federal or ‘‘(15) the term ‘neighborhood electric vehi- ternative fuel vehicles given credit under State fleet, no part of the investment may be cle’ means a motor vehicle that— section 508 were to use alternative fuel 100 provided by Federal or State funds. ‘‘(A) meets the definition of a low-speed ve- percent of the time; and ‘‘(4) USE OF CREDITS.—At the request of a hicle (as defined in part 571 of title 49, Code ‘‘(2) is in compliance with all applicable ve- fleet or covered person allocated a credit of Federal Regulations); hicle emission standards established by the under this subsection, the Secretary shall, ‘‘(B) meets the definition of a zero-emis- Administrator under the Clean Air Act (42 for the year in which the investment is sion vehicle (as defined in section 86.1702–99 U.S.C. 7401 et seq.). made, treat that credit as the acquisition of of title 40, Code of Federal Regulations); ‘‘(c) REVOCATION OF WAIVER.—The Sec- 1 alternative fueled vehicle that the fleet or ‘‘(C) meets the requirements of Federal retary shall revoke any waiver granted covered person is required to acquire under Motor Vehicle Safety Standard No. 500; and under this section if the State or covered this title. ‘‘(D) has a maximum speed of not greater person fails to comply with subsection (b).’’. ‘‘(h) DEFINITION OF MAXIMUM AVAILABLE than 25 miles per hour.’’. (2) TABLE OF CONTENTS AMENDMENT.—The POWER.—In this section, the term ‘maximum (b) CREDITS.—Notwithstanding section 508 table of contents of the Energy Policy Act of available power’ means the quotient ob- of the Energy Policy Act of 1992 (42 U.S.C. 1992 (42 U.S.C. prec. 13201) is amended by tained by dividing— 13258) or any other provision of law, a neigh- ‘‘(1) the maximum power available from borhood electric vehicle shall not be allo- striking the item relating to section 514 and the energy storage device of a hybrid vehicle, cated credit as more than 1 vehicle for pur- inserting the following: during a standard 10-second pulse power or poses of determining compliance with any ‘‘Sec. 514. Alternative compliance. equivalent test; by requirement under title III or title V of such ‘‘Sec. 515. Authorization of appropriations.’’. ‘‘(2) the sum of— Act. (b) CREDITS.—Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) (as amend- ‘‘(A) the maximum power described in sub- SEC. 703. CREDITS FOR MEDIUM AND HEAVY paragraph (A); and DUTY DEDICATED VEHICLES. ed by section 703) is amended— Section 508 of the Energy Policy Act of (1) by redesignating subsections (b) ‘‘(B) the net power of the internal combus- 1992 (42 U.S.C. 13258) is amended by adding at through (e) as subsections (c) through (f), re- tion or heat engine, as determined in accord- the end the following: spectively; ance with standards established by the Soci- ‘‘(e) CREDIT FOR PURCHASE OF MEDIUM AND (2) by striking subsection (a) and inserting ety of Automobile Engineers.’’. HEAVY DUTY DEDICATED VEHICLES.— the following: (c) LEASE CONDENSATE FUELS.—Section 301 ‘‘(1) DEFINITIONS.—In this subsection: ‘‘(a) IN GENERAL.—The Secretary shall al- of the Energy Policy Act of 1992 (42 U.S.C. ‘‘(A) HEAVY DUTY DEDICATED VEHICLE.—The locate a credit to a fleet or covered person 13211) (as amended by section 702) is amend- term ‘heavy duty dedicated vehicle’ means a that is required to acquire an alternative ed— dedicated vehicle that has a gross vehicle fueled vehicle under this title, if that fleet or (1) in paragraph (2), by inserting ‘‘mixtures weight rating of more than 14,000 pounds. person acquires an alternative fueled vehi- containing 50 percent or more by volume of ‘‘(B) MEDIUM DUTY DEDICATED VEHICLE.— cle— lease condensate or fuels extracted from The term ‘medium duty dedicated vehicle’ ‘‘(1) in excess of the number that fleet or lease condensate;’’ after ‘‘liquefied petro- means a dedicated vehicle that has a gross person is required to acquire under this title; leum gas;’’; vehicle weight rating of more than 8,500 ‘‘(2) before the date on which that fleet or (2) in paragraph (14)— pounds but not more than 14,000 pounds. person is required to acquire an alternative (A) by inserting ‘‘mixtures containing 50 ‘‘(2) CREDITS FOR MEDIUM DUTY VEHICLES.— fueled vehicle under this title; or percent or more by volume of lease conden- The Secretary shall issue 2 full credits to a ‘‘(3) that is eligible to receive credit under sate or fuels extracted from lease conden- fleet or covered person under this title, if the subsection (b). sate,’’ after ‘‘liquefied petroleum gas,’’; and fleet or covered person acquires a medium ‘‘(b) MAXIMUM AVAILABLE POWER.—The (B) by striking ‘‘and’’ at the end; duty dedicated vehicle. Secretary shall allocate credit to a fleet (3) in paragraph (15), by striking the period ‘‘(3) CREDITS FOR HEAVY DUTY VEHICLES.— under subsection (a)(3) for the acquisition by at the end and inserting ‘‘; and’’; and The Secretary shall issue 3 full credits to a the fleet of a hybrid vehicle as follows: (4) by adding at the end the following: fleet or covered person under this title, if the ‘‘(1) For a hybrid vehicle with at least 4 ‘‘(16) the term ‘lease condensate’ means a fleet or covered person acquires a heavy duty percent but less than 10 percent maximum mixture, primarily of pentanes and heavier dedicated vehicle. available power, the Secretary shall allocate hydrocarbons, that is recovered as a liquid ‘‘(4) USE OF CREDITS.—At the request of a 25 percent of 1 credit. from natural gas in lease separation facili- fleet or covered person allocated a credit ‘‘(2) For a hybrid vehicle with at least 10 ties.’’. under this subsection, the Secretary shall, percent but less than 20 percent maximum (d) LEASE CONDENSATE USE CREDITS.— for the year in which the acquisition of the available power, the Secretary shall allocate (1) IN GENERAL.—Title III of the Energy dedicated vehicle is made, treat that credit 50 percent of 1 credit. Policy Act of 1992 (42 U.S.C. 13211 et seq.) is as the acquisition of 1 alternative fueled ve- ‘‘(3) For a hybrid vehicle with at least 20 amended by adding at the end the following: hicle that the fleet or covered person is re- percent but less than 30 percent maximum ‘‘SEC. 313. LEASE CONDENSATE USE CREDITS. quired to acquire under this title.’’. available power, the Secretary shall allocate ‘‘(a) IN GENERAL.—Subject to subsection SEC. 704. INCREMENTAL COST ALLOCATION. 75 percent of 1 credit. (d), the Secretary shall allocate 1 credit Section 303(c) of the Energy Policy Act of ‘‘(4) For a hybrid vehicle with 30 percent or under this section to a fleet or covered per- 1992 (42 U.S.C. 13212(c)) is amended by strik- more maximum available power, the Sec- son for each qualifying volume of the lease ing ‘‘may’’ and inserting ‘‘shall’’. retary shall allocate 1 credit.’’; and condensate component of fuel containing at SEC. 705. ALTERNATIVE COMPLIANCE AND FLEXI- (3) by adding at the end the following: least 50 percent lease condensate, or fuels ex- BILITY. ‘‘(g) CREDIT FOR INVESTMENT IN ALTER- tracted from lease condensate, after the date (a) ALTERNATIVE COMPLIANCE.— NATIVE FUEL INFRASTRUCTURE.— of enactment of this section for use by the

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fleet or covered person in vehicles owned or (E) any other factors or expenses the Sec- (5) PILOT PROGRAM.—The term ‘‘pilot pro- operated by the fleet or covered person that retary determines to be necessary to compile gram’’ means the competitive grant program weigh more than 8,500 pounds gross vehicle reliable estimates of the overall costs and established under section 722. weight rating. benefits of complying with programs under (6) SECRETARY.—The term ‘‘Secretary’’ ‘‘(b) REQUIREMENTS.—A credit allocated those titles for fleets, covered persons, and means the Secretary of Energy. under this section— the national economy; (7) ULTRA-LOW SULFUR DIESEL VEHICLE.— ‘‘(1) shall be subject to the same excep- (5) the existence of obstacles preventing The term ‘‘ultra-low sulfur diesel vehicle’’ tions, authority, documentation, and use of compliance with vehicle acquisition require- means a vehicle manufactured in any of credits that are specified for qualifying vol- ments and increased use of alternative fuel model years 2003 through 2006 powered by a umes of biodiesel in section 312; and in alternative fueled vehicles acquired by heavy-duty diesel engine that— ‘‘(2) shall not be considered a credit under fleets or covered persons; and (A) is fueled by diesel fuel that contains section 508. (6) the projected impact of amendments to sulfur at not more than 15 parts per million; ‘‘(c) REGULATION.— the Energy Policy Act of 1992 made by this and ‘‘(1) IN GENERAL.—Subject to subsection title. (B) emits not more than the lesser of— (d), not later than January 1, 2004, after the (c) REPORT.—Upon completion of the study (i) for vehicles manufactured in— collection of appropriate information and under this section, the Secretary shall sub- (I) model year 2003, 3.0 grams per brake data that consider usage options, uses in mit to Congress a report that describes the horsepower-hour of oxides of nitrogen and .01 other industries, products, or processes, po- results of the study and includes any rec- grams per brake horsepower-hour of particu- tential volume capacities, costs, air emis- ommendations of the Secretary for legisla- late matter; and sions, and fuel efficiencies, the Secretary tive or administrative changes concerning (II) model years 2004 through 2006, 2.5 shall issue a regulation establishing require- the alternative fueled vehicle requirements grams per brake horsepower-hour of non- ments and procedures for the implementa- under titles III, IV and V of the Energy Pol- methane hydrocarbons and oxides of nitro- tion of this section. icy Act of 1992 (42 U.S.C. 13211 et seq.). gen and .01 grams per brake horsepower-hour ‘‘(2) QUALIFYING VOLUME.—The regulation SEC. 707. REPORT CONCERNING COMPLIANCE of particulate matter; or shall include a determination of an appro- WITH ALTERNATIVE FUELED VEHI- (ii) the quantity of emissions of non- priate qualifying volume for lease conden- CLE PURCHASING REQUIREMENTS. methane hydrocarbons, oxides of nitrogen, sate, except that in no case shall the Sec- Section 310(b)(1) of the Energy Policy Act and particulate matter of the best-per- of 1992 (42 U.S.C. 13218(b)(1)) is amended by retary determine that the qualifying volume forming technology of ultra-low sulfur diesel striking ‘‘1 year after the date of enactment for lease condensate is less than 1,125 gal- vehicles of the same class and application of this subsection’’ and inserting ‘‘February lons. that are commercially available. ‘‘(d) APPLICABILITY.—This section applies 15, 2004’’. SEC. 722. PILOT PROGRAM. unless the Secretary finds that the use of Subtitle B—Hybrid Vehicles, Advanced (a) ESTABLISHMENT.—The Secretary, in lease condensate as an alternative fuel would Vehicles, and Fuel Cell Buses consultation with the Secretary of Transpor- adversely affect public health or safety or PART 1—HYBRID VEHICLES ambient air quality or the environment.’’. tation, shall establish a competitive grant SEC. 711. HYBRID VEHICLES. (2) TABLE OF CONTENTS AMENDMENT.—The pilot program, to be administered through The Secretary of Energy shall accelerate the Clean Cities Program of the Department table of contents of the Energy Policy Act of efforts directed toward the improvement of 1992 (42 U.S.C. prec. 13201) is amended by add- of Energy, to provide not more than 15 geo- batteries and other rechargeable energy stor- graphically dispersed project grants to State ing at the end of the items relating to title age systems, power electronics, hybrid sys- III the following: governments, local governments, or metro- tems integration, and other technologies for politan transportation authorities to carry ‘‘Sec. 313. Lease condensate use credits.’’. use in hybrid vehicles. out a project or projects for the purposes de- (e) EMERGENCY EXEMPTION.—Section 301 of PART 2—ADVANCED VEHICLES the Energy Policy Act of 1992 (42 U.S.C. scribed in subsection (b). 13211) (as amended by section 702 and this SEC. 721. DEFINITIONS. (b) GRANT PURPOSES.—A grant under this section) is amended in paragraph (9)(E) by In this part: section may be used for the following pur- inserting before the semicolon at the end ‘‘, (1) ALTERNATIVE FUELED VEHICLE.— poses: including vehicles directly used in the emer- (A) IN GENERAL.—The term ‘‘alternative (1) The acquisition of alternative fueled ve- gency repair of transmission lines and in the fueled vehicle’’ means a vehicle propelled hicles or fuel cell vehicles, including— restoration of electricity service following solely on an alternative fuel (as defined in (A) passenger vehicles (including neighbor- power outages, as determined by the Sec- section 301 of the Energy Policy Act of 1992 hood electric vehicles); and retary’’. (42 U.S.C. 13211)). (B) motorized 2-wheel bicycles, scooters, or SEC. 706. REVIEW OF ENERGY POLICY ACT OF (B) EXCLUSION.—The term ‘‘alternative other vehicles for use by law enforcement 1992 PROGRAMS. fueled vehicle’’ does not include a vehicle personnel or other State or local government (a) IN GENERAL.—Not later than 180 days that the Secretary determines, by regula- or metropolitan transportation authority after the date of enactment of this section, tion, does not yield substantial environ- employees. the Secretary of Energy shall complete a mental benefits over a vehicle operating (2) The acquisition of alternative fueled ve- study to determine the effect that titles III, solely on gasoline or diesel derived from fos- hicles, hybrid vehicles, or fuel cell vehicles, IV, and V of the Energy Policy Act of 1992 (42 sil fuels. including— U.S.C. 13211 et seq.) have had on— (2) FUEL CELL VEHICLE.—The term ‘‘fuel (A) buses used for public transportation or (1) the development of alternative fueled cell vehicle’’ means a vehicle propelled by an transportation to and from schools; vehicle technology; electric motor powered by a fuel cell system (B) delivery vehicles for goods or services; (2) the availability of that technology in that converts chemical energy into elec- and the market; and tricity by combining oxygen (from air) with (C) ground support vehicles at public air- (3) the cost of alternative fueled vehicles. hydrogen fuel that is stored on the vehicle or ports (including vehicles to carry baggage or (b) TOPICS.—As part of the study under is produced onboard by reformation of a hy- push or pull airplanes toward or away from subsection (a), the Secretary shall specifi- drocarbon fuel. Such fuel cell system may or terminal gates). cally identify— may not include the use of auxiliary energy (3) The acquisition of ultra-low sulfur die- (1) the number of alternative fueled vehi- storage systems to enhance vehicle perform- sel vehicles. cles acquired by fleets or covered persons re- ance. (4) Installation or acquisition of infrastruc- quired to acquire alternative fueled vehicles; (3) HYBRID VEHICLE.—The term ‘‘hybrid ve- ture necessary to directly support an alter- (2) the quantity, by type, of alternative hicle’’ means a medium or heavy duty vehi- native fueled vehicle, fuel cell vehicle, or hy- fuel actually used in alternative fueled vehicle propelled by an internal combustion en- brid vehicle project funded by the grant, in- cles acquired by fleets or covered persons; gine or heat engine using any combustible cluding fueling and other support equipment. (3) the quantity of petroleum displaced by fuel and an onboard rechargeable energy (5) Operation and maintenance of vehicles, the use of alternative fuels in alternative storage device. infrastructure, and equipment acquired as fueled vehicles acquired by fleets or covered (4) NEIGHBORHOOD ELECTRIC VEHICLE.—The part of a project funded by the grant. persons; term ‘‘neighborhood electric vehicle’’ means (c) APPLICATIONS.— (4) the direct and indirect costs of compli- a motor vehicle that— (1) REQUIREMENTS.— ance with requirements under titles III, IV, (A) meets the definition of a low-speed ve- (A) IN GENERAL.—The Secretary shall issue and V of the Energy Policy Act of 1992 (42 hicle (as defined in part 571 of title 49, Code requirements for applying for grants under U.S.C. 13211 et seq.), including— of Federal Regulations); the pilot program. (A) vehicle acquisition requirements im- (B) meets the definition of a zero-emission (B) MINIMUM REQUIREMENTS.—At a min- posed on fleets or covered persons; vehicle (as defined in section 86.1702–99 of imum, the Secretary shall require that an (B) administrative and recordkeeping ex- title 40, Code of Federal Regulations); application for a grant— penses; (C) meets the requirements of Federal (i) be submitted by the head of a State or (C) fuel and fuel infrastructure costs; Motor Vehicle Safety Standard No. 500; and local government or a metropolitan trans- (D) associated training and employee ex- (D) has a maximum speed of not greater portation authority, or any combination penses; and than 25 miles per hour. thereof, and a registered participant in the

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00109 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.091 S28PT1 S4554 CONGRESSIONAL RECORD — SENATE April 28, 2004 Clean Cities Program of the Department of grants are due, the Secretary shall select by verified or certified by the Administrator or Energy; and competitive, peer reviewed proposal, all ap- the California Air Resources Board as an ef- (ii) include— plications for projects to be awarded a grant fective emission reduction technology when (I) a description of the project proposed in under the pilot program. installed on an existing school bus. the application, including how the project (g) LIMIT ON FUNDING.—The Secretary shall (5) IDLING.—The term ‘‘idling’’ means oper- meets the requirements of this part; provide not less than 20 nor more than 25 ating an engine while remaining stationary (II) an estimate of the ridership or degree percent of the grant funding made available for more than approximately 15 minutes, ex- of use of the project; under this section for the acquisition of cept that the term does not apply to routine (III) an estimate of the air pollution emis- ultra-low sulfur diesel vehicles. stoppages associated with traffic movement sions reduced and fossil fuel displaced as a SEC. 723. REPORTS TO CONGRESS. or congestion. result of the project, and a plan to collect (a) INITIAL REPORT.—Not later than 60 days (6) SECRETARY.—The term ‘‘Secretary’’ and disseminate environmental data, related after the date on which grants are awarded means the Secretary of Energy. to the project to be funded under the grant, under this part, the Secretary shall submit (7) ULTRA-LOW SULFUR DIESEL FUEL.—The over the life of the project; to Congress a report containing— term ‘‘ultra-low sulfur diesel fuel’’ means (IV) a description of how the project will (1) an identification of the grant recipients diesel fuel that contains sulfur at not more be sustainable without Federal assistance and a description of the projects to be fund- than 15 parts per million. after the completion of the term of the ed; (8) ULTRA-LOW SULFUR DIESEL FUEL SCHOOL grant; (2) an identification of other applicants BUS.—The term ‘‘ultra-low sulfur diesel fuel (V) a complete description of the costs of that submitted applications for the pilot pro- school bus’’ means a school bus that meets the project, including acquisition, construc- gram; and all of the requirements of this subtitle and is tion, operation, and maintenance costs over (3) a description of the mechanisms used by operated solely on ultra-low sulfur diesel the expected life of the project; the Secretary to ensure that the information fuel. (VI) a description of which costs of the and knowledge gained by participants in the SEC. 742. PROGRAM FOR REPLACEMENT OF CER- project will be supported by Federal assist- pilot program are transferred among the TAIN SCHOOL BUSES WITH CLEAN ance under this part; and pilot program participants and to other in- SCHOOL BUSES. (VII) documentation to the satisfaction of terested parties, including other applicants (a) ESTABLISHMENT.—The Administrator, the Secretary that diesel fuel containing sul- that submitted applications. in consultation with the Secretary and other fur at not more than 15 parts per million is appropriate Federal departments and agen- (b) EVALUATION.—Not later than 3 years available for carrying out the project, and a after the date of enactment of this Act, and cies, shall establish a program for awarding commitment by the applicant to use such grants on a competitive basis to eligible en- annually thereafter until the pilot program fuel in carrying out the project. tities for the replacement of existing school ends, the Secretary shall submit to Congress (2) PARTNERS.—An applicant under para- buses manufactured before model year 1991 a report containing an evaluation of the ef- graph (1) may carry out a project under the with alternative fuel school buses and ultra- fectiveness of the pilot program, including— pilot program in partnership with public and low sulfur diesel fuel school buses. (1) an assessment of the benefits to the en- private entities. (b) REQUIREMENTS.— vironment derived from the projects in- (d) SELECTION CRITERIA.—In evaluating ap- (1) IN GENERAL.—Not later than 90 days plications under the pilot program, the Sec- cluded in the pilot program; and after the date of enactment of this Act, the retary shall— (2) an estimate of the potential benefits to Administrator shall establish and publish in (1) consider each applicant’s previous expe- the environment to be derived from wide- the Federal Register grant requirements on rience with similar projects; and spread application of alternative fueled vehi- eligibility for assistance, and on implemen- (2) give priority consideration to applica- cles and ultra-low sulfur diesel vehicles. tation of the program established under sub- tions that— SEC. 724. AUTHORIZATION OF APPROPRIATIONS. section (a), including instructions for the (A) are most likely to maximize protection There are authorized to be appropriated to submission of grant applications and certifi- of the environment; the Secretary to carry out this part cation requirements to ensure compliance (B) demonstrate the greatest commitment $200,000,000, to remain available until ex- with this subtitle. on the part of the applicant to ensure fund- pended. (2) APPLICATION DEADLINES.—The require- ing for the proposed project and the greatest PART 3—FUEL CELL BUSES ments established under paragraph (1) shall likelihood that the project will be main- SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRA- require submission of grant applications not tained or expanded after Federal assistance TION. later than— under this part is completed; and (a) IN GENERAL.—The Secretary of Energy, (A) in the case of the first year of program (C) exceed the minimum requirements of in consultation with the Secretary of Trans- implementation, the date that is 180 days subsection (c)(1)(B)(ii). portation, shall establish a transit bus dem- after the publication of the requirements in (e) PILOT PROJECT REQUIREMENTS.— onstration program to make competitive, the Federal Register; and (1) MAXIMUM AMOUNT.—The Secretary shall merit-based awards for 5-year projects to (B) in the case of each subsequent year, not provide more than $20,000,000 in Federal demonstrate not more than 25 fuel cell tran- June 1 of the year. assistance under the pilot program to any sit buses (and necessary infrastructure) in 5 (c) ELIGIBLE RECIPIENTS.—A grant shall be applicant. geographically dispersed localities. awarded under this section only— (2) COST SHARING.—The Secretary shall not (1) to 1 or more local or State govern- (b) PREFERENCE.—In selecting projects provide more than 50 percent of the cost, in- under this section, the Secretary of Energy mental entities responsible for providing curred during the period of the grant, of any shall give preference to projects that are school bus service to 1 or more public school project under the pilot program. most likely to mitigate congestion and im- systems or responsible for the purchase of (3) MAXIMUM PERIOD OF GRANTS.—The Sec- prove air quality. school buses; retary shall not fund any applicant under (c) AUTHORIZATION OF APPROPRIATIONS.— (2) to 1 or more contracting entities that the pilot program for more than 5 years. There are authorized to be appropriated to provide school bus service to 1 or more pub- (4) DEPLOYMENT AND DISTRIBUTION.—The the Secretary of Energy to carry out this lic school systems, if the grant application is Secretary shall seek to the maximum extent section $10,000,000 for each of fiscal years 2004 submitted jointly with the 1 or more school practicable to ensure a broad geographic dis- through 2008. systems to be served by the buses, except tribution of project sites. that the application may provide that buses Subtitle C—Clean School Buses (5) TRANSFER OF INFORMATION AND KNOWL- purchased using funds awarded shall be EDGE.—The Secretary shall establish mecha- SEC. 741. DEFINITIONS. owned, operated, and maintained exclusively nisms to ensure that the information and In this subtitle: by the 1 or more contracting entities; or knowledge gained by participants in the (1) ADMINISTRATOR.—The term ‘‘Adminis- (3) to a nonprofit school transportation as- pilot program are transferred among the trator’’ means the Administrator of the En- sociation representing private contracting pilot program participants and to other in- vironmental Protection Agency. entities, if the association has notified and terested parties, including other applicants (2) ALTERNATIVE FUEL.—The term ‘‘alter- received approval from the 1 or more school that submitted applications. native fuel’’ means liquefied natural gas, systems to be served by the buses. (f) SCHEDULE.— compressed natural gas, liquefied petroleum (d) AWARD DEADLINES.— (1) PUBLICATION.—Not later than 90 days gas, hydrogen, propane, or methanol or eth- (1) IN GENERAL.—Subject to paragraph (2), after the date of enactment of this Act, the anol at no less than 85 percent by volume. the Administrator shall award a grant made Secretary shall publish in the Federal Reg- (3) ALTERNATIVE FUEL SCHOOL BUS.—The to a qualified applicant for a fiscal year— ister, Commerce Business Daily, and else- term ‘‘alternative fuel school bus’’ means a (A) in the case of the first fiscal year of where as appropriate, a request for applica- school bus that meets all of the require- program implementation, not later than the tions to undertake projects under the pilot ments of this subtitle and is operated solely date that is 90 days after the application program. Applications shall be due not later on an alternative fuel. deadline established under subsection (b)(2); than 180 days after the date of publication of (4) EMISSIONS CONTROL RETROFIT TECH- and the notice. NOLOGY.—The term ‘‘emissions control ret- (B) in the case of each subsequent fiscal (2) SELECTION.—Not later than 180 days rofit technology’’ means a particulate filter year, not later than August 1 of the fiscal after the date by which applications for or other emissions control equipment that is year.

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(2) INSUFFICIENT NUMBER OF QUALIFIED (A) with a gross vehicle weight of greater (D) certified engine emission levels of all GRANT APPLICATIONS.—If the Administrator than 14,000 pounds; buses purchased or retrofitted under the pro- does not receive a sufficient number of quali- (B) that are powered by a heavy duty en- grams under this section and section 743; fied grant applications to meet the require- gine; (E) an evaluation of the in-use emission ments of subsection (i)(1) for a fiscal year, (C) in the case of alternative fuel school level of buses purchased or retrofitted under the Administrator shall award a grant made buses manufactured in model years 2004 the programs under this section and section to a qualified applicant under subsection through 2006, that emit not more than 1.8 743; and (i)(2) not later than September 30 of the fis- grams per brake horsepower-hour of non- (F) any other information the Adminis- cal year. methane hydrocarbons and oxides of nitro- trator considers appropriate. (e) TYPES OF GRANTS.— gen and .01 grams per brake horsepower-hour (l) AUTHORIZATION OF APPROPRIATIONS.— (1) IN GENERAL.—A grant under this section of particulate matter; and There are authorized to be appropriated to shall be used for the replacement of school (D) in the case of ultra-low sulfur diesel the Administrator to carry out this section, buses manufactured before model year 1991 fuel school buses manufactured in model to remain available until expended— with alternative fuel school buses and ultra- years 2004 through 2006, that emit not more (1) $45,000,000 for fiscal year 2005; low sulfur diesel fuel school buses. than 2.5 grams per brake horsepower-hour of (2) $65,000,000 for fiscal year 2006; (2) NO ECONOMIC BENEFIT.—Other than the nonmethane hydrocarbons and oxides of ni- (3) $90,000,000 for fiscal year 2007; and receipt of the grant, a recipient of a grant trogen and .01 grams per brake horsepower- (4) such sums as are necessary for each of under this section may not receive any eco- hour of particulate matter. fiscal years 2008 and 2009. nomic benefit in connection with the receipt (2) LIMITATIONS.—A bus shall not be ac- SEC. 743. DIESEL RETROFIT PROGRAM. of the grant. quired under this section that emits non- (a) ESTABLISHMENT.—The Administrator, (3) PRIORITY OF GRANT APPLICATIONS.—The methane hydrocarbons, oxides of nitrogen, or in consultation with the Secretary, shall es- Administrator shall give priority to appli- particulate matter at a rate greater than the cants that propose to replace school buses tablish a program for awarding grants on a best performing technology of the same class competitive basis to entities for the installa- manufactured before model year 1977. of ultra-low sulfur diesel fuel school buses (f) CONDITIONS OF GRANT.—A grant pro- tion of retrofit technologies for diesel school commercially available at the time the vided under this section shall include the fol- buses. grant is made. lowing conditions: (b) ELIGIBLE RECIPIENTS.—A grant shall be (h) DEPLOYMENT AND DISTRIBUTION.—The (1) SCHOOL BUS FLEET.—All buses acquired awarded under this section only— Administrator shall— (1) to a local or State governmental entity with funds provided under the grant shall be (1) seek, to the maximum extent prac- operated as part of the school bus fleet for responsible for providing school bus service ticable, to achieve nationwide deployment of to 1 or more public school systems; which the grant was made for a minimum of alternative fuel school buses and ultra-low 5 years. (2) to 1 or more contracting entities that sulfur diesel fuel school buses through the (2) USE OF FUNDS.—Funds provided under provide school bus service to 1 or more pub- program under this section; and the grant may only be used— lic school systems, if the grant application is (2) ensure a broad geographic distribution (A) to pay the cost, except as provided in submitted jointly with the 1 or more school of grant awards, with a goal of no State re- paragraph (3), of new alternative fuel school systems that the buses will serve, except ceiving more than 10 percent of the grant buses or ultra-low sulfur diesel fuel school that the application may provide that buses funding made available under this section buses, including State taxes and contract purchased using funds awarded shall be for a fiscal year. fees associated with the acquisition of such owned, operated, and maintained exclusively (i) ALLOCATION OF FUNDS.— buses; and by the 1 or more contracting entities; or (1) IN GENERAL.—Subject to paragraph (2), (3) to a nonprofit school transportation as- (B) to provide— of the amount of grant funding made avail- sociation representing private contracting (i) up to 20 percent of the price of the alter- able to carry out this section for any fiscal entities, if the association has notified and native fuel school buses acquired, for nec- year, the Administrator shall use— received approval from the 1 or more school essary alternative fuel infrastructure if the (A) 70 percent for the acquisition of alter- systems to be served by the buses. infrastructure will only be available to the native fuel school buses or supporting infra- (c) AWARDS.— grant recipient; and structure; and (1) IN GENERAL.—The Administrator shall (ii) up to 25 percent of the price of the al- (B) 30 percent for the acquisition of ultra- seek, to the maximum extent practicable, to ternative fuel school buses acquired, for nec- low sulfur diesel fuel school buses. essary alternative fuel infrastructure if the ensure a broad geographic distribution of (2) INSUFFICIENT NUMBER OF QUALIFIED infrastructure will be available to the grant grants under this section. GRANT APPLICATIONS.—After the first fiscal (2) PREFERENCES.—In making awards of recipient and to other bus fleets. year in which this program is in effect, if the grants under this section, the Administrator (3) GRANT RECIPIENT FUNDS.—The grant re- Administrator does not receive a sufficient shall give preference to proposals that— cipient shall be required to provide at least— number of qualified grant applications to (A) will achieve the greatest reductions in (A) in the case of a grant recipient de- meet the requirements of subparagraph (A) emissions of nonmethane hydrocarbons, ox- scribed in paragraph (1) or (3) of subsection or (B) of paragraph (1) for a fiscal year, effec- ides of nitrogen, or particulate matter per (c), the lesser of— tive beginning on August 1 of the fiscal year, proposal or per bus; or (i) an amount equal to 15 percent of the the Administrator shall make the remaining (B) involve the use of emissions control total cost of each bus received; or funds available to other qualified grant ap- retrofit technology on diesel school buses (ii) $15,000 per bus; and plicants under this section. that operate solely on ultra-low sulfur diesel (B) in the case of a grant recipient de- (j) REDUCTION OF SCHOOL BUS IDLING.—Each scribed in subsection (c)(2), the lesser of— local educational agency (as defined in sec- fuel. (i) an amount equal to 20 percent of the tion 9101 of the Elementary and Secondary (d) CONDITIONS OF GRANT.—A grant shall be total cost of each bus received; or Education Act of 1965 (20 U.S.C. 7801)) that provided under this section on the conditions (ii) $20,000 per bus. receives Federal funds under the Elementary that— (4) ULTRA-LOW SULFUR DIESEL FUEL.—In the and Secondary Education Act of 1965 (20 (1) buses on which retrofit emissions-con- case of a grant recipient receiving a grant U.S.C. 6301 et seq.) is encouraged to develop trol technology are to be demonstrated— for ultra-low sulfur diesel fuel school buses, a policy, consistent with the health, safety, (A) will operate on ultra-low sulfur diesel the grant recipient shall be required to pro- and welfare of students and the proper oper- fuel where such fuel is reasonably available vide documentation to the satisfaction of the ation and maintenance of school buses, to re- or required for sale by State or local law or Administrator that diesel fuel containing duce the incidence of unnecessary school bus regulation; sulfur at not more than 15 parts per million idling at schools when picking up and un- (B) were manufactured in model year 1991 is available for carrying out the purposes of loading students. or later; and the grant, and a commitment by the appli- (k) ANNUAL REPORT.— (C) will be used for the transportation of cant to use such fuel in carrying out the pur- (1) IN GENERAL.—Not later than January 31 school children to and from school for a min- poses of the grant. of each year, the Administrator shall trans- imum of 5 years; (5) TIMING.—All alternative fuel school mit to Congress a report evaluating imple- (2) grant funds will be used for the pur- buses, ultra-low sulfur diesel fuel school mentation of the programs under this sec- chase of emission control retrofit tech- buses, or alternative fuel infrastructure action and section 743. nology, including State taxes and contract quired under a grant awarded under this sec- (2) COMPONENTS.—The reports shall include fees; and tion shall be purchased and placed in service a description of— (3) grant recipients will provide at least 15 as soon as practicable. (A) the total number of grant applications percent of the total cost of the retrofit, in- (g) BUSES.— received; cluding the purchase of emission control ret- (1) IN GENERAL.—Except as provided in (B) the number and types of alternative rofit technology and all necessary labor for paragraph (2), funding under a grant made fuel school buses, ultra-low sulfur diesel fuel installation of the retrofit. under this section for the acquisition of new school buses, and retrofitted buses requested (e) VERIFICATION.—Not later than 90 days alternative fuel school buses or ultra-low in grant applications; after the date of enactment of this Act, the sulfur diesel fuel school buses shall only be (C) grants awarded and the criteria used to Administrator shall publish in the Federal used to acquire school buses— select the grant recipients; Register procedures to verify—

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(1) the retrofit emissions-control tech- (1) projects approved by the Administrator (c) GOALS.—The Secretary shall carry out nology to be demonstrated; that include the trading of mobile source subsection (b) with a view toward achieving (2) that buses powered by ultra-low sulfur emission reduction credits for use by sta- the following goals: diesel fuel on which retrofit emissions-con- tionary sources in complying with offset re- (1) Developing and demonstrating diesel trol technology are to be demonstrated will quirements, including a description of— technologies that, not later than 2010, meet operate on diesel fuel containing not more (A) project and stationary sources loca- the following standards: than 15 parts per million of sulfur; and tion; (A) Tier 2 emission standards. (3) that grants are administered in accord- (B) volumes of emissions offset and traded; (B) The heavy-duty emissions standards of ance with this section. (C) the sources of mobile emission reduc- 2007 that are applicable to heavy-duty vehi- (f) AUTHORIZATION OF APPROPRIATIONS.— tion credits; and cles under regulations issued by the Admin- There are authorized to be appropriated to (D) if available, the cost of the credits; istrator of the Environmental Protection the Administrator to carry out this section, (2) the significant issues identified by the Agency as of the date of enactment of this to remain available until expended— Administrator in consideration and approval Act. (1) $20,000,000 for fiscal year 2005; of trading in the projects; (2) Developing the next generation of low- (2) $35,000,000 for fiscal year 2006; (3) the requirements for monitoring and as- emission, high-efficiency diesel engine tech- (3) $45,000,000 for fiscal year 2007; and sessing the air quality benefits of any ap- nologies, including homogeneous charge (4) such sums as are necessary for each of proved project; compression ignition technology. fiscal years 2008 and 2009. (4) the statutory authority on which the SEC. 755. CONSERVE BY BICYCLING PROGRAM. SEC. 744. FUEL CELL SCHOOL BUSES. Administrator has based approval of the (a) DEFINITIONS.—In this section: (a) ESTABLISHMENT.—The Secretary shall projects; (1) PROGRAM.—The term ‘‘program’’ means establish a program for entering into cooper- (5) an evaluation of how the resolution of the Conserve by Bicycling Program estab- ative agreements— issues in approved projects could be used in lished by subsection (b). (1) with private sector fuel cell bus devel- other projects; and (2) SECRETARY.—The term ‘‘Secretary’’ opers for the development of fuel cell-pow- (6) any other issues that the Administrator means the Secretary of Transportation. ered school buses; and considers relevant to the trading and genera- (b) ESTABLISHMENT.—There is established (2) subsequently, with not less than 2 units tion of mobile source emission reduction within the Department of Transportation a program to be known as the ‘‘Conserve by of local government using natural gas-pow- credits for use by stationary sources or for Bicycling Program’’. ered school buses and such private sector other purposes. (c) PROJECTS.— fuel cell bus developers to demonstrate the SEC. 753. AVIATION FUEL CONSERVATION AND (1) IN GENERAL.—In carrying out the pro- use of fuel cell-powered school buses. EMISSIONS. gram, the Secretary shall establish not more (b) COST SHARING.—The non-Federal con- (a) IN GENERAL.—Not later than 60 days than 10 pilot projects that are— tribution for activities funded under this sec- after the date of enactment of this Act, the (A) dispersed geographically throughout tion shall be not less than— Administrator of the Federal Aviation Ad- the United States; and (1) 20 percent for fuel infrastructure devel- ministration and the Administrator of the (B) designed to conserve energy resources opment activities; and Environmental Protection Agency shall by encouraging the use of bicycles in place of (2) 50 percent for demonstration activities jointly initiate a study to identify— motor vehicles. and for development activities not described (1) the impact of aircraft emissions on air (2) REQUIREMENTS.—A pilot project de- in paragraph (1). quality in nonattainment areas; and scribed in paragraph (1) shall— EPORTS TO CONGRESS.—Not later than (c) R (2) ways to promote fuel conservation (A) use education and marketing to con- 3 years after the date of enactment of this measures for aviation to— vert motor vehicle trips to bicycle trips; Act, the Secretary shall transmit to Con- (A) enhance fuel efficiency; and (B) document project results and energy gress a report that— (B) reduce emissions. savings (in estimated units of energy con- (1) evaluates the process of converting nat- (b) FOCUS.—The study under subsection (a) served); ural gas infrastructure to accommodate fuel shall focus on how air traffic management (C) facilitate partnerships among inter- cell-powered school buses; and inefficiencies, such as aircraft idling at air- ested parties in at least 2 of the fields of— (2) assesses the results of the development ports, result in unnecessary fuel burn and air (i) transportation; and demonstration program under this sec- emissions. (ii) law enforcement; tion. (c) REPORT.—Not later than 1 year after (iii) education; (d) AUTHORIZATION OF APPROPRIATIONS.— the date of the initiation of the study under (iv) public health; There are authorized to be appropriated to subsection (a), the Administrator of the Fed- (v) environment; and the Secretary to carry out this section eral Aviation Administration and the Ad- (vi) energy; $25,000,000 for the period of fiscal years 2004 ministrator of the Environmental Protection (D) maximize bicycle facility investments; through 2006. Agency shall jointly submit to the Com- (E) demonstrate methods that may be used Subtitle D—Miscellaneous mittee on Energy and Commerce and the in other regions of the United States; and SEC. 751. RAILROAD EFFICIENCY. Committee on Transportation and Infra- (F) facilitate the continuation of ongoing (a) ESTABLISHMENT.—The Secretary of En- structure of the House of Representatives programs that are sustained by local re- ergy shall, in cooperation with the Secretary and the Committee on Environment and sources. of Transportation and the Administrator of Public Works and the Committee on Com- (3) COST SHARING.—At least 20 percent of the Environmental Protection Agency, es- merce, Science, and Transportation of the the cost of each pilot project described in tablish a cost-shared, public-private research Senate a report that— paragraph (1) shall be provided from State or partnership involving the Federal Govern- (1) describes the results of the study; and local sources. ment, railroad carriers, locomotive manufac- (2) includes any recommendations on ways (d) ENERGY AND BICYCLING RESEARCH turers and equipment suppliers, and the As- in which unnecessary fuel use and emissions STUDY.— sociation of American Railroads, to develop affecting air quality may be reduced— (1) IN GENERAL.—Not later than 2 years and demonstrate railroad locomotive tech- (A) without adversely affecting safety and after the date of enactment of this Act, the nologies that increase fuel economy, reduce security and increasing individual aircraft Secretary shall enter into a contract with emissions, and lower costs of operation. noise; and the National Academy of Sciences for, and (b) AUTHORIZATION OF APPROPRIATIONS.— (B) while taking into account all aircraft the National Academy of Sciences shall con- There are authorized to be appropriated to emissions and the impact of the emissions on duct and submit to Congress a report on, a the Secretary of Energy to carry out this human health. study on the feasibility of converting motor section— SEC. 754. DIESEL FUELED VEHICLES. vehicle trips to bicycle trips. (1) $25,000,000 for fiscal year 2005; (a) DEFINITION OF TIER 2 EMISSION STAND- (2) COMPONENTS.—The study shall— (2) $35,000,000 for fiscal year 2006; and ARDS.—In this section, the term ‘‘tier 2 emis- (A) document the results or progress of the (3) $50,000,000 for fiscal year 2007. sion standards’’ means the motor vehicle pilot projects under subsection (c); SEC. 752. MOBILE EMISSION REDUCTIONS TRAD- emission standards that apply to passenger (B) determine the type and duration of ING AND CREDITING. cars, light trucks, and larger passenger vehi- motor vehicle trips that people in the United (a) IN GENERAL.—Not later than 180 days cles manufactured after the 2003 model year, States may feasibly make by bicycle, taking after the date of enactment of this Act, the as issued on February 10, 2000, by the Admin- into consideration factors such as— Administrator of the Environmental Protec- istrator of the Environmental Protection (i) weather; tion Agency shall submit to Congress a re- Agency under sections 202 and 211 of the (ii) land use and traffic patterns; port on the experience of the Administrator Clean Air Act (42 U.S.C. 7521, 7545). (iii) the carrying capacity of bicycles; and with the trading of mobile source emission (b) DIESEL COMBUSTION AND AFTER-TREAT- (iv) bicycle infrastructure; reduction credits for use by owners and oper- MENT TECHNOLOGIES.—The Secretary of En- (C) determine any energy savings that ators of stationary source emission sources ergy shall accelerate efforts to improve die- would result from the conversion of motor to meet emission offset requirements within sel combustion and after-treatment tech- vehicle trips to bicycle trips; a nonattainment area. nologies for use in diesel fueled motor vehi- (D) include a cost-benefit analysis of bicy- (b) CONTENTS.—The report shall describe— cles. cle infrastructure investments; and

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00112 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.092 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4557 (E) include a description of any factors (B)(i) commence a review of the emission quantity necessary to compensate for the ad- that would encourage more motor vehicle reductions achieved by the use of idle reduc- ditional weight of the idle reduction system. trips to be replaced with bicycle trips. tion technology; and ‘‘(B) MAXIMUM WEIGHT INCREASE.—The (e) AUTHORIZATION OF APPROPRIATIONS.— (ii) complete such revisions of the regula- weight increase under subparagraph (A) shall There are authorized to be appropriated to tions and guidance of the Environmental be not greater than 250 pounds. the Secretary to carry out this section Protection Agency as the Administrator de- ‘‘(C) PROOF.—On request by a regulatory $6,200,000, to remain available until ex- termines to be appropriate. agency or law enforcement agency, the vehi- pended, of which— (2) DEADLINE FOR COMPLETION.—Not later cle operator shall provide proof (through (1) $5,150,000 shall be used to carry out pilot than 180 days after the date of enactment of demonstration or certification) that— projects described in subsection (c); this Act, the Administrator shall— ‘‘(i) the idle reduction technology is fully (2) $300,000 shall be used by the Secretary (A) complete the reviews under subpara- functional at all times; and to coordinate, publicize, and disseminate the graphs (A)(i) and (B)(i) of paragraph (1); and ‘‘(ii) the 250-pound gross weight increase is results of the program; and (B) prepare and make publicly available 1 not used for any purpose other than the use (3) $750,000 shall be used to carry out sub- or more reports on the results of the reviews. of idle reduction technology described in section (d). (3) DISCRETIONARY INCLUSIONS.—The re- subparagraph (A).’’. views under subparagraphs (A)(i) and (B)(i) of SEC. 756. REDUCTION OF ENGINE IDLING OF SEC. 757. BIODIESEL ENGINE TESTING PROGRAM. HEAVY-DUTY VEHICLES. paragraph (1) and the reports under para- (a) IN GENERAL.—Not later that 180 days graph (2)(B) may address the potential fuel after the date of enactment of this Act, the (a) DEFINITIONS.—In this section: savings resulting from use of idle reduction Secretary shall initiate a partnership with (1) ADMINISTRATOR.—The term ‘‘Adminis- technology. trator’’ means the Administrator of the En- diesel engine, diesel fuel injection system, (4) IDLE REDUCTION DEPLOYMENT PRO- and diesel vehicle manufacturers and diesel vironmental Protection Agency. GRAM.— and biodiesel fuel providers, to include bio- (2) ADVANCED TRUCK STOP ELECTRIFICATION (A) ESTABLISHMENT.— diesel testing in advanced diesel engine and SYSTEM.—The term ‘‘advanced truck stop (i) IN GENERAL.—Not later than 90 days fuel system technology. electrification system’’ means a stationary after the date of enactment of this Act, the (b) SCOPE.—The program shall provide for system that delivers heat, air conditioning, Administrator, in consultation with the Sec- testing to determine the impact of biodiesel electricity, and communications, and is ca- retary of Transportation, shall establish a from different sources on current and future pable of providing verifiable and auditable program to support deployment of idle re- emission control technologies, with empha- evidence of use of those services, to a heavy- duction technology. sis on— duty vehicle and any occupants of the heavy- (ii) PRIORITY.—The Administrator shall (1) the impact of biodiesel on emissions duty vehicle without relying on components give priority to the deployment of idle re- warranty, in-use liability, and antitampering mounted onboard the heavy-duty vehicle for duction technology based on beneficial ef- provisions; delivery of those services. fects on air quality and ability to lessen the (2) the impact of long-term use of biodiesel (3) AUXILIARY POWER UNIT.—The term ‘‘aux- emission of criteria air pollutants. on engine operations; iliary power unit’’ means an integrated sys- (B) FUNDING.— (3) the options for optimizing these tech- tem that— (i) AUTHORIZATION OF APPROPRIATIONS.— nologies for both emissions and performance (A) provides heat, air conditioning, engine There are authorized to be appropriated to when switching between biodiesel and diesel warming, and electricity to the factory-in- the Administrator to carry out subparagraph fuel; and stalled components on a heavy-duty vehicle (A) $19,500,000 for fiscal year 2004, $30,000,000 (4) the impact of using biodiesel in these as if the main drive engine of the heavy-duty for fiscal year 2005, and $45,000,000 for fiscal fueling systems and engines when used as a vehicle were running; and year 2006. blend with 2006 Environmental Protection (B) is certified by the Administrator under (ii) COST SHARING.—Subject to clause (iii), Agency-mandated diesel fuel containing a part 89 of title 40, Code of Federal Regula- the Administrator shall require at least 50 maximum of 15-parts-per-million sulfur con- tions (or any successor regulation), as meet- percent of the costs directly and specifically tent. ing applicable emission standards. related to any project under this section to (c) REPORT.—Not later than 2 years after (4) HEAVY-DUTY VEHICLE.—The term be provided from non-Federal sources. the date of enactment of this Act, the Sec- ‘‘heavy-duty vehicle’’ means a vehicle that— (iii) NECESSARY AND APPROPRIATE REDUC- retary shall provide an interim report to (A) has a gross vehicle weight rating great- TIONS.—The Administrator may reduce the Congress on the findings of the program, in- er than 12,500 pounds; and non-Federal requirement under clause (ii) if cluding a comprehensive analysis of impacts (B) is powered by a diesel engine. the Administrator determines that the re- from biodiesel on engine operation for both (5) IDLE REDUCTION TECHNOLOGY.—The term duction is necessary and appropriate to meet existing and expected future diesel tech- ‘‘idle reduction technology’’ means an ad- the objectives of this section. nologies, and recommendations for ensuring vanced truck stop electrification system, (5) IDLING LOCATION STUDY.— optimal emissions reductions and engine per- auxiliary power unit, or other device or sys- (A) IN GENERAL.—Not later than 90 days formance with biodiesel. (d) AUTHORIZATION OF APPROPRIATIONS.— tem of devices that— after the date of enactment of this Act, the There are authorized to be appropriated (A) is used to reduce long-duration idling Administrator, in consultation with the Sec- $5,000,000 for each of fiscal years 2004 through of a heavy-duty vehicle; and retary of Transportation, shall commence a 2008 to carry out this section. (B) allows for the main drive engine or study to analyze all locations at which (e) DEFINITION.—For purposes of this sec- auxiliary refrigeration engine of a heavy- heavy-duty vehicles stop for long-duration tion, the term ‘‘biodiesel’’ means a diesel duty vehicle to be shut down. idling, including— fuel substitute produced from nonpetroleum (6) LONG-DURATION IDLING.— (i) truck stops; renewable resources that meets the registra- (A) IN GENERAL.—The term ‘‘long-duration (ii) rest areas; tion requirements for fuels and fuel additives idling’’ means the operation of a main drive (iii) border crossings; established by the Environmental Protection engine or auxiliary refrigeration engine of a (iv) ports; Agency under section 211 of the Clean Air heavy-duty vehicle, for a period greater than (v) transfer facilities; and Act (42 U.S.C. 7545) and that meets the Amer- 15 consecutive minutes, at a time at which (vi) private terminals. ican Society for Testing and Materials D6751- the main drive engine is not engaged in gear. (B) DEADLINE FOR COMPLETION.—Not later 02a Standard Specification for Biodiesel Fuel (B) EXCLUSIONS.—The term ‘‘long-duration than 180 days after the date of enactment of (B100) Blend Stock for Distillate Fuels. idling’’ does not include the operation of a this Act, the Administrator shall— SEC. 758. HIGH OCCUPANCY VEHICLE EXCEP- main drive engine or auxiliary refrigeration (i) complete the study under subparagraph TION. engine of a heavy-duty vehicle during a rou- (A); and Notwithstanding section 102(a) of title 23, tine stoppage associated with traffic move- (ii) prepare and make publicly available 1 United States Code, a State may permit a ment or congestion. or more reports of the results of the study. vehicle with fewer than 2 occupants to oper- (b) IDLE REDUCTION TECHNOLOGY BENEFITS, (c) VEHICLE WEIGHT EXEMPTION.—Section ate in high occupancy vehicle lanes if the ve- PROGRAMS, AND STUDIES.— 127(a) of title 23, United States Code, is hicle— (1) IN GENERAL.—Not later than 90 days amended— (1) is a dedicated vehicle (as defined in sec- after the date of enactment of this Act, the (1) by designating the first through elev- tion 301 of the Energy Policy Act of 1992 (42 Administrator shall— enth sentences as paragraphs (1) through U.S.C. 13211)); or (A)(i) commence a review of the mobile (11), respectively; and (2) is a hybrid vehicle (as defined by the source air emission models of the Environ- (2) by adding at the end the following: State for the purpose of this section). mental Protection Agency used under the ‘‘(12) HEAVY DUTY VEHICLES.— Subtitle E—Automobile Efficiency Clean Air Act (42 U.S.C. 7401 et seq.) to deter- ‘‘(A) IN GENERAL.—Subject to subpara- SEC. 771. AUTHORIZATION OF APPROPRIATIONS mine whether the models accurately reflect graphs (B) and (C), in order to promote re- FOR IMPLEMENTATION AND EN- the emissions resulting from long-duration duction of fuel use and emissions because of FORCEMENT OF FUEL ECONOMY idling of heavy-duty vehicles and other vehi- engine idling, the maximum gross vehicle STANDARDS. cles and engines; and weight limit and the axle weight limit for In addition to any other funds authorized (ii) update those models as the Adminis- any heavy-duty vehicle equipped with an idle by law, there are authorized to be appro- trator determines to be appropriate; and reduction technology shall be increased by a priated to the National Highway Traffic

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Safety Administration to carry out its obli- (c) REPORT.—The Administrator shall sub- (5) storage of hydrogen or hydrogen-carrier gations with respect to average fuel economy mit to Congress a report on the findings, fuels, including development of materials for standards $2,000,000 for each of fiscal years conclusion, and recommendations of the safe and economic storage in gaseous, liquid, 2004 through 2008. study under this section by not later than 1 or solid form at refueling facilities and on- SEC. 772. REVISED CONSIDERATIONS FOR DECI- year after the date of the enactment of this board vehicles; SIONS ON MAXIMUM FEASIBLE AV- Act. (6) development of safe, durable, afford- ERAGE FUEL ECONOMY. TITLE VIII—HYDROGEN able, and efficient fuel cells, including fuel- Section 32902(f) of title 49, United States SEC. 801. DEFINITIONS. flexible fuel cell power systems, improved Code, is amended to read as follows: In this title: manufacturing processes, high-temperature ‘‘(f) CONSIDERATIONS FOR DECISIONS ON (1) ADVISORY COMMITTEE.—The term ‘‘Advi- membranes, cost-effective fuel processing for MAXIMUM FEASIBLE AVERAGE FUEL ECON- sory Committee’’ means the Hydrogen Tech- natural gas, fuel cell stack and system reli- OMY.—When deciding maximum feasible av- nical and Fuel Cell Advisory Committee es- ability, low temperature operation, and cold erage fuel economy under this section, the tablished under section 805. start capability; Secretary of Transportation shall consider (7) development, after consultation with (2) DEPARTMENT.—The term ‘‘Department’’ the following matters: means the Department of Energy. the private sector, of necessary codes and ‘‘(1) Technological feasibility. standards (including international codes and (3) FUEL CELL.—The term ‘‘fuel cell’’ means ‘‘(2) Economic practicability. standards and voluntary consensus standards a device that directly converts the chemical ‘‘(3) The effect of other motor vehicle adopted in accordance with OMB Circular A– energy of a fuel and an oxidant into elec- standards of the Government on fuel econ- 119) and safety practices for the production, tricity by an electrochemical process taking omy. distribution, storage, and use of hydrogen, place at separate electrodes in the device. ‘‘(4) The need of the United States to con- hydrogen-carrier fuels, and related products; (4) INFRASTRUCTURE.—The term ‘‘infra- serve energy. and structure’’ means the equipment, systems, or ‘‘(5) The effects of fuel economy standards (8) a public education program to develop facilities used to produce, distribute, deliver, on passenger automobiles, nonpassenger improved knowledge and acceptability of hy- or store hydrogen. automobiles, and occupant safety. drogen-based systems. (5) LIGHT DUTY VEHICLE.—The term ‘‘light ‘‘(6) The effects of compliance with average (b) PROGRAM GOALS.— duty vehicle’’ means a car or truck classified fuel economy standards on levels of auto- (1) VEHICLES.—For vehicles, the goals of by the Department of Transportation as a mobile industry employment in the United the program are— Class I or IIA vehicle. States.’’. (A) to enable a commitment by auto- (6) SECRETARY.—The term ‘‘Secretary’’ makers no later than year 2015 to offer safe, SEC. 773. EXTENSION OF MAXIMUM FUEL ECON- means the Secretary of Energy. OMY INCREASE FOR ALTERNATIVE affordable, and technically viable hydrogen FUELED VEHICLES. SEC. 802. PLAN. fuel cell vehicles in the mass consumer mar- (a) MANUFACTURING INCENTIVES.—Section Not later than 6 months after the date of ket; and 32905 of title 49, United States Code, is enactment of this Act, the Secretary shall (B) to enable production, delivery, and ac- amended— transmit to Congress a coordinated plan for ceptance by consumers of model year 2020 (1) in each of subsections (b) and (d), by the programs described in this title and any hydrogen fuel cell and other hydrogen-pow- striking ‘‘1993–2004’’ and inserting ‘‘1993– other programs of the Department that are ered vehicles that will have— 2008’’; directly related to fuel cells or hydrogen. (i) a range of at least 300 miles; (2) in subsection (f), by striking ‘‘2001’’ and The plan shall describe, at a minimum— (ii) improved performance and ease of driv- inserting ‘‘2005’’; and (1) the agenda for the next 5 years for the ing; (3) in subsection (f)(1), by striking ‘‘2004’’ programs authorized under this title, includ- (iii) safety and performance comparable to and inserting ‘‘2008’’. ing the agenda for each activity enumerated vehicle technologies in the market; and (b) MAXIMUM FUEL ECONOMY INCREASE.— in section 803(a); (iv) when compared to light duty vehicles Subsection (a)(1) of section 32906 of title 49, (2) the types of entities that will carry out in model year 2003— United States Code, is amended— the activities under this title and what role (I) fuel economy that is substantially high- (1) in subparagraph (A), by striking ‘‘the each entity is expected to play; er; model years 1993–2004’’ and inserting ‘‘model (3) the milestones that will be used to (II) substantially lower emissions of air years 1993–2008’’; and evaluate the programs for the next 5 years; pollutants; and (2) in subparagraph (B), by striking ‘‘the (4) the most significant technical and non- (III) equivalent or improved vehicle fuel model years 2005–2008’’ and inserting ‘‘model technical hurdles that stand in the way of system crash integrity and occupant protec- years 2009–2012’’. achieving the goals described in section tion. SEC. 774. STUDY OF FEASIBILITY AND EFFECTS 803(b), and how the programs will address (2) HYDROGEN ENERGY AND ENERGY INFRA- OF REDUCING USE OF FUEL FOR those hurdles; and STRUCTURE.—For hydrogen energy and en- AUTOMOBILES. (5) the policy assumptions that are im- ergy infrastructure, the goals of the program (a) IN GENERAL.—Not later than 30 days plicit in the plan, including any assumptions are to enable a commitment not later than after the date of the enactment of this Act, that would affect the sources of hydrogen or 2015 that will lead to infrastructure by 2020 the Administrator of the National Highway the marketability of hydrogen-related prod- that will provide— Traffic Safety Administration shall initiate ucts. (A) safe and convenient refueling; a study of the feasibility and effects of re- SEC. 803. PROGRAMS. (B) improved overall efficiency; ducing by model year 2012, by a significant (a) ACTIVITIES.—The Secretary, in partner- (C) widespread availability of hydrogen percentage, the amount of fuel consumed by ship with the private sector, shall conduct from domestic energy sources through— automobiles. programs to address— (i) production, with consideration of emis- (b) SUBJECTS OF STUDY.—The study under (1) production of hydrogen from diverse en- sions levels; this section shall include— ergy sources, including— (ii) delivery, including transmission by (1) examination of, and recommendation of (A) fossil fuels, which may include carbon pipeline and other distribution methods for alternatives to, the policy under current capture and sequestration; hydrogen; and Federal law of establishing average fuel (B) hydrogen-carrier fuels (including eth- (iii) storage, including storage in surface economy standards for automobiles and re- anol and methanol); transportation vehicles; quiring each automobile manufacturer to (C) renewable energy resources, including (D) hydrogen for fuel cells, internal com- comply with average fuel economy standards biomass; and bustion engines, and other energy conversion that apply to the automobiles it manufac- (D) nuclear energy; devices for portable, stationary, and trans- tures; (2) use of hydrogen for commercial, indus- portation applications; and (2) examination of how automobile manu- trial, and residential electric power genera- (E) other technologies consistent with the facturers could contribute toward achieving tion; Department’s plan. the reduction referred to in subsection (a); (3) safe delivery of hydrogen or hydrogen- (3) FUEL CELLS.—The goals for fuel cells (3) examination of the potential of fuel cell carrier fuels, including— and their portable, stationary, and transpor- technology in motor vehicles in order to de- (A) transmission by pipeline and other dis- tation applications are to enable— termine the extent to which such technology tribution methods; and (A) safe, economical, and environmentally may contribute to achieving the reduction (B) convenient and economic refueling of sound hydrogen fuel cells; referred to in subsection (a); and vehicles either at central refueling stations (B) fuel cells for light duty and other vehi- (4) examination of the effects of the reduc- or through distributed on-site generation; cles; and tion referred to in subsection (a) on— (4) advanced vehicle technologies, includ- (C) other technologies consistent with the (A) gasoline supplies; ing— Department’s plan. (B) the automobile industry, including (A) engine and emission control systems; (c) DEMONSTRATION.—In carrying out the sales of automobiles manufactured in the (B) energy storage, electric propulsion, and programs under this section, the Secretary United States; hybrid systems; shall fund a limited number of demonstra- (C) motor vehicle safety; and (C) automotive materials; and tion projects, consistent with a determina- (D) air quality. (D) other advanced vehicle technologies; tion of the maturity, cost-effectiveness, and

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00114 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.092 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4559

environmental impacts of technologies sup- (4) SIZEOFNON-FEDERAL SHARE.—The Sec- domestic industry, academia, professional porting each project. In selecting projects retary may consider the size of the non-Fed- societies, government agencies, Federal lab- under this subsection, the Secretary shall, to eral share in selecting projects. oratories, previous advisory panels, and fi- the extent practicable and in the public in- (g) DISCLOSURE.—Section 623 of the Energy nancial, environmental, and other appro- terest, select projects that— Policy Act of 1992 (42 U.S.C. 13293) relating to priate organizations based on the Depart- (1) involve using hydrogen and related the protection of information shall apply to ment’s assessment of the technical and other products at existing facilities or installa- projects carried out through grants, coopera- qualifications of committee members and tions, such as existing office buildings, mili- tive agreements, or contracts under this the needs of the Advisory Committee. tary bases, vehicle fleet centers, transit bus title. (2) TERMS.—The term of a member of the authorities, or units of the National Park SEC. 804. INTERAGENCY TASK FORCE. Advisory Committee shall not be more than System; (a) ESTABLISHMENT.—Not later than 120 3 years. The Secretary may appoint members (2) depend on reliable power from hydrogen days after the date of enactment of this Act, of the Advisory Committee in a manner that to carry out essential activities; the President shall establish an interagency allows the terms of the members serving at (3) lead to the replication of hydrogen task force chaired by the Secretary with rep- any time to expire at spaced intervals so as technologies and draw such technologies into resentatives from each of the following: to ensure continuity in the functioning of the marketplace; (1) The Office of Science and Technology the Advisory Committee. A member of the (4) include vehicle, portable, and sta- Policy within the Executive Office of the Advisory Committee whose term is expiring tionary demonstrations of fuel cell and hy- President. may be reappointed. drogen-based energy technologies; (2) The Department of Transportation. (3) CHAIRPERSON.—The Advisory Com- (5) address the interdependency of demand (3) The Department of Defense. mittee shall have a chairperson, who is elect- for hydrogen fuel cell applications and hy- (4) The Department of Commerce (included by the members from among their num- drogen fuel infrastructure; ing the National Institute of Standards and ber. (6) raise awareness of hydrogen technology Technology). (c) REVIEW.—The Advisory Committee among the public; (5) The Department of State. shall review and make recommendations to (7) facilitate identification of an optimum (6) The Environmental Protection Agency. the Secretary on— technology among competing alternatives; (7) The National Aeronautics and Space (1) the implementation of programs and ac- (8) address distributed generation using re- Administration. tivities under this title; newable sources; and (8) Other Federal agencies as the Secretary (2) the safety, economical, and environ- (9) address applications specific to rural or determines appropriate. mental consequences of technologies for the remote locations, including isolated villages (b) DUTIES.— production, distribution, delivery, storage, and islands, the National Park System, and (1) PLANNING.—The interagency task force or use of hydrogen energy and fuel cells; and tribal entities. shall work toward— (3) the plan under section 802. The Secretary shall give preference to (A) a safe, economical, and environ- (d) RESPONSE.— projects which address multiple elements mentally sound fuel infrastructure for hy- (1) CONSIDERATION OF RECOMMENDATIONS.— contained in paragraphs (1) through (9). drogen and hydrogen-carrier fuels, including The Secretary shall consider, but need not an infrastructure that supports buses and adopt, any recommendations of the Advisory (d) DEPLOYMENT.—In carrying out the pro- other fleet transportation; Committee under subsection (c). grams under this section, the Secretary (B) fuel cells in government and other ap- (2) BIENNIAL REPORT.—The Secretary shall shall, in partnership with the private sector, plications, including portable, stationary, transmit a biennial report to Congress de- conduct activities to facilitate the deploy- and transportation applications; scribing any recommendations made by the ment of hydrogen energy and energy infra- (C) distributed power generation, including Advisory Committee since the previous re- structure, fuel cells, and advanced vehicle the generation of combined heat, power, and port. The report shall include a description technologies. clean fuels including hydrogen; of how the Secretary has implemented or (e) FUNDING.— (D) uniform hydrogen codes, standards, and plans to implement the recommendations, or (1) IN GENERAL.—The Secretary shall carry safety protocols; and an explanation of the reasons that a rec- out the programs under this section using a (E) vehicle hydrogen fuel system integrity ommendation will not be implemented. The competitive, merit-based review process and safety performance. report shall be transmitted along with the consistent with the generally applicable Fed- (2) ACTIVITIES.—The interagency task force President’s budget proposal. eral laws and regulations governing awards may organize workshops and conferences, (e) SUPPORT.—The Secretary shall provide of financial assistance, contracts, or other may issue publications, and may create data- resources necessary in the judgment of the agreements. bases to carry out its duties. The inter- Secretary for the Advisory Committee to (2) RESEARCH CENTERS.—Activities under agency task force shall— carry out its responsibilities under this title. this section may be carried out by funding (A) foster the exchange of generic, non- SEC. 806. EXTERNAL REVIEW. nationally recognized university-based or proprietary information and technology (a) PLAN.—The Secretary shall enter into Federal laboratory research centers. among industry, academia, and government; an arrangement with the National Academy (f) COST SHARING.— (B) develop and maintain an inventory and of Sciences to review the plan prepared (1) RESEARCH AND DEVELOPMENT.—Except assessment of hydrogen, fuel cells, and other under section 802, which shall be completed as otherwise provided in this title, for re- advanced technologies, including the com- not later than 6 months after the Academy search and development programs carried mercial capability of each technology for the receives the plan. Not later than 45 days out under this title the Secretary shall re- economic and environmentally safe produc- after receiving the review, the Secretary quire a commitment from non-Federal tion, distribution, delivery, storage, and use shall transmit the review to Congress along sources of at least 20 percent of the cost of of hydrogen; with a plan to implement the review’s rec- the project. The Secretary may reduce or (C) integrate technical and other informa- ommendations or an explanation of the rea- eliminate the non-Federal requirement tion made available as a result of the pro- sons that a recommendation will not be im- under this paragraph if the Secretary deter- grams and activities under this title; plemented. mines that the research and development is (D) promote the marketplace introduction (b) ADDITIONAL REVIEW.—The Secretary of a basic or fundamental nature or involves of infrastructure for hydrogen fuel vehicles; shall enter into an arrangement with the Na- technical analyses or educational activities. and tional Academy of Sciences under which the (2) DEMONSTRATION AND COMMERCIAL APPLI- (E) conduct an education program to pro- Academy will review the programs under CATION.—Except as otherwise provided in vide hydrogen and fuel cell information to section 803 during the fourth year following this title, the Secretary shall require at potential end-users. the date of enactment of this Act. The Acad- least 50 percent of the costs directly and spe- (c) AGENCY COOPERATION.—The heads of all emy’s review shall include the research pri- cifically related to any demonstration or agencies, including those whose agencies are orities and technical milestones, and evalu- commercial application project under this not represented on the interagency task ate the progress toward achieving them. The title to be provided from non-Federal force, shall cooperate with and furnish infor- review shall be completed not later than 5 sources. The Secretary may reduce the non- mation to the interagency task force, the years after the date of enactment of this Federal requirement under this paragraph if Advisory Committee, and the Department. Act. Not later than 45 days after receiving the Secretary determines that the reduction SEC. 805. ADVISORY COMMITTEE. the review, the Secretary shall transmit the is necessary and appropriate considering the (a) ESTABLISHMENT.—The Hydrogen Tech- review to Congress along with a plan to im- technological risks involved in the project nical and Fuel Cell Advisory Committee is plement the review’s recommendations or an and is necessary to meet the objectives of established to advise the Secretary on the explanation for the reasons that a rec- this title. programs and activities under this title. ommendation will not be implemented. (3) CALCULATION OF AMOUNT.—In calcu- (b) MEMBERSHIP.— SEC. 807. MISCELLANEOUS PROVISIONS. lating the amount of the non-Federal com- (1) MEMBERS.—The Advisory Committee (a) REPRESENTATION.—The Secretary may mitment under paragraph (1) or (2), the Sec- shall be comprised of not fewer than 12 nor represent the United States interests with retary may include personnel, services, more than 25 members. The members shall respect to activities and programs under this equipment, and other resources. be appointed by the Secretary to represent title, in coordination with the Department of

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00115 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.092 S28PT1 S4560 CONGRESSIONAL RECORD — SENATE April 28, 2004 Transportation, the National Institute of (4) Fossil energy including power genera- retary for energy efficiency and conservation Standards and Technology, and other rel- tion, onshore and offshore oil and gas re- research, development, demonstration, and evant Federal agencies, before governments source recovery, and transportation. commercial application activities, including and nongovernmental organizations includ- (5) Nuclear energy including programs for activities authorized under this subtitle: ing— existing and advanced reactors and edu- (1) For fiscal year 2004, $616,000,000. (1) other Federal, State, regional, and local cation of future specialists. (2) For fiscal year 2005, $695,000,000. governments and their representatives; (c) PUBLIC COMMENT.—The Secretary shall (3) For fiscal year 2006, $772,000,000. (2) industry and its representatives, includ- provide mechanisms for input on the annu- (4) For fiscal year 2007, $865,000,000. ing members of the energy and transpor- ally published goals from industry, univer- (5) For fiscal year 2008, $920,000,000. tation industries; and sity, and other public sources. (b) ALLOCATIONS.—From amounts author- (3) in consultation with the Department of (d) EFFECT OF GOALS.— ized under subsection (a), the following sums State, foreign governments and their rep- (1) NO NEW AUTHORITY OR REQUIREMENT.— are authorized: resentatives including international organi- Nothing in subsection (a) or the annually (1) For activities under section 905— zations. published goals shall— (A) for fiscal year 2004, $20,000,000; (b) REGULATORY AUTHORITY.—Nothing in (A) create any new— (B) for fiscal year 2005, $30,000,000; this title shall be construed to alter the reg- (i) authority for any Federal agency; or (C) for fiscal year 2006, $50,000,000; ulatory authority of the Department. (ii) requirement for any other person; (D) for fiscal year 2007, $50,000,000; and SEC. 808. SAVINGS CLAUSE. (B) be used by a Federal agency to support (E) for fiscal year 2008, $50,000,000. Nothing in this title shall be construed to the establishment of regulatory standards or (2) For activities under section 907— affect the authority of the Secretary of regulatory requirements; or (A) for fiscal year 2004, $4,000,000; and Transportation that may exist prior to the (C) alter the authority of the Secretary to (B) for each of fiscal years 2005 through date of enactment of this Act with respect make grants or other awards. 2008, $7,000,000. to— (2) NO LIMITATION.—Nothing in this sub- (3) For activities under section 908— (1) research into, and regulation of, hydro- section shall be construed to limit the au- (A) for fiscal year 2004, $20,000,000; gen-powered vehicles fuel systems integrity, thority of the Secretary to impose condi- (B) for fiscal year 2005, $25,000,000; standards, and safety under subtitle VI of tions on grants or other awards based on the (C) for fiscal year 2006, $30,000,000; title 49, United States Code; goals in subsection (a) or any subsequent (D) for fiscal year 2007, $35,000,000; and (2) regulation of hazardous materials modification thereto. (E) for fiscal year 2008, $40,000,000. transportation under chapter 51 of title 49, SEC. 902. DEFINITIONS. (4) For activities under section 909, United States Code; For purposes of this title: $2,000,000 for each of fiscal years 2005 through (3) regulation of pipeline safety under 2008. (1) DEPARTMENT.—The term ‘‘Department’’ (c) EXTENDED AUTHORIZATION.—There are chapter 601 of title 49, United States Code; means the Department of Energy. (4) encouragement and promotion of reauthorized to be appropriated to the Sec- (2) DEPARTMENTAL MISSION.—The term ‘‘de- retary for activities under section 905, search, development, and deployment activi- partmental mission’’ means any of the func- ties relating to advanced vehicle tech- $50,000,000 for each of fiscal years 2009 tions vested in the Secretary of Energy by nologies under section 5506 of title 49, United through 2013. the Department of Energy Organization Act States Code; (d) LIMITATION ON USE OF FUNDS.—None of (42 U.S.C. 7101 et seq.) or other law. (5) regulation of motor vehicle safety the funds authorized to be appropriated (3) INSTITUTION OF HIGHER EDUCATION.—The under chapter 301 of title 49, United States under this section may be used for— term ‘‘institution of higher education’’ has Code; (1) the issuance and implementation of en- the meaning given that term in section (6) automobile fuel economy under chapter ergy efficiency regulations; 101(a) of the Higher Education Act of 1965 (20 329 of title 49, United States Code; or (2) the Weatherization Assistance Program U.S.C. 1001(a)). (7) representation of the interests of the under part A of title IV of the Energy Con- (4) NATIONAL LABORATORY.—The term ‘‘Na- United States with respect to the activities servation and Production Act (42 U.S.C. 6861 and programs under the authority of title 49, tional Laboratory’’ means any of the fol- et seq.); United States Code. lowing laboratories owned by the Depart- (3) the State Energy Program under part D ment: SEC. 809. AUTHORIZATION OF APPROPRIATIONS. of title III of the Energy Policy and Con- (A) Ames Laboratory. There are authorized to be appropriated to servation Act (42 U.S.C. 6321 et seq.); or the Secretary to carry out this title, in addi- (B) Argonne National Laboratory. (4) the Federal Energy Management Pro- tion to any amounts made available for (C) Brookhaven National Laboratory. gram under part 3 of title V of the National these purposes under other Acts— (D) Fermi National Accelerator Labora- Energy Conservation Policy Act (42 U.S.C. (1) $273,500,000 for fiscal year 2004; tory. 8251 et seq.). (2) $375,000,000 for fiscal year 2005; (E) Idaho National Engineering and Envi- SEC. 905. NEXT GENERATION LIGHTING INITIA- (3) $450,000,000 for fiscal year 2006; ronmental Laboratory. TIVE. (4) $500,000,000 for fiscal year 2007; and (F) Lawrence Berkeley National Labora- (a) IN GENERAL.—The Secretary shall carry (5) $550,000,000 for fiscal year 2008. tory. out a Next Generation Lighting Initiative in (G) Lawrence Livermore National Labora- TITLE IX—RESEARCH AND DEVELOPMENT accordance with this section to support re- tory. search, development, demonstration, and SEC. 901. GOALS. (H) Los Alamos National Laboratory. commercial application activities related to (a) IN GENERAL.—The Secretary shall con- (I) National Energy Technology Labora- advanced solid-state lighting technologies duct a balanced set of programs of energy re- tory. based on white light emitting diodes. search, development, demonstration, and (J) National Renewable Energy Labora- (b) OBJECTIVES.—The objectives of the ini- commercial application to support Federal tory. tiative shall be to develop advanced solid- energy policy and programs by the Depart- (K) Oak Ridge National Laboratory. state organic and inorganic lighting tech- ment. Such programs shall be focused on— (L) Pacific Northwest National Labora- nologies based on white light emitting diodes (1) increasing the efficiency of all energy tory. that, compared to incandescent and fluores- intensive sectors through conservation and (M) Princeton Plasma Physics Laboratory. cent lighting technologies, are longer last- improved technologies; (N) Sandia National Laboratories. ing; more energy-efficient; and cost-competi- (2) promoting diversity of energy supply; (O) Stanford Linear Accelerator Center. tive, and have less environmental impact. (3) decreasing the Nation’s dependence on (P) Thomas Jefferson National Accelerator (c) INDUSTRY ALLIANCE.—The Secretary foreign energy supplies; Facility. shall, not later than 3 months after the date (4) improving United States energy secu- of enactment of this section, competitively (5) NONMILITARY ENERGY LABORATORY.—The rity; and term ‘‘nonmilitary energy laboratory’’ select an Industry Alliance to represent par- (5) decreasing the environmental impact of means the laboratories listed in paragraph ticipants that are private, for-profit firms energy-related activities. which, as a group, are broadly representative (4), except for those listed in subparagraphs (b) GOALS.—The Secretary shall publish of United States solid state lighting re- (G), (H), and (N). measurable 5-year cost and performance- search, development, infrastructure, and (6) SECRETARY.—The term ‘‘Secretary’’ based goals with each annual budget submis- manufacturing expertise as a whole. sion in at least the following areas: means the Secretary of Energy. (d) RESEARCH.— INGLE PURPOSE RESEARCH FACILITY (1) Energy efficiency for buildings, energy- (7) S - .— (1) IN GENERAL.—The Secretary shall carry consuming industries, and vehicles. The term ‘‘single-purpose research facility’’ out the research activities of the Next Gen- (2) Electric energy generation (including means any of the primarily single-purpose eration Lighting Initiative through competi- distributed generation), transmission, and entities owned by the Department or any tively awarded grants to researchers, includ- storage. other organization of the Department des- ing Industry Alliance participants, National (3) Renewable energy technologies includ- ignated by the Secretary. Laboratories, and institutions of higher edu- ing wind power, photovoltaics, solar thermal Subtitle A—Energy Efficiency cation. systems, geothermal energy, hydrogen- SEC. 904. ENERGY EFFICIENCY. (2) ASSISTANCE FROM THE INDUSTRY ALLI- fueled systems, biomass-based systems, (a) IN GENERAL.—The following sums are ANCE.—The Secretary shall annually solicit biofuels, and hydropower. authorized to be appropriated to the Sec- from the Industry Alliance—

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00116 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.092 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4561 (A) comments to identify solid-state light- the Director of the Office of Science and (2) structured to evaluate the performance, ing technology needs; Technology Policy shall establish an inter- including useful service life and costs, of (B) assessment of the progress of the Ini- agency group to develop, in coordination such batteries in field operations, and the tiative’s research activities; and with the advisory committee established necessary supporting infrastructure, includ- (C) assistance in annually updating solid- under subsection (e), a National Building ing reuse and disposal of batteries; and state lighting technology roadmaps. Performance Initiative (in this section re- (3) coordinated with ongoing secondary (3) AVAILABILITY OF INFORMATION AND ROAD- ferred to as the ‘‘Initiative’’). The inter- battery use programs at the National Lab- MAPS.—The information and roadmaps under agency group shall be co-chaired by appro- oratories and in industry. paragraph (2) shall be available to the public priate officials of the Department and the (c) SOLICITATION.—Not later than 180 days and public response shall be solicited by the Department of Commerce, who shall jointly after the date of enactment of this Act, if Secretary. arrange for the provision of necessary ad- the Secretary finds under subsection (b) that (e) DEVELOPMENT, DEMONSTRATION, AND ministrative support to the group. there are sufficient numbers of batteries to COMMERCIAL APPLICATION.—The Secretary (b) INTEGRATION OF EFFORTS.—The Initia- support the program, the Secretary shall so- shall carry out a development, demonstra- tive, working with the National Institute of licit proposals to demonstrate the secondary tion, and commercial application program Building Sciences, shall integrate Federal, use of batteries and associated equipment for the Next Generation Lighting Initiative State, and voluntary private sector efforts to and supporting infrastructure in geographic through competitively selected awards. The reduce the costs of construction, operation, locations throughout the United States. The Secretary may give preference to partici- maintenance, and renovation of commercial, Secretary may make additional solicitations pants of the Industry Alliance selected pur- industrial, institutional, and residential for proposals if the Secretary determines suant to subsection (c). buildings. that such solicitations are necessary to (f) INTELLECTUAL PROPERTY.—The Sec- (c) PLAN.—Not later than 1 year after the carry out this section. retary may require, in accordance with the date of enactment of this Act, the inter- authorities provided in section 202(a)(ii) of (d) SELECTION OF PROPOSALS.— agency group shall submit to Congress a plan (1) IN GENERAL.—The Secretary shall, not title 35, United States Code, section 152 of for carrying out the appropriate Federal role the Atomic Energy Act of 1954 (42 U.S.C. later than 90 days after the closing date es- in the Initiative. The plan shall include— tablished by the Secretary for receipt of pro- 2182), and section 9 of the Federal Non- (1) research, development, demonstration, nuclear Energy Research and Development posals under subsection (c), select up to 5 and commercial application of systems and proposals which may receive financial assist- Act of 1974 (42 U.S.C. 5908), that— materials for new construction and retrofit (1) for any new invention resulting from ance under this section, subject to the avail- relating to the building envelope and build- activities under subsection (d)— ability of appropriations. ing system components; and (A) the Industry Alliance members that (2) DIVERSITY; ENVIRONMENTAL EFFECT.—In (2) the collection, analysis, and dissemina- are active participants in research, develop- selecting proposals, the Secretary shall con- tion of research results and other pertinent ment, and demonstration activities related sider diversity of battery type, geographic information on enhancing building perform- to the advanced solid-state lighting tech- and climatic diversity, and life-cycle envi- ance to industry, government entities, and nologies that are the subject of this section ronmental effects of the approaches. the public. shall be granted first option to negotiate (3) LIMITATION.—No 1 project selected (d) DEPARTMENT OF ENERGY ROLE.—Within under this section shall receive more than 25 with the invention owner nonexclusive li- the Federal portion of the Initiative, the De- censes and royalties for uses of the invention percent of the funds authorized for the pro- partment shall be the lead agency for all as- related to solid-state lighting on terms that gram under this section. pects of building performance related to use are reasonable under the circumstances; and (4) OPTIMIZATION OF FEDERAL RESOURCES.— and conservation of energy. (B)(i) for 1 year after a United States pat- The Secretary shall consider the extent of (e) ADVISORY COMMITTEE.— ent is issued for the invention, the patent involvement of State or local government (1) ESTABLISHMENT.—The Secretary, in and other persons in each demonstration holder shall not negotiate any license or roy- consultation with the Secretary of Com- project to optimize use of Federal resources. alty with any entity that is not a participant merce and the Director of the Office of (5) OTHER CRITERIA.—The Secretary may in the Industry Alliance described in sub- Science and Technology Policy, shall estab- paragraph (A); and consider such other criteria as the Secretary lish an advisory committee to— (ii) during the year described in clause (i), considers appropriate. (A) analyze and provide recommendations the invention owner shall negotiate non- (e) CONDITIONS.—The Secretary shall re- on potential private sector roles and partici- exclusive licenses and royalties in good faith quire that— pation in the Initiative; and with any interested participant in the Indus- (1) relevant information be provided to the (B) review and provide recommendations try Alliance described in subparagraph (A); Department, the users of the batteries, the on the plan described in subsection (c). and proposers, and the battery manufacturers; (2) MEMBERSHIP.—Membership of the advi- (2) such other terms as the Secretary de- (2) the proposer provide at least 50 percent sory committee shall include representatives termines are required to promote acceler- of the costs associated with the proposal; with a broad range of appropriate expertise, ated commercialization of inventions made and including expertise in— under the Initiative. (3) the proposer provide to the Secretary (A) building research and technology; (g) NATIONAL ACADEMY REVIEW.—The Sec- such information regarding the disposal of (B) architecture, engineering, and building retary shall enter into an arrangement with the batteries as the Secretary may require materials and systems; and the National Academy of Sciences to con- to ensure that the proposer disposes of the (C) the residential, commercial, and indus- duct periodic reviews of the Next Generation batteries in accordance with applicable law. Lighting Initiative. The Academy shall re- trial sectors of the construction industry. (f) CONSTRUCTION.—Nothing in this section SEC. 908. ENERGY EFFICIENCY SCIENCE INITIA- view the research priorities, technical mile- TIVE. stones, and plans for technology transfer and provides any Federal agency with new au- (a) ESTABLISHMENT.—The Secretary shall progress towards achieving them. The Sec- thority to regulate building performance. establish an Energy Efficiency Science Ini- retary shall consider the results of such re- SEC. 907. SECONDARY ELECTRIC VEHICLE BAT- tiative to be managed by the Assistant Sec- views in evaluating the information obtained TERY USE PROGRAM. retary in the Department with responsibility under subsection (d)(2). (a) DEFINITIONS.—For purposes of this sec- for energy conservation under section (h) DEFINITIONS.—As used in this section: tion: (1) ADVANCED SOLID-STATE LIGHTING.—The (1) ASSOCIATED EQUIPMENT.—The term ‘‘as- 203(a)(9) of the Department of Energy Orga- term ‘‘advanced solid-state lighting’’ means sociated equipment’’ means equipment lo- nization Act (42 U.S.C. 7133(a)(9)), in con- a semiconducting device package and deliv- cated where the batteries will be used that is sultation with the Director of the Office of ery system that produces white light using necessary to enable the use of the energy Science, for grants to be competitively externally applied voltage. stored in the batteries. awarded and subject to peer review for re- (2) RESEARCH.—The term ‘‘research’’ in- (2) BATTERY.—The term ‘battery’’ means search relating to energy efficiency. cludes research on the technologies, mate- an energy storage device that previously has (b) REPORT.—The Secretary shall submit to rials, and manufacturing processes required been used to provide motive power in a vehi- Congress, along with the President’s annual for white light emitting diodes. cle powered in whole or in part by elec- budget request under section 1105(a) of title (3) INDUSTRY ALLIANCE.—The term ‘‘Indus- tricity. 31, United States Code, a report on the ac- try Alliance’’ means an entity selected by (b) PROGRAM.—The Secretary shall estab- tivities of the Energy Efficiency Science Ini- the Secretary under subsection (c). lish and conduct a research, development, tiative, including a description of the proc- (4) WHITE LIGHT EMITTING DIODE.—The term demonstration, and commercial application ess used to award the funds and an expla- ‘‘white light emitting diode’’ means a program for the secondary use of batteries if nation of how the research relates to energy semiconducting package, utilizing either or- the Secretary finds that there are sufficient efficiency. ganic or inorganic materials, that produces numbers of such batteries to support the pro- SEC. 909. ELECTRIC MOTOR CONTROL TECH- white light using externally applied voltage. gram. The program shall be— NOLOGY. SEC. 906. NATIONAL BUILDING PERFORMANCE (1) designed to demonstrate the use of bat- The Secretary shall conduct a research, de- INITIATIVE. teries in secondary applications, including velopment, demonstration, and commercial (a) INTERAGENCY GROUP.—Not later than 90 utility and commercial power storage and application program on advanced control de- days after the date of enactment of this Act, power quality; vices to improve the energy efficiency of

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00117 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.093 S28PT1 S4562 CONGRESSIONAL RECORD — SENATE April 28, 2004 electric motors used in heating, ventilation, Subtitle B—Distributed Energy and Electric (2) the use of excess power to operate other air conditioning, and comparable systems. Energy Systems appliances within the residence and supply excess generated power to the power grid. SEC. 910. ADVANCED ENERGY TECHNOLOGY SEC. 911. DISTRIBUTED ENERGY AND ELECTRIC TRANSFER CENTERS. ENERGY SYSTEMS. SEC. 915. DISTRIBUTED ENERGY TECHNOLOGY (a) IN GENERAL.—The following sums are DEMONSTRATION PROGRAM. (a) GRANTS.—Not later than 18 months authorized to be appropriated to the Sec- The Secretary, within the sums authorized after the date of enactment of this Act, the retary for distributed energy and electric en- under section 911(a), may provide financial Secretary shall make grants to nonprofit in- ergy systems activities, including activities assistance to coordinating consortia of inter- stitutions, State and local governments, or authorized under this subtitle: disciplinary participants for demonstrations universities (or consortia thereof), to estab- (1) For fiscal year 2004, $190,000,000. designed to accelerate the utilization of dis- lish a geographically dispersed network of (2) For fiscal year 2005, $200,000,000. tributed energy technologies, such as fuel Advanced Energy Technology Transfer Cen- (3) For fiscal year 2006, $220,000,000. cells, microturbines, reciprocating engines, ters, to be located in areas the Secretary de- (4) For fiscal year 2007, $240,000,000. thermally activated technologies, and com- termines have the greatest need of the serv- (5) For fiscal year 2008, $260,000,000. bined heat and power systems, in highly en- ices of such Centers. (b) MICRO-COGENERATION ENERGY TECH- ergy intensive commercial applications. NOLOGY.—From amounts authorized under (b) ACTIVITIES.— SEC. 916. RECIPROCATING POWER. subsection (a), $20,000,000 for each of fiscal (1) IN GENERAL.—Each Center shall operate The Secretary shall conduct a research, de- years 2004 and 2005 is authorized for activi- a program to encourage demonstration and velopment, and demonstration program re- ties under section 914. commercial application of advanced energy garding fuel system optimization and emis- methods and technologies through education SEC. 912. HYBRID DISTRIBUTED POWER SYS- sions reduction after-treatment technologies TEMS. and outreach to building and industrial pro- for industrial reciprocating engines. Such (a) REQUIREMENT.—Not later than 1 year after-treatment technologies shall use proc- fessionals, and to other individuals and orga- after the date of enactment of this Act, the nizations with an interest in efficient energy esses that reduce emissions by recirculating Secretary shall develop and transmit to Con- exhaust gases and shall be designed to be ret- use. gress a strategy for a comprehensive re- (2) ADVISORY PANEL.—Each Center shall es- rofitted to any new or existing diesel or nat- search, development, demonstration, and ural gas engine used for power generation, tablish an advisory panel to advise the Cen- commercial application program to develop ter on how best to accomplish the activities peaking power generation, combined heat hybrid distributed power systems that com- and power, or compression. under paragraph (1). bine— Subtitle C—Renewable Energy (c) APPLICATION.—A person seeking a grant (1) 1 or more renewable electric power gen- under this section shall submit to the Sec- eration technologies of 10 megawatts or less SEC. 918. RENEWABLE ENERGY. retary an application in such form and con- located near the site of electric energy use; (a) IN GENERAL.—The following sums are taining such information as the Secretary and authorized to be appropriated to the Sec- may require. The Secretary may award a (2) nonintermittent electric power genera- retary for renewable energy research, devel- grant under this section to an entity already tion technologies suitable for use in a dis- opment, demonstration, and commercial ap- in existence if the entity is otherwise eligi- tributed power system. plication activities, including activities au- ble under this section. (b) CONTENTS.—The strategy shall— thorized under this subtitle: (1) identify the needs best met with such (1) For fiscal year 2004, $480,000,000. (d) SELECTION CRITERIA.—The Secretary hybrid distributed power systems and the (2) For fiscal year 2005, $550,000,000. shall award grants under this section on the technological barriers to the use of such sys- (3) For fiscal year 2006, $610,000,000. basis of the following criteria, at a min- tems; (4) For fiscal year 2007, $659,000,000. imum: (2) provide for the development of methods (5) For fiscal year 2008, $710,000,000. (1) The ability of the applicant to carry out to design, test, integrate into systems, and (b) BIOENERGY.—From the amounts author- the activities in subsection (b). operate such hybrid distributed power sys- ized under subsection (a), the following sums (2) The extent to which the applicant will tems; are authorized to be appropriated to carry coordinate the activities of the Center with (3) include, as appropriate, research, devel- out section 919: other entities, such as State and local gov- opment, demonstration, and commercial ap- (1) For fiscal year 2004, $135,425,000. ernments, utilities, and educational and replication on related technologies needed for (2) For fiscal year 2005, $155,600,000. search institutions. the adoption of such hybrid distributed (3) For fiscal year 2006, $167,650,000. (e) MATCHING FUNDS.—The Secretary shall power systems, including energy storage de- (4) For fiscal year 2007, $180,000,000. require a non-Federal matching requirement vices and environmental control tech- (5) For fiscal year 2008, $192,000,000. of at least 50 percent of the costs of estab- nologies; (c) CONCENTRATING SOLAR POWER.—From lishing and operating each Center. (4) include research, development, dem- amounts authorized under subsection (a), the following sums are authorized to be appro- (f) ADVISORY COMMITTEE.—The Secretary onstration, and commercial application of priated to carry out section 920: shall establish an advisory committee to ad- interconnection technologies for commu- (1) For fiscal year 2004, $20,000,000. vise the Secretary on the establishment of nications and controls of distributed genera- (2) For fiscal year 2005, $40,000,000. Centers under this section. The advisory tion architectures, particularly technologies (3) For each of fiscal years 2006, 2007 and committee shall be composed of individuals promoting real-time response to power mar- 2008, $50,000,000. with expertise in the area of advanced en- ket information and physical conditions on (d) PUBLIC BUILDINGS.—From the amounts ergy methods and technologies, including at the electrical grid; and authorized under subsection (a), $30,000,000 least 1 representative from— (5) describe how activities under the strat- for each of the fiscal years 2004 through 2008 (1) State or local energy offices; egy will be integrated with other research, are authorized to be appropriated to carry (2) energy professionals; development, demonstration, and commer- out section 922. (3) trade or professional associations; cial application activities supported by the (e) LIMITS ON USE OF FUNDS.— (4) architects, engineers, or construction Department related to electric power tech- (1) NO FUNDS FOR RENEWABLE SUPPORT AND professionals; nologies. SEC. 913. HIGH POWER DENSITY INDUSTRY PRO- IMPLEMENTATION.—None of the funds author- (5) manufacturers; ized to be appropriated under this section (6) the research community; and GRAM. The Secretary shall establish a comprehen- may be used for Renewable Support and Im- (7) nonprofit energy or environmental or- plementation. ganizations. sive research, development, demonstration, and commercial application program to im- (2) GRANTS.—Of the funds authorized under (g) DEFINITIONS.—For purposes of this sec- prove energy efficiency of high power den- subsection (b), not less than $5,000,000 for tion: sity facilities, including data centers, server each fiscal year shall be made available for (1) ADVANCED ENERGY METHODS AND TECH- farms, and telecommunications facilities. grants to Historically Black Colleges and NOLOGIES.—The term ‘‘advanced energy Such program shall consider technologies Universities, Tribal Colleges, and Hispanic- methods and technologies’’ means all meth- that provide significant improvement in Serving Institutions. ods and technologies that promote energy ef- thermal controls, metering, load manage- (3) REGIONAL FIELD VERIFICATION PRO- ficiency and conservation, including distrib- ment, peak load reduction, or the efficient GRAM.—Of the funds authorized under sub- uted generation technologies, and life-cycle cooling of electronics. section (a), not less than $4,000,000 for each analysis of energy use. SEC. 914. MICRO-COGENERATION ENERGY TECH- fiscal year shall be made available for the (2) CENTER.—The term ‘‘Center’’ means an NOLOGY. Regional Field Verification Program of the Advanced Energy Technology Transfer Cen- The Secretary shall make competitive, Department. ter established pursuant to this section. merit-based grants to consortia for the de- (4) OFF-STREAM PUMPED STORAGE HYDRO- (3) DISTRIBUTED GENERATION.—The term velopment of micro-cogeneration energy POWER.—Of the funds authorized under sub- ‘‘distributed generation’’ means an electric technology. The consortia shall explore— section (a), such sums as may be necessary power generation facility that is designed to (1) the use of small-scale combined heat shall be made available for demonstration serve retail electric consumers at or near the and power in residential heating appliances; projects of off-stream pumped storage hydro- facility site. and power.

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(f) CONSULTATION.—In carrying out this ‘‘Renewable Power Pathways: A Review of (2) For fiscal year 2005, $355,000,000. subtitle, the Secretary, in consultation with the U.S. Department of Energy’s Renewable (3) For fiscal year 2006, $430,000,000. the Secretary of Agriculture, shall dem- Energy Programs’’ in 2000 and subsequent (4) For fiscal year 2007, $455,000,000. onstrate the use of advanced wind power Department-funded reviews of that report; (5) For fiscal year 2008, $545,000,000. technology, including combined use with and (b) NUCLEAR INFRASTRUCTURE SUPPORT.— coal gasification; biomass; geothermal en- (2) provide an assessment of the potential The following sums are authorized to be ap- ergy systems; and other renewable energy impact of the technology before, or concur- propriated to the Secretary for activities technologies to assist in delivering elec- rent with, submission of the fiscal year 2006 under section 925(e): tricity to rural and remote locations. budget. (1) For fiscal year 2004, $125,000,000. (2) For fiscal year 2005, $130,000,000. SEC. 919. BIOENERGY PROGRAMS. (c) REPORT.—Not later than 5 years after (3) For fiscal year 2006, $135,000,000. (a) DEFINITIONS.—For the purposes of this the date of enactment of this Act, the Sec- (4) For fiscal year 2007, $140,000,000. section: retary shall provide a report to Congress on (5) For fiscal year 2008, $145,000,000. (1) The term ‘‘agricultural byproducts’’ in- the economic and technical potential for electricity or hydrogen production, with or (c) ALLOCATIONS.—From amounts author- cludes waste products, including poultry fat ized under subsection (a), the following sums and poultry waste. without cogeneration, with concentrating solar power, including the economic and are authorized: (2) The term ‘‘cellulosic biomass’’ means (1) For activities under section 926— any portion of a crop containing technical feasibility of potential construction of a pilot demonstration facility suit- (A) for fiscal year 2004, $140,000,000; lignocellulose or hemicellulose, including (B) for fiscal year 2005, $145,000,000; barley grain, grapeseed, forest thinnings, able for commercial production of electricity or hydrogen from concentrating solar power. (C) for fiscal year 2006, $150,000,000; rice bran, rice hulls, rice straw, soybean (D) for fiscal year 2007, $155,000,000; and SEC. 921. MISCELLANEOUS PROJECTS. matter, and sugarcane bagasse, or any crop (E) for fiscal year 2008, $275,000,000. The Secretary may conduct research, de- grown specifically for the purpose of pro- (2) For activities under section 927— velopment, demonstration, and commercial ducing cellulosic feedstocks. (A) for fiscal year 2004, $35,200,000; application programs for— (b) PROGRAM.—The Secretary shall conduct (B) for fiscal year 2005, $44,350,000; a program of research, development, dem- (1) ocean energy, including wave energy; (C) for fiscal year 2006, $49,200,000; onstration, and commercial application for and (D) for fiscal year 2007, $54,950,000; and bioenergy, including— (2) the combined use of renewable energy (E) for fiscal year 2008, $60,000,000. (1) biopower energy systems; technologies with one another and with (3) For activities under section 929, for (2) biofuels; other energy technologies, including the each of fiscal years 2004 through 2008, (3) bio-based products; combined use of wind power and coal gasifi- $6,000,000. (4) integrated biorefineries that may cation technologies. (d) LIMITATION ON USE OF FUNDS.—None of produce biopower, biofuels, and bio-based SEC. 922. RENEWABLE ENERGY IN PUBLIC BUILD- the funds authorized under this section may products; INGS. be used for decommissioning the Fast Flux (5) cross-cutting research and development (a) DEMONSTRATION AND TECHNOLOGY Test Facility. in feedstocks and enzymes; and TRANSFER PROGRAM.—The Secretary shall SEC. 925. NUCLEAR ENERGY RESEARCH AND DE- (6) economic analysis. establish a program for the demonstration of VELOPMENT PROGRAMS. (c) BIOFUELS AND BIO-BASED PRODUCTS.— innovative technologies for solar and other (a) NUCLEAR ENERGY RESEARCH INITIA- The goals of the biofuels and bio-based prod- renewable energy sources in buildings owned TIVE.—The Secretary shall carry out a Nu- ucts programs shall be to develop, in part- or operated by a State or local government, clear Energy Research Initiative for research nership with industry— and for the dissemination of information re- and development related to nuclear energy. (1) advanced biochemical and sulting from such demonstration to inter- (b) NUCLEAR ENERGY PLANT OPTIMIZATION thermochemical conversion technologies ca- ested parties. PROGRAM.—The Secretary shall carry out a pable of making biofuels that are price-com- (b) LIMIT ON FEDERAL FUNDING.—The Sec- Nuclear Energy Plant Optimization Program petitive with gasoline or diesel in either in- retary shall provide under this section no to support research and development activi- ternal combustion engines or fuel cell-pow- more than 40 percent of the incremental ties addressing reliability, availability, pro- ered vehicles, and bio-based products from a costs of the solar or other renewable energy ductivity, component aging, safety, and security of existing nuclear power plants. variety of feedstocks, including grains, cel- source project funded. (c) NUCLEAR POWER 2010 PROGRAM.—The lulosic biomass, and other agricultural by- (c) REQUIREMENT.—As part of the application for awards under this section, the Sec- Secretary shall carry out a Nuclear Power products; and 2010 Program, consistent with recommenda- (2) advanced biotechnology processes capa- retary shall require all applicants— (1) to demonstrate a continuing commit- tions in the October 2001 report entitled ‘‘A ble of making biofuels and bio-based prod- Roadmap to Deploy New Nuclear Power ucts with emphasis on development of bio- ment to the use of solar and other renewable energy sources in buildings they own or op- Plants in the United States by 2010’’ issued refinery technologies using enzyme-based by the Nuclear Energy Research Advisory processing systems. erate; and (2) to state how they expect any award to Committee of the Department. Whatever SEC. 920. CONCENTRATING SOLAR POWER RE- further their transition to the significant type of reactor is chosen for the hydrogen SEARCH AND DEVELOPMENT PRO- use of renewable energy. cogeneration project under subtitle C of title GRAM. VI, that type shall not be addressed in the (a) IN GENERAL.—The Secretary shall con- SEC. 923. STUDY OF MARINE RENEWABLE EN- Program under this section. The Program ERGY OPTIONS. duct a program of research and development shall include— (a) IN GENERAL.—The Secretary shall enter to evaluate the potential of concentrating (1) support for first-of-a-kind engineering into an arrangement with the National solar power for hydrogen production, includ- design and certification expenses of ad- Academy of Sciences to conduct a study on— ing cogeneration approaches for both hydro- vanced nuclear power plant designs, which (1) the feasibility of various methods of regen and electricity. Such program shall take offer improved safety and economics over newable generation of energy from the advantage of existing facilities to the extent current conventional plants and the promise ocean, including energy from waves, tides, possible and shall include— of near-term to medium-term commercial currents, and thermal gradients; and (1) development of optimized technologies deployment; that are common to both electricity and hy- (2) the research, development, demonstra- (2) action by the Secretary to encourage drogen production; tion, and commercial application activities domestic power companies to install new nu- (2) evaluation of thermochemical cycles for required to make marine renewable energy clear plant capacity as soon as possible; hydrogen production at the temperatures at- generation competitive with other forms of (3) utilization of the expertise and capabili- tainable with concentrating solar power; electricity generation. ties of industry, universities, and National (b) TRANSMITTAL.—Not later than 1 year (3) evaluation of materials issues for the Laboratories in evaluation of advanced nu- after the date of enactment of this Act, the thermochemical cycles described in para- clear fuel cycles and fuels testing; Secretary shall transmit the study to Con- graph (2); (4) consideration of proliferation-resistant gress along with the Secretary’s rec- (4) system architectures and economics passively-safe, small reactors suitable for ommendations for implementing the results studies; and long-term electricity production without re- of the study. (5) coordination with activities in the Ad- fueling and suitable for use in remote instal- vanced Reactor Hydrogen Cogeneration Subtitle D—Nuclear Energy lations; Project on high temperature materials, SEC. 924. NUCLEAR ENERGY. (5) participation of international collabo- thermochemical cycles, and economic issues. (a) CORE PROGRAMS.—The following sums rators in research, development, design, and (b) ASSESSMENT.—In carrying out the pro- are authorized to be appropriated to the Sec- deployment efforts as appropriate and con- gram under this section, the Secretary retary for nuclear energy research, develop- sistent with United States interests in non- shall— ment, demonstration, and commercial appli- proliferation of nuclear weapons; (1) assess conflicting guidance on the eco- cation activities, including activities au- (6) encouragement for university and in- nomic potential of concentrating solar power thorized under this subtitle, other than dustry participation; and for electricity production received from the those described in subsection (b): (7) selection of projects such as to National Research Council report entitled (1) For fiscal year 2004, $273,000,000. strengthen the competitive position of the

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domestic nuclear power industrial infra- FRASTRUCTURE.—Activities under this sec- Subtitle E—Fossil Energy structure. tion may include— PART I—RESEARCH PROGRAMS (d) GENERATION IV NUCLEAR ENERGY SYS- (1) converting research and training reac- SEC. 931. FOSSIL ENERGY. TEMS INITIATIVE.—The Secretary shall carry tors currently using high-enrichment fuels (a) IN GENERAL.—The following sums are out a Generation IV Nuclear Energy Systems to low-enrichment fuels, upgrading oper- authorized to be appropriated to the Sec- Initiative to develop an overall technology ational instrumentation, and sharing of re- retary for fossil energy research, develop- plan and to support research and develop- actors among institutions of higher edu- ment, demonstration, and commercial appli- ment necessary to make an informed tech- cation; cation activities, including activities au- nical decision about the most promising can- (2) providing technical assistance, in col- thorized under this part: didates for eventual commercial application. laboration with the United States nuclear (1) For fiscal year 2004, $530,000,000. The Initiative shall examine advanced pro- industry, in relicensing and upgrading re- (2) For fiscal year 2005, $556,000,000. liferation-resistant and passively safe reac- search and training reactors as part of a stu- (3) For fiscal year 2006, $583,000,000. tor designs, including designs that— dent training program; and (4) For fiscal year 2007, $611,000,000. (1) are economically competitive with (3) providing funding, through the Innova- (5) For fiscal year 2008, $626,000,000. other electric power generation plants; tions in Nuclear Infrastructure and Edu- (b) ALLOCATIONS.—From amounts author- (2) have higher efficiency, lower cost, and cation Program, for reactor improvements as ized under subsection (a), the following sums improved safety compared to reactors in op- part of a focused effort that emphasizes re- are authorized: eration on the date of enactment of this Act; search, training, and education. (1) For activities under section 932(b)(2), (3) use fuels that are proliferation-resist- (d) UNIVERSITY NATIONAL LABORATORY $28,000,000 for each of the fiscal years 2004 ant and have substantially reduced produc- INTERACTIONS.—The Secretary shall develop through 2008. tion of high-level waste per unit of output; sabbatical fellowship and visiting scientist (2) For activities under section 934— and programs to encourage sharing of personnel (A) for fiscal year 2004, $12,000,000; (4) use improved instrumentation. between National Laboratories and univer- (B) for fiscal year 2005, $15,000,000; and (e) NUCLEAR INFRASTRUCTURE SUPPORT.— sities. (C) for each of fiscal years 2006 through The Secretary shall develop and implement a 2008, $20,000,000. strategy for the facilities of the Office of Nu- (e) OPERATING AND MAINTENANCE COSTS.— (3) For activities under section 935— clear Energy, Science, and Technology and Funding for a research project provided (A) for fiscal year 2004, $259,000,000; shall transmit a report containing the strat- under this section may be used to offset a (B) for fiscal year 2005, $272,000,000; egy along with the President’s budget re- portion of the operating and maintenance (C) for fiscal year 2006, $285,000,000; quest to Congress for fiscal year 2006. costs of a research and training reactor at an (D) for fiscal year 2007, $298,000,000; and institution of higher education used in the SEC. 926. ADVANCED FUEL CYCLE INITIATIVE. (E) for fiscal year 2008, $308,000,000. research project. (a) IN GENERAL.—The Secretary, through (4) For the Office of Arctic Energy under the Director of the Office of Nuclear Energy, SEC. 928. SECURITY OF REACTOR DESIGNS. section 3197 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year Science, and Technology, shall conduct an The Secretary, through the Director of the advanced fuel recycling technology research 2001 (42 U.S.C. 7144d), $25,000,000 for each of Office of Nuclear Energy, Science, and Tech- fiscal years 2004 through 2008. and development program to evaluate pro- nology, shall conduct a research and develop- liferation-resistant fuel recycling and trans- (5) For activities under section 933, ment program on cost-effective technologies $4,000,000 for fiscal year 2004 and $2,000,000 for mutation technologies that minimize envi- for increasing the safety of reactor designs ronmental or public health and safety im- each of fiscal years 2005 through 2008. from natural phenomena and the security of XTENDED AUTHORIZATION.—There are pacts as an alternative to aqueous reprocess- (c) E reactor designs from deliberate attacks. authorized to be appropriated to the Sec- ing technologies deployed as of the date of retary for the Office of Arctic Energy under enactment of this Act in support of evalua- SEC. 929. ALTERNATIVES TO INDUSTRIAL RADIO- section 3197 of the Floyd D. Spence National tion of alternative national strategies for ACTIVE SOURCES. Defense Authorization Act for Fiscal Year spent nuclear fuel and the Generation IV ad- (a) STUDY.—The Secretary shall conduct a 2001 (42 U.S.C. 7144d), $25,000,000 for each of vanced reactor concepts, subject to annual study and provide a report to Congress not fiscal years 2009 through 2012. review by the Secretary’s Nuclear Energy later than August 1, 2004. The study shall— (d) LIMITS ON USE OF FUNDS.— Research Advisory Committee or other inde- (1) survey industrial applications of large (1) NO FUNDS FOR CERTAIN PROGRAMS.— pendent entity, as appropriate. Opportuni- radioactive sources, including well-logging None of the funds authorized under this sec- ties to enhance progress of the program sources; tion may be used for Fossil Energy Environ- through international cooperation should be (2) review current domestic and inter- mental Restoration or Import/Export Au- sought. national Department, Department of De- thorization. (b) REPORTS.—The Secretary shall report fense, Department of State, and commercial (2) INSTITUTIONS OF HIGHER EDUCATION.—Of on the activities of the advanced fuel recy- programs to manage and dispose of radio- the funds authorized under subsection (b)(2), cling technology research and development active sources; not less than 20 percent of the funds appro- program as part of the Department’s annual (3) discuss disposal options and practices priated for each fiscal year shall be dedi- budget submission. for currently deployed or future sources and, cated to research and development carried SEC. 927. UNIVERSITY NUCLEAR SCIENCE AND if deficiencies are noted in existing disposal out at institutions of higher education. ENGINEERING SUPPORT. options or practices for either deployed or SEC. 932. OIL AND GAS RESEARCH PROGRAMS. (a) ESTABLISHMENT.—The Secretary shall future sources, recommend options to rem- (a) OIL AND GAS RESEARCH.—The Secretary support a program to invest in human re- edy deficiencies; and shall conduct a program of research, devel- sources and infrastructure in the nuclear (4) develop a program plan for research and opment, demonstration, and commercial ap- sciences and engineering and related fields development to develop alternatives to large plication on oil and gas, including— (including health physics and nuclear and industrial sources that reduce safety, envi- (1) exploration and production; radiochemistry), consistent with depart- ronmental, or proliferation risks to either (2) gas hydrates; mental missions related to civilian nuclear workers using the sources or the public. (3) reservoir life and extension; research and development. (b) PROGRAM.—The Secretary shall estab- (4) transportation and distribution infra- (b) DUTIES.—In carrying out the program lish a research and development program to structure; under this section, the Secretary shall estab- implement the program plan developed (5) ultraclean fuels; lish fellowship and faculty assistance pro- under subsection (a)(4). The program shall (6) heavy oil and oil shale; grams, as well as provide support for funda- include miniaturized particle accelerators (7) related environmental research; and mental research and encourage collaborative for well-logging or other industrial applica- (8) compressed natural gas marine trans- research among industry, National Labora- tions and portable accelerators for produc- port. tories, and universities through the Nuclear tion of short-lived radioactive materials at (b) FUEL CELLS.— Energy Research Initiative. The Secretary is an industrial site. (1) IN GENERAL.—The Secretary shall con- encouraged to support activities addressing duct a program of research, development, the entire fuel cycle through involvement of SEC. 930. GEOLOGICAL ISOLATION OF SPENT demonstration, and commercial application FUEL. both the Office of Nuclear Energy, Science, on fuel cells for low-cost, high-efficiency, and Technology and the Office of Civilian The Secretary shall conduct a study to de- fuel-flexible, modular power systems. Radioactive Waste Management. The Sec- termine the feasibility of deep borehole dis- (2) IMPROVED MANUFACTURING PRODUCTION retary shall support communication and out- posal of spent nuclear fuel and high-level ra- AND PROCESSES.—The demonstrations under reach related to nuclear science, engineer- dioactive waste. The study shall emphasize paragraph (1) shall include fuel cell tech- ing, and nuclear waste management, con- geological, chemical, and hydrological char- nology for commercial, residential, and sistent with interests of the United States in acterization of, and design of engineered transportation applications, and distributed nonproliferation of nuclear weapons capa- structures for, deep borehole environments. generation systems, utilizing improved man- bilities. Not later than 1 year after the date of enact- ufacturing production and processes. (c) STRENGTHENING UNIVERSITY RESEARCH ment of this Act, the Secretary shall trans- (c) NATURAL GAS AND OIL DEPOSITS RE- AND TRAINING REACTORS AND ASSOCIATED IN- mit the study to Congress. PORT.—Not later than 2 years after the date

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COAL AND RELATED TECHNOLOGIES (A) without a loan guarantee, credit is not thereafter, the Secretary of the Interior, in PROGRAM. available to the applicant under reasonable consultation with other appropriate Federal (a) IN GENERAL.—In addition to the pro- terms or conditions sufficient to finance the agencies, shall transmit a report to Congress grams authorized under title IV, the Sec- construction of a facility described in para- of the latest estimates of natural gas and oil retary shall conduct a program of tech- graph (1); reserves, reserves growth, and undiscovered nology research, development, demonstra- (B) the prospective earning power of the resources in Federal and State waters off the tion, and commercial application for coal applicant and the character and value of the coast of Louisiana and Texas. and power systems, including programs to security pledged provide a reasonable assur- (d) INTEGRATED CLEAN POWER AND ENERGY facilitate production and generation of coal- ance of repayment of the loan to be guaran- RESEARCH.— based power through— teed in accordance with the terms of the (1) NATIONAL CENTER OR CONSORTIUM OF EX- (1) innovations for existing plants; loan; and CELLENCE.—The Secretary shall establish a (2) integrated gasification combined cycle; (C) the loan bears interest at a rate deter- national center or consortium of excellence (3) advanced combustion systems; mined by the Secretary to be reasonable, in clean energy and power generation, uti- (4) turbines for synthesis gas derived from taking into account the current average lizing the resources of the existing Clean coal; yield on outstanding obligations of the Power and Energy Research Consortium, to (5) carbon capture and sequestration re- United States with remaining periods of ma- address the Nation’s critical dependence on search and development; turity comparable to the maturity of the energy and the need to reduce emissions. (6) coal-derived transportation fuels and loan. (2) PROGRAM.—The center or consortium chemicals; (3) CRITERIA.—In selecting recipients of shall conduct a program of research, devel- (7) solid fuels and feedstocks; loan guarantees from among applicants, the opment, demonstration, and commercial ap- (8) advanced coal-related research; Secretary shall give preference to proposals plication on integrating the following focus (9) advanced separation technologies; and that— areas: (10) a joint project for permeability en- (A) meet all Federal and State permitting (A) Efficiency and reliability of gas tur- hancement in coals for natural gas produc- requirements; bines for power generation. tion and carbon dioxide sequestration. (B) are most likely to be successful; and (B) Reduction in emissions from power (b) COST AND PERFORMANCE GOALS.—In car- (C) are located in local markets that have generation. rying out programs authorized by this sec- the greatest need for the facility because tion, the Secretary shall identify cost and (C) Promotion of energy conservation of— performance goals for coal-based tech- issues. (i) the availability of domestic coal or coal nologies that would permit the continued (D) Effectively utilizing alternative fuels waste for conversion; or cost-competitive use of coal for electricity and renewable energy. (ii) a projected high level of demand for generation, as chemical feedstocks, and as Fischer-Tropsch diesel fuel or other commer- (E) Development of advanced materials transportation fuel in 2007, 2015, and the cial byproducts of the facility. technology for oil and gas exploration and years after 2020. In establishing such cost (4) MATURITY.—A loan guaranteed under utilization in harsh environments. and performance goals, the Secretary shall— paragraph (1) shall have a maturity of not (F) Education on energy and power genera- (1) consider activities and studies under- more than 25 years. tion issues. taken to date by industry in cooperation (5) TERMS AND CONDITIONS.—The loan SEC. 933. TECHNOLOGY TRANSFER. with the Department in support of such as- agreement for a loan guaranteed under para- The Secretary shall establish a competi- sessment; graph (1) shall provide that no provision of tive program to award a contract to a non- (2) consult with interested entities, includ- the loan may be amended or waived without profit entity for the purpose of transferring ing coal producers, industries using coal, or- the consent of the Secretary. technologies developed with public funds. ganizations to promote coal and advanced (6) GUARANTEE FEE.—A recipient of a loan The entity selected under this section shall coal technologies, environmental organiza- guarantee under paragraph (1) shall pay the have experience in offshore oil and gas tech- tions, and organizations representing work- Secretary an amount to be determined by nology research management, in the transfer ers; the Secretary to be sufficient to cover the of technologies developed with public funds (3) not later than 120 days after the date of administrative costs of the Secretary relat- to the offshore and maritime industry, and enactment of this Act, publish in the Federal ing to the loan guarantee. in management of an offshore and maritime Register proposed draft cost and perform- (7) FULL FAITH AND CREDIT.— industry consortium. The program consor- ance goals for public comments; and (A) IN GENERAL.—The full faith and credit tium selected under section 942 shall not be (4) not later than 180 days after the date of of the United States is pledged to payment of eligible for selection under this section. enactment of this Act and every 4 years loan guarantees made under this section. When appropriate, the Secretary shall con- thereafter, submit to Congress a report de- (B) CONCLUSIVE EVIDENCE.—Any loan guar- sider utilizing the entity selected under this scribing final cost and performance goals for antee made by the Secretary under this sec- section when implementing the activities such technologies that includes a list of tion shall be conclusive evidence of the eligi- authorized by section 975. technical milestones as well as an expla- bility of the loan for the guarantee with re- SEC. 934. RESEARCH AND DEVELOPMENT FOR nation of how programs authorized in this spect to principal and interest. COAL MINING TECHNOLOGIES. section will not duplicate the activities au- (C) VALIDITY.—The validity of a loan guar- (a) ESTABLISHMENT.—The Secretary shall thorized under the Clean Coal Power Initia- antee shall be incontestable in the hands of carry out a program of research and develop- tive authorized under subtitle A of title IV. ment on coal mining technologies. The Sec- a holder of the guaranteed loan. SEC. 936. COMPLEX WELL TECHNOLOGY TESTING (8) REPORTS.—Until each guaranteed loan retary shall cooperate with appropriate Fed- FACILITY. eral agencies, coal producers, trade associa- The Secretary, in coordination with indus- under this section is repaid in full, the Sec- tions, equipment manufacturers, institutions try leaders in extended research drilling retary shall annually submit to Congress a of higher education with mining engineering technology, shall establish a Complex Well report on the activities of the Secretary departments, and other relevant entities. Technology Testing Facility at the Rocky under this section. (b) PROGRAM.—The research and develop- Mountain Oilfield Testing Center to increase (9) AUTHORIZATION OF APPROPRIATIONS.— ment activities carried out under this sec- the range of extended drilling technologies. There are authorized to be appropriated such sums as are necessary to carry out this section shall— SEC. 937. FISCHER-TROPSCH DIESEL FUEL LOAN (1) be guided by the mining research and GUARANTEE PROGRAM. tion. development priorities identified by the Min- (a) DEFINITION OF FISCHER-TROPSCH DIESEL (10) TERMINATION OF AUTHORITY.—The au- ing Industry of the Future Program and in FUEL.—In this section, the term ‘‘Fischer- thority of the Secretary to issue a new loan the recommendations from relevant reports Tropsch diesel fuel’’ means diesel fuel that— guarantee under paragraph (1) terminates on of the National Academy of Sciences on min- (1) contains less than 10 parts per million the date that is 5 years after the date of en- ing technologies; sulfur; and actment of this Act. (2) include activities exploring minimiza- (2) is produced through the Fischer- PART II—ULTRA-DEEPWATER AND UN- tion of contaminants in mined coal that con- Tropsch liquification process from coal or CONVENTIONAL NATURAL GAS AND tribute to environmental concerns including waste from coal that was mined in the OTHER PETROLEUM RESOURCES development and demonstration of electro- United States. SEC. 941. PROGRAM AUTHORITY. magnetic wave imaging ahead of mining op- (b) LOAN GUARANTEES.— (a) IN GENERAL.—The Secretary shall carry erations; (1) ESTABLISHMENT OF PROGRAM.—The Sec- out a program under this part of research, (3) develop and demonstrate electro- retary of Energy shall establish a program to development, demonstration, and commer- magnetic wave imaging and radar techniques provide guarantees of loans by private lend- cial application of technologies for ultra- for horizontal drilling in coal beds in order ing institutions for the construction of fa- deepwater and unconventional natural gas to increase methane recovery efficiency, pre- cilities for the production of Fischer-Tropsch and other petroleum resource exploration vent spoilage of domestic coal reserves, and diesel fuel and commercial byproducts of and production, including addressing the minimize water disposal associated with that production. technology challenges for small producers, methane extraction; and (2) REQUIREMENTS.—The Secretary may safe operations, and environmental mitiga- (4) expand mining research capabilities at provide a loan guarantee under paragraph (1) tion (including reduction of greenhouse gas institutions of higher education. if— emissions and sequestration of carbon).

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(b) PROGRAM ELEMENTS.—The program (ii) to require any board member, officer, may also solicit comments from any other under this part shall address the following or employee with a financial relationship or experts. areas, including improving safety and mini- interest disclosed under clause (i) to recuse (C) CONSULTATION.—The Secretary shall mizing environmental impacts of activities himself or herself from any review under consult regularly with the program consor- within each area: subsection (f)(3) or oversight under sub- tium throughout the preparation of the an- (1) Ultra-deepwater technology, including section (f)(4) with respect to such applicant nual plan. drilling to formations in the Outer Conti- or recipient. (3) PUBLICATION.—The Secretary shall nental Shelf to depths greater than 15,000 (B) FAILURE TO COMPLY.—The Secretary transmit to Congress and publish in the Fed- feet. may disqualify an application or revoke an eral Register the annual plan, along with (2) Ultra-deepwater architecture. award under this section if a board member, any written comments received under para- (3) Unconventional natural gas and other officer, or employee has failed to comply graph (2)(A) and (B). petroleum resource exploration and produc- with procedures required under subparagraph (4) CONTENTS.—The annual plan shall de- tion technology, including the technology (A)(ii). scribe the ongoing and prospective activities challenges of small producers. (d) SELECTION OF THE PROGRAM CONSOR- of the program under this section and shall (c) LIMITATION ON LOCATION OF FIELD AC- TIUM.— include— TIVITIES.—Field activities under the program (1) IN GENERAL.—The Secretary shall select (A) a list of any solicitations for awards under this part shall be carried out only— the program consortium through an open, that the Secretary plans to issue to carry (1) in— competitive process. out research, development, demonstration, (A) areas in the territorial waters of the (2) MEMBERS.—The program consortium or commercial application activities, includ- United States not under any Outer Conti- may include corporations, trade associa- ing the topics for such work, who would be nental Shelf moratorium as of September 30, tions, institutions of higher education, Na- eligible to apply, selection criteria, and the 2002; tional Laboratories, or other research insti- duration of awards; and (B) areas onshore in the United States on tutions. After submitting a proposal under (B) a description of the activities expected public land administered by the Secretary of paragraph (4), the program consortium may of the program consortium to carry out sub- the Interior available for oil and gas leasing, not add members without the consent of the section (f)(4). STIMATES OF INCREASED ROYALTY RE- where consistent with applicable law and Secretary. (5) E CEIPTS.—The Secretary, in consultation with land use plans; and (3) TAX STATUS.—The program consortium the Secretary of the Interior, shall provide (C) areas onshore in the United States on shall be an entity that is exempt from tax an annual report to Congress with the Presi- State or private land, subject to applicable under section 501(c)(3) of the Internal Rev- dent’s budget on the estimated cumulative law; and enue Code of 1986. increase in Federal royalty receipts (if any) (2) with the approval of the appropriate (4) SCHEDULE.—Not later than 180 days resulting from the implementation of this Federal or State land management agency or after the date of enactment of this Act, the part. The initial report under this paragraph private land owner. Secretary shall solicit proposals from eligi- shall be submitted in the first President’s (d) RESEARCH AT NATIONAL ENERGY TECH- ble consortia to perform the duties in sub- budget following the completion of the first NOLOGY LABORATORY.—The Secretary, section (c)(1), which shall be submitted not annual plan required under this subsection. through the National Energy Technology later than 360 days after the date of enact- Laboratory, shall carry out research com- (f) AWARDS.— ment of this Act. The Secretary shall select plementary to research under subsection (b). (1) IN GENERAL.—The Secretary shall make the program consortium not later than 18 (e) CONSULTATION WITH SECRETARY OF THE awards to carry out research, development, months after such date of enactment. INTERIOR.—In carrying out this part, the demonstration, and commercial application Secretary shall consult regularly with the (5) APPLICATION.—Applicants shall submit activities under the program under this sec- Secretary of the Interior. a proposal including such information as the tion. The program consortium shall not be Secretary may require. At a minimum, each SEC. 942. ULTRA-DEEPWATER PROGRAM. eligible to receive such awards, but members proposal shall— (a) IN GENERAL.—The Secretary shall carry of the program consortium may receive such (A) list all members of the consortium; out the activities under section 941(a), to awards. maximize the use of the ultra-deepwater nat- (B) fully describe the structure of the con- (2) PROPOSALS.—The Secretary shall solicit ural gas and other petroleum resources of sortium, including any provisions relating to proposals for awards under this subsection in the United States by increasing the supply of intellectual property; and such manner and at such time as the Sec- such resources, through reducing the cost (C) describe how the applicant would carry retary may prescribe, in consultation with and increasing the efficiency of exploration out the activities of the program consortium the program consortium. for and production of such resources, while under this section. (3) REVIEW.—The Secretary shall make improving safety and minimizing environ- (6) ELIGIBILITY.—To be eligible to be se- awards under this subsection through a com- mental impacts. lected as the program consortium, an appli- petitive process, which shall include a review (b) ROLE OF THE SECRETARY.—The Sec- cant must be an entity whose members col- by individuals selected by the Secretary. retary shall have ultimate responsibility for, lectively have demonstrated capabilities in Such individuals shall include, for each ap- and oversight of, all aspects of the program planning and managing research, develop- plication, Federal officials, the program con- under this section. ment, demonstration, and commercial appli- sortium, and non-Federal experts who are (c) ROLE OF THE PROGRAM CONSORTIUM.— cation programs in natural gas or other pe- not board members, officers, or employees of (1) IN GENERAL.—The Secretary may con- troleum exploration or production. the program consortium or of a member of tract with a consortium to— (7) CRITERION.—The Secretary shall con- the program consortium. (A) manage awards pursuant to subsection sider the amount of the fee an applicant pro- (4) OVERSIGHT.— (f)(4); poses to receive under subsection (g) in se- (A) IN GENERAL.—The program consortium (B) make recommendations to the Sec- lecting a consortium under this section. shall oversee the implementation of awards retary for project solicitations; (e) ANNUAL PLAN.— under this subsection, consistent with the (C) disburse funds awarded under sub- (1) IN GENERAL.—The program under this annual plan under subsection (e), including section (f) as directed by the Secretary in ac- section shall be carried out pursuant to an disbursing funds and monitoring activities cordance with the annual plan under sub- annual plan prepared by the Secretary in ac- carried out under such awards for compli- section (e); and cordance with paragraph (2). ance with the terms and conditions of the (D) carry out other activities assigned to (2) DEVELOPMENT.— awards. the program consortium by this section. (A) SOLICITATION OF RECOMMENDATIONS.— (B) EFFECT.—Nothing in subparagraph (A) (2) LIMITATION.—The Secretary may not as- Before drafting an annual plan under this shall limit the authority or responsibility of sign any activities to the program consor- subsection, the Secretary shall solicit spe- the Secretary to oversee awards, or limit the tium except as specifically authorized under cific written recommendations from the pro- authority of the Secretary to review or re- this section. gram consortium for each element to be ad- voke awards. (3) CONFLICT OF INTEREST.— dressed in the plan, including those described (C) PROVISION OF INFORMATION.—The Sec- (A) PROCEDURES.—The Secretary shall es- in paragraph (4). The Secretary may request retary shall provide to the program consor- tablish procedures— that the program consortium submit its rec- tium the information necessary for the pro- (i) to ensure that each board member, offi- ommendations in the form of a draft annual gram consortium to carry out its respon- cer, or employee of the program consortium plan. sibilities under this paragraph. who is in a decision-making capacity under (B) SUBMISSION OF RECOMMENDATIONS; (g) ADMINISTRATIVE COSTS.— subsection (f)(3) or (4) shall disclose to the OTHER COMMENT.—The Secretary shall sub- (1) IN GENERAL.—To compensate the pro- Secretary any financial interests in, or fi- mit the recommendations of the program gram consortium for carrying out its activi- nancial relationships with, applicants for or consortium under subparagraph (A) to the ties under this section, the Secretary shall recipients of awards under this section, in- Ultra-Deepwater Advisory Committee estab- provide to the program consortium funds cluding those of his or her spouse or minor lished under section 945(a) for review, and sufficient to administer the program. This child, unless such relationships or interests such Advisory Committee shall provide to compensation may include a management would be considered to be remote or incon- the Secretary written comments by a date fee consistent with Department of Energy sequential; and determined by the Secretary. The Secretary contracting practices and procedures.

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(2) ADVANCE.—The Secretary shall advance complex geology involving rapid changes in duce or eliminate the non-Federal require- funds to the program consortium upon selec- the type and quality of the oil and gas res- ment if the Secretary determines that the tion of the consortium, which shall be de- ervoirs across the reservoir; low reservoir reduction is necessary and appropriate conducted from amounts to be provided under pressure; unconventional natural gas res- sidering the technological risks involved in paragraph (1). ervoirs in coalbeds, deep reservoirs, tight the project. (h) AUDIT.—The Secretary shall retain an sands, or shales; and unconventional oil res- SEC. 945. ADVISORY COMMITTEES. independent, commercial auditor to deter- ervoirs in tar sands and oil shales. mine the extent to which funds provided to (e) ANNUAL PLAN.— (a) ULTRA-DEEPWATER ADVISORY COM- the program consortium, and funds provided (1) IN GENERAL.—The program under this MITTEE.— under awards made under subsection (f), section shall be carried out pursuant to an (1) ESTABLISHMENT.—Not later than 270 have been expended in a manner consistent annual plan prepared by the Secretary in ac- days after the date of enactment of this Act, with the purposes and requirements of this cordance with paragraph (2). the Secretary shall establish an advisory part. The auditor shall transmit a report an- (2) DEVELOPMENT.— committee to be known as the Ultra-Deep- nually to the Secretary, who shall transmit (A) WRITTEN RECOMMENDATIONS.—Before water Advisory Committee. the report to Congress, along with a plan to drafting an annual plan under this sub- (2) MEMBERSHIP.—The advisory committee remedy any deficiencies cited in the report. section, the Secretary shall solicit specific under this subsection shall be composed of SEC. 943. UNCONVENTIONAL NATURAL GAS AND written recommendations from the research members appointed by the Secretary includ- OTHER PETROLEUM RESOURCES consortia receiving awards under subsection ing— PROGRAM. (b) and the Unconventional Resources Tech- (A) individuals with extensive research ex- (a) IN GENERAL.—The Secretary shall carry nology Advisory Committee for each ele- perience or operational knowledge of off- out activities under subsection 941(b)(3), to ment to be addressed in the plan, including shore natural gas and other petroleum explo- maximize the use of the onshore unconven- those described in subparagraph (D). ration and production; tional natural gas and other petroleum re- (B) CONSULTATION.—The Secretary shall (B) individuals broadly representative of sources of the United States, by increasing consult regularly with the research con- the affected interests in ultra-deepwater nat- the supply of such resources, through reduc- sortia throughout the preparation of the an- ural gas and other petroleum production, in- ing the cost and increasing the efficiency of nual plan. cluding interests in environmental protec- exploration for and production of such re- (C) PUBLICATION.—The Secretary shall tion and safe operations; sources, while improving safety and mini- transmit to Congress and publish in the Fed- (C) no individuals who are Federal employ- mizing environmental impacts. eral Register the annual plan, along with ees; and (b) AWARDS.— any written comments received under sub- (D) no individuals who are board members, (1) IN GENERAL.—The Secretary shall carry paragraph (A). officers, or employees of the program consor- out this section through awards to research (D) CONTENTS.—The annual plan shall de- tium. consortia made through an open, competi- scribe the ongoing and prospective activities (3) DUTIES.—The advisory committee under tive process. As a condition of award of under this section and shall include a list of this subsection shall— funds, qualified research consortia shall— any solicitations for awards that the Sec- (A) advise the Secretary on the develop- (A) demonstrate capability and experience retary plans to issue to carry out research, ment and implementation of programs under in unconventional onshore natural gas or development, demonstration, or commercial this part related to ultra-deepwater natural other petroleum research and development; application activities, including the topics gas and other petroleum resources; and (B) provide a research plan that dem- for such work, who would be eligible to (B) carry out section 942(e)(2)(B). onstrates how additional natural gas or oil apply, selection criteria, and the duration of (4) COMPENSATION.—A member of the advi- production will be achieved; and awards. sory committee under this subsection shall (C) at the request of the Secretary, provide (3) ESTIMATES OF INCREASED ROYALTY RE- serve without compensation but shall receive technical advice to the Secretary for the CEIPTS.—The Secretary, in consultation with travel expenses in accordance with applica- purposes of developing the annual plan re- the Secretary of the Interior, shall provide ble provisions under subchapter I of chapter quired under subsection (e). an annual report to Congress with the Presi- 57 of title 5, United States Code. (2) PRODUCTION POTENTIAL.—The Secretary dent’s budget on the estimated cumulative (b) UNCONVENTIONAL RESOURCES TECH- shall seek to ensure that the number and increase in Federal royalty receipts (if any) NOLOGY ADVISORY COMMITTEE.— types of awards made under this subsection resulting from the implementation of this (1) ESTABLISHMENT.—Not later than 270 have reasonable potential to lead to addi- part. The initial report under this paragraph days after the date of enactment of this Act, tional oil and natural gas production on Fed- shall be submitted in the first President’s the Secretary shall establish an advisory eral lands. budget following the completion of the first committee to be known as the Unconven- (3) SCHEDULE.—To carry out this sub- annual plan required under this subsection. tional Resources Technology Advisory Com- section, not later than 180 days after the (f) ACTIVITIES BY THE UNITED STATES GEO- mittee. date of enactment of this Act, the Secretary LOGICAL SURVEY.—The Secretary of the Inte- (2) MEMBERSHIP.—The advisory committee shall solicit proposals from research con- rior, through the United States Geological under this subsection shall be composed of sortia, which shall be submitted not later Survey, shall, where appropriate, carry out members appointed by the Secretary includ- than 360 days after the date of enactment of programs of long-term research to coming— this Act. The Secretary shall select the first plement the programs under this section. (A) a majority of members who are em- group of research consortia to receive awards SEC. 944. ADDITIONAL REQUIREMENTS FOR ployees or representatives of independent under this subsection not later than 18 AWARDS. producers of natural gas and other petro- months after such date of enactment. (a) DEMONSTRATION PROJECTS.—An applica- leum, including small producers; (c) AUDIT.—The Secretary shall retain an tion for an award under this part for a dem- independent, commercial auditor to deter- (B) individuals with extensive research ex- onstration project shall describe with speci- perience or operational knowledge of uncon- mine the extent to which funds provided ficity the intended commercial use of the under awards made under this section have ventional natural gas and other petroleum technology to be demonstrated. resource exploration and production; been expended in a manner consistent with (b) FLEXIBILITY IN LOCATING DEMONSTRA- (C) individuals broadly representative of the purposes and requirements of this part. TION PROJECTS.—Subject to the limitation in the affected interests in unconventional nat- The auditor shall transmit a report annually section 941(c), a demonstration project under ural gas and other petroleum resource explo- to the Secretary, who shall transmit the re- this part relating to an ultra-deepwater ration and production, including interests in port to Congress, along with a plan to rem- technology or an ultra-deepwater architec- environmental protection and safe oper- edy any deficiencies cited in the report. ture may be conducted in deepwater depths. ations; and (d) FOCUS AREAS FOR AWARDS.— (c) INTELLECTUAL PROPERTY AGREE- (D) no individuals who are Federal employ- (1) UNCONVENTIONAL RESOURCES.—Awards MENTS.—If an award under this part is made ees. from allocations under section 949(d)(2) shall to a consortium (other than the program (3) DUTIES.—The advisory committee under focus on areas including advanced coalbed consortium), the consortium shall provide to this subsection shall advise the Secretary on methane, deep drilling, natural gas produc- the Secretary a signed contract agreed to by the development and implementation of action from tight sands, natural gas produc- all members of the consortium describing tivities under this part related to unconven- tion from gas shales, stranded gas, innova- the rights of each member to intellectual tional natural gas and other petroleum re- tive exploration and production techniques, property used or developed under the award. enhanced recovery techniques, and environ- (d) TECHNOLOGY TRANSFER.—2.5 percent of sources. mental mitigation of unconventional natural the amount of each award made under this (4) COMPENSATION.—A member of the advi- gas and other petroleum resources explo- part shall be designated for technology sory committee under this subsection shall ration and production. transfer and outreach activities under this serve without compensation but shall receive (2) SMALL PRODUCERS.—Awards from allo- title. travel expenses in accordance with applica- cations under section 949(d)(3) shall be made (e) COST SHARING REDUCTION FOR INDE- ble provisions under subchapter I of chapter to consortia consisting of small producers or PENDENT PRODUCERS.—In applying the cost 57 of title 5, United States Code. organized primarily for the benefit of small sharing requirements under section 972 to an (c) PROHIBITION.—No advisory committee producers, and shall focus on areas including award under this part the Secretary may re- established under this section shall make

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00123 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.099 S28PT1 S4568 CONGRESSIONAL RECORD — SENATE April 28, 2004 recommendations on funding awards to par- petroleum resource located onshore in an (A) for fiscal year 2004, $270,000,000; ticular consortia or other entities, or for spe- economically inaccessible geological forma- (B) for fiscal year 2005, $292,000,000; cific projects. tion, including resources of small producers. (C) for fiscal year 2006, $322,000,000; SEC. 946. LIMITS ON PARTICIPATION. SEC. 949. FUNDING. (D) for fiscal year 2007, $355,000,000; and An entity shall be eligible to receive an (a) AUTHORIZATION OF APPROPRIATIONS.— (E) for fiscal year 2008, $390,000,000. award under this part only if the Secretary There are authorized to be appropriated to (5) For activities under section 957(c), from finds— the Secretary, to be deposited in the Fund, the amounts authorized under paragraph (4) (1) that the entity’s participation in the such sums as are necessary for each of the of this subsection— program under this part would be in the eco- fiscal years 2004 through 2013, to remain (A) for fiscal year 2004, $135,000,000; nomic interest of the United States; and available until expended. (B) for fiscal year 2005, $150,000,000; (2) that either— (b) OBLIGATIONAL AUTHORITY.—Monies in (C) for fiscal year 2006, $120,000,000; (A) the entity is a United States-owned en- the Fund shall be available to the Secretary (D) for fiscal year 2007, $100,000,000; and tity organized under the laws of the United for obligation under this part without fiscal (E) for fiscal year 2008, $125,000,000. States; or year limitation, to remain available until (6) For activities in the Genomes to Life (B) the entity is organized under the laws expended. Program under section 959— of the United States and has a parent entity (c) ALLOCATION.—Amounts obligated from (A) for fiscal year 2004, $100,000,000; and organized under the laws of a country that the Fund under this section in each fiscal (B) for fiscal years 2005 through 2008, such affords— year shall be allocated as follows: sums as may be necessary. (i) to United States-owned entities oppor- (1) 50 percent shall be for activities under (7) For activities in the Energy-Water Sup- tunities, comparable to those afforded to any section 942. ply Program under section 961, $30,000,000 for other entity, to participate in any coopera- (2) 35 percent shall be for activities under each of fiscal years 2004 through 2008. tive research venture similar to those au- section 943(d)(1). (c) ITER CONSTRUCTION.—In addition to the thorized under this part; (3) 10 percent shall be for activities under funds authorized under subsection (b)(1), (ii) to United States-owned entities local section 943(d)(2). such sums as may be necessary for costs as- investment opportunities comparable to (4) 5 percent shall be for research under sociated with ITER construction, consistent those afforded to any other entity; and section 941(d). with limitations under section 952. (iii) adequate and effective protection for (d) FUND.—There is hereby established in SEC. 952. UNITED STATES PARTICIPATION IN the intellectual property rights of United the Treasury of the United States a separate ITER. States-owned entities. fund to be known as the ‘‘Ultra-Deepwater (a) IN GENERAL.—The United States may participate in ITER in accordance with the SEC. 947. SUNSET. and Unconventional Natural Gas and Other The authority provided by this part shall Petroleum Research Fund’’. provisions of this section. (b) AGREEMENT.— terminate on September 30, 2011. Subtitle F—Science (1) IN GENERAL.—The Secretary is author- SEC. 948. DEFINITIONS. SEC. 951. SCIENCE. ized to negotiate an agreement for United In this part: (a) IN GENERAL.—The following sums are States participation in ITER. (1) DEEPWATER.—The term ‘‘deepwater’’ authorized to be appropriated to the Sec- (2) CONTENTS.—Any agreement for United means a water depth that is greater than 200 retary for research, development, dem- States participation in ITER shall, at a min- but less than 1,500 meters. onstration, and commercial application ac- imum— (2) INDEPENDENT PRODUCER OF OIL OR GAS.— tivities of the Office of Science, including ac- (A) clearly define the United States finan- (A) IN GENERAL.—The term ‘‘independent tivities authorized under this subtitle, in- cial contribution to construction and oper- producer of oil or gas’’ means any person cluding the amounts authorized under the ating costs; that produces oil or gas other than a person amendment made by section 958(c)(2)(C), and (B) ensure that the share of ITER’s high- to whom subsection (c) of section 613A of the including basic energy sciences, advanced technology components manufactured in the Internal Revenue Code of 1986 does not apply scientific computing research, biological and United States is at least proportionate to by reason of paragraph (2) (relating to cer- environmental research, fusion energy the United States financial contribution to tain retailers) or paragraph (4) (relating to sciences, high energy physics, nuclear phys- ITER; certain refiners) of section 613A(d) of such ics, and research analysis and infrastructure (C) ensure that the United States will not Code. support: be financially responsible for cost overruns (B) RULES FOR APPLYING PARAGRAPHS (2) (1) For fiscal year 2004, $3,785,000,000. in components manufactured in other ITER AND (4) OF SECTION 613A(d).—For purposes of (2) For fiscal year 2005, $4,153,000,000. participating countries; subparagraph (A), paragraphs (2) and (4) of (3) For fiscal year 2006, $4,618,000,000. (D) guarantee the United States full access section 613A(d) of the Internal Revenue Code (4) For fiscal year 2007, $5,310,000,000. to all data generated by ITER; of 1986 shall be applied by substituting ‘‘cal- (5) For fiscal year 2008, $5,800,000,000. (E) enable United States researchers to endar year’’ for ‘‘taxable year’’ each place it (b) ALLOCATIONS.—From amounts author- propose and carry out an equitable share of appears in such paragraphs. ized under subsection (a), the following sums the experiments at ITER; (3) PROGRAM CONSORTIUM.—The term ‘‘pro- are authorized: (F) provide the United States with a role in gram consortium’’ means the consortium se- (1) For activities of the Fusion Energy all collective decisionmaking related to lected under section 942(d). Sciences Program, including activities under ITER; and (4) REMOTE OR INCONSEQUENTIAL.—The term sections 952 and 953— (G) describe the process for discontinuing ‘‘remote or inconsequential’’ has the mean- (A) for fiscal year 2004, $335,000,000; or decommissioning ITER and any United ing given that term in regulations issued by (B) for fiscal year 2005, $349,000,000; States role in those processes. the Office of Government Ethics under sec- (C) for fiscal year 2006, $362,000,000; (c) PLAN.—The Secretary, in consultation tion 208(b)(2) of title 18, United States Code. (D) for fiscal year 2007, $377,000,000; and with the Fusion Energy Sciences Advisory (5) SMALL PRODUCER.—The term ‘‘small (E) for fiscal year 2008, $393,000,000. Committee, shall develop a plan for the par- producer’’ means an entity organized under (2) For the Spallation Neutron Source— ticipation of United States scientists in the laws of the United States with produc- (A) for construction in fiscal year 2004, ITER that shall include the United States tion levels of less than 1,000 barrels per day $124,600,000; research agenda for ITER, methods to evalu- of oil equivalent. (B) for construction in fiscal year 2005, ate whether ITER is promoting progress to- (6) ULTRA-DEEPWATER.—The term ‘‘ultra- $79,800,000; ward making fusion a reliable and affordable deepwater’’ means a water depth that is (C) for completion of construction in fiscal source of power, and a description of how equal to or greater than 1,500 meters. year 2006, $41,100,000; and work at ITER will relate to other elements (7) ULTRA-DEEPWATER ARCHITECTURE.—The (D) for other project costs (including re- of the United States fusion program. The term ‘‘ultra-deepwater architecture’’ means search and development necessary to com- Secretary shall request a review of the plan the integration of technologies for the explo- plete the project, preoperations costs, and by the National Academy of Sciences. ration for, or production of, natural gas or capital equipment related to construction), (d) LIMITATION.—No funds shall be ex- other petroleum resources located at ultra- $103,279,000 for the period encompassing fis- pended for the construction of ITER until deepwater depths. cal years 2003 through 2006, to remain avail- the Secretary has transmitted to Congress— (8) ULTRA-DEEPWATER TECHNOLOGY.—The able until expended through September 30, (1) the agreement negotiated pursuant to term ‘‘ultra-deepwater technology’’ means a 2006. subsection (b) and 120 days have elapsed discrete technology that is specially suited (3) For Catalysis Research activities under since that transmission; to address 1 or more challenges associated section 956— (2) a report describing the management with the exploration for, or production of, (A) for fiscal year 2004, $33,000,000; structure of ITER and providing a fixed dol- natural gas or other petroleum resources lo- (B) for fiscal year 2005, $35,000,000; lar estimate of the cost of United States par- cated at ultra-deepwater depths. (C) for fiscal year 2006, $36,500,000; ticipation in the construction of ITER, and (9) UNCONVENTIONAL NATURAL GAS AND (D) for fiscal year 2007, $38,200,000; and 120 days have elapsed since that trans- OTHER PETROLEUM RESOURCE.—The term ‘‘un- (E) for fiscal year 2008, $40,100,000. mission; conventional natural gas and other petro- (4) For Nanoscale Science and Engineering (3) a report describing how United States leum resource’’ means natural gas and other Research activities under section 957— participation in ITER will be funded without

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00124 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.099 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4569 reducing funding for other programs in the (F) attractive alternative inertial and eling of catalytic reactions at the molecular Office of Science, including other fusion pro- magnetic fusion energy approaches are more level; grams, and 60 days have elapsed since that fully explored. (2) develop techniques for high throughput transmission; and (2) COSTS AND SCHEDULES.—Such plan shall synthesis, assay, and characterization at (4) the plan required by subsection (c) (but also address the status of and, to the degree nanometer and subnanometer scales in situ not the National Academy of Sciences review possible, costs and schedules for— under actual operating conditions; of that plan), and 60 days have elapsed since (A) in coordination with the program (3) synthesize catalysts with specific site that transmission. under section 960, the design and implemen- architectures; (e) ALTERNATIVE TO ITER.—If at any time tation of international or national facilities (4) conduct research on the use of precious during the negotiations on ITER, the Sec- for the testing of fusion materials; and metals for catalysis; and retary determines that construction and op- (B) the design and implementation of (5) translate molecular understanding to eration of ITER is unlikely or infeasible, the international or national facilities for the the design of catalytic compounds. Secretary shall send to Congress, as part of testing and development of key fusion tech- (b) DUTIES OF THE OFFICE OF SCIENCE.—In the budget request for the following year, a nologies. carrying out the program under this section, the Director of the Office of Science shall— plan for implementing the domestic burning SEC. 954. SPALLATION NEUTRON SOURCE. plasma experiment known as FIRE, includ- (1) support both individual investigators (a) DEFINITION.—For the purposes of this and multidisciplinary teams of investigators ing costs and schedules for such a plan. The section, the term ‘‘Spallation Neutron to pioneer new approaches in catalytic de- Secretary shall refine such plan in full con- Source’’ means Department Project 99–E–334, sultation with the Fusion Energy Sciences sign; Oak Ridge National Laboratory, Oak Ridge, Advisory Committee and shall also transmit (2) develop, plan, construct, acquire, share, Tennessee. such plan to the National Academy of or operate special equipment or facilities for (b) REPORT.—The Secretary shall report on Sciences for review. the use of investigators in collaboration with the Spallation Neutron Source as part of the (f) DEFINITIONS.—In this section and sec- national user facilities such as nanoscience Department’s annual budget submission, in- tions 951(b)(1) and (c): and engineering centers; cluding a description of the achievement of (1) CONSTRUCTION.—The term ‘‘construc- (3) support technology transfer activities tion’’ means the physical construction of the milestones, a comparison of actual costs to to benefit industry and other users of catal- ITER facility, and the physical construction, estimated costs, and any changes in esti- ysis science and engineering; and purchase, or manufacture of equipment or mated project costs or schedule. (4) coordinate research and development (c) LIMITATIONS.—The total amount obli- components that are specifically designed activities with industry and other Federal gated by the Department, including prior for the ITER facility, but does not mean the agencies. year appropriations, for the Spallation Neu- design of the facility, equipment, or compo- (c) TRIENNIAL ASSESSMENT.—The National tron Source shall not exceed— nents. Academy of Sciences shall review the catal- (1) $1,192,700,000 for costs of construction; (2) FIRE.—The term ‘‘FIRE’’ means the ysis program every 3 years to report on gains (2) $219,000,000 for other project costs; and Fusion Ignition Research Experiment, the made in the fundamental science of catalysis (3) $1,411,700,000 for total project cost. fusion research experiment for which design and its progress towards developing new work has been supported by the Department SEC. 955. SUPPORT FOR SCIENCE AND ENERGY fuels for energy production and material fab- as a possible alternative burning plasma ex- FACILITIES AND INFRASTRUCTURE. rication processes. periment in the event that ITER fails to (a) FACILITY AND INFRASTRUCTURE POL- SEC. 957. NANOSCALE SCIENCE AND ENGINEER- move forward. ICY.—The Secretary shall develop and imple- ING RESEARCH, DEVELOPMENT, DEMONSTRATION, AND COMMER- (3) ITER.—The term ‘‘ITER’’ means the ment a strategy for facilities and infrastructure supported primarily from the Office of CIAL APPLICATION. international burning plasma fusion research (a) ESTABLISHMENT.—The Secretary, acting project in which the President announced Science, the Office of Energy Efficiency and Renewable Energy, the Office of Fossil En- through the Office of Science, shall support a United States participation on January 30, program of research, development, dem- 2003. ergy, or the Office of Nuclear Energy, Science, and Technology Programs at all Na- onstration, and commercial application in SEC. 953. PLAN FOR FUSION ENERGY SCIENCES nanoscience and nanoengineering. The pro- PROGRAM. tional Laboratories and single-purpose research facilities. Such strategy shall provide gram shall include efforts to further the un- (a) DECLARATION OF POLICY.—It shall be the derstanding of the chemistry, physics, mate- cost-effective means for— policy of the United States to conduct re- rials science, and engineering of phenomena (1) maintaining existing facilities and in- search, development, demonstration, and on the scale of nanometers and to apply that frastructure, as needed; commercial application to provide for the knowledge to the Department’s mission (2) closing unneeded facilities; scientific, engineering, and commercial in- areas. frastructure necessary to ensure that the (3) making facility modifications; and (b) DUTIES OF THE OFFICE OF SCIENCE.—In United States is competitive with other na- (4) building new facilities. carrying out the program under this section, tions in providing fusion energy for its own (b) REPORT.— the Office of Science shall— needs and the needs of other nations, includ- (1) IN GENERAL.—The Secretary shall pre- (1) support both individual investigators ing by demonstrating electric power or hy- pare and transmit, along with the Presi- and teams of investigators, including multi- drogen production for the United States en- dent’s budget request to Congress for fiscal disciplinary teams; ergy grid utilizing fusion energy at the ear- year 2006, a report containing the strategy (2) carry out activities under subsection liest date possible. developed under subsection (a). (c); (b) PLANNING.— (2) CONTENTS.—For each National Labora- (3) support technology transfer activities (1) IN GENERAL.—Not later than 180 days tory and single-purpose research facility, for to benefit industry and other users of after the date of enactment of this Act, the the facilities primarily used for science and nanoscience and nanoengineering; Secretary shall present to Congress a plan, energy research, such report shall contain— (4) coordinate research and development with proposed cost estimates, budgets, and (A) the current priority list of proposed fa- activities with other Department programs, potential international partners, for the im- cilities and infrastructure projects, includ- industry, and other Federal agencies; plementation of the policy described in sub- ing cost and schedule requirements; (5) ensure that societal and ethical con- section (a). The plan shall ensure that— (B) a current 10-year plan that dem- cerns will be addressed as the technology is (A) existing fusion research facilities are onstrates the reconfiguration of its facilities developed by— more fully utilized; and infrastructure to meet its missions and (A) establishing a research program to (B) fusion science, technology, theory, ad- to address its long-term operational costs identify societal and ethical concerns related vanced computation, modeling, and simula- and return on investment; to nanotechnology, and ensuring that the re- tion are strengthened; (C) the total current budget for all facili- sults of such research are widely dissemi- (C) new magnetic and inertial fusion re- ties and infrastructure funding; and nated; and search facilities are selected based on sci- (D) the current status of each facility and (B) integrating, insofar as possible, re- entific innovation, cost effectiveness, and infrastructure project compared to the origi- search on societal and ethical concerns with their potential to advance the goal of prac- nal baseline cost, schedule, and scope. nanotechnology research and development; tical fusion energy at the earliest date pos- SEC. 956. CATALYSIS RESEARCH AND DEVELOP- and sible, and those that are selected are funded MENT PROGRAM. (6) ensure that the potential of at a cost-effective rate; (a) ESTABLISHMENT.—The Secretary, nanotechnology to produce or facilitate the (D) communication of scientific results through the Office of Science, shall support a production of clean, inexpensive energy is re- and methods between the fusion energy program of research and development in ca- alized by supporting nanotechnology energy science community and the broader sci- talysis science consistent with the Depart- applications research and development. entific and technology communities is im- ment’s statutory authorities related to re- (c) NANOSCIENCE AND NANOENGINEERING RE- proved; search and development. The program shall SEARCH CENTERS AND MAJOR INSTRUMENTA- (E) inertial confinement fusion facilities include efforts to— TION.— are utilized to the extent practicable for the (1) enable catalyst design using combina- (1) IN GENERAL.—The Secretary shall carry purpose of inertial fusion energy research tions of experimental and mechanistic meth- out projects to develop, plan, construct, ac- and development; and odologies coupled with computational mod- quire, operate, or support special equipment,

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instrumentation, or facilities for investiga- (C) by amending subsection (e) to read as (d) GENOMES TO LIFE USER FACILITIES AND tors conducting research and development in follows: ANCILLARY EQUIPMENT.— nanoscience and nanoengineering. ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— (1) IN GENERAL.—Within the funds author- (2) ACTIVITIES.—Projects under paragraph There are authorized to be appropriated to ized to be appropriated pursuant to this Act, (1) may include the measurement of prop- the Secretary of Energy to carry out the the amounts specified under section 951(b)(6) erties at the scale of nanometers, manipula- Networking and Information Technology Re- shall, subject to appropriations, be available tion at such scales, and the integration of search and Development Program such sums for projects to develop, plan, construct, ac- technologies based on nanoscience or as may be necessary for fiscal years 2004 quire, or operate special equipment, instru- nanoengineering into bulk materials or through 2008.’’. mentation, or facilities for investigators other technologies. (d) COORDINATION.—The Secretary shall en- conducting research, development, dem- (3) FACILITIES.—Facilities under paragraph sure that the program under this section is onstration, and commercial application in (1) may include electron microcharacteriza- integrated and consistent with— systems biology and proteomics and associ- tion facilities, microlithography facilities, (1) the Advanced Simulation and Com- ated biological disciplines. puting Program, formerly known as the Ac- scanning probe facilities, and related instru- (2) FACILITIES.—Facilities under paragraph mentation. celerated Strategic Computing Initiative, of (1) may include facilities, equipment, or in- (4) COLLABORATIONS.—The Secretary shall the National Nuclear Security Administra- strumentation for— encourage collaborations among Department tion; and (A) the production and characterization of programs, institutions of higher education, (2) other national efforts related to ad- proteins; laboratories, and industry at facilities under vanced scientific computing for science and (B) whole proteome analysis; this subsection. engineering. (C) characterization and imaging of molec- (e) REPORT.— SEC. 958. ADVANCED SCIENTIFIC COMPUTING ular machines; and (1) IN GENERAL.—Before undertaking any FOR ENERGY MISSIONS. (D) analysis and modeling of cellular sys- new initiative to develop any new advanced (a) IN GENERAL.—The Secretary, acting tems. architecture for high-speed computing, the through the Office of Science, shall support a (3) COLLABORATIONS.—The Secretary shall Secretary, through the Director of the Office program to advance the Nation’s computing encourage collaborations among univer- of Science, shall transmit a report to Con- capability across a diverse set of grand chal- sities, laboratories, and industry at facilities gress describing— lenge, computationally based, science prob- under this subsection. All facilities under lems related to departmental missions. (A) the expected duration and cost of the this subsection shall have a specific mission (b) DUTIES OF THE OFFICE OF SCIENCE.—In initiative; of technology transfer to other institutions. carrying out the program under this section, (B) the technical milestones the initiative (e) PROHIBITION ON BIOMEDICAL AND HUMAN the Office of Science shall— is designed to achieve; CELL AND HUMAN SUBJECT RESEARCH.— (1) advance basic science through computa- (C) how institutions of higher education (1) NO BIOMEDICAL RESEARCH.—In carrying tion by developing software to solve grand and private firms will participate in the ini- out the program under this section, the Sec- challenge science problems on new genera- tiative; and retary shall not conduct biomedical re- tions of computing platforms in collabora- (D) why the goals of the initiative could search. tion with other Department program offices; not be achieved through existing programs. (2) LIMITATIONS.—Nothing in this section (2) enhance the foundations for scientific (2) LIMITATION.—No funds may be expended shall authorize the Secretary to conduct any computing by developing the basic mathe- on any initiative described in paragraph (1) research or demonstrations— matical and computing systems software until 30 days after the report required by (A) on human cells or human subjects; or needed to take full advantage of the com- that paragraph is transmitted to Congress. puting capabilities of computers with peak (B) designed to have direct application SEC. 959. GENOMES TO LIFE PROGRAM. with respect to human cells or human sub- speeds of 100 teraflops or more, some of (a) PROGRAM.— jects. which may be unique to the scientific prob- (1) ESTABLISHMENT.—The Secretary shall lem of interest; establish a research, development, and dem- SEC. 960. FISSION AND FUSION ENERGY MATE- RIALS RESEARCH PROGRAM. (3) enhance national collaboratory and net- onstration program in genetics, protein In the President’s fiscal year 2006 budget working capabilities by developing software science, and computational biology to sup- request, the Secretary shall establish a re- to integrate geographically separated report the energy, national security, and envi- search and development program on mate- searchers into effective research teams and ronmental mission of the Department. rial science issues presented by advanced fis- to facilitate access to and movement and (2) GRANTS.—The program shall support in- sion reactors and the Department’s fusion analysis of large (petabyte) data sets; dividual investigators and multidisciplinary energy program. The program shall develop a (4) develop and maintain a robust scientific teams of investigators through competitive, catalog of material properties required for computing hardware infrastructure to ensure merit-reviewed grants. these applications, develop theoretical mod- that the computing resources needed to ad- (3) CONSULTATION.—In carrying out the pro- els for materials possessing the required dress departmental missions are available; gram, the Secretary shall consult with other properties, benchmark models against exist- and Federal agencies that conduct genetic and ing data, and develop a roadmap to guide fur- (5) explore new computing approaches and protein research. ther research and development in this area. technologies that promise to advance sci- (b) GOALS.—The program shall have the entific computing, including developments goal of developing technologies and methods SEC. 961. ENERGY-WATER SUPPLY PROGRAM. in quantum computing. based on the biological functions of genomes, (a) ESTABLISHMENT.—There is established (c) HIGH-PERFORMANCE COMPUTING ACT OF microbes, and plants that— within the Department the Energy-Water 1991 AMENDMENTS.—The High-Performance (1) can facilitate the production of fuels, Supply Program, to study energy-related and Computing Act of 1991 is amended— including hydrogen; certain other issues associated with the sup- (1) in section 4 (15 U.S.C. 5503)— (2) convert carbon dioxide to organic car- ply of drinking water and operation of com- (A) in paragraph (3) by striking ‘‘means’’ bon; munity water systems and to study water and inserting ‘‘and networking and informa- (3) improve national security and combat supply issues related to energy. tion technology mean’’, and by striking ‘‘(in- terrorism; (b) DEFINITIONS.—For the purposes of this cluding vector supercomputers and large (4) detoxify soils and water at Department section: scale parallel systems)’’; and facilities contaminated with heavy metals (1) ADMINISTRATOR.—The term ‘‘Adminis- (B) in paragraph (4), by striking ‘‘packet and radiological materials; and trator’’ means the Administrator of the En- switched’’; and (5) address other Department missions as vironmental Protection Agency. (2) in section 203 (15 U.S.C. 5523)— identified by the Secretary. (2) AGENCY.—The term ‘‘Agency’’ means (A) in subsection (a), by striking all after (c) PLAN.— the Environmental Protection Agency. ‘‘As part of the’’ and inserting ‘‘Networking (1) DEVELOPMENT OF PLAN.—Not later than (3) FOUNDATION.—The term ‘‘Foundation’’ and Information Technology Research and 1 year after the date of enactment of this means the American Water Works Associa- Development Program, the Secretary of En- Act, the Secretary shall prepare and trans- tion Research Foundation. ergy shall conduct basic and applied research mit to Congress a research plan describing (4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ in networking and information technology, how the program authorized pursuant to this has the meaning given the term in section 4 with emphasis on supporting fundamental section will be undertaken to accomplish the of the Indian Self-Determination and Edu- research in the physical sciences and engi- program goals established in subsection (b). cation Assistance Act (25 U.S.C. 450b). neering, and energy applications; providing (2) REVIEW OF PLAN.—The Secretary shall (5) PROGRAM.—The term ‘‘Program’’ means supercomputer access and advanced commu- contract with the National Academy of the Energy-Water Supply Program estab- nication capabilities and facilities to sci- Sciences to review the research plan devel- lished by this section. entific researchers; and developing tools for oped under this subsection. The Secretary (c) PROGRAM AREAS.—The Program shall distributed scientific collaboration.’’; shall transmit the review to Congress not develop methods, means, procedures, equip- (B) in subsection (b), by striking ‘‘Pro- later than 18 months after transmittal of the ment, and improved technologies relating gram’’ and inserting ‘‘Networking and Infor- research plan under paragraph (1), along to— mation Technology Research and Develop- with the Secretary’s response to the rec- (1) the arsenic removal program under sub- ment Program’’; and ommendations contained in the review. section (d);

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00126 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.099 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4571 (2) the desalination program under sub- (A) use the resources of the Department (D) transfer those tools to other Federal section (e); and and the Department of the Interior that were agencies, State agencies, nonprofit organiza- (3) the water and energy sustainability involved in the development of the 2003 Na- tions, industry, and academia. program under subsection (f). tional Desalination and Water Purification (4) REPORT.—Not later than 1 year after (d) ARSENIC REMOVAL PROGRAM.— Technology Roadmap for next-generation de- the date of enactment of this Act, the Sec- (1) IN GENERAL.—As soon as practicable salination technology; retary shall submit to Congress a report on after the date of enactment of this Act, the (B) focus on technologies that are appro- the Water and Energy Sustainability Pro- Secretary, in coordination with the Adminis- priate for use in desalinating brackish gram that— trator and in partnership with the Founda- groundwater, drinking water, wastewater (A) includes the results of the assessment tion, shall utilize the facilities, institutions, and other saline water supplies, or disposal under paragraph (2) and the program plan and relationships established in the Consoli- of residual brine or salt; and and technology development roadmap; and dated Appropriations Resolution, 2003 as de- (C) consider the use of renewable energy (B) identifies policy, legal, and institu- scribed in Senate Report 107–220 to carry out sources. tional issues related to water and energy a research program to provide innovative (3) CONSTRUCTION PROJECTS.—Funds made sustainability. methods and means for removal of arsenic. available to carry out this subsection may be SEC. 962. NITROGEN FIXATION. (2) REQUIRED EVALUATIONS.—The program used for construction projects, including The Secretary, acting through the Office of shall, to the maximum extent practicable, completion of the National Desalination Re- Science, shall support a program of research, evaluate the means of— search Center for brackish groundwater and development, demonstration, and commer- (A) reducing energy costs incurred in using ongoing operational costs of this facility. cial application on biological nitrogen fixa- arsenic removal technologies; tion, including plant genomics research rel- (B) minimizing materials, operating, and (4) STEERING COMMITTEE.—The Secretary evant to the development of commercial maintenance costs; and and the Commissioner of Reclamation of the crop varieties with enhanced nitrogen fixa- (C) minimizing any quantities of waste (es- Department of the Interior shall jointly es- tion efficiency and ability. pecially hazardous waste) that result from tablish a steering committee for activities use of arsenic removal technologies. conducted under this subsection. The steer- Subtitle G—Energy and Environment (3) PEER REVIEW.—Where applicable and ing committee shall be jointly chaired by 1 SEC. 964. UNITED STATES-MEXICO ENERGY TECH- reasonably available, projects undertaken representative from the program and 1 rep- NOLOGY COOPERATION. under this subsection shall be peer-reviewed. resentative from the Bureau of Reclamation. (a) PROGRAM.—The Secretary shall estab- (4) COMMUNITY WATER SYSTEMS.—In car- (f) WATER AND ENERGY SUSTAINABILITY lish a research, development, demonstration, rying out the program under this subsection, PROGRAM.— and commercial application program to be the Secretary, in coordination with the Ad- (1) IN GENERAL.—The Secretary shall de- carried out in collaboration with entities in ministrator, shall— velop a program to identify methods, means, Mexico and the United States to promote en- (A) select projects involving a geographi- procedures, equipment, and improved tech- ergy efficient, environmentally sound eco- cally and hydrologically diverse group of nologies necessary to ensure that sufficient nomic development along the United States- community water systems (as defined in sec- quantities of water are available to meet en- Mexico border that minimizes public health tion 1003 of the Public Health Service Act (42 ergy needs and sufficient energy is available risks from industrial activities in the border U.S.C. 300)) and water chemistries, that have to meet water needs. region. experienced technical or economic difficul- (b) PROGRAM MANAGEMENT.—The program (2) ASSESSMENTS.—In order to acquire in- ties in providing drinking water with levels under subsection (a) shall be managed by the formation and avoid duplication, the Sec- of arsenic at 10 parts-per-billion or lower, Department of Energy Carlsbad Environ- retary shall work in collaboration with the which projects shall be designed to develop mental Management Field Office. Secretary of the Interior, the Army Corps of innovative methods and means to deliver (c) TECHNOLOGY TRANSFER.—In carrying drinking water that contains less than 10 Engineers, the Administrator, the Secretary out projects and activities under this sec- parts per billion of arsenic; and of Commerce, the Secretary of Defense, rel- tion, the Secretary shall assess the applica- (B) provide not less than 40 percent of all evant State agencies, nongovernmental or- bility of technology developed under the En- funds spent pursuant to this subsection to ganizations, and academia, to assess— vironmental Management Science Program address the needs of, and in collaboration (A) future water resources needed to sup- of the Department. with, rural communities or Indian tribes. port energy development and production (d) INTELLECTUAL PROPERTY.—In carrying (5) COST EFFECTIVENESS.—The Foundation within the United States including water out this section, the Secretary shall comply shall create methods for determining cost ef- used for hydropower, and production of, or with the requirements of any agreement en- fectiveness of arsenic removal technologies electricity generation by, hydrogen, bio- tered into between the United States and used in the program. mass, fossil fuels, and nuclear fuel; Mexico regarding intellectual property pro- (6) EDUCATION, TRAINING, AND TECH- (B) future energy resources needed to sup- tection. NOLOGY.—The Foundation shall include edu- port water purification and wastewater (e) AUTHORIZATION OF APPROPRIATIONS.— cation, training, and technology transfer as treatment, including desalination and water The following sums are authorized to be ap- part of the program. conveyance; propriated to the Secretary to carry out ac- (7) COORDINATION.—The Secretary shall (C) use of impaired and nontraditional tivities under this section: consult with the Administrator to ensure water supplies for energy production other (1) For each of fiscal years 2004 and 2005, that all activities conducted under the pro- than oil and gas extraction; $5,000,000. gram are coordinated with the Agency and (D) technology and programs for improving (2) For each of fiscal years 2006, 2007, and do not duplicate other programs in the Agen- water use efficiency; and 2008, $6,000,000. cy and other Federal agencies, State pro- (E) technologies to reduce water use in en- SEC. 965. WESTERN HEMISPHERE ENERGY CO- grams, and academia. ergy development and production. OPERATION. (8) REPORTS.—Not later than 1 year after (3) ROADMAP; TOOLS.—The Secretary (a) PROGRAM.—The Secretary shall carry the date of commencement of the program shall— out a program to promote cooperation on en- under this subsection, and once every year (A) develop a program plan and technology ergy issues with Western Hemisphere coun- thereafter, the Secretary shall submit to the development roadmap for the Water and En- tries. Committee on Energy and Commerce of the ergy Sustainability Program to identify sci- (b) ACTIVITIES.—Under the program, the House of Representatives and the Committee entific and technical requirements and ac- Secretary shall fund activities to work with on Environment and Public Works and the tivities that are required to support planning Western Hemisphere countries to— Committee on Energy and Natural Resources for energy sustainability under current and (1) assist the countries in formulating and of the Senate a report on the results of the potential future conditions of water avail- adopting changes in economic policies and program under this subsection. ability, use of impaired water for energy pro- other policies to— (e) DESALINATION PROGRAM.— duction and other uses, and reduction of (A) increase the production of energy sup- (1) IN GENERAL.—The Secretary, in coopera- water use in energy development and produc- plies; and tion with the Commissioner of Reclamation tion; (B) improve energy efficiency; and of the Department of the Interior, shall (B) develop tools for national and local en- (2) assist in the development and transfer carry out a program to conduct research and ergy and water sustainability planning, in- of energy supply and efficiency technologies develop methods and means for desalination cluding numerical models, decision analysis that would have a beneficial impact on world in accordance with the desalination tech- tools, economic analysis tools, databases, energy markets. nology progress plan developed under title II and planning methodologies and strategies; (c) UNIVERSITY PARTICIPATION.—To the ex- of the Energy and Water Development Ap- (C) implement at least 3 planning projects tent practicable, the Secretary shall carry propriations Act, 2002 (115 Stat. 498), and de- involving energy development or production out the program under this section with the scribed in Senate Report 107–39 under the that use the tools described in subparagraph participation of universities so as to take ad- heading ‘‘WATER AND RELATED RESOURCES’’ in (B) and assess the viability of those tools at vantage of the acceptance of universities by the ‘‘BUREAU OF RECLAMATION’’ section. the scale of river basins with at least 1 dem- Western Hemisphere countries as sources of (2) REQUIREMENTS.—The desalination pro- onstration involving an international border; unbiased technical and policy expertise when gram shall— and assisting the Secretary in—

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00127 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.099 S28PT1 S4572 CONGRESSIONAL RECORD — SENATE April 28, 2004 (1) evaluating new technologies; and industrial infrastructure that are capa- ozone and ozone precursor transport, to as- (2) resolving technical issues; ble of withstanding the Arctic environment sess alternatives to achieve compliance with (3) working with those countries in the de- and using limited energy resources as effi- the 8-hour standard apart from local con- velopment of new policies; and ciently as possible; trols, and to determine the timeframe in (4) training policymakers, particularly in (2) technologies and procedures for increas- which such compliance could take place. The the case of universities that involve the par- ing road, bridge, rail, and related transpor- Administrator shall complete this dem- ticipation of minority students, such as His- tation infrastructure and residential, com- onstration project no later than 2 years after panic-serving institutions and Historically mercial, and industrial infrastructure safety, the date of enactment of this section and Black Colleges and Universities. reliability, and integrity in the Arctic re- shall not impose any requirement or sanc- (d) AUTHORIZATION OF APPROPRIATIONS.— gion; tion that might otherwise apply during the There are authorized to be appropriated to (3) new materials and improving the per- pendency of the demonstration project. carry out this section— formance and energy efficiency of existing Subtitle H—Management (1) $8,000,000 for fiscal year 2004; materials for the construction of roads, SEC. 971. AVAILABILITY OF FUNDS. (2) $10,000,000 for fiscal year 2005; bridges, rail, and related transportation in- Funds authorized to be appropriated to the (3) $13,000,000 for fiscal year 2006; frastructure and residential, commercial, Department under this title shall remain (4) $16,000,000 for fiscal year 2007; and and industrial infrastructure in the Arctic available until expended. (5) $19,000,000 for fiscal year 2008. region; and SEC. 972. COST SHARING. SEC. 966. WASTE REDUCTION AND USE OF ALTER- (4) recommendations for new local, re- (a) RESEARCH AND DEVELOPMENT.—Except NATIVES. gional, and State permitting and building as otherwise provided in this title, for re- (a) GRANT AUTHORITY.—The Secretary may codes to ensure transportation and building search and development programs carried make a single grant to a qualified institu- safety and efficient energy use when con- out under this title the Secretary shall re- tion to examine and develop the feasibility structing, using, and occupying such infra- quire a commitment from non-Federal of burning post-consumer carpet in cement structure in the Arctic region. sources of at least 20 percent of the cost of kilns as an alternative energy source. The (c) OBJECTIVES.—The Center shall carry the project. The Secretary may reduce or purposes of the grant shall include deter- out— eliminate the non-Federal requirement mining— (1) basic and applied research in the sub- under this subsection if the Secretary deter- (1) how post-consumer carpet can be jects described in subsection (b), the prod- mines that the research and development is burned without disrupting kiln operations; ucts of which shall be judged by peers or of a basic or fundamental nature or involves (2) the extent to which overall kiln emis- other experts in the field to advance the technical analyses or educational activities. sions may be reduced; body of knowledge in road, bridge, rail, and (b) DEMONSTRATION AND COMMERCIAL AP- (3) the emissions of air pollutants and infrastructure engineering in the Arctic re- PLICATION.—Except as otherwise provided in other relevant environmental impacts; and gion; and this title, the Secretary shall require at (4) how this process provides benefits to (2) an ongoing program of technology least 50 percent of the costs directly and spe- both cement kiln operations and carpet sup- transfer that makes research results avail- cifically related to any demonstration or pliers. able to potential users in a form that can be commercial application project under this (b) QUALIFIED INSTITUTION.—For the pur- implemented. title to be provided from non-Federal poses of subsection (a), a qualified institu- (d) AMOUNT OF GRANT.—For each of fiscal sources. The Secretary may reduce the non- tion is a research-intensive institution of years 2004 through 2009, the Secretary shall Federal requirement under this subsection if higher education with demonstrated exper- provide a grant in the amount of $3,000,000 to the Secretary determines that the reduction tise in the fields of fiber recycling and the institution specified in subsection (a) to is necessary and appropriate considering the logistical modeling of carpet waste collec- carry out this section. technological risks involved in the project tion and preparation. (e) AUTHORIZATION OF APPROPRIATIONS.— and is necessary to meet the objectives of (c) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to this title. There are authorized to be appropriated to carry out this section $3,000,000 for each of (c) CALCULATION OF AMOUNT.—In calcu- the Secretary for carrying out this section fiscal years 2004 through 2009. lating the amount of the non-Federal com- $500,000. mitment under subsection (a) or (b), the Sec- SEC. 969. BARROW GEOPHYSICAL RESEARCH FA- retary may include personnel, services, CILITY. SEC. 967. REPORT ON FUEL CELL TEST CENTER. equipment, and other resources. (a) REPORT.—Not later than 1 year after (a) ESTABLISHMENT.—The Secretary of (d) SIZE OF NON-FEDERAL SHARE.—The Sec- the date of enactment of this Act, the Sec- Commerce, in consultation with the Secre- retary may consider the size of the non-Fed- retary shall transmit to Congress a report on taries of Energy and the Interior, the Direc- eral share in selecting projects. the results of a study of the establishment of tor of the National Science Foundation, and SEC. 973. MERIT REVIEW OF PROPOSALS. a test center for next-generation fuel cells at the Administrator of the Environmental Awards of funds authorized under this title an institution of higher education that has Protection Agency, shall establish a joint re- shall be made only after an impartial review available a continuous source of hydrogen search facility in Barrow, Alaska, to be of the scientific and technical merit of the and access to the electric transmission grid. known as the ‘‘Barrow Geophysical Research proposals for such awards has been carried Such report shall include a conceptual de- Facility’’, to support scientific research ac- out by or for the Department. sign for such test center and a projection of tivities in the Arctic. SEC. 974. EXTERNAL TECHNICAL REVIEW OF DE- the costs of establishing the test center. (b) AUTHORIZATION OF APPROPRIATIONS.— PARTMENTAL PROGRAMS. (b) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to (a) NATIONAL ENERGY RESEARCH AND DE- There are authorized to be appropriated to the Secretaries of Commerce, Energy, and VELOPMENT ADVISORY BOARDS.— the Secretary for carrying out this section the Interior, the Director of the National (1) IN GENERAL.—The Secretary shall estab- $500,000. Science Foundation, and the Administrator lish 1 or more advisory boards to review De- SEC. 968. ARCTIC ENGINEERING RESEARCH CEN- of the Environmental Protection Agency for partment research, development, demonstra- TER. the planning, design, construction, and sup- tion, and commercial application programs (a) IN GENERAL.—The Secretary of Energy port of the Barrow Geophysical Research Fa- in energy efficiency, renewable energy, nu- (referred to in this section as the ‘‘Sec- cility $61,000,000. clear energy, and fossil energy. retary’’) in consultation with the Secretary SEC. 970. WESTERN MICHIGAN DEMONSTRATION (2) EXISTING ADVISORY BOARDS.—The Sec- of Transportation and the United States Arc- PROJECT. retary may designate an existing advisory tic Research Commission shall provide an- The Administrator of the Environmental board within the Department to fulfill the nual grants to a university located adjacent Protection Agency, in consultation with the responsibilities of an advisory board under to the Arctic Energy Office of the Depart- State of Michigan and affected local offi- this subsection, and may enter into appro- ment of Energy, to establish and operate a cials, shall conduct a demonstration project priate arrangements with the National Acad- university research center to be to address the effect of transported ozone emy of Sciences to establish such an advi- headquartered in Fairbanks and to be known and ozone precursors in Southwestern Michi- sory board. as the ‘‘Arctic Engineering Research Center’’ gan. The demonstration program shall ad- (b) OFFICE OF SCIENCE ADVISORY COMMIT- (referred to in this section as the ‘‘Center’’). dress projected nonattainment areas in TEES.— (b) PURPOSE.—The purpose of the Center Southwestern Michigan that include coun- (1) UTILIZATION OF EXISTING COMMITTEES.— shall be to conduct research on, and develop ties with design values for ozone of less than The Secretary shall continue to use the sci- improved methods of, construction and use .095 based on years 2000 to 2002 or the most entific program advisory committees char- of materials to improve the overall perform- current 3-year period of air quality data. The tered under the Federal Advisory Committee ance of roads, bridges, residential, commer- Administrator shall assess any difficulties Act (5 U.S.C. App.) by the Office of Science cial, and industrial structures, and other in- such areas may experience in meeting the 8- to oversee research and development pro- frastructure in the Arctic region, with an hour national ambient air quality standard grams under that Office. emphasis on developing— for ozone due to the effect of transported (2) SCIENCE ADVISORY COMMITTEE.— (1) new construction techniques for roads, ozone or ozone precursors into the areas. The (A) ESTABLISHMENT.—There shall be in the bridges, rail, and related transportation in- Administrator shall work with State and Office of Science a Science Advisory Com- frastructure and residential, commercial, local officials to determine the extent of mittee that includes the chairs of each of the

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00128 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.099 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4573 advisory committees described in paragraph the technology transfer responsibilities of (2) Not less than 50 percent of the costs of (1). Federal employees under the Stevenson- each project funded under this section shall (B) RESPONSIBILITIES.—The Science Advi- Wydler Technology Innovation Act of 1980 (15 be provided from non-Federal sources. The sory Committee shall— U.S.C. 3701 et seq.). calculation of costs paid by the non-Federal (i) serve as the science advisor to the Di- SEC. 976. FEDERAL LABORATORY EDUCATIONAL sources to a project shall include cash, per- rector of the Office of Science; PARTNERS. sonnel, services, equipment, and other re- (ii) advise the Director with respect to the (a) DISTRIBUTION OF ROYALTIES RECEIVED sources expended on the project after start of well-being and management of the National BY FEDERAL AGENCIES.—Section 14(a)(1)(B)(v) the project. Independent research and devel- Laboratories and single-purpose research fa- of the Stevenson-Wydler Technology Innova- opment expenses of Government contractors cilities; tion Act of 1980 (15 U.S.C. 3710c(a)(1)(B)(v)), is that qualify for reimbursement under sec- (iii) advise the Director with respect to amended to read as follows: tion 31.205–18(e) of the Federal Acquisition education and workforce training activities ‘‘(v) for scientific research and develop- Regulation issued pursuant to section required for effective short-term and long- ment and for educational assistance and 25(c)(1) of the Office of Federal Procurement term basic and applied research activities of other purposes consistent with the missions Policy Act (41 U.S.C. 421(c)(1)) may be cred- the Office of Science; and and objectives of the agency and the labora- ited toward costs paid by non-Federal (iv) advise the Director with respect to the tory.’’. sources to a project, if the expenses meet the well being of the university research pro- (b) COOPERATIVE RESEARCH AND DEVELOP- other requirements of this section. grams supported by the Office of Science. MENT AGREEMENTS.—Section 12(b)(5)(C) of (3) All projects under this section shall be (c) MEMBERSHIP.—Each advisory board the Stevenson-Wydler Technology Innova- competitively selected using procedures de- under this section shall consist of persons tion Act of 1980 (15 U.S.C. 3710a(b)(5)(C)) is termined by the Secretary. with appropriate expertise representing a di- amended to read as follows: (4) Any participant that receives funds verse range of interests. ‘‘(C) for scientific research and develop- under this section may use generally accept- (d) MEETINGS AND PURPOSES.—Each advi- ment and for educational assistance con- ed accounting principles for maintaining ac- sory board under this section shall meet at sistent with the missions and objectives of counts, books, and records relating to the least semiannually to review and advise on the agency and the laboratory.’’. project. the progress made by the respective re- SEC. 977. INTERAGENCY COOPERATION. (5) No Federal funds shall be made avail- search, development, demonstration, and The Secretary shall enter into discussions able under this section for construction or commercial application program or pro- with the Administrator of the National Aer- any project for more than 5 years. grams. The advisory board shall also review onautics and Space Administration with the (e) SELECTION CRITERIA.— the measurable cost and performance-based goal of reaching an interagency working (1) IN GENERAL.—The Secretary shall allo- goals for such programs as established under agreement between the 2 agencies that would cate funds under this section only if the Di- section 901(b), and the progress on meeting make the National Aeronautics and Space rector of the National Laboratory or single- such goals. Administration’s expertise in energy, gained purpose research facility managing the (e) PERIODIC REVIEWS AND ASSESSMENTS.— from its existing and planned programs, project determines that the project is likely The Secretary shall enter into appropriate more readily available to the relevant re- to improve the ability of the National Lab- arrangements with the National Academy of search, development, demonstration, and oratory or single-purpose research facility to Sciences to conduct periodic reviews and as- commercial applications programs of the De- achieve technical success in meeting depart- sessments of the programs authorized by this partment. Technologies to be discussed mental missions. title, the measurable cost and performance- should include the National Aeronautics and (2) CRITERIA.—The Secretary shall consider based goals for such programs as established Space Administration’s modeling, research, the following criteria in selecting a project under section 901(b), if any, and the progress development, testing, and evaluation of new to receive Federal funds: on meeting such goals. Such reviews and as- energy technologies, including solar, wind, (A) The potential of the project to promote sessments shall be conducted every 5 years, fuel cells, and hydrogen storage and distribu- the development of a commercially sustain- or more often as the Secretary considers nection. essary, and the Secretary shall transmit to able technology cluster following the period SEC. 978. TECHNOLOGY INFRASTRUCTURE PRO- of Department investment, which will derive Congress reports containing the results of all GRAM. most of the demand for its products or serv- such reviews and assessments. (a) ESTABLISHMENT.—The Secretary shall ices from the private sector, and which will SEC. 975. IMPROVED COORDINATION OF TECH- establish a Technology Infrastructure Pro- NOLOGY TRANSFER ACTIVITIES. gram in accordance with this section. support departmental missions at the par- (a) TECHNOLOGY TRANSFER COORDINATOR.— (b) PURPOSE.—The purpose of the Tech- ticipating National Laboratory or single- The Secretary shall designate a Technology nology Infrastructure Program shall be to purpose research facility. Transfer Coordinator to perform oversight of improve the ability of National Laboratories (B) The potential of the project to promote and policy development for technology and single-purpose research facilities to sup- the use of commercial research, technology, transfer activities at the Department. The port departmental missions by— products, processes, and services by the par- Technology Transfer Coordinator shall— (1) stimulating the development of tech- ticipating National Laboratory or single- (1) coordinate the activities of the Tech- nology clusters that can support depart- purpose research facility to achieve its mis- nology Transfer Working Group; mental missions at the National Labora- sion or the commercial development of tech- (2) oversee the expenditure of funds allo- tories or single-purpose research facilities; nological innovations made at the partici- cated to the Technology Transfer Working (2) improving the ability of National Lab- pating National Laboratory or single-pur- Group; and oratories and single-purpose research facili- pose research facility. (3) coordinate with each technology part- ties to leverage and benefit from commercial (C) The extent to which the project in- nership ombudsman appointed under section research, technology, products, processes, volves a wide variety and number of institu- 11 of the Technology Transfer Commer- and services; and tions of higher education, nonprofit institu- cialization Act of 2000 (42 U.S.C. 7261c). (3) encouraging the exchange of scientific tions, and technology-related business con- (b) TECHNOLOGY TRANSFER WORKING and technological expertise between Na- cerns that can support the missions of the GROUP.—The Secretary shall establish a tional Laboratories or single-purpose re- participating National Laboratory or single- Technology Transfer Working Group, which search facilities and entities that can sup- purpose research facility and that will make shall consist of representatives of the Na- port departmental missions at the National substantive contributions to achieving the tional Laboratories and single-purpose re- Laboratories or single-purpose research fa- goals of the project. search facilities, to— cilities, such as institutions of higher edu- (D) The extent to which the project focuses (1) coordinate technology transfer activi- cation; technology-related business con- on promoting the development of tech- ties occurring at National Laboratories and cerns; nonprofit institutions; and agencies of nology-related business concerns that are single-purpose research facilities; State, tribal, or local governments. small businesses or involves such small busi- (2) exchange information about technology (c) PROJECTS.—The Secretary shall author- nesses substantively in the project. transfer practices, including alternative ap- ize the Director of each National Laboratory (E) Such other criteria as the Secretary de- proaches to resolution of disputes involving or single-purpose research facility to imple- termines to be appropriate. intellectual property rights and other tech- ment the Technology Infrastructure Pro- (f) ALLOCATION.—In allocating funds for nology transfer matters; and gram at such National Laboratory or facility projects approved under this section, the (3) develop and disseminate to the public through projects that meet the requirements Secretary shall provide— and prospective technology partners infor- of subsections (d) and (e). (1) the Federal share of the project costs; mation about opportunities and procedures (d) PROGRAM REQUIREMENTS.—Each project and for technology transfer with the Depart- funded under this section shall meet the fol- (2) additional funds to the National Lab- ment, including those related to alternative lowing requirements: oratory or single-purpose research facility approaches to resolution of disputes involv- (1) Each project shall include at least 1 of managing the project to permit the National ing intellectual property rights and other each of the following entities: A business; an Laboratory or single-purpose research facil- technology transfer matters. institution of higher education; a nonprofit ity to carry out activities relating to the (c) TECHNOLOGY TRANSFER RESPONSI- institution; and an agency of a State, local, project, and to coordinate such activities BILITY.—Nothing in this section shall affect or tribal government. with the project.

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(g) REPORT TO CONGRESS.—Not later than nical merits of any evaluation methodology as established by the Secretary by regula- July 1, 2006, the Secretary shall report to currently in use or proposed for use in relation. Congress on whether the Technology Infra- tion to the scientific and technical programs (5) CONTRACTS REGARDING DIRECT PAYMENTS structure Program should be continued and, of the Department by the Secretary or other TO INSTITUTIONS.—The Secretary may enter if so, how the program should be managed. Federal official. Not later than 6 months into a contractual agreement with an insti- (h) DEFINITIONS.—In this section: after receiving the report of the National tution of higher education under which the (1) TECHNOLOGY CLUSTER.—The term ‘‘tech- Academy, the Secretary shall submit such amounts provided for a scholarship under nology cluster’’ means a concentration of report to Congress, along with any other this section for tuition, fees, and other au- technology-related business concerns, insti- views or plans of the Secretary with respect thorized expenses are paid directly to the in- tutions of higher education, or nonprofit in- to the future use of such evaluation method- stitution with respect to which the scholar- stitutions that reinforce each other’s per- ology. ship is provided. formance in the areas of technology develop- SEC. 982. DEPARTMENT OF ENERGY SCIENCE (f) PERIOD OF OBLIGATED SERVICE.— ment through formal or informal relation- AND TECHNOLOGY SCHOLARSHIP (1) DURATION OF SERVICE.—The period of ships. PROGRAM. service for which an individual shall be obli- (2) TECHNOLOGY-RELATED BUSINESS CON- (a) ESTABLISHMENT OF PROGRAM.— gated to serve as an employee of the Depart- CERN.—The term ‘‘technology-related busi- (1) IN GENERAL.—The Secretary is author- ment is, except as provided in subsection ness concern’’ means a for-profit corpora- ized to establish a Department of Energy (h)(2), 24 months for each academic year for tion, company, association, firm, partner- Science and Technology Scholarship Pro- which a scholarship under this section is pro- ship, or small business concern that con- gram to award scholarships to individuals vided. ducts scientific or engineering research; de- that is designed to recruit and prepare stu- (2) SCHEDULE FOR SERVICE.— velops new technologies; manufactures prod- dents for careers in the Department. (A) IN GENERAL.—Except as provided in ucts based on new technologies; or performs (2) COMPETITIVE PROCESS.—Individuals subparagraph (B), obligated service under technological services. shall be selected to receive scholarships paragraph (1) shall begin not later than 60 (i) AUTHORIZATION OF APPROPRIATIONS.— under this section through a competitive days after the individual obtains the edu- There are authorized to be appropriated to process primarily on the basis of academic cational degree for which the scholarship the Secretary for activities under this sec- merit, with consideration given to financial was provided. tion $10,000,000 for each of fiscal years 2004, need and the goal of promoting the partici- (B) DEFERRAL.—The Secretary may defer 2005, and 2006. pation of individuals identified in section 33 the obligation of an individual to provide a or 34 of the Science and Engineering Equal period of service under paragraph (1) if the SEC. 979. REPROGRAMMING. Opportunities Act (42 U.S.C. 1885a or 1885b). Secretary determines that such a deferral is (a) DISTRIBUTION REPORT.—Not later than (3) SERVICE AGREEMENTS.—To carry out the appropriate. The Secretary shall prescribe 60 days after the date of the enactment of an Program the Secretary shall enter into con- the terms and conditions under which a serv- Act appropriating amounts authorized under tractual agreements with individuals se- ice obligation may be deferred through regu- this title, the Secretary shall transmit to lected under paragraph (2) under which the lation. the appropriate authorizing committees of individuals agree to serve as full-time em- (g) PENALTIES FOR BREACH OF SCHOLARSHIP Congress a report explaining how such ployees of the Department, for the period de- AGREEMENT.— amounts will be distributed among the au- scribed in subsection (f)(1), in positions need- (1) FAILURE TO COMPLETE ACADEMIC TRAIN- thorizations contained in this title. ed by the Department and for which the indi- ING.—Scholarship recipients who fail to (b) PROHIBITION.— viduals are qualified, in exchange for receiv- maintain a high level of academic standing, (1) IN GENERAL.—No amount identified ing a scholarship. as defined by the Secretary by regulation, under subsection (a) shall be reprogrammed (b) SCHOLARSHIP ELIGIBILITY.—In order to who are dismissed from their educational in- if such reprogramming would result in an ob- be eligible to participate in the Program, an stitutions for disciplinary reasons, or who ligation which changes an individual dis- individual must— voluntarily terminate academic training be- tribution required to be reported under sub- (1) be enrolled or accepted for enrollment fore graduation from the educational pro- section (a) by more than 5 percent unless the as a full-time student at an institution of gram for which the scholarship was awarded, Secretary has transmitted to the appropriate higher education in an academic program or shall be in breach of their contractual agree- authorizing committees of Congress a report field of study described in the list made ment and, in lieu of any service obligation described in subsection (c) and a period of 30 available under subsection (d); arising under such agreement, shall be liable days has elapsed after such committees re- (2) be a United States citizen; and to the United States for repayment not later ceive the report. (3) at the time of the initial scholarship than 1 year after the date of default of all (2) COMPUTATION.—In the computation of award, not be a Federal employee as defined scholarship funds paid to them and to the in- the 30-day period described in paragraph (1), in section 2105 of title 5 of the United States stitution of higher education on their behalf there shall be excluded any day on which ei- Code. under the agreement, except as provided in ther House of Congress is not in session be- (c) APPLICATION REQUIRED.—An individual subsection (h)(2). The repayment period may cause of an adjournment of more than 3 days seeking a scholarship under this section be extended by the Secretary when deter- to a day certain. shall submit an application to the Secretary mined to be necessary, as established by reg- (c) REPROGRAMMING REPORT.—A report re- at such time, in such manner, and con- ulation. ferred to in subsection (b)(1) shall contain a taining such information, agreements, or as- (2) FAILURE TO BEGIN OR COMPLETE THE full and complete statement of the action surances as the Secretary may require. SERVICE OBLIGATION OR MEET THE TERMS AND proposed to be taken and the facts and cir- (d) ELIGIBLE ACADEMIC PROGRAMS.—The CONDITIONS OF DEFERMENT.—A scholarship re- cumstances relied on in support of the pro- Secretary shall make publicly available a cipient who, for any reason, fails to begin or posed action. list of academic programs and fields of study complete a service obligation under this sec- SEC. 980. CONSTRUCTION WITH OTHER LAWS. for which scholarships under the Program tion after completion of academic training, Except as otherwise provided in this title, may be utilized, and shall update the list as or fails to comply with the terms and condi- the Secretary shall carry out the research, necessary. tions of deferment established by the Sec- development, demonstration, and commer- (e) SCHOLARSHIP REQUIREMENT.— retary pursuant to subsection (f)(2)(B), shall cial application programs, projects, and ac- (1) IN GENERAL.—The Secretary may probe in breach of the contractual agreement. tivities authorized by this title in accord- vide a scholarship under the Program for an When a recipient breaches an agreement for ance with the applicable provisions of the academic year if the individual applying for the reasons stated in the preceding sentence, Atomic Energy Act of 1954 (42 U.S.C. 2011 et the scholarship has submitted to the Sec- the recipient shall be liable to the United seq.), the Federal Nonnuclear Research and retary, as part of the application required States for an amount equal to— Development Act of 1974 (42 U.S.C. 5901 et under subsection (c), a proposed academic (A) the total amount of scholarships re- seq.), the Energy Policy Act of 1992 (42 U.S.C. program leading to a degree in a program or ceived by such individual under this section; 13201 et seq.), the Stevenson-Wydler Tech- field of study on the list made available plus nology Innovation Act of 1980 (15 U.S.C. 3701 under subsection (d). (B) the interest on the amounts of such et seq.), chapter 18 of title 35, United States (2) DURATION OF ELIGIBILITY.—An indi- awards which would be payable if at the time Code (commonly referred to as the Bayh- vidual may not receive a scholarship under the awards were received they were loans Dole Act), and any other Act under which this section for more than 4 academic years, bearing interest at the maximum legal pre- the Secretary is authorized to carry out such unless the Secretary grants a waiver. vailing rate, as determined by the Treasurer activities. (3) SCHOLARSHIP AMOUNT.—The dollar of the United States, SEC. 981. REPORT ON RESEARCH AND DEVELOP- amount of a scholarship under this section multiplied by 3. MENT PROGRAM EVALUATION for an academic year shall be determined (h) WAIVER OR SUSPENSION OF OBLIGA- METHODOLOGIES. under regulations issued by the Secretary, TION.— Not later than 180 days after the date of but shall in no case exceed the cost of at- (1) DEATH OF INDIVIDUAL.—Any obligation enactment of this Act, the Secretary shall tendance. of an individual incurred under the Program enter into appropriate arrangements with (4) AUTHORIZED USES.—A scholarship pro- (or a contractual agreement thereunder) for the National Academy of Sciences to inves- vided under this section may be expended for service or payment shall be canceled upon tigate and report on the scientific and tech- tuition, fees, and other authorized expenses the death of the individual.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00130 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.100 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4575

(2) IMPOSSIBILITY OR EXTREME HARDSHIP.— (3) make available to small businesses er education, small businesses, facility plan- The Secretary shall by regulation provide for training, mentoring, and information on how ners and managers, State and local govern- the partial or total waiver or suspension of to participate in procurement and collabo- ments, and other entities. any obligation of service or payment in- rative research activities; SEC. 988. COMPETITIVE AWARD OF MANAGE- curred by an individual under the Program (4) increase the awareness inside the Na- MENT CONTRACTS. (or a contractual agreement thereunder) tional Laboratory or single-purpose research None of the funds authorized to be appro- whenever compliance by the individual is facility of the capabilities and opportunities priated to the Secretary by this title may be impossible or would involve extreme hard- presented by small business concerns; and used to award a management and operating ship to the individual, or if enforcement of (5) establish guidelines for the program contract for a nonmilitary energy laboratory such obligation with respect to the indi- under subsection (b) and report on the effec- of the Department unless such contract is vidual would be contrary to the best inter- tiveness of such program to the Director of competitively awarded or the Secretary ests of the Government. the National Laboratory or single-purpose grants, on a case-by-case basis, a waiver to (i) DEFINITIONS.—In this section the fol- research facility. allow for such a deviation. The Secretary lowing definitions apply: (b) ESTABLISHMENT OF SMALL BUSINESS AS- may not delegate the authority to grant (1) COST OF ATTENDANCE.—The term ‘‘cost SISTANCE PROGRAM.—The Secretary shall re- such a waiver and shall submit to Congress a of attendance’’ has the meaning given that quire the Director of each National Labora- report notifying Congress of the waiver and term in section 472 of the Higher Education tory, and may require the Director of a sin- setting forth the reasons for the waiver at Act of 1965 (20 U.S.C. 1087ll). gle-purpose research facility, to establish a least 60 days prior to the date of the award (2) PROGRAM.—The term ‘‘Program’’ means program to provide small business con- of such a contract. the Department of Energy Science and Tech- cerns— SEC. 989. EDUCATIONAL PROGRAMS IN SCIENCE nology Scholarship Program established (1) assistance directed at making them AND MATHEMATICS. under this section. more effective and efficient subcontractors (a) ACTIVITIES.—Section 3165(a) of the De- (j) AUTHORIZATION OF APPROPRIATIONS.— or suppliers to the National Laboratory or partment of Energy Science Education En- There are authorized to be appropriated to single-purpose research facility; or hancement Act (42 U.S.C. 7381b(a)) is amend- the Secretary for activities under this sec- (2) general technical assistance, the cost of ed by adding at the end the following: tion— which shall not exceed $10,000 per instance of ‘‘(14) Support competitive events for stu- (1) for fiscal year 2004, $800,000; assistance, to improve the small business dents, under supervision of teachers, de- (2) for fiscal year 2005, $1,600,000; concerns’ products or services. signed to encourage student interest and knowledge in science and mathematics.’’. (3) for fiscal year 2006, $2,000,000; (c) USE OF FUNDS.—None of the funds ex- (b) AUTHORIZATION OF APPROPRIATIONS.— (4) for fiscal year 2007, $2,000,000; and pended under subsection (b) may be used for Section 3169 of the Department of Energy (5) for fiscal year 2008, $2,000,000. direct grants to the small business concerns. Science Education Enhancement Act (42 SEC. 983. REPORT ON EQUAL EMPLOYMENT OP- (d) DEFINITIONS.—In this section: PORTUNITY PRACTICES. U.S.C. 7381e), as so redesignated by section (1) SMALL BUSINESS CONCERN.—The term 1102(b), is amended by inserting before the Not later than 12 months after the date of ‘‘small business concern’’ has the meaning period ‘‘; and $40,000,000 for each of fiscal enactment of this Act, and biennially there- given such term in section 3 of the Small years 2004 through 2008’’. after, the Secretary shall transmit to Con- Business Act (15 U.S.C. 632). gress a report on the equal employment op- (2) SOCIALLY AND ECONOMICALLY DISADVAN- TITLE X—DEPARTMENT OF ENERGY portunity practices at National Labora- TAGED SMALL BUSINESS CONCERNS.—The term MANAGEMENT tories. Such report shall include— ‘‘socially and economically disadvantaged SEC. 1001. ADDITIONAL ASSISTANT SECRETARY (1) a thorough review of each laboratory small business concerns’’ has the meaning POSITION. contractor’s equal employment opportunity given such term in section 8(a)(4) of the (a) ADDITIONAL ASSISTANT SECRETARY POSI- policies, including promotion to manage- Small Business Act (15 U.S.C. 637(a)(4)). TION TO ENABLE IMPROVED MANAGEMENT OF ment and professional positions and pay (e) AUTHORIZATION OF APPROPRIATIONS.— NUCLEAR ENERGY ISSUES.— raises; There are authorized to be appropriated to (1) IN GENERAL.—Section 203(a) of the De- (2) a statistical report on complaints and the Secretary for activities under this sec- partment of Energy Organization Act (42 their disposition in the laboratories; tion $5,000,000 for each of fiscal years 2004 U.S.C. 7133(a)) is amended by striking ‘‘six (3) a description of how equal employment through 2008. Assistant Secretaries’’ and inserting ‘‘7 As- opportunity practices at the laboratories are sistant Secretaries’’. treated in the contract and in calculating SEC. 985. REPORT ON MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL. (2) SENSE OF CONGRESS.—It is the sense of award fees for each contractor; Not later than 2 years after the date of en- Congress that the leadership for depart- (4) a summary of disciplinary actions and actment of this Act, the Secretary shall mental missions in nuclear energy should be their disposition by either the Department transmit a report to Congress identifying at the Assistant Secretary level. or the relevant contractors for each labora- (b) TECHNICAL AND CONFORMING AMEND- any policies or procedures of a contractor op- tory; MENTS.— erating a National Laboratory or single-pur- (5) a summary of outreach efforts to at- (1) TITLE 5.—Section 5315 of title 5, United pose research facility that create disincen- tract women and minorities to the labora- States Code, is amended by striking ‘‘Assist- tives to the temporary transfer of scientific tories; ant Secretaries of Energy (6)’’ and inserting and technical personnel among the con- (6) a summary of efforts to retain women ‘‘Assistant Secretaries of Energy (7)’’. tractor-operated National Laboratories or and minorities in the laboratories; and (2) DEPARTMENT OF ENERGY ORGANIZATION contractor-operated single-purpose research (7) a summary of collaboration efforts with ACT.—The table of contents for the Depart- facilities and provide suggestions for improv- the Office of Federal Contract Compliance ment of Energy Organization Act (42 U.S.C. ing interlaboratory exchange of scientific Programs to improve equal employment op- 7101 note) is amended— and technical personnel. portunity practices at the laboratories. (A) by striking ‘‘Section 209’’ and inserting SEC. 984. SMALL BUSINESS ADVOCACY AND AS- SEC. 986. NATIONAL ACADEMY OF SCIENCES RE- ‘‘Sec. 209’’; SISTANCE. PORT. (B) by striking ‘‘213.’’ and inserting ‘‘Sec. (a) SMALL BUSINESS ADVOCATE.—The Sec- Not later than 90 days after the date of en- 213.’’; retary shall require the Director of each Na- actment of this Act, the Secretary shall (C) by striking ‘‘214.’’ and inserting ‘‘Sec. tional Laboratory, and may require the Di- enter into an arrangement with the National 214.’’; rector of a single-purpose research facility, Academy of Sciences for the Academy to— (D) by striking ‘‘215.’’ and inserting ‘‘Sec. to designate a small business advocate to— (1) conduct a study on— 215.’’; and (1) increase the participation of small busi- (A) the obstacles to accelerating the com- (E) by striking ‘‘216.’’ and inserting ‘‘Sec. ness concerns, including socially and eco- mercial application of energy technology; 216.’’. and nomically disadvantaged small business con- SEC. 1002. OTHER TRANSACTIONS AUTHORITY. (B) the adequacy of Department policies cerns, in procurement, collaborative re- Section 646 of the Department of Energy and procedures for, and oversight of, tech- search, technology licensing, and technology Organization Act (42 U.S.C. 7256) is amended transfer activities conducted by the National nology transfer-related disputes between by adding at the end the following: Laboratory or single-purpose research facil- contractors of the Department and the pri- ‘‘(g)(1) In addition to other authorities ity; vate sector; and granted to the Secretary under law, the Sec- (2) report to the Director of the National (2) transmit a report to Congress on rec- retary may enter into other transactions on Laboratory or single-purpose research facil- ommendations developed as a result of the such terms as the Secretary may deem ap- ity on the actual participation of small busi- study. propriate in furtherance of research, devel- ness concerns, including socially and eco- SEC. 987. OUTREACH. opment, or demonstration functions vested nomically disadvantaged small business con- The Secretary shall ensure that each pro- in the Secretary. Such other transactions cerns, in procurement, collaborative re- gram authorized by this title includes an shall not be subject to the provisions of sec- search, technology licensing, and technology outreach component to provide information, tion 9 of the Federal Nonnuclear Energy Re- transfer activities along with recommenda- as appropriate, to manufacturers, con- search and Development Act of 1974 (42 tions, if appropriate, on how to improve par- sumers, engineers, architects, builders, en- U.S.C. 5908) or section 152 of the Atomic En- ticipation; ergy service companies, institutions of high- ergy Act of 1954 (42 U.S.C. 2182).

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00131 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.100 S28PT1 S4576 CONGRESSIONAL RECORD — SENATE April 28, 2004 ‘‘(2)(A) The Secretary shall ensure that— (1) include training requirements for work- ‘‘(4) mentoring activities conducted at a ‘‘(i) to the maximum extent the Secretary ers engaged in the construction, operation, National Laboratory or science facility. determines practicable, no transaction en- inspection, and maintenance of electric gen- ‘‘(d) REPORT.—Not later than 2 years after tered into under paragraph (1) provides for eration, transmission, and distribution, in- the date of enactment of the Energy Policy research, development, or demonstration cluding competency and certification re- Act of 2003, the Secretary shall submit to that duplicates research, development, or quirements, and assessment requirements Congress a report on the activities carried demonstration being conducted under exist- that include initial and ongoing evaluation out under this section.’’. ing projects carried out by the Department; of workers, recertification assessment proce- SEC. 1103. NATIONAL POWER PLANT OPERATIONS ‘‘(ii) to the extent the Secretary deter- dures, and methods for examining or testing TECHNOLOGY AND EDUCATION CEN- mines practicable, the funds provided by the the qualification of individuals performing TER. Government under a transaction authorized covered tasks; and (a) ESTABLISHMENT.—The Secretary shall by paragraph (1) do not exceed the total (2) consolidate existing training guidelines support the establishment of a National amount provided by other parties to the on the construction, operation, maintenance, Power Plant Operations Technology and transaction; and and inspection of electric generation, trans- Education Center (in this section referred to ‘‘(iii) to the extent the Secretary deter- mission, and distribution facilities, such as as the ‘‘Center’’), to address the need for mines practicable, competitive, merit-based those established by the National Electric training and educating certified operators selection procedures shall be used when en- Safety Code and other industry consensus for nonnuclear electric power generation tering into transactions under paragraph (1). standards. plants. ‘‘(B) A transaction authorized by para- SEC. 1102. IMPROVED ACCESS TO ENERGY-RE- (b) ROLE.—The Center shall provide both graph (1) may be used for a research, devel- LATED SCIENTIFIC AND TECHNICAL training and continuing education relating opment, or demonstration project only if the CAREERS. to nonnuclear electric power generation Secretary makes a written determination (a) DEPARTMENT OF ENERGY SCIENCE EDU- plant technologies and operations. The Cen- that the use of a standard contract, grant, or CATION PROGRAMS.—Section 3164 of the De- ter shall conduct training and education ac- cooperative agreement for the project is not partment of Energy Science Education En- tivities on site and through Internet-based feasible or appropriate. hancement Act (42 U.S.C. 7381a) is amended information technologies that allow for ‘‘(3)(A) The Secretary shall protect from by adding at the end the following: learning at remote sites. disclosure, including disclosure under sec- ‘‘(c) PROGRAMS FOR STUDENTS FROM UNDER- (c) CRITERIA FOR COMPETITIVE SELECTION.— tion 552 of title 5, United States Code, for up REPRESENTED GROUPS.—In carrying out a The Secretary shall support the establish- to 5 years after the date the information is program under subsection (a), the Secretary ment of the Center at an institution of high- received by the Secretary— shall give priority to activities that are deer education with expertise in power plant ‘‘(i) a proposal, proposal abstract, and sup- signed to encourage students from underrep- technology and operation and with the abil- porting documents submitted to the Depart- resented groups to pursue scientific and ity to provide onsite as well as Internet- ment in a competitive or noncompetitive technical careers.’’. based training. process having the potential for resulting in (b) PARTNERSHIPS WITH HISTORICALLY SEC. 1104. INTERNATIONAL ENERGY TRAINING. an award under paragraph (1) to the party BLACK COLLEGES AND UNIVERSITIES, HIS- (a) IN GENERAL.—The Secretary of Energy, submitting the information; and PANIC-SERVICING INSTITUTIONS, AND TRIBAL in consultation with the Secretaries of Com- ‘‘(ii) a business plan and technical informa- COLLEGES.—The Department of Energy merce, Interior, and State and the Federal tion relating to a transaction authorized by Science Education Enhancement Act (42 Energy Regulatory Commission, shall co- paragraph (1) submitted to the Department U.S.C. 7381 et seq.) is amended— ordinate training and outreach efforts for as confidential business information. (1) by redesignating sections 3167 and 3168 international commercial energy markets in ‘‘(B) The Secretary may protect from disas sections 3168 and 3169, respectively; and countries with developing and restructuring closure, for up to 5 years after the informa- (2) by inserting after section 3166 the fol- economies. tion was developed, any information devel- lowing: (b) COMPONENTS.—The efforts may ad- oped pursuant to a transaction under para- ‘‘SEC. 3167. PARTNERSHIPS WITH HISTORICALLY dress— graph (1) which developed information is of a BLACK COLLEGES AND UNIVER- (1) production-related fiscal regimes; character that it would be protected from SITIES, HISPANIC-SERVING INSTITU- (2) grid and network issues; TIONS, AND TRIBAL COLLEGES. disclosure under section 552(b)(4) of title 5, (3) energy user and demand side response; ‘‘(a) DEFINITIONS.—In this section: United States Code, if obtained from a per- (4) international trade of energy; and ‘‘(1) HISPANIC-SERVING INSTITUTION.—The son other than a Federal agency. term ‘Hispanic-serving institution’ has the (5) international transportation of energy. ‘‘(4) Not later than 90 days after the date of (c) AUTHORIZATION OF APPROPRIATIONS.— meaning given that term in section 502(a) of enactment of this subsection, the Secretary There are authorized to be appropriated to the Higher Education Act of 1965 (20 U.S.C. shall prescribe guidelines for using other carry out this section $1,500,000 for each of 1101a(a)). transactions authorized by paragraph (1). fiscal years 2004 through 2007. ‘‘(2) HISTORICALLY BLACK COLLEGE OR UNI- Such guidelines shall be published in the VERSITY.—The term ‘historically Black col- TITLE XII—ELECTRICITY Federal Register for public comment under lege or university’ has the meaning given the rulemaking procedures of the Department. SEC. 1201. SHORT TITLE. term ‘part B institution’ in section 322 of the ‘‘(5) The authority of the Secretary under This title may be cited as the ‘‘Electric Re- Higher Education Act of 1965 (20 U.S.C. 1061). this subsection may be delegated only to an liability Act of 2003’’. ‘‘(3) NATIONAL LABORATORY.—The term ‘Na- officer of the Department who is appointed Subtitle A—Reliability Standards tional Laboratory’ has the meaning given by the President by and with the advice and that term in section 902 of the Energy Policy SEC. 1211. ELECTRIC RELIABILITY STANDARDS. consent of the Senate and may not be dele- Act of 2003. (a) IN GENERAL.—Part II of the Federal gated to any other person. ‘‘(4) SCIENCE FACILITY.—The term ‘science Power Act (16 U.S.C 824 et seq.) is amended ‘‘(6)(A) Not later than September 31, 2005, facility’ has the meaning given the term by adding at the end the following: the Comptroller General of the United States ‘single-purpose research facility’ in section ‘‘SEC. 215. ELECTRIC RELIABILITY. shall report to Congress on the Department’s 902 of the Energy Policy Act of 2003. ‘‘(a) DEFINITIONS.—For purposes of this sec- use of the authorities granted under this sec- ‘‘(5) TRIBAL COLLEGE.—The term ‘tribal col- tion: tion, including the ability to attract non- lege’ has the meaning given the term ‘Tribal ‘‘(1) The term ‘bulk-power system’ means— traditional government contractors and College or University’ in section 316(b)(3) of ‘‘(A) facilities and control systems nec- whether additional safeguards are needed the Higher Education Act of 1965 (20 U.S.C. essary for operating an interconnected elec- with respect to the use of such authorities. tric energy transmission network (or any ‘‘(B) In this section, the term ‘nontradi- 1059c(b)(3)). ‘‘(b) EDUCATION PARTNERSHIP.—The Sec- portion thereof); and tional Government contractor’ has the same retary shall direct the Director of each Na- ‘‘(B) electric energy from generation facili- meaning as the term ‘nontraditional defense tional Laboratory and, to the extent prac- ties needed to maintain transmission system contractor’ as defined in section 845(e) of the ticable, the head of any science facility to reliability. National Defense Authorization Act for Fis- increase the participation of historically The term does not include facilities used in cal Year 1994 (Public Law 103–160; 10 U.S.C. Black colleges or universities, Hispanic-serv- the local distribution of electric energy. 2371 note).’’. ing institutions, or tribal colleges in activi- ‘‘(2) The terms ‘Electric Reliability Orga- TITLE XI—PERSONNEL AND TRAINING ties that increase the capacity of the histori- nization’ and ‘ERO’ mean the organization SEC. 1101. TRAINING GUIDELINES FOR ELECTRIC cally Black colleges or universities, His- certified by the Commission under sub- ENERGY INDUSTRY PERSONNEL. panic-serving institutions, or tribal colleges section (c) the purpose of which is to estab- The Secretary of Energy, in consultation to train personnel in science or engineering. lish and enforce reliability standards for the with the Secretary of Labor and jointly with ‘‘(c) ACTIVITIES.—An activity under sub- bulk-power system, subject to Commission the electric industry and recognized em- section (b) may include— review. ployee representatives, shall develop model ‘‘(1) collaborative research; ‘‘(3) The term ‘reliability standard’ means personnel training guidelines to support ‘‘(2) equipment transfer; a requirement, approved by the Commission electric system reliability and safety. The ‘‘(3) training activities conducted at a Na- under this section, to provide for reliable op- training guidelines shall, at a minimum— tional Laboratory or science facility; and eration of the bulk-power system. The term

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00132 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.100 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4577 includes requirements for the operation of ‘‘(E) provide for taking, after certification, ‘‘(B) files notice and the record of the pro- existing bulk-power system facilities and the appropriate steps to gain recognition in Can- ceeding with the Commission. design of planned additions or modifications ada and Mexico. ‘‘(2) A penalty imposed under paragraph (1) to such facilities to the extent necessary to ‘‘(d) RELIABILITY STANDARDS.—(1) The may take effect not earlier than the 31st day provide for reliable operation of the bulk- Electric Reliability Organization shall file after the ERO files with the Commission no- power system, but the term does not include each reliability standard or modification to tice of the penalty and the record of pro- any requirement to enlarge such facilities or a reliability standard that it proposes to be ceedings. Such penalty shall be subject to re- to construct new transmission capacity or made effective under this section with the view by the Commission, on its own motion generation capacity. Commission. or upon application by the user, owner or op- ‘‘(4) The term ‘reliable operation’ means ‘‘(2) The Commission may approve, by rule erator that is the subject of the penalty filed operating the elements of the bulk-power or order, a proposed reliability standard or within 30 days after the date such notice is system within equipment and electric sys- modification to a reliability standard if it filed with the Commission. Application to tem thermal, voltage, and stability limits so determines that the standard is just, reason- the Commission for review, or the initiation that instability, uncontrolled separation, or able, not unduly discriminatory or pref- of review by the Commission on its own mo- erential, and in the public interest. The cascading failures of such system will not tion, shall not operate as a stay of such pen- Commission shall give due weight to the occur as a result of a sudden disturbance or alty unless the Commission otherwise orders technical expertise of the Electric Reli- unanticipated failure of system elements. upon its own motion or upon application by ability Organization with respect to the con- ‘‘(5) The term ‘Interconnection’ means a the user, owner or operator that is the sub- tent of a proposed standard or modification geographic area in which the operation of ject of such penalty. In any proceeding to re- to a reliability standard and to the technical bulk-power system components is syn- view a penalty imposed under paragraph (1), expertise of a regional entity organized on chronized such that the failure of 1 or more the Commission, after notice and oppor- an Interconnection-wide basis with respect of such components may adversely affect the tunity for hearing (which hearing may con- to a reliability standard to be applicable ability of the operators of other components within that Interconnection, but shall not sist solely of the record before the ERO and within the system to maintain reliable oper- defer with respect to the effect of a standard opportunity for the presentation of sup- ation of the facilities within their control. on competition. A proposed standard or porting reasons to affirm, modify, or set ‘‘(6) The term ‘transmission organization’ modification shall take effect upon approval aside the penalty), shall by order affirm, set means a Regional Transmission Organiza- by the Commission. aside, reinstate, or modify the penalty, and, tion, Independent System Operator, inde- ‘‘(3) The Electric Reliability Organization if appropriate, remand to the ERO for fur- pendent transmission provider, or other shall rebuttably presume that a proposal ther proceedings. The Commission shall im- transmission organization finally approved from a regional entity organized on an Inter- plement expedited procedures for such hear- by the Commission for the operation of connection-wide basis for a reliability stand- ings. transmission facilities. ard or modification to a reliability standard ‘‘(3) On its own motion or upon complaint, ‘‘(7) The term ‘regional entity’ means an to be applicable on an Interconnection-wide the Commission may order compliance with entity having enforcement authority pursu- basis is just, reasonable, and not unduly dis- a reliability standard and may impose a pen- ant to subsection (e)(4). criminatory or preferential, and in the pub- alty against a user or owner or operator of the bulk-power system if the Commission ‘‘(b) JURISDICTION AND APPLICABILITY.—(1) lic interest. The Commission shall have jurisdiction, ‘‘(4) The Commission shall remand to the finds, after notice and opportunity for a within the United States, over the ERO cer- Electric Reliability Organization for further hearing, that the user or owner or operator tified by the Commission under subsection consideration a proposed reliability standard of the bulk-power system has engaged or is about to engage in any acts or practices that (c), any regional entities, and all users, own- or a modification to a reliability standard constitute or will constitute a violation of a ers and operators of the bulk-power system, that the Commission disapproves in whole or reliability standard. including but not limited to the entities de- in part. ‘‘(5) The Commission, upon its own motion ‘‘(4) The Commission shall issue regula- scribed in section 201(f), for purposes of ap- or upon complaint, may order the Electric tions authorizing the ERO to enter into an proving reliability standards established Reliability Organization to submit to the agreement to delegate authority to a re- under this section and enforcing compliance Commission a proposed reliability standard gional entity for the purpose of proposing re- with this section. All users, owners and oper- or a modification to a reliability standard liability standards to the ERO and enforcing ators of the bulk-power system shall comply that addresses a specific matter if the Com- reliability standards under paragraph (1) if— with reliability standards that take effect mission considers such a new or modified re- ‘‘(A) the regional entity is governed by— under this section. liability standard appropriate to carry out ‘‘(i) an independent board; ‘‘(2) The Commission shall issue a final this section. ‘‘(ii) a balanced stakeholder board; or rule to implement the requirements of this ‘‘(6) The final rule adopted under sub- ‘‘(iii) a combination independent and bal- section not later than 180 days after the date section (b)(2) shall include fair processes for anced stakeholder board. of enactment of this section. the identification and timely resolution of ‘‘(B) the regional entity otherwise satisfies any conflict between a reliability standard the provisions of subsection (c)(1) and (2); ‘‘(c) CERTIFICATION.—Following the and any function, rule, order, tariff, rate issuance of a Commission rule under sub- and schedule, or agreement accepted, approved, ‘‘(C) the agreement promotes effective and section (b)(2), any person may submit an ap- or ordered by the Commission applicable to a plication to the Commission for certification efficient administration of bulk-power sys- transmission organization. Such trans- tem reliability. as the Electric Reliability Organization. The mission organization shall continue to com- Commission may certify 1 such ERO if the ply with such function, rule, order, tariff, The Commission may modify such delega- Commission determines that such ERO— rate schedule or agreement accepted ap- tion. The ERO and the Commission shall ‘‘(1) has the ability to develop and enforce, proved, or ordered by the Commission until— rebuttably presume that a proposal for dele- subject to subsection (e)(2), reliability stand- ‘‘(A) the Commission finds a conflict exists gation to a regional entity organized on an ards that provide for an adequate level of re- between a reliability standard and any such Interconnection-wide basis promotes effec- liability of the bulk-power system; and provision; tive and efficient administration of bulk- ‘‘(2) has established rules that— ‘‘(B) the Commission orders a change to power system reliability and should be ap- ‘‘(A) assure its independence of the users such provision pursuant to section 206 of this proved. Such regulation may provide that and owners and operators of the bulk-power part; and the Commission may assign the ERO’s au- system, while assuring fair stakeholder rep- ‘‘(C) the ordered change becomes effective thority to enforce reliability standards resentation in the selection of its directors under this part. under paragraph (1) directly to a regional en- and balanced decisionmaking in any ERO If the Commission determines that a reli- tity consistent with the requirements of this committee or subordinate organizational ability standard needs to be changed as a re- paragraph. structure; sult of such a conflict, it shall order the ERO ‘‘(5) The Commission may take such action ‘‘(B) allocate equitably reasonable dues, to develop and file with the Commission a as is necessary or appropriate against the fees, and other charges among end users for modified reliability standard under para- ERO or a regional entity to ensure compli- all activities under this section; graph (4) or (5) of this subsection. ance with a reliability standard or any Com- ‘‘(C) provide fair and impartial procedures ‘‘(e) ENFORCEMENT.—(1) The ERO may im- mission order affecting the ERO or a re- for enforcement of reliability standards pose, subject to paragraph (2), a penalty on a gional entity. through the imposition of penalties in ac- user or owner or operator of the bulk-power ‘‘(6) Any penalty imposed under this sec- cordance with subsection (e) (including limi- system for a violation of a reliability stand- tion shall bear a reasonable relation to the tations on activities, functions, or oper- ard approved by the Commission under sub- seriousness of the violation and shall take ations, or other appropriate sanctions); section (d) if the ERO, after notice and an into consideration the efforts of such user, ‘‘(D) provide for reasonable notice and op- opportunity for a hearing— owner, or operator to remedy the violation portunity for public comment, due process, ‘‘(A) finds that the user or owner or oper- in a timely manner. openness, and balance of interests in devel- ator has violated a reliability standard ap- ‘‘(f) CHANGES IN ELECTRIC RELIABILITY OR- oping reliability standards and otherwise ex- proved by the Commission under subsection GANIZATION RULES.—The Electric Reliability ercising its duties; and (d); and Organization shall file with the Commission

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00133 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.101 S28PT1 S4578 CONGRESSIONAL RECORD — SENATE April 28, 2004 for approval any proposed rule or proposed regional entity delegated enforcement au- tional interest electric transmission cor- rule change, accompanied by an explanation thority pursuant to section 215(e)(4) of that ridor, whichever is later; or of its basis and purpose. The Commission, Act are not departments, agencies, or instru- ‘‘(ii) conditioned its approval in such a upon its own motion or complaint, may pro- mentalities of the United States Govern- manner that the proposed construction or pose a change to the rules of the ERO. A pro- ment. modification will not significantly reduce posed rule or proposed rule change shall take Subtitle B—Transmission Infrastructure transmission congestion in interstate com- effect upon a finding by the Commission, Modernization merce or is not economically feasible; after notice and opportunity for comment, ‘‘(2) the facilities to be authorized by the SEC. 1221. SITING OF INTERSTATE ELECTRIC that the change is just, reasonable, not un- TRANSMISSION FACILITIES. permit will be used for the transmission of duly discriminatory or preferential, is in the (a) AMENDMENT OF FEDERAL POWER ACT.— electric energy in interstate commerce; public interest, and satisfies the require- Part II of the Federal Power Act is amended ‘‘(3) the proposed construction or modifica- ments of subsection (c). by adding at the end the following: tion is consistent with the public interest; ‘‘(g) RELIABILITY REPORTS.—The ERO shall ‘‘(4) the proposed construction or modifica- ‘‘SEC. 216. SITING OF INTERSTATE ELECTRIC conduct periodic assessments of the reli- TRANSMISSION FACILITIES. tion will significantly reduce transmission ability and adequacy of the bulk-power sys- ‘‘(a) DESIGNATION OF NATIONAL INTEREST congestion in interstate commerce and pro- tem in North America. ELECTRIC TRANSMISSION CORRIDORS.— tects or benefits consumers; and ‘‘(h) COORDINATION WITH CANADA AND MEX- ‘‘(1) TRANSMISSION CONGESTION STUDY.— ‘‘(5) the proposed construction or modifica- ICO.—The President is urged to negotiate Within 1 year after the enactment of this tion is consistent with sound national en- international agreements with the govern- section, and every 3 years thereafter, the ergy policy and will enhance energy inde- ments of Canada and Mexico to provide for Secretary of Energy, in consultation with af- pendence. effective compliance with reliability stand- fected States, shall conduct a study of elec- ‘‘(c) PERMIT APPLICATIONS.—Permit appli- ards and the effectiveness of the ERO in the tric transmission congestion. After consid- cations under subsection (b) shall be made in United States and Canada or Mexico. writing to the Commission. The Commission ering alternatives and recommendations ‘‘(i) SAVINGS PROVISIONS.—(1) The ERO shall issue rules setting forth the form of the from interested parties, including an oppor- shall have authority to develop and enforce application, the information to be contained tunity for comment from affected States, the compliance with reliability standards for in the application, and the manner of service Secretary shall issue a report, based on such only the bulk-power system. of notice of the permit application upon in- study, which may designate any geographic ‘‘(2) This section does not authorize the terested persons. area experiencing electric energy trans- ERO or the Commission to order the con- ‘‘(d) COMMENTS.—In any proceeding before struction of additional generation or transmission capacity constraints or congestion the Commission under subsection (b), the mission capacity or to set and enforce com- that adversely affects consumers as a na- Commission shall afford each State in which pliance with standards for adequacy or safe- tional interest electric transmission cor- a transmission facility covered by the per- ty of electric facilities or services. ridor. The Secretary shall conduct the study mit is or will be located, each affected Fed- ‘‘(3) Nothing in this section shall be con- and issue the report in consultation with any eral agency and Indian tribe, private prop- strued to preempt any authority of any appropriate regional entity referenced in erty owners, and other interested persons, a State to take action to ensure the safety, section 215 of this Act. reasonable opportunity to present their adequacy, and reliability of electric service ‘‘(2) CONSIDERATIONS.—In determining views and recommendations with respect to within that State, as long as such action is whether to designate a national interest the need for and impact of a facility covered not inconsistent with any reliability stand- electric transmission corridor referred to in by the permit. ard. paragraph (1) under this section, the Sec- ‘‘(e) RIGHTS-OF-WAY.—In the case of a per- ‘‘(4) Within 90 days of the application of retary may consider whether— mit under subsection (b) for electric trans- the Electric Reliability Organization or ‘‘(A) the economic vitality and develop- mission facilities to be located on property other affected party, and after notice and opment of the corridor, or the end markets other than property owned by the United portunity for comment, the Commission served by the corridor, may be constrained States or a State, if the permit holder can- shall issue a final order determining whether by lack of adequate or reasonably priced not acquire by contract, or is unable to agree a State action is inconsistent with a reli- electricity; with the owner of the property to the com- ability standard, taking into consideration ‘‘(B)(i) economic growth in the corridor, or pensation to be paid for, the necessary right- any recommendation of the ERO. the end markets served by the corridor, may of-way to construct or modify such trans- ‘‘(5) The Commission, after consultation be jeopardized by reliance on limited sources mission facilities, the permit holder may ac- with the ERO and the State taking action, of energy; and quire the right-of-way by the exercise of the may stay the effectiveness of any State ac- ‘‘(ii) a diversification of supply is war- right of eminent domain in the district court tion, pending the Commission’s issuance of a ranted; of the United States for the district in which final order. ‘‘(C) the energy independence of the United the property concerned is located, or in the ‘‘(j) REGIONAL ADVISORY BODIES.—The States would be served by the designation; appropriate court of the State in which the Commission shall establish a regional advi- ‘‘(D) the designation would be in the inter- property is located. The practice and proce- sory body on the petition of at least 2⁄3 of the est of national energy policy; and dure in any action or proceeding for that States within a region that have more than ‘‘(E) the designation would enhance na- purpose in the district court of the United 1⁄2 of their electric load served within the re- tional defense and homeland security. States shall conform as nearly as may be gion. A regional advisory body shall be com- ‘‘(b) CONSTRUCTION PERMIT.—Except as pro- with the practice and procedure in similar posed of 1 member from each participating vided in subsection (i), the Commission is action or proceeding in the courts of the State in the region, appointed by the Gov- authorized, after notice and an opportunity State where the property is situated. ernor of each State, and may include rep- for hearing, to issue a permit or permits for ‘‘(f) STATE LAW.—Nothing in this section resentatives of agencies, States, and prov- the construction or modification of electric shall preclude any person from constructing inces outside the United States. A regional transmission facilities in a national interest or modifying any transmission facility pur- advisory body may provide advice to the electric transmission corridor designated by suant to State law. Electric Reliability Organization, a regional the Secretary under subsection (a) if the ‘‘(g) COMPENSATION.—Any exercise of emi- entity, or the Commission regarding the gov- Commission finds that— nent domain authority pursuant to this sec- ernance of an existing or proposed regional ‘‘(1)(A) a State in which the transmission tion shall be considered a taking of private entity within the same region, whether a facilities are to be constructed or modified is property for which just compensation is due. standard proposed to apply within the region without authority to— Just compensation shall be an amount equal is just, reasonable, not unduly discrimina- ‘‘(i) approve the siting of the facilities; or to the full fair market value of the property tory or preferential, and in the public inter- ‘‘(ii) consider the interstate benefits ex- taken on the date of the exercise of eminent est, whether fees proposed to be assessed pected to be achieved by the proposed con- domain authority, except that the compensa- within the region are just, reasonable, not struction or modification of transmission fa- tion shall exceed fair market value if nec- unduly discriminatory or preferential, and in cilities in the State; essary to make the landowner whole for de- the public interest and any other responsibil- ‘‘(B) the applicant for a permit is a trans- creases in the value of any portion of the ities requested by the Commission. The Com- mitting utility under this Act but does not land not subject to eminent domain. Any mission may give deference to the advice of qualify to apply for a permit or siting ap- parcel of land acquired by eminent domain any such regional advisory body if that body proval for the proposed project in a State be- under this subsection shall be transferred is organized on an Interconnection-wide cause the applicant does not serve end-use back to the owner from whom it was ac- basis. customers in the State; or quired (or his heirs or assigns) if the land is ‘‘(k) ALASKA AND HAWAII.—The provisions ‘‘(C) a State commission or other entity not used for the construction or modification of this section do not apply to Alaska or Ha- that has authority to approve the siting of of electric transmission facilities within a waii.’’. the facilities has— reasonable period of time after the acquisi- (b) STATUS OF ERO.—The Electric Reli- ‘‘(i) withheld approval for more than 1 year tion. Other than construction, modification, ability Organization certified by the Federal after the filing of an application pursuant to operation, or maintenance of electric trans- Energy Regulatory Commission under sec- applicable law seeking approval or 1 year mission facilities and related facilities, prop- tion 215(c) of the Federal Power Act and any after the designation of the relevant na- erty acquired under subsection (e) may not

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00134 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.101 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4579 be used for any purpose (including use for other matters as required under applicable States. The Secretary of Energy may provide any heritage area, recreational trail, or laws. technical assistance to regional trans- park) without the consent of the owner of ‘‘(4) APPEALS.—In the event that any agen- mission siting agencies established under the parcel from whom the property was ac- cy has denied a Federal authorization re- this subsection. Such regional transmission quired (or the owner’s heirs or assigns). quired for a transmission or distribution fa- siting agencies shall have the authority to ‘‘(h) COORDINATION OF FEDERAL AUTHORIZA- cility, or has failed to act by the deadline es- review, certify, and permit siting of trans- TIONS FOR TRANSMISSION AND DISTRIBUTION tablished by the Secretary pursuant to this mission facilities, including facilities in na- FACILITIES.— section for deciding whether to issue the au- tional interest electric transmission cor- ‘‘(1) LEAD AGENCY.—If an applicant, or pro- thorization, the applicant or any State in ridors (other than facilities on property spective applicant, for a Federal authoriza- which the facility would be located may file owned by the United States). The Commis- tion related to an electric transmission or an appeal with the Secretary, who shall, in sion shall have no authority to issue a per- distribution facility so requests, the Depart- consultation with the affected agency, remit for the construction or modification of ment of Energy (DOE) shall act as the lead view the denial or take action on the pend- electric transmission facilities within a agency for purposes of coordinating all appli- ing application. Based on the overall record State that is a party to a compact, unless cable Federal authorizations and related en- and in consultation with the affected agency, the members of a compact are in disagree- vironmental reviews of the facility. For pur- the Secretary may then either issue the nec- ment and the Secretary makes, after notice poses of this subsection, the term ‘Federal essary authorization with any appropriate and an opportunity for a hearing, the finding authorization’ means any authorization re- conditions, or deny the application. The Sec- described in section (b)(1)(C). quired under Federal law in order to site a retary shall issue a decision within 90 days of ‘‘(j) SAVINGS CLAUSE.—Nothing in this sec- transmission or distribution facility, includ- the filing of the appeal. In making a decision tion shall be construed to affect any require- ing but not limited to such permits, special under this paragraph, the Secretary shall ment of the environmental laws of the use authorizations, certifications, opinions, comply with applicable requirements of Fed- United States, including, but not limited to, or other approvals as may be required, eral law, including any requirements of the the National Environmental Policy Act of whether issued by a Federal or a State agen- Endangered Species Act, the Clean Water 1969. Subsection (h)(4) of this section shall cy. To the maximum extent practicable Act, the National Forest Management Act, not apply to any Congressionally-designated under applicable Federal law, the Secretary the National Environmental Policy Act of components of the National Wilderness Pres- of Energy shall coordinate this Federal au- 1969, and the Federal Land Policy and Man- ervation System, the National Wild and Sce- thorization and review process with any In- agement Act. nic Rivers System, or the National Park sys- dian tribes, multi-State entities, and State ‘‘(5) CONFORMING REGULATIONS AND MEMO- tem (including National Monuments there- agencies that are responsible for conducting RANDA OF UNDERSTANDING.—Not later than 18 in). any separate permitting and environmental months after the date of enactment of this ‘‘(k) ERCOT.—This section shall not apply reviews of the facility, to ensure timely and section, the Secretary of Energy shall issue within the area referred to in section efficient review and permit decisions. any regulations necessary to implement this 212(k)(2)(A).’’. ‘‘(2) AUTHORITY TO SET DEADLINES.—As lead subsection. Not later than 1 year after the (b) REPORTS TO CONGRESS ON CORRIDORS agency, the Department of Energy, in con- date of enactment of this section, the Sec- AND RIGHTS OF WAY ON FEDERAL LANDS.—The sultation with agencies responsible for Fed- retary and the heads of all Federal agencies Secretary of the Interior, the Secretary of eral authorizations and, as appropriate, with with authority to issue Federal authoriza- Energy, the Secretary of Agriculture, and Indian tribes, multi-State entities, and State tions shall enter into Memoranda of Under- the Chairman of the Council on Environ- agencies that are willing to coordinate their standing to ensure the timely and coordi- mental Quality shall, within 90 days of the own separate permitting and environmental nated review and permitting of electricity date of enactment of this subsection, submit reviews with the Federal authorization and transmission and distribution facilities. The a joint report to Congress identifying each of environmental reviews, shall establish head of each Federal agency with authority the following: prompt and binding intermediate milestones to issue a Federal authorization shall des- (1) All existing designated transmission and ultimate deadlines for the review of, and ignate a senior official responsible for, and and distribution corridors on Federal land Federal authorization decisions relating to, dedicate sufficient other staff and resources and the status of work related to proposed the proposed facility. The Secretary of En- to ensure, full implementation of the DOE transmission and distribution corridor des- ergy shall ensure that once an application regulations and any Memoranda. Interested ignations under Title V of the Federal Land has been submitted with such data as the Indian tribes, multi-State entities, and State Policy and Management Act (43 U.S.C. 1761 Secretary considers necessary, all permit de- agencies may enter such Memoranda of Un- et seq.), the schedule for completing such cisions and related environmental reviews derstanding. work, any impediments to completing the under all applicable Federal laws shall be ‘‘(6) DURATION AND RENEWAL.—Each Fed- work, and steps that Congress could take to completed within 1 year or, if a requirement eral land use authorization for an electricity expedite the process. of another provision of Federal law makes transmission or distribution facility shall be (2) The number of pending applications to this impossible, as soon thereafter as is prac- issued— locate transmission and distribution facili- ticable. The Secretary of Energy also shall ‘‘(A) for a duration, as determined by the ties on Federal lands, key information relat- provide an expeditious pre-application mech- Secretary of Energy, commensurate with the ing to each such facility, how long each ap- anism for prospective applicants to confer anticipated use of the facility, and plication has been pending, the schedule for with the agencies involved to have each such ‘‘(B) with appropriate authority to manage issuing a timely decision as to each facility, agency determine and communicate to the the right-of-way for reliability and environ- and progress in incorporating existing and prospective applicant within 60 days of when mental protection. new such rights-of-way into relevant land the prospective applicant submits a request Upon the expiration of any such authoriza- use and resource management plans or their for such information concerning— tion (including an authorization issued prior equivalent. ‘‘(A) the likelihood of approval for a poten- to enactment of this section), the authoriza- (3) The number of existing transmission tial facility; and tion shall be reviewed for renewal taking and distribution rights-of-way on Federal ‘‘(B) key issues of concern to the agencies fully into account reliance on such elec- lands that will come up for renewal within and public. tricity infrastructure, recognizing its impor- the following 5-, 10-, and 15-year periods, and ‘‘(3) CONSOLIDATED ENVIRONMENTAL REVIEW tance for public health, safety and economic a description of how the Secretaries plan to AND RECORD OF DECISION.—As lead agency welfare and as a legitimate use of Federal manage such renewals. head, the Secretary of Energy, in consulta- lands. SEC. 1222. THIRD-PARTY FINANCE. tion with the affected agencies, shall prepare ‘‘(7) MAINTAINING AND ENHANCING THE (a) EXISTING FACILITIES.—The Secretary of a single environmental review document, TRANSMISSION INFRASTRUCTURE.—In exer- Energy (hereinafter in this section referred which shall be used as the basis for all deci- cising the responsibilities under this section, to as the ‘‘Secretary’’), acting through the sions on the proposed project under Federal the Secretary of Energy shall consult regu- Administrator of the Western Area Power law. The document may be an environmental larly with the Federal Energy Regulatory Administration (hereinafter in this section assessment or environmental impact state- Commission (FERC), FERC-approved electric referred to as ‘‘WAPA’’), or through the Ad- ment under the National Environmental Pol- reliability organizations (including related ministrator of the Southwestern Power Ad- icy Act of 1969 if warranted, or such other regional entities), and FERC-approved Re- ministration (hereinafter in this section reform of analysis as may be warranted. The gional Transmission Organizations and Inde- ferred to as ‘‘SWPA’’), or both, may design, Secretary of Energy and the heads of other pendent System Operators. develop, construct, operate, maintain, or agencies shall streamline the review and per- ‘‘(i) INTERSTATE COMPACTS.—The consent of own, or participate with other entities in de- mitting of transmission and distribution fa- Congress is hereby given for 3 or more con- signing, developing, constructing, operating, cilities within corridors designated under tiguous States to enter into an interstate maintaining, or owning, an electric power section 503 of the Federal Land Policy and compact, subject to approval by Congress, transmission facility and related facilities Management Act (43 U.S.C. 1763) by fully establishing regional transmission siting (‘‘Project’’) needed to upgrade existing trans- taking into account prior analyses and deci- agencies to facilitate siting of future electric mission facilities owned by SWPA or WAPA sions relating to the corridors. Such docu- energy transmission facilities within such if the Secretary of Energy, in consultation ment shall include consideration by the rel- States and to carry out the electric energy with the applicable Administrator, deter- evant agencies of any applicable criteria or transmission siting responsibilities of such mines that the proposed Project—

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00135 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.101 S28PT1 S4580 CONGRESSIONAL RECORD — SENATE April 28, 2004 (1)(A) is located in a national interest elec- (2) any Federal or State law relating to the dered obsolete or otherwise impracticable to tric transmission corridor designated under siting of energy facilities; or deploy. section 216(a) of the Federal Power Act and (3) any existing authorizing statutes. SEC. 1225. ELECTRIC TRANSMISSION AND DIS- will reduce congestion of electric trans- (e) SAVINGS CLAUSE.—Nothing in this sec- TRIBUTION PROGRAMS. mission in interstate commerce; or tion shall constrain or restrict an Adminis- (a) ELECTRIC TRANSMISSION AND DISTRIBU- (B) is necessary to accommodate an actual trator in the utilization of other authority TION PROGRAM.—The Secretary of Energy or projected increase in demand for electric delegated to the Administrator of WAPA or (hereinafter in this section referred to as the transmission capacity; SWPA. ‘‘Secretary’’) acting through the Director of (2) is consistent with— (f) SECRETARIAL DETERMINATIONS.—Any de- the Office of Electric Transmission and Dis- (A) transmission needs identified, in a termination made pursuant to subsection (a) tribution shall establish a comprehensive re- transmission expansion plan or otherwise, by or (b) shall be based on findings by the Sec- search, development, demonstration and the appropriate Regional Transmission Orga- retary using the best available data. commercial application program to promote nization or Independent System Operator (as (g) LIMITATIONS.—The Secretary shall not improved reliability and efficiency of elec- defined in the Federal Power Act), if any, or accept and use more than $100,000,000 under trical transmission and distribution systems. approved regional reliability organization; subsection (c)(1) for the period encompassing This program shall include— and fiscal years 2005 through 2013. (1) advanced energy delivery and storage (B) efficient and reliable operation of the (h) EFFECTIVE DATE.—This section takes technologies, materials, and systems, includ- transmission grid; and effect on October 1, 2004. ing new transmission technologies, such as (3) would be operated in conformance with flexible alternating current transmission SEC. 1223. TRANSMISSION SYSTEM MONITORING. systems, composite conductor materials and prudent utility practice. Within 6 months after the date of enact- (b) NEW FACILITIES.—The Secretary, acting other technologies that enhance reliability, ment of this Act, the Secretary of Energy operational flexibility, or power-carrying ca- through WAPA or SWPA, or both, may de- and the Federal Energy Regulatory Commis- sign, develop, construct, operate, maintain, pability; sion shall study and report to Congress on or own, or participate with other entities in (2) advanced grid reliability and efficiency the steps which must be taken to establish a designing, developing, constructing, oper- technology development; system to make available to all transmission ating, maintaining, or owning, a new electric (3) technologies contributing to significant system owners and Regional Transmission power transmission facility and related fa- load reductions; cilities (‘‘Project’’) located within any State Organizations (as defined in the Federal (4) advanced metering, load management, in which WAPA or SWPA operates if the Sec- Power Act) within the Eastern and Western and control technologies; retary, in consultation with the applicable Interconnections real-time information on (5) technologies to enhance existing grid Administrator, determines that the proposed the functional status of all transmission components; Project— lines within such Interconnections. In such (6) the development and use of high-tem- (1)(A) is located in an area designated study, the Commission shall assess technical perature superconductors to— under section 216(a) of the Federal Power Act means for implementing such transmission (A) enhance the reliability, operational and will reduce congestion of electric trans- information system and identify the steps flexibility, or power-carrying capability of mission in interstate commerce; or the Commission or Congress must take to re- electric transmission or distribution sys- (B) is necessary to accommodate an actual quire the implementation of such system. tems; or or projected increase in demand for electric SEC. 1224. ADVANCED TRANSMISSION TECH- (B) increase the efficiency of electric en- transmission capacity; NOLOGIES. ergy generation, transmission, distribution, (2) is consistent with— (a) AUTHORITY.—The Federal Energy Regu- or storage systems; (A) transmission needs identified, in a latory Commission, in the exercise of its au- (7) integration of power systems, including transmission expansion plan or otherwise, by thorities under the Federal Power Act and systems to deliver high-quality electric the appropriate Regional Transmission Orga- the Public Utility Regulatory Policies Act of power, electric power reliability, and com- nization or Independent System Operator, if 1978, shall encourage the deployment of ad- bined heat and power; any, or approved regional reliability organi- vanced transmission technologies. (8) supply of electricity to the power grid zation; and (b) DEFINITION.—For the purposes of this by small scale, distributed and residential- (B) efficient and reliable operation of the section, the term ‘‘advanced transmission based power generators; transmission grid; technologies’’ means technologies that in- (9) the development and use of advanced (3) will be operated in conformance with crease the capacity, efficiency, or reliability grid design, operation and planning tools; prudent utility practice; of existing or new transmission facilities, in- (10) any other infrastructure technologies, (4) will be operated by, or in conformance cluding, but not limited to— as appropriate; and with the rules of, the appropriate (A) Re- (1) high-temperature lines (including (11) technology transfer and education. gional Transmission Organization or Inde- superconducting cables); (b) PROGRAM PLAN.—Not later than 1 year pendent System Operator, if any, or (B) if (2) underground cables; after the date of the enactment of this legis- such an organization does not exist, regional (3) advanced conductor technology (includ- lation, the Secretary, in consultation with reliability organization; and ing advanced composite conductors, high- other appropriate Federal agencies, shall (5) will not duplicate the functions of exist- temperature low-sag conductors, and fiber prepare and transmit to Congress a 5-year program plan to guide activities under this ing transmission facilities or proposed facili- optic temperature sensing conductors); section. In preparing the program plan, the ties which are the subject of ongoing or ap- (4) high-capacity ceramic electric wire, Secretary may consult with utilities, energy proved siting and related permitting pro- connectors, and insulators; services providers, manufacturers, institu- ceedings. (5) optimized transmission line configurations of higher education, other appropriate (c) OTHER FUNDS.— tions (including multiple phased trans- State and local agencies, environmental or- (1) IN GENERAL.—In carrying out a Project mission lines); ganizations, professional and technical soci- under subsection (a) or (b), the Secretary (6) modular equipment; eties, and any other persons the Secretary may accept and use funds contributed by an- (7) wireless power transmission; (8) ultra-high voltage lines; considers appropriate. other entity for the purpose of carrying out (c) IMPLEMENTATION.—The Secretary shall (9) high-voltage DC technology; the Project. consider implementing this program using a (2) AVAILABILITY.—The contributed funds (10) flexible AC transmission systems; consortium of industry, university and na- shall be available for expenditure for the (11) energy storage devices (including tional laboratory participants. purpose of carrying out the Project— pumped hydro, compressed air, super- (d) REPORT.—Not later than 2 years after (A) without fiscal year limitation; and conducting magnetic energy storage, the transmittal of the plan under subsection (B) as if the funds had been appropriated flywheels, and batteries); (b), the Secretary shall transmit a report to specifically for that Project. (12) controllable load; Congress describing the progress made under (3) ALLOCATION OF COSTS.—In carrying out (13) distributed generation (including PV, this section and identifying any additional a Project under subsection (a) or (b), any fuel cells, microturbines); resources needed to continue the develop- costs of the Project not paid for by contribu- (14) enhanced power device monitoring; ment and commercial application of trans- tions from another entity shall be collected (15) direct system state sensors; mission and distribution infrastructure tech- through rates charged to customers using (16) fiber optic technologies; nologies. the new transmission capability provided by (17) power electronics and related software (e) POWER DELIVERY RESEARCH INITIA- the Project and allocated equitably among (including real time monitoring and analyt- TIVE.— these project beneficiaries using the new ical software); and (1) IN GENERAL.—The Secretary shall estab- transmission capability. (18) any other technologies the Commis- lish a research, development, demonstration, (d) RELATIONSHIP TO OTHER LAWS.—Noth- sion considers appropriate. and commercial application initiative spe- ing in this section affects any requirement (c) OBSOLETE OR IMPRACTICABLE TECH- cifically focused on power delivery utilizing of— NOLOGIES.—The Commission is authorized to components incorporating high temperature (1) any Federal environmental law, includ- cease encouraging the deployment of any superconductivity. ing the National Environmental Policy Act technology described in this section on a (2) GOALS.—The goals of this initiative of 1969 (42 U.S.C. 4321 et seq.); finding that such technology has been ren- shall be to—

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00136 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.101 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4581 (A) establish facilities to develop high tem- turbine, or hybrid power system or power ‘‘(1) at rates that are comparable to those perature superconductivity power applica- storage system to generate or store electric that the unregulated transmitting utility tions in partnership with manufacturers and energy. charges itself; and utilities; (2) QUALIFYING SECURITY AND ASSURED ‘‘(2) on terms and conditions (not relating (B) provide technical leadership for estab- POWER FACILITY.—The term ‘‘qualifying secu- to rates) that are comparable to those under lishing reliability for high temperature rity and assured power facility’’ means a which such unregulated transmitting utility superconductivity power applications includ- qualifying advanced power system tech- provides transmission services to itself and ing suitable modeling and analysis; nology facility determined by the Secretary that are not unduly discriminatory or pref- (C) facilitate commercial transition to- of Energy, in consultation with the Sec- erential. ward direct current power transmission, retary of Homeland Security, to be in crit- ‘‘(b) EXEMPTION.—The Commission shall storage, and use for high power systems uti- ical need of secure, reliable, rapidly avail- exempt from any rule or order under this lizing high temperature superconductivity; able, high-quality power for critical govern- section any unregulated transmitting utility and mental, industrial, or commercial applica- that— (D) facilitate the integration of very low tions. ‘‘(1) sells no more than 4,000,000 megawatt impedance high temperature super- (d) AUTHORIZATION.—There are authorized hours of electricity per year; or conducting wires and cables in existing elec- to be appropriated to the Secretary of En- ‘‘(2) does not own or operate any trans- tric networks to improve system perform- ergy for the purposes of this section, mission facilities that are necessary for op- ance, power flow control and reliability. $10,000,000 for each of the fiscal years 2004 erating an interconnected transmission sys- (3) REQUIREMENTS.—The initiative shall in- through 2010. tem (or any portion thereof); or clude— SEC. 1227. OFFICE OF ELECTRIC TRANSMISSION ‘‘(3) meets other criteria the Commission (A) feasibility analysis, planning, research, AND DISTRIBUTION. determines to be in the public interest. and design to construct demonstrations of (a) CREATION OF AN OFFICE OF ELECTRIC ‘‘(c) LOCAL DISTRIBUTION FACILITIES.—The superconducting links in high power, direct TRANSMISSION AND DISTRIBUTION.—Title II of requirements of subsection (a) shall not current and controllable alternating current the Department of Energy Organization Act apply to facilities used in local distribution. transmission systems; (42 U.S.C. 7131 et seq.) (as amended by sec- ‘‘(d) EXEMPTION TERMINATION.—Whenever the Commission, after an evidentiary hear- (B) public-private partnerships to dem- tion 502(a)) is amended by inserting the fol- ing held upon a complaint and after giving onstrate deployment of high temperature lowing after section 217, as added by title V: consideration to reliability standards estab- superconducting cable into testbeds simu- ‘‘SEC. 218. OFFICE OF ELECTRIC TRANSMISSION lished under section 215, finds on the basis of lating a realistic transmission grid and AND DISTRIBUTION. a preponderance of the evidence that any ex- under varying transmission conditions, in- ‘‘(a) ESTABLISHMENT.—There is established within the Department an Office of Electric emption granted pursuant to subsection (b) cluding actual grid insertions; and unreasonably impairs the continued reli- (C) testbeds developed in cooperation with Transmission and Distribution. This Office shall be headed by a Director, subject to the ability of an interconnected transmission national laboratories, industries, and univer- system, it shall revoke the exemption grant- sities to demonstrate these technologies, authority of the Secretary. The Director shall be appointed by the Secretary. The Di- ed to that transmitting utility. prepare the technologies for commercial in- ‘‘(e) APPLICATION TO UNREGULATED TRANS- rector shall be compensated at the annual troduction, and address cost or performance MITTING UTILITIES.—The rate changing proce- rate prescribed for level IV of the Executive roadblocks to successful commercial use. dures applicable to public utilities under Schedule under section 5315 of title 5, United (4) AUTHORIZATION OF APPROPRIATIONS.— subsections (c) and (d) of section 205 are ap- States Code. For purposes of carrying out this subsection, plicable to unregulated transmitting utili- there are authorized to be appropriated— ‘‘(b) DIRECTOR.—The Director shall— ‘‘(1) coordinate and develop a comprehen- ties for purposes of this section. (A) for fiscal year 2004, $15,000,000; ‘‘(f) REMAND.—In exercising its authority sive, multi-year strategy to improve the Na- (B) for fiscal year 2005, $20,000,000; under paragraph (1) of subsection (a), the (C) for fiscal year 2006, $30,000,000; tion’s electricity transmission and distribu- Commission may remand transmission rates (D) for fiscal year 2007, $35,000,000; and tion; to an unregulated transmitting utility for (E) for fiscal year 2008, $40,000,000. ‘‘(2) implement or, where appropriate, co- review and revision where necessary to meet SEC. 1226. ADVANCED POWER SYSTEM TECH- ordinate the implementation of, the rec- the requirements of subsection (a). NOLOGY INCENTIVE PROGRAM. ommendations made in the Secretary’s May ‘‘(g) OTHER REQUESTS.—The provision of (a) PROGRAM.—The Secretary of Energy is 2002 National Transmission Grid Study; transmission services under subsection (a) authorized to establish an Advanced Power ‘‘(3) oversee research, development, and does not preclude a request for transmission System Technology Incentive Program to demonstration to support Federal energy services under section 211. support the deployment of certain advanced policy related to electricity transmission ‘‘(h) LIMITATION.—The Commission may power system technologies and to improve and distribution; not require a State or municipality to take and protect certain critical governmental, ‘‘(4) grant authorizations for electricity action under this section that would violate industrial, and commercial processes. Funds import and export pursuant to section 202(c), a private activity bond rule for purposes of provided under this section shall be used by (d), (e), and (f) of the Federal Power Act (16 section 141 of the Internal Revenue Code of the Secretary to make incentive payments U.S.C. 824a); 1986 (26 U.S.C. 141). to eligible owners or operators of advanced ‘‘(5) perform other functions, assigned by ‘‘(i) TRANSFER OF CONTROL OF TRANSMIT- power system technologies to increase power the Secretary, related to electricity trans- TING FACILITIES.—Nothing in this section au- generation through enhanced operational, mission and distribution; and thorizes the Commission to require an un- economic, and environmental performance. ‘‘(6) develop programs for workforce train- regulated transmitting utility to transfer Payments under this section may only be ing in power and transmission engineering.’’. control or operational control of its trans- made upon receipt by the Secretary of an in- (b) CONFORMING AMENDMENTS.—(1) The mitting facilities to an RTO or any other centive payment application establishing an table of contents of the Department of En- Commission-approved independent trans- applicant as either— ergy Organization Act (42 U.S.C. 7101 note) is mission organization designated to provide (1) a qualifying advanced power system amended by inserting after the item relating nondiscriminatory transmission access. technology facility; or to section 217 the following new item: ‘‘(j) DEFINITION.—For purposes of this sec- (2) a qualifying security and assured power ‘‘Sec. 218. Office of Electric Transmission tion, the term ‘unregulated transmitting facility. and Distribution.’’. utility’ means an entity that— ‘‘(1) owns or operates facilities used for the (b) INCENTIVES.—Subject to availability of (2) Section 5315 of title 5, United States transmission of electric energy in interstate funds, a payment of 1.8 cents per kilowatt- Code, is amended by inserting after the item hour shall be paid to the owner or operator commerce; and relating to ‘‘Inspector General, Department of a qualifying advanced power system tech- ‘‘(2) is an entity described in section of Energy.’’ the following: nology facility under this section for elec- 201(f).’’. ‘‘Director, Office of Electric Transmission tricity generated at such facility. An addi- and Distribution, Department of Energy.’’. SEC. 1232. SENSE OF CONGRESS ON REGIONAL tional 0.7 cents per kilowatt-hour shall be TRANSMISSION ORGANIZATIONS. paid to the owner or operator of a qualifying Subtitle C—Transmission Operation It is the sense of Congress that, in order to security and assured power facility for elec- Improvements promote fair, open access to electric trans- tricity generated at such facility. Any facil- SEC. 1231. OPEN NONDISCRIMINATORY ACCESS. mission service, benefit retail consumers, fa- ity qualifying under this section shall be eli- Part II of the Federal Power Act (16 U.S.C. cilitate wholesale competition, improve effi- gible for an incentive payment for up to, but 824 et seq.) is amended by inserting after sec- ciencies in transmission grid management, not more than, the first 10,000,000 kilowatt- tion 211 the following new section: promote grid reliability, remove opportuni- hours produced in any fiscal year. ‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED ties for unduly discriminatory or pref- (c) ELIGIBILITY.—For purposes of this sec- TRANSMITTING UTILITIES. erential transmission practices, and provide tion: ‘‘(a) TRANSMISSION SERVICES.—Subject to for the efficient development of transmission (1) QUALIFYING ADVANCED POWER SYSTEM section 212(h), the Commission may, by rule infrastructure needed to meet the growing TECHNOLOGY FACILITY.—The term ‘‘qualifying or order, require an unregulated transmit- demands of competitive wholesale power advanced power system technology facility’’ ting utility to provide transmission serv- markets, all transmitting utilities in inter- means a facility using an advanced fuel cell, ices— state commerce should voluntarily become

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00137 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.101 S28PT1 S4582 CONGRESSIONAL RECORD — SENATE April 28, 2004 members of Regional Transmission Organi- ment transferring control and use of all or this Act and an opportunity for public com- zations as defined in section 3 of the Federal part of the Federal utility’s transmission ment. Power Act. system to an RTO or ISO (as defined in the (b) SAVINGS CLAUSE.—This section shall SEC. 1233. REGIONAL TRANSMISSION ORGANIZA- Federal Power Act), approved by the Federal not be construed to modify or diminish any TION APPLICATIONS PROGRESS RE- Energy Regulatory Commission. Such con- authority or obligation the Commission has PORT. tract, agreement or arrangement shall in- under this division, the Federal Power Act, Not later than 120 days after the date of clude— or other applicable law, including, but not enactment of this section, the Federal En- (1) performance standards for operation limited to, any authority to— ergy Regulatory Commission shall submit to and use of the transmission system that the (1) issue any rule or order (of general or Congress a report containing each of the fol- head of the Federal utility determines nec- particular applicability) pursuant to any lowing: essary or appropriate, including standards such authority or obligation; or (1) A list of all regional transmission orga- that assure recovery of all the Federal util- (2) act on a filing or filings by 1 or more nization applications filed at the Commis- ity’s costs and expenses related to the trans- transmitting utilities for the voluntary for- sion pursuant to subpart F of part 35 of title mission facilities that are the subject of the mation of a Regional Transmission Organiza- 18, Code of Federal Regulations (in this sec- contract, agreement or other arrangement; tion or Independent System Operator (as de- tion referred to as ‘‘Order No. 2000’’), includ- consistency with existing contracts and fined in the Federal Power Act) (and related ing an identification of each public utility third-party financing arrangements; and market structures or rules) or voluntary and other entity included within the pro- consistency with said Federal utility’s statu- modification of an existing Regional Trans- posed membership of the regional trans- tory authorities, obligations, and limita- mission Organization or Independent System mission organization. tions; Operator (and related market structures or (2) A brief description of the status of each (2) provisions for monitoring and oversight rules). pending regional transmission organization by the Federal utility of the RTO’s or ISO’s SEC. 1236. NATIVE LOAD SERVICE OBLIGATION. application, including a precise explanation fulfillment of the terms and conditions of Part II of the Federal Power Act (16 U.S.C. of how each fails to comply with the mini- the contract, agreement or other arrange- 824 et seq.) is amended by adding at the end mal requirements of Order No. 2000 and what ment, including a provision for the resolu- the following: steps need to be taken to bring each application of disputes through arbitration or other ‘‘SEC. 217. NATIVE LOAD SERVICE OBLIGATION. tion into such compliance. means with the regional transmission orga- ‘‘(a) MEETING SERVICE OBLIGATIONS.—(1) (3) For any application that has not been nization or with other participants, notwith- Any load-serving entity that, as of the date finally approved by the Commission, a de- standing the obligations and limitations of of enactment of this section— tailed description of every aspect of the ap- any other law regarding arbitration; and ‘‘(A) owns generation facilities, markets plication that the Commission has deter- (3) a provision that allows the Federal util- the output of Federal generation facilities, mined does not conform to the requirements ity to withdraw from the RTO or ISO and or holds rights under 1 or more wholesale of Order No. 2000. terminate the contract, agreement or other contracts to purchase electric energy, for the (4) For any application that has not been arrangement in accordance with its terms. purpose of meeting a service obligation, and finally approved by the Commission, an ex- ‘‘(B) by reason of ownership of trans- Neither this section, actions taken pursuant planation by the Commission of why the mission facilities, or 1 or more contracts or to it, nor any other transaction of a Federal items described pursuant to paragraph (3) service agreements for firm transmission utility using an RTO or ISO shall confer constitute material noncompliance with the service, holds firm transmission rights for upon the Federal Energy Regulatory Com- requirements of the Commission’s Order No. delivery of the output of such generation fa- mission jurisdiction or authority over the 2000 sufficient to justify denial of approval cilities or such purchased energy to meet Federal utility’s electric generation assets, by the Commission. such service obligation, (5) For all regional transmission organiza- electric capacity or energy that the Federal tion applications filed pursuant to the Com- utility is authorized by law to market, or is entitled to use such firm transmission mission’s Order No. 2000, whether finally ap- the Federal utility’s power sales activities. rights, or, equivalent tradable or financial proved or not— (c) EXISTING STATUTORY AND OTHER OBLI- transmission rights, in order to deliver such (A) a discussion of that regional trans- GATIONS.— output or purchased energy, or the output of mission organization’s efforts to minimize (1) SYSTEM OPERATION REQUIREMENTS.—No other generating facilities or purchased en- rate seams between itself and— statutory provision requiring or authorizing ergy to the extent deliverable using such rights, to the extent required to meet its (i) other regional transmission organiza- a Federal utility to transmit electric power service obligation. tions; and or to construct, operate or maintain its ‘‘(2) To the extent that all or a portion of (ii) entities not participating in a regional transmission system shall be construed to prohibit a transfer of control and use of its the service obligation covered by such firm transmission organization; transmission rights or equivalent tradable or (B) a discussion of the impact of such transmission system pursuant to, and subject to all requirements of subsection (b). financial transmission rights is transferred seams on consumers and wholesale competi- to another load-serving entity, the successor tion; and (2) OTHER OBLIGATIONS.—This subsection shall not be construed to— load-serving entity shall be entitled to use (C) a discussion of minimizing cost-shifting the firm transmission rights or equivalent on consumers. (A) suspend, or exempt any Federal utility from, any provision of existing Federal law, tradable or financial transmission rights as- SEC. 1234. FEDERAL UTILITY PARTICIPATION IN including but not limited to any requirement sociated with the transferred service obliga- REGIONAL TRANSMISSION ORGANI- tion. Subsequent transfers to another load- ZATIONS. or direction relating to the use of the Fed- serving entity, or back to the original load- (a) DEFINITIONS.—For purposes of this sec- eral utility’s transmission system, environ- serving entity, shall be entitled to the same tion— mental protection, fish and wildlife protec- rights. (1) APPROPRIATE FEDERAL REGULATORY AU- tion, flood control, navigation, water delivery, or recreation; or ‘‘(3) The Commission shall exercise its au- THORITY.—The term ‘‘appropriate Federal thority under this Act in a manner that fa- regulatory authority’’ means— (B) authorize abrogation of any contract or treaty obligation. cilitates the planning and expansion of (A) with respect to a Federal power mar- transmission facilities to meet the reason- (3) REPEAL.—Section 311 of title III of Ap- keting agency (as defined in the Federal able needs of load-serving entities to satisfy Power Act), the Secretary of Energy, except pendix B of the Act of October 27, 2000 (Pub- lic Law 106–377, section 1(a)(2); 114 Stat. 1441, their service obligations. that the Secretary may designate the Ad- ‘‘(b) ALLOCATION OF TRANSMISSION 1441A–80; 16 U.S.C. 824n) is repealed. ministrator of a Federal power marketing RIGHTS.—Nothing in this section shall affect agency to act as the appropriate Federal reg- SEC. 1235. STANDARD MARKET DESIGN. any methodology approved by the Commis- ulatory authority with respect to the trans- (a) REMAND.—The Commission’s proposed sion prior to September 15, 2003, for the allo- mission system of that Federal power mar- rulemaking entitled ‘‘Remedying Undue Dis- cation of transmission rights by an RTO or keting agency; and crimination through Open Access Trans- ISO that has been authorized by the Com- (B) with respect to the Tennessee Valley mission Service and Standard Electricity mission to allocate transmission rights. Authority, the Board of Directors of the Ten- Market Design’’ (Docket No. RM01–12–000) ‘‘(c) CERTAIN TRANSMISSION RIGHTS.—The nessee Valley Authority. (‘‘SMD NOPR’’) is remanded to the Commis- Commission may exercise authority under (2) FEDERAL UTILITY.—The term ‘‘Federal sion for reconsideration. No final rule man- this Act to make transmission rights not utility’’ means a Federal power marketing dating a standard electricity market design used to meet an obligation covered by sub- agency or the Tennessee Valley Authority. pursuant to the proposed rulemaking, in- section (a) available to other entities in a (3) TRANSMISSION SYSTEM.—The term cluding any rule or order of general applica- manner determined by the Commission to be ‘‘transmission system’’ means electric trans- bility within the scope of the proposed rule- just, reasonable, and not unduly discrimina- mission facilities owned, leased, or con- making, may be issued before October 31, tory or preferential. tracted for by the United States and oper- 2006, or take effect before December 31, 2006. ‘‘(d) OBLIGATION TO BUILD.—Nothing in this ated by a Federal utility. Any final rule issued by the Commission pur- Act shall relieve a load-serving entity from (b) TRANSFER.—The appropriate Federal suant to the proposed rulemaking shall be any obligation under State or local law to regulatory authority is authorized to enter preceded by a second notice of proposed rule- build transmission or distribution facilities into a contract, agreement or other arrange- making issued after the date of enactment of adequate to meet its service obligations.

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‘‘(e) CONTRACTS.—Nothing in this section following, the Secretary of Energy shall sub- The Commission shall ensure that any costs shall provide a basis for abrogating any con- mit a report to Congress and the States on recoverable pursuant to this subsection may tract or service agreement for firm trans- the results of the study conducted under sub- be recovered by such utility through the mission service or rights in effect as of the section (a), including recommendations to transmission rates charged by such utility or date of the enactment of this subsection. Congress and the States for any suggested through the transmission rates charged by ‘‘(f) WATER PUMPING FACILITIES.—The Com- legislative or regulatory changes. the RTO or ISO that provides transmission mission shall ensure that any entity de- Subtitle D—Transmission Rate Reform service to such utility. scribed in section 201(f) that owns trans- ‘‘(c) JUST AND REASONABLE RATES.—All SEC. 1241. TRANSMISSION INFRASTRUCTURE IN- rates approved under the rules adopted pur- mission facilities used predominately to sup- VESTMENT. suant to this section, including any revisions port its own water pumping facilities shall Part II of the Federal Power Act (16 U.S.C. to such rules, are subject to the requirement have, with respect to such facilities, protec- 824 et seq.) is amended by adding at the end of sections 205 and 206 that all rates, charges, tions for transmission service comparable to the following: those provided to load-serving entities pur- terms, and conditions be just and reasonable suant to this section. ‘‘SEC. 218. TRANSMISSION INFRASTRUCTURE IN- and not unduly discriminatory or pref- VESTMENT. ‘‘(g) ERCOT.—This section shall not apply erential.’’. ‘‘(a) RULEMAKING REQUIREMENT.—Within 1 within the area referred to in section SEC. 1242. VOLUNTARY TRANSMISSION PRICING year after the enactment of this section, the 212(k)(2)(A). PLANS. Commission shall establish, by rule, incen- ‘‘(h) JURISDICTION.—This section does not Part II of the Federal Power Act (16 U.S.C. authorize the Commission to take any action tive-based (including, but not limited to per- 824 et seq.) is amended by adding at the end not otherwise within its jurisdiction. formance-based) rate treatments for the the following: ‘‘(i) EFFECT OF EXERCISING RIGHTS.—An en- transmission of electric energy in interstate ‘‘SEC. 219. VOLUNTARY TRANSMISSION PRICING tity that lawfully exercises rights granted commerce by public utilities for the purpose PLANS. under subsection (a) shall not be considered of benefiting consumers by ensuring reli- ‘‘(a) IN GENERAL.—Any transmission pro- by such action as engaging in undue dis- ability and reducing the cost of delivered vider, including an RTO or ISO, may submit crimination or preference under this Act. power by reducing transmission congestion. to the Commission a plan or plans under sec- ‘‘(j) TVA AREA.—For purposes of sub- Such rule shall— tion 205 containing the criteria for deter- section (a)(1)(B), a load-serving entity that is ‘‘(1) promote reliable and economically ef- mining the person or persons that will be re- located within the service area of the Ten- ficient transmission and generation of elec- quired to pay for any construction of new nessee Valley Authority and that has a firm tricity by promoting capital investment in transmission facilities or expansion, modi- wholesale power supply contract with the the enlargement, improvement, maintenance fication or upgrade of transmission facilities Tennessee Valley Authority shall be deemed and operation of facilities for the trans- (in this section referred to as ‘transmission to hold firm transmission rights for the mission of electric energy in interstate com- service related expansion’) or new generator transmission of such power. merce; interconnection. ‘‘(k) DEFINITIONS.—For purposes of this ‘‘(2) provide a return on equity that at- ‘‘(b) VOLUNTARY TRANSMISSION PRICING section: tracts new investment in transmission facili- PLANS.—(1) Any plan or plans submitted ‘‘(1) The term ‘distribution utility’ means ties (including related transmission tech- under subsection (a) shall specify the method an electric utility that has a service obliga- nologies); or methods by which costs may be allocated tion to end-users or to a State utility or ‘‘(3) encourage deployment of transmission or assigned. Such methods may include, but electric cooperative that, directly or indi- technologies and other measures to increase are not limited to: rectly, through 1 or more additional State the capacity and efficiency of existing trans- ‘‘(A) directly assigned; utilities or electric cooperatives, provides mission facilities and improve the operation ‘‘(B) participant funded; or electric service to end-users. of such facilities; and ‘‘(C) rolled into regional or sub-regional ‘‘(2) The term ‘load-serving entity’ means a ‘‘(4) allow recovery of all prudently in- rates. distribution utility or an electric utility curred costs necessary to comply with man- ‘‘(2) FERC shall approve a plan or plans that has a service obligation. datory reliability standards issued pursuant submitted under subparagraph (B) of para- ‘‘(3) The term ‘service obligation’ means a to section 215 of this Act. graph (1) if such plan or plans— requirement applicable to, or the exercise of The Commission may, from time to time, re- ‘‘(A) result in rates that are just and rea- authority granted to, an electric utility vise such rule. sonable and not unduly discriminatory or under Federal, State or local law or under ‘‘(b) ADDITIONAL INCENTIVES FOR RTO PAR- preferential consistent with section 205; and long-term contracts to provide electric serv- TICIPATION.—In the rule issued under this ‘‘(B) ensure that the costs of any trans- ice to end-users or to a distribution utility. section, the Commission shall, to the extent mission service related expansion or new ‘‘(4) The term ‘State utility’ means a State within its jurisdiction, provide for incentives generator interconnection not required to or any political subdivision of a State, or to each transmitting utility or electric util- meet applicable reliability standards estab- any agency, authority, or instrumentality of ity that joins a Regional Transmission Orga- lished under section 215 are assigned in a fair any 1 or more of the foregoing, or a corpora- nization or Independent System Operator. manner, meaning that those who benefit tion which is wholly owned, directly or indi- Incentives provided by the Commission pur- from the transmission service related expan- rectly, by any 1 or more of the foregoing, suant to such rule shall include— sion or new generator interconnection pay competent to carry on the business of devel- ‘‘(1) recovery of all prudently incurred an appropriate share of the associated costs, oping, transmitting, utilizing or distributing costs to develop and participate in any pro- provided that— power.’’. posed or approved RTO, ISO, or independent ‘‘(i) costs may not be assigned or allocated SEC. 1237. STUDY ON THE BENEFITS OF ECO- transmission company; to an electric utility if the native load cus- NOMIC DISPATCH. ‘‘(2) recovery of all costs previously ap- tomers of that utility would not have re- (a) STUDY.—The Secretary of Energy, in proved by a State commission which exer- quired such transmission service related ex- coordination and consultation with the cised jurisdiction over the transmission fa- pansion or new generator interconnection States, shall conduct a study on— cilities prior to the utility’s participation in absent the request for transmission service (1) the procedures currently used by elec- the RTO or ISO, including costs necessary to related expansion or new generator inter- tric utilities to perform economic dispatch; honor preexisting transmission service con- connection that necessitated the investment; (2) identifying possible revisions to those tracts, in a manner which does not reduce ‘‘(ii) the party requesting such trans- procedures to improve the ability of non- the revenues the utility receives for transmission service related expansion or new utility generation resources to offer their mission services for a reasonable transition generator interconnection shall not be re- output for sale for the purpose of inclusion period after the utility joins the RTO or ISO; quired to pay for both— in economic dispatch; and ‘‘(3) recovery as an expense in rates of the ‘‘(I) the assigned cost of the upgrade; and (3) the potential benefits to residential, costs prudently incurred to conduct trans- ‘‘(II) the difference between— commercial, and industrial electricity con- mission planning and reliability activities, ‘‘(aa) the embedded cost paid for trans- sumers nationally and in each State if eco- including the costs of participating in RTO, mission services (including the cost of the nomic dispatch procedures were revised to ISO and other regional planning activities requested upgrade); and improve the ability of nonutility generation and design, study and other precertification ‘‘(bb) the embedded cost that would have resources to offer their output for inclusion costs involved in seeking permits and ap- been paid absent the upgrade; and in economic dispatch. provals for proposed transmission facilities; ‘‘(iii) the party or parties who pay for fa- (b) DEFINITION.—The term ‘‘economic dis- ‘‘(4) a current return in rates for construc- cilities necessary for the transmission serv- patch’’ when used in this section means the tion work in progress for transmission facili- ice related expansion or new generator inter- operation of generation facilities to produce ties and full recovery of prudently incurred connection receives full compensation for its energy at the lowest cost to reliably serve costs for constructing transmission facili- costs for the participant funded facilities in consumers, recognizing any operational lim- ties; the form of— its of generation and transmission facilities. ‘‘(5) formula transmission rates; and ‘‘(I) monetary credit equal to the cost of (c) REPORT TO CONGRESS AND THE STATES.— ‘‘(6) a maximum 15-year accelerated depre- the participant funded facilities (accounting Not later than 90 days after the date of en- ciation on new transmission facilities for for the time value of money at the Gross Do- actment of this Act, and on a yearly basis rate treatment purposes. mestic Product deflator), which credit shall

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00139 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.101 S28PT1 S4584 CONGRESSIONAL RECORD — SENATE April 28, 2004 be pro-rated in equal installments over a pe- ferred to in section 111 with respect to each peak days, when prices may reflect the costs riod of not more than 30 years and shall not standard established by paragraphs (11) of generating and/or purchasing electricity exceed in total the amount of the initial in- through (13) of section 111(d).’’. at the wholesale level and when consumers vestment, against the transmission charges (2) FAILURE TO COMPLY.—Section 112(c) of may receive additional discounts for reduc- that the funding entity or its assignee is oth- the Public Utility Regulatory Policies Act of ing peak period energy consumption; and erwise assessed by the transmission provider; 1978 (16 U.S.C. 2622(c)) is amended by adding ‘‘(iii) real-time pricing whereby electricity ‘‘(II) appropriate financial or physical at the end the following: prices are set for a specific time period on an rights; or ‘‘In the case of each standard established by advanced or forward basis, reflecting the ‘‘(III) any other method of cost recovery or paragraphs (11) through (13) of section 111(d), utility’s cost of generating and/or purchasing compensation approved by the Commission. the reference contained in this subsection to electricity at the wholesale level, and may ‘‘(3) A plan submitted under this section the date of enactment of this Act shall be change as often as hourly. shall apply only to— deemed to be a reference to the date of en- ‘‘(C) Each electric utility subject to sub- ‘‘(A) a contract or interconnection agree- actment of such paragraphs (11) through paragraph (A) shall provide each customer ment executed or filed with the Commission (13).’’. requesting a time-based rate with a time- after the date of enactment of this section; (3) PRIOR STATE ACTIONS.— based meter capable of enabling the utility or (A) IN GENERAL.—Section 112 of the Public and customer to offer and receive such rate, ‘‘(B) an interconnection agreement pend- Utility Regulatory Policies Act of 1978 (16 respectively. ing rehearing as of November 1, 2003. U.S.C. 2622) is amended by adding at the end ‘‘(D) For purposes of implementing this ‘‘(4) Nothing in this section diminishes or the following: paragraph, any reference contained in this alters the rights of individual members of an ‘‘(d) PRIOR STATE ACTIONS.—Subsections section to the date of enactment of the Pub- RTO or ISO under this Act. (b) and (c) of this section shall not apply to lic Utility Regulatory Policies Act of 1978 ‘‘(5) Nothing in this section shall affect the the standards established by paragraphs (11) shall be deemed to be a reference to the date allocation of costs or the cost methodology through (13) of section 111(d) in the case of of enactment of this paragraph. employed by an RTO or ISO authorized by any electric utility in a State if, before the ‘‘(E) In a State that permits third-party the Commission to allocate costs (including enactment of this subsection— marketers to sell electric energy to retail costs for transmission service related expan- ‘‘(1) the State has implemented for such electric consumers, such consumers shall be sion or new generator interconnection) prior utility the standard concerned (or a com- entitled to receive the same time-based me- to the date of enactment of this section. parable standard); tering and communications device and serv- ‘‘(2) the State regulatory authority for ‘‘(6) This section shall not apply within the ice as a retail electric consumer of the elec- such State or relevant nonregulated electric area referred to in section 212(k)(2)(A). tric utility. utility has conducted a proceeding to con- ‘‘(7) The term ‘transmission provider’ ‘‘(F) Notwithstanding subsections (b) and sider implementation of the standard con- means a public utility that owns or operates (c) of section 112, each State regulatory au- cerned (or a comparable standard) for such facilities that provide interconnection or thority shall, not later than 18 months after utility; or transmission service in interstate com- the date of enactment of this paragraph con- ‘‘(3) the State legislature has voted on the merce.’’. duct an investigation in accordance with sec- implementation of such standard (or a com- tion 115(i) and issue a decision whether it is Subtitle E—Amendments to PURPA parable standard) for such utility.’’. appropriate to implement the standards set SEC. 1251. NET METERING AND ADDITIONAL (B) CROSS REFERENCE.—Section 124 of such STANDARDS. Act (16 U.S.C. 2634) is amended by adding the out in subparagraphs (A) and (C).’’. (b) STATE INVESTIGATION OF DEMAND RE- (a) ADOPTION OF STANDARDS.—Section following at the end thereof: ‘‘In the case of SPONSE AND TIME-BASED METERING.—Section 111(d) of the Public Utility Regulatory Poli- each standard established by paragraphs (11) 115 of the Public Utilities Regulatory Poli- cies Act of 1978 (16 U.S.C. 2621(d)) is amended through (13) of section 111(d), the reference cies Act of 1978 (16 U.S.C. 2625) is amended as by adding at the end the following: contained in this subsection to the date of follows: ‘‘(11) NET METERING.—Each electric utility enactment of this Act shall be deemed to be (1) By inserting in subsection (b) after the shall make available upon request net me- a reference to the date of enactment of such phrase ‘‘the standard for time-of-day rates tering service to any electric consumer that paragraphs (11) through (13).’’. established by section 111(d)(3)’’ the fol- the electric utility serves. For purposes of SEC. 1252. SMART METERING. lowing: ‘‘and the standard for time-based me- this paragraph, the term ‘net metering serv- (a) IN GENERAL.—Section 111(d) of the Pub- tering and communications established by ice’ means service to an electric consumer lic Utilities Regulatory Policies Act of 1978 section 111(d)(14)’’. under which electric energy generated by (16 U.S.C. 2621(d)) is amended by adding at (2) By inserting in subsection (b) after the that electric consumer from an eligible on- the end the following: phrase ‘‘are likely to exceed the metering’’ site generating facility and delivered to the ‘‘(14) TIME-BASED METERING AND COMMU- the following: ‘‘and communications’’. local distribution facilities may be used to NICATIONS.— (3) By adding at the end the following: offset electric energy provided by the elec- ‘‘(A) Not later than 18 months after the ‘‘(i) TIME-BASED METERING AND COMMUNICA- tric utility to the electric consumer during date of enactment of this paragraph, each TIONS.—In making a determination with re- electric utility shall offer each of its cus- the applicable billing period. spect to the standard established by section tomer classes, and provide individual cus- ‘‘(12) FUEL SOURCES.—Each electric utility 111(d)(14), the investigation requirement of tomers upon customer request, a time-based shall develop a plan to minimize dependence section 111(d)(14)(F) shall be as follows: Each on 1 fuel source and to ensure that the elec- rate schedule under which the rate charged State regulatory authority shall conduct an tric energy it sells to consumers is generated by the electric utility varies during different investigation and issue a decision whether or using a diverse range of fuels and tech- time periods and reflects the variance, if not it is appropriate for electric utilities to nologies, including renewable technologies. any, in the utility’s costs of generating and provide and install time-based meters and ‘‘(13) FOSSIL FUEL GENERATION EFFI- purchasing electricity at the wholesale level. communications devices for each of their CIENCY.—Each electric utility shall develop The time-based rate schedule shall enable customers which enable such customers to and implement a 10-year plan to increase the the electric consumer to manage energy use participate in time-based pricing rate sched- efficiency of its fossil fuel generation.’’. and cost through advanced metering and ules and other demand response programs.’’. (b) COMPLIANCE.— communications technology. (c) FEDERAL ASSISTANCE ON DEMAND RE- (1) TIME LIMITATIONS.—Section 112(b) of the ‘‘(B) The types of time-based rate sched- SPONSE.—Section 132(a) of the Public Utility Public Utility Regulatory Policies Act of ules that may be offered under the schedule Regulatory Policies Act of 1978 (16 U.S.C. 1978 (16 U.S.C. 2622(b)) is amended by adding referred to in subparagraph (A) include, 2642(a)) is amended by striking ‘‘and’’ at the at the end the following: among others— end of paragraph (3), striking the period at ‘‘(3)(A) Not later than 2 years after the en- ‘‘(i) time-of-use pricing whereby electricity the end of paragraph (4) and inserting ‘‘; actment of this paragraph, each State regu- prices are set for a specific time period on an and’’, and by adding the following at the end latory authority (with respect to each elec- advance or forward basis, typically not thereof: tric utility for which it has ratemaking au- changing more often than twice a year, ‘‘(5) technologies, techniques, and rate- thority) and each nonregulated electric util- based on the utility’s cost of generating and/ making methods related to advanced meter- ity shall commence the consideration re- or purchasing such electricity at the whole- ing and communications and the use of these ferred to in section 111, or set a hearing date sale level for the benefit of the consumer. technologies, techniques and methods in de- for such consideration, with respect to each Prices paid for energy consumed during mand response programs.’’. standard established by paragraphs (11) these periods shall be pre-established and (d) FEDERAL GUIDANCE.—Section 132 of the through (13) of section 111(d). known to consumers in advance of such con- Public Utility Regulatory Policies Act of ‘‘(B) Not later than 3 years after the date sumption, allowing them to vary their de- 1978 (16 U.S.C. 2642) is amended by adding the of the enactment of this paragraph, each mand and usage in response to such prices following at the end thereof: State regulatory authority (with respect to and manage their energy costs by shifting ‘‘(d) DEMAND RESPONSE.—The Secretary each electric utility for which it has rate- usage to a lower cost period or reducing shall be responsible for— making authority), and each nonregulated their consumption overall; ‘‘(1) educating consumers on the avail- electric utility, shall complete the consider- ‘‘(ii) critical peak pricing whereby time-of- ability, advantages, and benefits of advanced ation, and shall make the determination, reuse prices are in effect except for certain metering and communications technologies,

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00140 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.102 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4585 including the funding of demonstration or ferred to in section 111, or set a hearing date transmission tariff that affords nondiscrim- pilot projects; for such consideration, with respect to the inatory treatment to all customers; and (ii) ‘‘(2) working with States, utilities, other standard established by paragraph (14) of sec- competitive wholesale markets that provide energy providers and advanced metering and tion 111(d). a meaningful opportunity to sell capacity, communications experts to identify and ad- ‘‘(B) Not later than 2 years after the date including long-term and short-term sales, dress barriers to the adoption of demand re- of the enactment of this paragraph, each and electric energy, including long-term, sponse programs; and State regulatory authority (with respect to short-term and real-time sales, to buyers ‘‘(3) not later than 180 days after the date each electric utility for which it has rate- other than the utility to which the quali- of enactment of the Energy Policy Act of making authority), and each nonregulated fying facility is interconnected. In deter- 2003, providing Congress with a report that electric utility, shall complete the consider- mining whether a meaningful opportunity to identifies and quantifies the national bene- ation, and shall make the determination, re- sell exists, the Commission shall consider, fits of demand response and makes a rec- ferred to in section 111 with respect to the among other factors, evidence of trans- ommendation on achieving specific levels of standard established by paragraph (14) of sec- actions within the relevant market; or such benefits by January 1, 2005.’’. tion 111(d).’’. ‘‘(C) wholesale markets for the sale of ca- (e) DEMAND RESPONSE AND REGIONAL CO- (h) FAILURE TO COMPLY.—Section 112(c) of pacity and electric energy that are, at a min- ORDINATION.— the Public Utility Regulatory Policies Act of imum, of comparable competitive quality as (1) IN GENERAL.—It is the policy of the 1978 (16 U.S.C. 2622(c)) is amended by adding markets described in subparagraphs (A) and United States to encourage States to coordi- at the end the following: (B). nate, on a regional basis, State energy poli- ‘‘In the case of the standard established by ‘‘(2) REVISED PURCHASE AND SALE OBLIGA- cies to provide reliable and affordable de- paragraph (14) of section 111(d), the reference TION FOR NEW FACILITIES.—(A) After the date mand response services to the public. contained in this subsection to the date of of enactment of this subsection, no electric (2) TECHNICAL ASSISTANCE.—The Secretary enactment of this Act shall be deemed to be utility shall be required pursuant to this sec- of Energy shall provide technical assistance a reference to the date of enactment of such tion to enter into a new contract or obliga- to States and regional organizations formed paragraph (14).’’. tion to purchase from or sell electric energy by 2 or more States to assist them in— (i) PRIOR STATE ACTIONS REGARDING SMART to a facility that is not an existing quali- (A) identifying the areas with the greatest METERING STANDARDS.— fying cogeneration facility unless the facil- demand response potential; (1) IN GENERAL.—Section 112 of the Public ity meets the criteria for qualifying cogen- (B) identifying and resolving problems in Utility Regulatory Policies Act of 1978 (16 eration facilities established by the Commis- transmission and distribution networks, in- U.S.C. 2622) is amended by adding at the end sion pursuant to the rulemaking required by cluding through the use of demand response; the following: subsection (n). (C) developing plans and programs to use ‘‘(e) PRIOR STATE ACTIONS.—Subsections ‘‘(B) For the purposes of this paragraph, demand response to respond to peak demand (b) and (c) of this section shall not apply to the term ‘existing qualifying cogeneration or emergency needs; and the standard established by paragraph (14) of facility’ means a facility that— (D) identifying specific measures con- section 111(d) in the case of any electric util- ‘‘(i) was a qualifying cogeneration facility sumers can take to participate in these de- ity in a State if, before the enactment of this on the date of enactment of subsection (m); mand response programs. subsection— or (3) REPORT.—Not later than 1 year after ‘‘(1) the State has implemented for such ‘‘(ii) had filed with the Commission a no- the date of enactment of the Energy Policy utility the standard concerned (or a com- tice of self-certification, self recertification Act of 2003, the Commission shall prepare parable standard); or an application for Commission certifi- and publish an annual report, by appropriate ‘‘(2) the State regulatory authority for cation under 18 CFR 292.207 prior to the date region, that assesses demand response re- such State or relevant nonregulated electric on which the Commission issues the final sources, including those available from all utility has conducted a proceeding to con- rule required by subsection (n). consumer classes, and which identifies and sider implementation of the standard con- ‘‘(3) COMMISSION REVIEW.—Any electric reviews— cerned (or a comparable standard) for such utility may file an application with the (A) saturation and penetration rate of ad- utility within the previous 3 years; or Commission for relief from the mandatory vanced meters and communications tech- ‘‘(3) the State legislature has voted on the purchase obligation pursuant to this sub- nologies, devices and systems; implementation of such standard (or a com- section on a service territory-wide basis. (B) existing demand response programs and parable standard) for such utility within the Such application shall set forth the factual time-based rate programs; previous 3 years.’’. basis upon which relief is requested and de- (C) the annual resource contribution of de- (2) CROSS REFERENCE.—Section 124 of such scribe why the conditions set forth in sub- mand resources; Act (16 U.S.C. 2634) is amended by adding the paragraphs (A), (B) or (C) of paragraph (1) of (D) the potential for demand response as a following at the end thereof: ‘‘In the case of this subsection have been met. After notice, quantifiable, reliable resource for regional the standard established by paragraph (14) of including sufficient notice to potentially af- planning purposes; and section 111(d), the reference contained in this fected qualifying cogeneration facilities and (E) steps taken to ensure that, in regional subsection to the date of enactment of this qualifying small power production facilities, transmission planning and operations, de- Act shall be deemed to be a reference to the and an opportunity for comment, the Com- mand resources are provided equitable treat- date of enactment of such paragraph (14).’’. mission shall make a final determination ment as a quantifiable, reliable resource rel- within 90 days of such application regarding ative to the resource obligations of any load- SEC. 1253. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE whether the conditions set forth in subpara- serving entity, transmission provider, or REQUIREMENTS. graphs (A), (B) or (C) of paragraph (1) have transmitting party. (a) TERMINATION OF MANDATORY PURCHASE been met. (f) FEDERAL ENCOURAGEMENT OF DEMAND AND SALE REQUIREMENTS.—Section 210 of the ‘‘(4) REINSTATEMENT OF OBLIGATION TO PUR- RESPONSE DEVICES.—It is the policy of the Public Utility Regulatory Policies Act of CHASE.—At any time after the Commission United States that time-based pricing and 1978 (16 U.S.C. 824a–3) is amended by adding makes a finding under paragraph (3) reliev- other forms of demand response, whereby electricity customers are provided with elec- at the end the following: ing an electric utility of its obligation to tricity price signals and the ability to ben- ‘‘(m) TERMINATION OF MANDATORY PUR- purchase electric energy, a qualifying cogen- efit by responding to them, shall be encour- CHASE AND SALE REQUIREMENTS.— eration facility, a qualifying small power aged, and the deployment of such technology ‘‘(1) OBLIGATION TO PURCHASE.—After the production facility, a State agency, or any and devices that enable electricity cus- date of enactment of this subsection, no elec- other affected person may apply to the Com- tomers to participate in such pricing and de- tric utility shall be required to enter into a mission for an order reinstating the electric mand response systems shall be facilitated. new contract or obligation to purchase elec- utility’s obligation to purchase electric en- It is further the policy of the United States tric energy from a qualifying cogeneration ergy under this section. Such application that the benefits of such demand response facility or a qualifying small power produc- shall set forth the factual basis upon which that accrue to those not deploying such tion facility under this section if the Com- the application is based and describe why the technology and devices, but who are part of mission finds that the qualifying cogenera- conditions set forth in subparagraphs (A), (B) the same regional electricity entity, shall be tion facility or qualifying small power pro- or (C) of paragraph (1) of this subsection are recognized. duction facility has nondiscriminatory ac- no longer met. After notice, including suffi- (g) TIME LIMITATIONS.—Section 112(b) of cess to— cient notice to potentially affected utilities, the Public Utility Regulatory Policies Act of ‘‘(A)(i) independently administered, auc- and opportunity for comment, the Commis- 1978 (16 U.S.C. 2622(b)) is amended by adding tion-based day ahead and real time wholesale sion shall issue an order within 90 days of at the end the following: markets for the sale of electric energy; and such application reinstating the electric ‘‘(4)(A) Not later than 1 year after the en- (ii) wholesale markets for long-term sales of utility’s obligation to purchase electric enactment of this paragraph, each State regu- capacity and electric energy; or ergy under this section if the Commission latory authority (with respect to each elec- ‘‘(B)(i) transmission and interconnection finds that the conditions set forth in sub- tric utility for which it has ratemaking au- services that are provided by a Commission- paragraphs (A), (B) or (C) of paragraph (1) thority) and each nonregulated electric util- approved regional transmission entity and which relieved the obligation to purchase, ity shall commence the consideration re- administered pursuant to an open access are no longer met.

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‘‘(5) OBLIGATION TO SELL.—After the date of ‘‘(B) had filed with the Commission a no- ing, to exercise directly or indirectly (either enactment of this subsection, no electric tice of self-certification, self-recertification alone or pursuant to an arrangement or un- utility shall be required to enter into a new or an application for Commission certifi- derstanding with 1 or more persons) such a contract or obligation to sell electric energy cation under 18 CFR 292.207 prior to the date controlling influence over the management to a qualifying cogeneration facility or a on which the Commission issues the final or policies of any public-utility company or qualifying small power production facility rule required by paragraph (1).’’. holding company as to make it necessary or under this section if the Commission finds (b) ELIMINATION OF OWNERSHIP LIMITA- appropriate for the rate protection of utility that— TIONS.— customers with respect to rates that such ‘‘(A) competing retail electric suppliers are (1) QUALIFYING SMALL POWER PRODUCTION person be subject to the obligations, duties, willing and able to sell and deliver electric FACILITY.—Section 3(17)(C) of the Federal and liabilities imposed by this subtitle upon energy to the qualifying cogeneration facil- Power Act (16 U.S.C. 796(17)(C)) is amended holding companies. ity or qualifying small power production fa- to read as follows: (9) HOLDING COMPANY SYSTEM.—The term cility; and ‘‘(C) ‘qualifying small power production fa- ‘‘holding company system’’ means a holding ‘‘(B) the electric utility is not required by cility’ means a small power production facil- company, together with its subsidiary com- State law to sell electric energy in its serv- ity that the Commission determines, by rule, panies. ice territory. meets such requirements (including require- (10) JURISDICTIONAL RATES.—The term ‘‘ju- ‘‘(6) NO EFFECT ON EXISTING RIGHTS AND ments respecting fuel use, fuel efficiency, risdictional rates’’ means rates accepted or REMEDIES.—Nothing in this subsection af- and reliability) as the Commission may, by established by the Commission for the trans- fects the rights or remedies of any party rule, prescribe;’’. mission of electric energy in interstate com- under any contract or obligation, in effect or (2) QUALIFYING COGENERATION FACILITY.— merce, the sale of electric energy at whole- pending approval before the appropriate Section 3(18)(B) of the Federal Power Act (16 sale in interstate commerce, the transpor- State regulatory authority or non-regulated U.S.C. 796(18)(B)) is amended to read as fol- tation of natural gas in interstate com- electric utility on the date of enactment of lows: merce, and the sale in interstate commerce this subsection, to purchase electric energy ‘‘(B) ‘qualifying cogeneration facility’ of natural gas for resale for ultimate public or capacity from or to sell electric energy or means a cogeneration facility that the Com- consumption for domestic, commercial, in- capacity to a qualifying cogeneration facil- mission determines, by rule, meets such re- dustrial, or any other use. quirements (including requirements respect- ity or qualifying small power production fa- (11) NATURAL GAS COMPANY.—The term ing minimum size, fuel use, and fuel effi- cility under this Act (including the right to ‘‘natural gas company’’ means a person en- ciency) as the Commission may, by rule, pre- recover costs of purchasing electric energy gaged in the transportation of natural gas in scribe;’’. or capacity). interstate commerce or the sale of such gas ‘‘(7) RECOVERY OF COSTS.—(A) The Commis- Subtitle F—Repeal of PUHCA in interstate commerce for resale. sion shall issue and enforce such regulations SEC. 1261. SHORT TITLE. (12) PERSON.—The term ‘‘person’’ means an as are necessary to ensure that an electric This subtitle may be cited as the ‘‘Public individual or company. utility that purchases electric energy or ca- Utility Holding Company Act of 2003’’. (13) PUBLIC UTILITY.—The term ‘‘public pacity from a qualifying cogeneration facil- SEC. 1262. DEFINITIONS. utility’’ means any person who owns or oper- ity or qualifying small power production fa- For purposes of this subtitle: ates facilities used for transmission of elec- cility in accordance with any legally en- (1) AFFILIATE.—The term ‘‘affiliate’’ of a tric energy in interstate commerce or sales forceable obligation entered into or imposed company means any company, 5 percent or of electric energy at wholesale in interstate under this section recovers all prudently in- more of the outstanding voting securities of commerce. curred costs associated with the purchase. which are owned, controlled, or held with (14) PUBLIC-UTILITY COMPANY.—The term ‘‘(B) A regulation under subparagraph (A) power to vote, directly or indirectly, by such ‘‘public-utility company’’ means an electric shall be enforceable in accordance with the company. utility company or a gas utility company. provisions of law applicable to enforcement (2) ASSOCIATE COMPANY.—The term ‘‘asso- (15) STATE COMMISSION.—The term ‘‘State of regulations under the Federal Power Act ciate company’’ of a company means any commission’’ means any commission, board, (16 U.S.C. 791a et seq.). company in the same holding company sys- agency, or officer, by whatever name des- ‘‘(n) RULEMAKING FOR NEW QUALIFYING FA- tem with such company. ignated, of a State, municipality, or other CILITIES.—(1)(A) Not later than 180 days after (3) COMMISSION.—The term ‘‘Commission’’ political subdivision of a State that, under the date of enactment of this section, the means the Federal Energy Regulatory Com- the laws of such State, has jurisdiction to Commission shall issue a rule revising the mission. regulate public utility companies. criteria in 18 CFR 292.205 for new qualifying (4) COMPANY.—The term ‘‘company’’ means (16) SUBSIDIARY COMPANY.—The term ‘‘sub- cogeneration facilities seeking to sell elec- a corporation, partnership, association, joint sidiary company’’ of a holding company tric energy pursuant to section 210 of this stock company, business trust, or any orga- means— Act to ensure— nized group of persons, whether incorporated (A) any company, 10 percent or more of the ‘‘(i) that the thermal energy output of a or not, or a receiver, trustee, or other liqui- outstanding voting securities of which are dating agent of any of the foregoing. new qualifying cogeneration facility is used directly or indirectly owned, controlled, or (5) ELECTRIC UTILITY COMPANY.—The term in a productive and beneficial manner; held with power to vote, by such holding ‘‘electric utility company’’ means any com- ‘‘(ii) the electrical, thermal, and chemical company; and pany that owns or operates facilities used for output of the cogeneration facility is used (B) any person, the management or policies the generation, transmission, or distribution fundamentally for industrial, commercial, or of which the Commission, after notice and of electric energy for sale. institutional purposes and is not intended opportunity for hearing, determines to be (6) EXEMPT WHOLESALE GENERATOR AND fundamentally for sale to an electric utility, subject to a controlling influence, directly or FOREIGN UTILITY COMPANY.—The terms ‘‘ex- taking into account technological, effi- indirectly, by such holding company (either empt wholesale generator’’ and ‘‘foreign util- ciency, economic, and variable thermal en- alone or pursuant to an arrangement or un- ity company’’ have the same meanings as in derstanding with 1 or more other persons) so ergy requirements, as well as State laws ap- sections 32 and 33, respectively, of the Public as to make it necessary for the rate protec- plicable to sales of electric energy from a Utility Holding Company Act of 1935 (15 tion of utility customers with respect to qualifying facility to its host facility; and U.S.C. 79z–5a, 79z–5b), as those sections ex- rates that such person be subject to the obli- ‘‘(iii) continuing progress in the develop- isted on the day before the effective date of gations, duties, and liabilities imposed by ment of efficient electric energy generating this subtitle. technology. this subtitle upon subsidiary companies of (7) GAS UTILITY COMPANY.—The term ‘‘gas holding companies. ‘‘(B) The rule issued pursuant to section utility company’’ means any company that OTING SECURITY.—The term ‘‘voting (n)(1)(A) shall be applicable only to facilities owns or operates facilities used for distribu- (17) V that seek to sell electric energy pursuant to tion at retail (other than the distribution security’’ means any security presently enti- section 210 of this Act. For all other pur- only in enclosed portable containers or dis- tling the owner or holder thereof to vote in poses, except as specifically provided in sec- tribution to tenants or employees of the the direction or management of the affairs of tion (m)(2)(A), qualifying facility status company operating such facilities for their a company. shall be determined in accordance with the own use and not for resale) of natural or SEC. 1263. REPEAL OF THE PUBLIC UTILITY rules and regulations of this Act. manufactured gas for heat, light, or power. HOLDING COMPANY ACT OF 1935. ‘‘(2) Notwithstanding rule revisions under (8) HOLDING COMPANY.—The term ‘‘holding The Public Utility Holding Company Act paragraph (1), the Commission’s criteria for company’’ means— of 1935 (15 U.S.C. 79 et seq.) is repealed. qualifying cogeneration facilities in effect (A) any company that directly or indi- SEC. 1264. FEDERAL ACCESS TO BOOKS AND prior to the date on which the Commission rectly owns, controls, or holds, with power to RECORDS. issues the final rule required by paragraph vote, 10 percent or more of the outstanding (a) IN GENERAL.—Each holding company (1) shall continue to apply to any cogenera- voting securities of a public-utility company and each associate company thereof shall tion facility that— or of a holding company of any public-utility maintain, and shall make available to the ‘‘(A) was a qualifying cogeneration facility company; and Commission, such books, accounts, memo- on the date of enactment of subsection (m), (B) any person, determined by the Commis- randa, and other records as the Commission or sion, after notice and opportunity for hear- determines are relevant to costs incurred by

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a public utility or natural gas company that Commission shall issue a final rule to ex- (b) EFFECT ON OTHER COMMISSION AUTHOR- is an associate company of such holding empt from the requirements of section 1264 ITY.—Nothing in this subtitle limits the au- company and necessary or appropriate for (relating to Federal access to books and thority of the Commission under the Federal the protection of utility customers with re- records) any person that is a holding com- Power Act (16 U.S.C. 791a et seq.) or the Nat- spect to jurisdictional rates. pany, solely with respect to 1 or more— ural Gas Act (15 U.S.C. 717 et seq.). (b) AFFILIATE COMPANIES.—Each affiliate of (1) qualifying facilities under the Public SEC. 1272. IMPLEMENTATION. a holding company or of any subsidiary com- Utility Regulatory Policies Act of 1978 (16 Not later than 12 months after the date of pany of a holding company shall maintain, U.S.C. 2601 et seq.); enactment of this subtitle, the Commission and shall make available to the Commission, (2) exempt wholesale generators; or shall— such books, accounts, memoranda, and other (3) foreign utility companies. (1) issue such regulations as may be nec- records with respect to any transaction with (b) OTHER AUTHORITY.—The Commission essary or appropriate to implement this sub- another affiliate, as the Commission deter- shall exempt a person or transaction from title (other than section 1265, relating to mines are relevant to costs incurred by a the requirements of section 1264 (relating to State access to books and records); and public utility or natural gas company that is Federal access to books and records) if, upon (2) submit to Congress detailed rec- an associate company of such holding com- application or upon the motion of the Com- ommendations on technical and conforming pany and necessary or appropriate for the mission— amendments to Federal law necessary to protection of utility customers with respect (1) the Commission finds that the books, carry out this subtitle and the amendments to jurisdictional rates. accounts, memoranda, and other records of made by this subtitle. (c) HOLDING COMPANY SYSTEMS.—The Com- any person are not relevant to the jurisdic- SEC. 1273. TRANSFER OF RESOURCES. mission may examine the books, accounts, tional rates of a public utility or natural gas memoranda, and other records of any com- company; or All books and records that relate primarily pany in a holding company system, or any (2) the Commission finds that any class of to the functions transferred to the Commis- affiliate thereof, as the Commission deter- transactions is not relevant to the jurisdic- sion under this subtitle shall be transferred mines are relevant to costs incurred by a tional rates of a public utility or natural gas from the Securities and Exchange Commis- public utility or natural gas company within company. sion to the Commission. such holding company system and necessary SEC. 1267. AFFILIATE TRANSACTIONS. SEC. 1274. EFFECTIVE DATE. or appropriate for the protection of utility (a) COMMISSION AUTHORITY UNAFFECTED.— (a) IN GENERAL.—Except for section 1272 customers with respect to jurisdictional Nothing in this subtitle shall limit the au- (relating to implementation), this subtitle rates. thority of the Commission under the Federal shall take effect 12 months after the date of (d) CONFIDENTIALITY.—No member, officer, Power Act (16 U.S.C. 791a et seq.) to require enactment of this subtitle. or employee of the Commission shall divulge that jurisdictional rates are just and reason- (b) COMPLIANCE WITH CERTAIN RULES.—If any fact or information that may come to able, including the ability to deny or approve the Commission approves and makes effec- his or her knowledge during the course of ex- the pass through of costs, the prevention of tive any final rulemaking modifying the amination of books, accounts, memoranda, cross-subsidization, and the issuance of such standards of conduct governing entities that or other records as provided in this section, rules and regulations as are necessary or ap- own, operate, or control facilities for trans- except as may be directed by the Commis- propriate for the protection of utility con- mission of electricity in interstate com- sion or by a court of competent jurisdiction. sumers. merce or transportation of natural gas in SEC. 1265. STATE ACCESS TO BOOKS AND (b) RECOVERY OF COSTS.—Nothing in this interstate commerce prior to the effective RECORDS. subtitle shall preclude the Commission or a date of this subtitle, any action taken by a (a) IN GENERAL.—Upon the written request State commission from exercising its juris- public-utility company or utility holding of a State commission having jurisdiction to diction under otherwise applicable law to de- company to comply with the requirements of regulate a public-utility company in a hold- termine whether a public-utility company, such rulemaking shall not subject such pub- ing company system, the holding company public utility, or natural gas company may lic-utility company or utility holding com- or any associate company or affiliate there- recover in rates any costs of an activity per- pany to any regulatory requirement applica- of, other than such public-utility company, formed by an associate company, or any ble to a holding company under the Public wherever located, shall produce for inspec- costs of goods or services acquired by such Utility Holding Company Act of 1935 (15 tion books, accounts, memoranda, and other public-utility company from an associate U.S.C. 79 et seq.). records that— company. SEC. 1275. SERVICE ALLOCATION. (1) have been identified in reasonable de- SEC. 1268. APPLICABILITY. (a) FERC REVIEW.—In the case of non- tail in a proceeding before the State commis- Except as otherwise specifically provided power goods or administrative or manage- sion; in this subtitle, no provision of this subtitle ment services provided by an associate com- (2) the State commission determines are shall apply to, or be deemed to include— pany organized specifically for the purpose relevant to costs incurred by such public- (1) the United States; of providing such goods or services to any utility company; and (2) a State or any political subdivision of a public utility in the same holding company (3) are necessary for the effective discharge State; system, at the election of the system or a of the responsibilities of the State commis- (3) any foreign governmental authority not State commission having jurisdiction over sion with respect to such proceeding. operating in the United States; the public utility, the Commission, after the (b) LIMITATION.—Subsection (a) does not (4) any agency, authority, or instrumen- effective date of this subtitle, shall review apply to any person that is a holding com- tality of any entity referred to in paragraph and authorize the allocation of the costs for pany solely by reason of ownership of 1 or (1), (2), or (3); or such goods or services to the extent relevant more qualifying facilities under the Public (5) any officer, agent, or employee of any to that associate company in order to assure Utility Regulatory Policies Act of 1978 (16 entity referred to in paragraph (1), (2), (3), or that each allocation is appropriate for the U.S.C. 2601 et seq.). (4) acting as such in the course of his or her protection of investors and consumers of (c) CONFIDENTIALITY OF INFORMATION.—The official duty. such public utility. production of books, accounts, memoranda, SEC. 1269. EFFECT ON OTHER REGULATIONS. (b) COST ALLOCATION.—Nothing in this sec- and other records under subsection (a) shall Nothing in this subtitle precludes the Com- tion shall preclude the Commission or a be subject to such terms and conditions as mission or a State commission from exer- State commission from exercising its juris- may be necessary and appropriate to safe- cising its jurisdiction under otherwise appli- diction under other applicable law with re- guard against unwarranted disclosure to the cable law to protect utility customers. spect to the review or authorization of any public of any trade secrets or sensitive com- SEC. 1270. ENFORCEMENT. costs allocated to a public utility in a hold- mercial information. The Commission shall have the same pow- ing company system located in the affected (d) EFFECT ON STATE LAW.—Nothing in this ers as set forth in sections 306 through 317 of State as a result of the acquisition of non- section shall preempt applicable State law the Federal Power Act (16 U.S.C. 825e–825p) power goods or administrative and manage- concerning the provision of books, accounts, to enforce the provisions of this subtitle. ment services by such public utility from an memoranda, and other records, or in any SEC. 1271. SAVINGS PROVISIONS. associate company organized specifically for way limit the rights of any State to obtain (a) IN GENERAL.—Nothing in this subtitle, that purpose. books, accounts, memoranda, and other or otherwise in the Public Utility Holding (c) RULES.—Not later than 6 months after records under any other Federal law, con- Company Act of 1935, or rules, regulations, the date of enactment of this Act, the Com- tract, or otherwise. or orders thereunder, prohibits a person from mission shall issue rules (which rules shall (e) COURT JURISDICTION.—Any United engaging in or continuing to engage in ac- be effective no earlier than the effective date States district court located in the State in tivities or transactions in which it is legally of this subtitle) to exempt from the require- which the State commission referred to in engaged or authorized to engage on the date ments of this section any company in a hold- subsection (a) is located shall have jurisdic- of enactment of this Act, if that person con- ing company system whose public utility option to enforce compliance with this section. tinues to comply with the terms (other than erations are confined substantially to a sin- SEC. 1266. EXEMPTION AUTHORITY. an expiration date or termination date) of gle State and any other class of transactions (a) RULEMAKING.—Not later than 90 days any such authorization, whether by rule or that the Commission finds is not relevant to after the effective date of this subtitle, the by order. the jurisdictional rates of a public utility.

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(d) PUBLIC UTILITY.—As used in this sec- ‘‘(1) compete with, or displace from the (1) In subsections (a) and (b), by striking tion, the term ‘‘public utility’’ has the mean- market place, any price publisher; or ‘‘section 211, 212, 213, or 214’’ each place it ap- ing given that term in section 201(e) of the ‘‘(2) regulate price publishers or impose pears and inserting ‘‘Part II’’. Federal Power Act. any requirements on the publication of infor- (2) In subsection (b), by striking ‘‘$10,000’’ SEC. 1276. AUTHORIZATION OF APPROPRIATIONS. mation.’’. and inserting ‘‘$1,000,000’’. There are authorized to be appropriated SEC. 1282. MARKET MANIPULATION. SEC. 1284. REFUND EFFECTIVE DATE. such funds as may be necessary to carry out Part II of the Federal Power Act (16 U.S.C. Section 206(b) of the Federal Power Act (16 this subtitle. 824 et seq.) is amended by adding at the end U.S.C. 824e(b)) is amended as follows: the following: SEC. 1277. CONFORMING AMENDMENTS TO THE (1) By striking ‘‘the date 60 days after the FEDERAL POWER ACT. ‘‘SEC. 221. PROHIBITION ON FILING FALSE INFOR- filing of such complaint nor later than 5 MATION. (a) CONFLICT OF JURISDICTION.—Section 318 months after the expiration of such 60-day ‘‘No person or other entity (including an of the Federal Power Act (16 U.S.C. 825q) is period’’ in the second sentence and inserting entity described in section 201(f)) shall will- ‘‘the date of the filing of such complaint nor repealed. fully and knowingly report any information (b) DEFINITIONS.—(1) Section 201(g)(5) of the later than 5 months after the filing of such relating to the price of electricity sold at complaint’’. Federal Power Act (16 U.S.C. 824(g)(5)) is wholesale or availability of transmission ca- amended by striking ‘‘1935’’ and inserting (2) By striking ‘‘60 days after’’ in the third pacity, which information the person or any sentence and inserting ‘‘of’’. ‘‘2003’’. other entity knew to be false at the time of (3) By striking ‘‘expiration of such 60-day (2) Section 214 of the Federal Power Act (16 the reporting, to a Federal agency with in- period’’ in the third sentence and inserting U.S.C. 824m) is amended by striking ‘‘1935’’ tent to fraudulently affect the data being ‘‘publication date’’. and inserting ‘‘2003’’. compiled by such Federal agency. (4) By striking the fifth sentence and in- Subtitle G—Market Transparency, ‘‘SEC. 222. PROHIBITION ON ROUND TRIP TRAD- serting the following: ‘‘If no final decision is Enforcement, and Consumer Protection ING. rendered by the conclusion of the 180-day pe- SEC. 1281. MARKET TRANSPARENCY RULES. ‘‘(a) PROHIBITION.—No person or other entity (including an entity described in section riod commencing upon initiation of a pro- Part II of the Federal Power Act (16 U.S.C. 201(f)) shall willfully and knowingly enter ceeding pursuant to this section, the Com- 824 et seq.) is amended by adding at the end into any contract or other arrangement to mission shall state the reasons why it has the following: execute a ‘round trip trade’ for the purchase failed to do so and shall state its best esti- ‘‘SEC. 220. MARKET TRANSPARENCY RULES. or sale of electric energy at wholesale. mate as to when it reasonably expects to ‘‘(a) IN GENERAL.—Not later than 180 days ‘‘(b) DEFINITION.—For the purposes of this make such decision.’’. after the date of enactment of this section, section, the term ‘round trip trade’ means a SEC. 1285. REFUND AUTHORITY. the Commission shall issue rules estab- transaction, or combination of transactions, Section 206 of the Federal Power Act (16 lishing an electronic information system to in which a person or any other entity— U.S.C. 824e) is amended by adding the fol- provide the Commission and the public with ‘‘(1) enters into a contract or other ar- lowing new subsection at the end thereof: access to such information as is necessary or rangement to purchase from, or sell to, any ‘‘(e)(1) Except as provided in paragraph (2), appropriate to facilitate price transparency other person or other entity electric energy if an entity described in section 201(f) volun- and participation in markets subject to the at wholesale; tarily makes a short-term sale of electric en- Commission’s jurisdiction under this Act. ‘‘(2) simultaneously with entering into the ergy and the sale violates Commission rules Such systems shall provide information contract or arrangement described in para- in effect at the time of the sale, such entity about the availability and market price of graph (1), arranges a financially offsetting shall be subject to the Commission’s refund wholesale electric energy and transmission trade with such other person or entity for authority under this section with respect to services to the Commission, State commis- the same such electric energy, at the same such violation. sions, buyers and sellers of wholesale electric location, price, quantity and terms so that, ‘‘(2) This section shall not apply to— energy, users of transmission services, and collectively, the purchase and sale trans- ‘‘(A) any entity that sells less than the public on a timely basis. The Commis- actions in themselves result in no financial 8,000,000 megawatt hours of electricity per sion shall have authority to obtain such in- gain or loss; and year; or formation from any electric utility or trans- ‘‘(3) enters into the contract or arrange- ‘‘(B) any electric cooperative. mitting utility, including any entity de- ment with a specific intent to fraudulently ‘‘(3) For purposes of this subsection, the scribed in section 201(f). affect reported revenues, trading volumes, or term ‘short-term sale’ means an agreement ‘‘(b) EXEMPTIONS.—The Commission shall prices.’’. for the sale of electric energy at wholesale in exempt from disclosure information it deter- SEC. 1283. ENFORCEMENT. interstate commerce that is for a period of 31 mines would, if disclosed, be detrimental to (a) COMPLAINTS.—Section 306 of the Federal days or less (excluding monthly contracts the operation of an effective market or jeop- Power Act (16 U.S.C. 825e) is amended as fol- subject to automatic renewal). ardize system security. This section shall lows: ‘‘(4) The Commission shall have refund au- not apply to transactions for the purchase or (1) By inserting ‘‘electric utility,’’ after thority under subsection (e)(1) with respect sale of wholesale electric energy or trans- ‘‘Any person,’’. to a voluntary short-term sale of electric en- mission services within the area described in (2) By inserting ‘‘, transmitting utility,’’ ergy by the Bonneville Power Administra- section 212(k)(2)(A). In determining the in- after ‘‘licensee’’ each place it appears. tion (in this section ‘Bonneville’) only if the formation to be made available under this (b) REVIEW OF COMMISSION ORDERS.—Sec- sale is at an unjust and unreasonable rate section and time to make such information tion 313(a) of the Federal Power Act (16 and, in that event, may order a refund only available, the Commission shall seek to en- U.S.C. 8251) is amended by inserting ‘electric for short-term sales made by Bonneville at utility,’ after ‘person,’ in the first 2 places it sure that consumers and competitive mar- rates that are higher than the highest just appears and by striking ‘any person unless kets are protected from the adverse effects and reasonable rate charged by any other en- such person’ and inserting ‘any entity unless of potential collusion or other anti-competi- tity for a short-term sale of electric energy such entity’. tive behaviors that can be facilitated by un- in the same geographic market for the same, (c) INVESTIGATIONS.—Section 307(a) of the or most nearly comparable, period as the timely public disclosure of transaction-spe- Federal Power Act (16 U.S.C. 825f(a)) is cific information. amended as follows: sale by Bonneville. ‘‘(5) With respect to any Federal power ‘‘(c) COMMODITY FUTURES TRADING COMMIS- (1) By inserting ‘, electric utility, trans- marketing agency or the Tennessee Valley SION.—This section shall not affect the exclu- mitting utility, or other entity’ after ‘per- sive jurisdiction of the Commodity Futures son’ each time it appears. Authority, the Commission shall not assert Trading Commission with respect to ac- (2) By striking the period at the end of the or exercise any regulatory authority or pow- counts, agreements, contracts, or trans- first sentence and inserting the following: ers under subsection (e)(1) other than the or- actions in commodities under the Com- ‘‘or in obtaining information about the sale dering of refunds to achieve a just and rea- modity Exchange Act (7 U.S.C. 1 et seq.). of electric energy at wholesale in interstate sonable rate.’’. Any request for information to a designated commerce and the transmission of electric SEC. 1286. SANCTITY OF CONTRACT. contract market, registered derivatives energy in interstate commerce.’’. (a) IN GENERAL.—The Federal Energy Reg- transaction execution facility, board of (d) CRIMINAL PENALTIES.—Section 316 of ulatory Commission (in this section, ‘‘the trade, exchange, or market involving ac- the Federal Power Act (16 U.S.C. 825o) is Commission’’) shall have no authority to ab- counts, agreements, contracts, or trans- amended— rogate or modify any provision of an exe- actions in commodities (including natural (1) in subsection (a), by striking ‘‘$5,000’’ cuted contract or executed contract amend- gas, electricity and other energy commod- and inserting ‘‘$1,000,000’’, and by striking ment described in subsection (b) that has ities) within the exclusive jurisdiction of the ‘‘two years’’ and inserting ‘‘5 years’’; been entered into or taken effect, except Commodity Futures Trading Commission (2) in subsection (b), by striking ‘‘$500’’ and upon a finding that failure to take such ac- shall be directed to the Commodity Futures inserting ‘‘$25,000’’; and tion would be contrary to the public inter- Trading Commission. (3) by striking subsection (c). est. ‘‘(d) SAVINGS PROVISION.—In exercising its (e) CIVIL PENALTIES.—Section 316A of the (b) LIMITATION.—Except as provided in sub- authority under this section, the Commis- Federal Power Act (16 U.S.C. 825o–1) is section (c), this section shall apply only to a sion shall not— amended as follows: contract or contract amendment—

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00144 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.102 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4589 (1) executed on or after the date of enact- unnecessary duplication in the exercise of actions, that normally meet the standards ment of this Act; and regulatory authority or unnecessary delays established in paragraph (4). The Commis- (2) entered into— in the approval (or disapproval) of applica- sion shall provide expedited review for such (A) for the purchase or sale of electric en- tions for the sale, lease, or other disposition transactions. The Commission shall grant or ergy under section 205 of the Federal Power of public utility facilities. deny any other application for approval of a Act (16 U.S.C. 824d) where the seller has been (b) MERGER REVIEW ACCOUNTABILITY.—Not transaction not later than 180 days after the authorized by the Commission to charge later than 1 year after the date of enactment application is filed. If the Commission does market-based rates; or of this Act and annually thereafter, with re- not act within 180 days, such application (B) under section 4 of the Natural Gas Act spect to all orders issued within the pre- shall be deemed granted unless the Commis- (15 U.S.C. 717c) where the natural gas com- ceding year that impose a condition on a sion finds, based on good cause, that further pany has been authorized by the Commission sale, lease, or other disposition of public consideration is required to determine to charge market-based rates for the service utility facilities under section 203(b) of the whether the proposed transaction meets the described in the contract. Federal Power Act, the Federal Energy Reg- standards of paragraph (4) and issues an (c) EXCLUSION.—This section shall not ulatory Commission shall transmit a report order tolling the time for acting on the ap- apply to an executed contract or executed to Congress explaining each of the following: plication for not more than 180 days, at the contract amendment that expressly provides (1) The condition imposed. end of which additional period the Commis- for a standard of review other than the pub- (2) Whether the Commission could have sion shall grant or deny the application. lic interest standard. imposed such condition by exercising its au- ‘‘(6) For purposes of this subsection, the (d) SAVINGS PROVISION.—With respect to thority under any provision of the Federal terms ‘associate company’, ‘holding com- contracts to which this section does not Power Act other than under section 203(b). pany’, and ‘holding company system’ have apply, nothing in this section alters existing (3) If the Commission could not have im- the meaning given those terms in the Public law regarding the applicable standard of re- posed such condition other than under sec- Utility Holding Company Act of 2003.’’. view for a contract subject to the jurisdiction 203(b), why the Commission determined (b) EFFECTIVE DATE.—The amendments tion of the Commission. that such condition was consistent with the made by this section shall take effect 12 SEC. 1287. CONSUMER PRIVACY AND UNFAIR public interest. months after the date of enactment of this TRADE PRACTICES. SEC. 1292. ELECTRIC UTILITY MERGERS. section. (a) PRIVACY.—The Federal Trade Commis- Subtitle I—Definitions sion may issue rules protecting the privacy (a) AMENDMENT.—Section 203(a) of the Fed- of electric consumers from the disclosure of eral Power Act (16 U.S.C. 824b(a)) is amended SEC. 1295. DEFINITIONS. consumer information obtained in connec- to read as follows: (a) ELECTRIC UTILITY.—Section 3(22) of the tion with the sale or delivery of electric en- ‘‘(a)(1) No public utility shall, without first Federal Power Act (16 U.S.C. 796(22)) is ergy to electric consumers. having secured an order of the Commission amended to read as follows: (b) SLAMMING.—The Federal Trade Com- authorizing it to do so— ‘‘(22) ELECTRIC UTILITY.—The term ‘electric mission may issue rules prohibiting the ‘‘(A) sell, lease, or otherwise dispose of the utility’ means any person or Federal or change of selection of an electric utility ex- whole of its facilities subject to the jurisdic- State agency (including any entity described cept with the informed consent of the election of the Commission, or any part thereof in section 201(f)) that sells electric energy; tric consumer or if approved by the appro- of a value in excess of $10,000,000; such term includes the Tennessee Valley Au- priate State regulatory authority. ‘‘(B) merge or consolidate, directly or indi- thority and each Federal power marketing (c) CRAMMING.—The Federal Trade Com- rectly, such facilities or any part thereof administration.’’. mission may issue rules prohibiting the sale with those of any other person, by any (b) TRANSMITTING UTILITY.—Section 3(23) of of goods and services to an electric consumer means whatsoever; or the Federal Power Act (16 U.S.C. 796(23)) is unless expressly authorized by law or the ‘‘(C) purchase, acquire, or take any secu- amended to read as follows: electric consumer. rity with a value in excess of $10,000,000 of ‘‘(23) TRANSMITTING UTILITY.—The term (d) RULEMAKING.—The Federal Trade Com- any other public utility. ‘transmitting utility’ means an entity, in- mission shall proceed in accordance with ‘‘(2) No holding company in a holding com- cluding any entity described in section 201(f), section 553 of title 5, United States Code, pany system that includes a public utility that owns, operates, or controls facilities when prescribing a rule under this section. shall purchase, acquire, or take any security used for the transmission of electric en- (e) STATE AUTHORITY.—If the Federal with a value in excess of $10,000,000 of, or, by ergy— Trade Commission determines that a State’s any means whatsoever, directly or indi- ‘‘(A) in interstate commerce; or regulations provide equivalent or greater rectly, merge or consolidate with, a public ‘‘(B) for the sale of electric energy at protection than the provisions of this sec- utility or a holding company in a holding wholesale.’’. tion, such State regulations shall apply in company system that includes a public util- (c) ADDITIONAL DEFINITIONS.—Section 3 of that State in lieu of the regulations issued ity with a value in excess of $10,000,000 with- the Federal Power Act (16 U.S.C. 796) is by the Commission under this section. out first having secured an order of the Com- amended by adding at the end the following: (f) DEFINITIONS.—For purposes of this sec- mission authorizing it to do so. ‘‘(26) ELECTRIC COOPERATIVE.—The term tion: ‘‘(3) Upon receipt of an application for such ‘electric cooperative’ means a cooperatively (1) STATE REGULATORY AUTHORITY.—The approval the Commission shall give reason- owned electric utility. term ‘‘State regulatory authority’’ has the able notice in writing to the Governor and ‘‘(27) RTO.—The term ‘Regional Trans- meaning given that term in section 3(21) of State commission of each of the States in mission Organization’ or ‘RTO’ means an en- the Federal Power Act (16 U.S.C. 796(21)). which the physical property affected, or any tity of sufficient regional scope approved by (2) ELECTRIC CONSUMER AND ELECTRIC UTIL- part thereof, is situated, and to such other the Commission to exercise operational or ITY.—The terms ‘‘electric consumer’’ and persons as it may deem advisable. functional control of facilities used for the ‘‘electric utility’’ have the meanings given ‘‘(4) After notice and opportunity for hear- transmission of electric energy in interstate those terms in section 3 of the Public Utility ing, the Commission shall approve the pro- commerce and to ensure nondiscriminatory Regulatory Policies Act of 1978 (16 U.S.C. posed disposition, consolidation, acquisition, access to such facilities. 2602). or change in control, if it finds that the pro- ‘‘(28) ISO.—The term ‘Independent System Subtitle H—Merger Reform posed transaction will be consistent with the Operator’ or ‘ISO’ means an entity approved SEC. 1291. MERGER REVIEW REFORM AND AC- public interest. In evaluating whether a by the Commission to exercise operational COUNTABILITY. transaction will be consistent with the pub- or functional control of facilities used for (a) MERGER REVIEW REFORM.—Within 180 lic interest, the Commission shall consider the transmission of electric energy in inter- days after the date of enactment of this Act, whether the proposed transaction— state commerce and to ensure nondiscrim- the Secretary of Energy, in consultation ‘‘(A) will adequately protect consumer in- inatory access to such facilities.’’. with the Federal Energy Regulatory Com- terests; (d) COMMISSION.—For the purposes of this mission and the Attorney General of the ‘‘(B) will be consistent with competitive title, the term ‘‘Commission’’ means the United States, shall prepare, and transmit to wholesale markets; Federal Energy Regulatory Commission. Congress each of the following: ‘‘(C) will impair the financial integrity of (e) APPLICABILITY.—Section 201(f) of the (1) A study of the extent to which the au- any public utility that is a party to the Federal Power Act (16 U.S.C. 824(f)) is thorities vested in the Federal Energy Regu- transaction or an associate company of any amended by adding after ‘‘political subdivi- latory Commission under section 203 of the party to the transaction; and sion of a state,’’ the following: ‘‘an electric Federal Power Act are duplicative of au- ‘‘(D) satisfies such other criteria as the cooperative that has financing under the thorities vested in— Commission considers consistent with the Rural Electrification Act of 1936 (7 U.S.C. 901 (A) other agencies of Federal and State public interest. et seq.) or that sells less than 4,000,000 mega- Government; and ‘‘(5) The Commission shall, by rule, adopt watt hours of electricity per year,’’. (B) the Federal Energy Regulatory Com- procedures for the expeditious consideration Subtitle J—Technical and Conforming mission, including under sections 205 and 206 of applications for the approval of disposi- Amendments of the Federal Power Act. tions, consolidations, or acquisitions under SEC. 1297. CONFORMING AMENDMENTS. (2) Recommendations on reforms to the this section. Such rules shall identify classes The Federal Power Act is amended as fol- Federal Power Act that would eliminate any of transactions, or specify criteria for trans- lows:

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00145 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.103 S28PT1 S4590 CONGRESSIONAL RECORD — SENATE April 28, 2004 (1) Section 201(b)(2) of such Act (16 U.S.C. provide other opportunities for public com- effects on the privately owned surface. This 824(b)(2)) is amended as follows: ment. The report shall contain recommenda- review shall include— (A) In the first sentence by striking ‘‘210, tions for Federal actions that, if imple- (1) a comparison of the rights and respon- 211, and 212’’ and inserting ‘‘203(a)(2), 206(e), mented, will result in a balance between nat- sibilities under existing mineral and land 210, 211, 211A, 212, 215, 216, 217, 218, 219, 220, ural gas supply and demand at a level that law for the owner of a Federal mineral lease, 221, and 222’’. will ensure, to the maximum extent prac- the private surface owners and the Depart- (B) In the second sentence by striking ‘‘210 ticable, achievement of the objectives estab- ment; or 211’’ and inserting ‘‘203(a)(2), 206(e), 210, lished in subsection (b). (2) a comparison of the surface owner con- 211, 211A, 212, 215, 216, 217, 218, 219, 220, 221, (b) OBJECTIVES OF REPORT.—In preparing sent provisions in section 714 of the Surface and 222’’. the report, the Secretary shall seek to de- Mining Control and Reclamation Act of 1977 (C) Section 201(b)(2) of such Act is amended velop a series of recommendations that will (30 U.S.C. 1304) concerning surface mining of by striking ‘‘The’’ in the first place it ap- result in a balance between natural gas sup- Federal coal deposits and the surface owner pears and inserting ‘‘Notwithstanding sec- ply and demand adequate to— consent provisions for oil and gas develop- tion 201(f), the’’ and in the second sentence (1) provide residential consumers with nat- ment, including coalbed methane produc- after ‘‘any order’’ by inserting ‘‘or rule’’. ural gas at reasonable and stable prices; tion; and (2) Section 201(e) of such Act is amended by (2) accommodate long-term maintenance (3) recommendations for administrative or striking ‘‘210, 211, or 212’’ and inserting and growth of domestic natural gas-depend- legislative action necessary to facilitate rea- ‘‘206(e), 206(f), 210, 211, 211A, 212, 215, 216, 217, ent industrial, manufacturing, and commer- sonable access for Federal oil and gas activi- 218, 219, 220, 221, and 222’’. cial enterprises; ties while addressing surface owner concerns (3) Section 206 of such Act (16 U.S.C. 824e) (3) facilitate the attainment of national and minimizing impacts to private surface. is amended as follows: ambient air quality standards under the (b) REPORT.—The Secretary of the Interior (A) In subsection (b), in the seventh sen- Clean Air Act; shall report the results of such review to tence, by striking ‘‘the public utility to (4) permit continued progress in reducing Congress not later than 180 days after the make’’. emissions associated with electric power date of enactment of this Act. (B) In the first sentence of subsection (a), generation; and SEC. 1304. RESOLUTION OF FEDERAL RESOURCE by striking ‘hearing had’ and inserting (5) support development of the preliminary DEVELOPMENT CONFLICTS IN THE ‘‘hearing held’’. phases of hydrogen-based energy tech- POWDER RIVER BASIN. (4) Section 211(c) of such Act (16 U.S.C. nologies. The Secretary of the Interior shall— (1) undertake a review of existing authori- 824j(c)) is amended by— (c) CONTENTS OF REPORT.—The report shall ties to resolve conflicts between the develop- (A) striking ‘‘(2)’’; provide a comprehensive analysis of natural ment of Federal coal and the development of (B) striking ‘‘(A)’’ and inserting ‘‘(1)’’ gas supply and demand in the United States Federal and non-Federal coalbed methane in (C) striking ‘‘(B)’’ and inserting ‘‘(2)’’; and for the period from 2004 to 2015. The analysis the Powder River Basin in Wyoming and (D) striking ‘‘termination of modification’’ shall include, at a minimum— Montana; and and inserting ‘‘termination or modifica- (1) estimates of annual domestic demand (2) not later than 6 months after the date tion’’. for natural gas that take into account the ef- of enactment of this Act, report to Congress (5) Section 211(d)(1) of such Act (16 U.S.C. fect of Federal policies and actions that are on alternatives to resolve these conflicts and 824j(d)(1)) is amended by striking ‘‘electric likely to increase and decrease demand for identification of a preferred alternative with utility’’ the second time it appears and in- natural gas; specific legislative language, if any, required serting ‘‘transmitting utility’’. (2) projections of annual natural gas sup- to implement the preferred alternative. (6) Section 315 (c) of such Act (16 U.S.C. plies, from domestic and foreign sources, 825n(c)) is amended by striking ‘‘subsection’’ under existing Federal policies; SEC. 1305. STUDY OF ENERGY EFFICIENCY STANDARDS. and inserting ‘‘section’’. (3) an identification of estimated natural The Secretary of Energy shall contract TITLE XIII—STUDIES gas supplies that are not available under ex- with the National Academy of Sciences for a SEC. 1301. STUDY ON INVENTORY OF PETROLEUM isting Federal policies; study, to be completed within 1 year after AND NATURAL GAS STORAGE. (4) scenarios for decreasing natural gas de- the date of enactment of this Act, to exam- (a) DEFINITION.—For purposes of this sec- mand and increasing natural gas supplies ine whether the goals of energy efficiency tion ‘‘petroleum’’ means crude oil, motor comparing relative economic and environ- standards are best served by measurement of gasoline, jet fuel, distillates, and propane. mental impacts of Federal policies that— energy consumed, and efficiency improve- (b) STUDY.—The Secretary of Energy shall (A) encourage or require the use of natural ments, at the actual site of energy consump- conduct a study on petroleum and natural gas to meet air quality, carbon dioxide emis- tion, or through the full fuel cycle, begin- gas storage capacity and operational inven- sion reduction, or energy security goals; ning at the source of energy production. The tory levels, nationwide and by major geo- (B) encourage or require the use of energy Secretary shall submit the report to Con- graphical regions. sources other than natural gas, including gress. (c) CONTENTS.—The study shall address— coal, nuclear, and renewable sources; SEC. 1306. TELECOMMUTING STUDY. (1) historical normal ranges for petroleum (C) support technologies to develop alter- (a) STUDY REQUIRED.—The Secretary, in and natural gas inventory levels; native sources of natural gas and synthetic consultation with the Commission, the Di- (2) historical and projected storage capac- gas, including coal gasification technologies; rector of the Office of Personnel Manage- ity trends; (D) encourage or require the use of energy ment, the Administrator of General Services, (3) estimated operation inventory levels conservation and demand side management and the Administrator of NTIA, shall con- below which outages, delivery slowdown, ra- practices; and duct a study of the energy conservation im- tioning, interruptions in service, or other in- (E) affect access to domestic natural gas plications of the widespread adoption of tele- dicators of shortage begin to appear; supplies; and commuting by Federal employees in the (4) explanations for inventory levels drop- (5) recommendations for Federal actions to United States. ping below normal ranges; and achieve the objectives of the report, includ- (b) REQUIRED SUBJECTS OF STUDY.—The (5) the ability of industry to meet United ing recommendations that— study required by subsection (a) shall ana- States demand for petroleum and natural gas (A) encourage or require the use of energy lyze the following subjects in relation to the without shortages or price spikes, when in- sources other than natural gas, including energy saving potential of telecommuting by ventory levels are below normal ranges. coal, nuclear, and renewable sources; Federal employees: (d) REPORT TO CONGRESS.—Not later than 1 (B) encourage or require the use of energy (1) Reductions of energy use and energy year after the date of enactment of this Act, conservation or demand side management costs in commuting and regular office heat- the Secretary of Energy shall submit a re- practices; ing, cooling, and other operations. port to Congress on the results of the study, (C) support technologies for the develop- (2) Other energy reductions accomplished including findings and any recommendations ment of alternative sources of natural gas by telecommuting. for preventing future supply shortages. and synthetic gas, including coal gasifi- (3) Existing regulatory barriers that ham- SEC. 1302. NATURAL GAS SUPPLY SHORTAGE RE- cation technologies; and per telecommuting, including barriers to PORT. (D) will improve access to domestic nat- broadband telecommunications services de- (a) REPORT.—Not later than 6 months after ural gas supplies. ployment. the date of enactment of this Act, the Sec- SEC. 1303. SPLIT-ESTATE FEDERAL OIL AND GAS (4) Collateral benefits to the environment, retary of Energy shall submit to Congress a LEASING AND DEVELOPMENT PRAC- family life, and other values. report on natural gas supplies and demand. TICES. (c) REPORT REQUIRED.—The Secretary shall In preparing the report, the Secretary shall (a) REVIEW.—In consultation with affected submit to the President and Congress a re- consult with experts in natural gas supply private surface owners, oil and gas industry, port on the study required by this section and demand as well as representatives of and other interested parties, the Secretary not later than 6 months after the date of en- State and local units of government, tribal of the Interior shall undertake a review of actment of this Act. Such report shall in- organizations, and consumer and other orga- the current policies and practices with re- clude a description of the results of the anal- nizations. As the Secretary deems advisable, spect to management of Federal subsurface ysis of each of the subject described in sub- the Secretary may hold public hearings and oil and gas development activities and their section (b).

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(d) DEFINITIONS.—As used in this section: (3) just and reasonable rates for electricity 913) is amended by striking ‘‘or association’’ (1) SECRETARY.—The term ‘‘Secretary’’ consumers; and and inserting ‘‘association, or Indian tribe means the Secretary of Energy. (4) the ability of the Commission to pro- (as defined in section 4 of the Indian Self-De- (2) COMMISSION.—The term ‘‘Commission’’ tect electricity consumers. termination and Education Assistance Act)’’. means the Federal Communications Com- If the Commission finds that the 201(f) ex- mission. emption results in adverse effects on con- Subtitle B—Coastal Programs (3) NTIA.—The term ‘‘NTIA’’ means the sumers or electric reliability, the Commis- SEC. 1411. ROYALTY PAYMENTS UNDER LEASES National Telecommunications and Informa- sion shall make appropriate recommenda- UNDER THE OUTER CONTINENTAL tion Administration of the Department of tions to Congress pursuant to section 311 of SHELF LANDS ACT. Commerce. the Federal Power Act. (a) ROYALTY RELIEF.— (4) TELECOMMUTING.—The term ‘‘telecom- TITLE XIV—MISCELLANEOUS (1) IN GENERAL.—For purposes of providing muting’’ means the performance of work Subtitle A—Rural and Remote Electricity compensation for lessees and a State for functions using communications tech- Construction which amounts are authorized by section nologies, thereby eliminating or substan- 6004(c) of the Oil Pollution Act of 1990 (Pub- tially reducing the need to commute to and SEC. 1401. DENALI COMMISSION PROGRAMS. lic Law 101–380), effective beginning October from traditional worksites. (a) POWER COST EQUALIZATION PROGRAM.— 1, 2008, a lessee may withhold from payment (5) FEDERAL EMPLOYEE.—The term ‘‘Fed- There are authorized to be appropriated to any royalty due and owing to the United eral employee’’ has the meaning provided the the Denali Commission established by the States under any leases under the Outer Con- term ‘‘employee’’ by section 2105 of title 5, Denali Commission Act of 1998 (42 U.S.C. 3121 tinental Shelf Lands Act (43 U.S.C. 1301 et United States Code. note) not more than $5,000,000 for each of fiscal years 2005 through 2011 for the purposes seq.) for offshore oil or gas production from SEC. 1307. LIHEAP REPORT. a covered lease tract if, on or before the date Not later than 1 year after the date of en- of funding the power cost equalization pro- that the payment is due and payable to the actment of this Act, the Secretary of Health gram established under section 42.45.100 of United States, the lessee makes a payment and Human Services shall transmit to Con- the Alaska Statutes. to the Secretary of the Interior of 44 cents gress a report on how the Low-Income Home (b) AVAILABILITY OF FUNDS.— for every $1 of royalty withheld. Energy Assistance Program could be used (1) PURPOSE.—Amounts authorized in para- more effectively to prevent loss of life from graph (2) shall be available to the Denali (2) USE OF AMOUNTS PAID TO SECRETARY.— extreme temperatures. In preparing such re- Commission to permit energy generation and Within 30 days after the Secretary of the In- port, the Secretary shall consult with appro- development (including fuel cells, hydro- terior receives payments under paragraph priate officials in all 50 States and the Dis- electric, solar, wind, wave, and tidal energy, (1), the Secretary of the Interior shall— trict of Columbia. and alternative energy sources), energy (A) make 47.5 percent of such payments SEC. 1308. OIL BYPASS FILTRATION TECH- transmission (including interties), fuel tank available to the State referred to in section NOLOGY. replacement and clean-up, fuel transpor- 6004(c) of the Oil Pollution Act of 1990; and The Secretary of Energy and the Adminis- tation networks and related facilities, power (B) make 52.5 percent of such payments trator of the Environmental Protection cost equalization programs, and other energy available equally, only for the programs and Agency shall— programs, notwithstanding any other provi- purposes identified as number 282 at page (1) conduct a joint study of the benefits of sion of law. 1389 of House Report number 108–10 and for a oil bypass filtration technology in reducing (2) AUTHORIZATION OF APPROPRIATIONS.— program described at page 1159 of that Re- demand for oil and protecting the environ- There are authorized to be appropriated to port in the State referred to in such section ment; the Denali Commission to carry out para- 6004(c). (2) examine the feasibility of using oil by- graph (1) $50,000,000 for each of fiscal years (3) TREATMENT OF AMOUNTS.—Any royalty pass filtration technology in Federal motor 2004 through 2013. withheld by a lessee in accordance with this vehicle fleets; and SEC. 1402. RURAL AND REMOTE COMMUNITY AS- section (including any portion thereof that is (3) include in such study, prior to any de- SISTANCE. paid to the Secretary of the Interior under termination of the feasibility of using oil by- (a) PROGRAM.—Section 19 of the Rural paragraph (1)) shall be treated as paid for pass filtration technology, the evaluation of Electrification Act of 1936 (7 U.S.C. 918a) is purposes of satisfaction of the royalty obli- products and various manufacturers. amended by striking all that precedes sub- gations of the lessee to the United States. SEC. 1309. TOTAL INTEGRATED THERMAL SYS- section (b) and inserting the following: (4) CERTIFICATION OF WITHHELD AMOUNTS.— TEMS. ‘‘SEC. 19. ELECTRIC GENERATION, TRANS- The Secretary of the Treasury shall— The Secretary of Energy shall— MISSION, AND DISTRIBUTION FA- (A) determine the amount of royalty with- (1) conduct a study of the benefits of total CILITIES EFFICIENCY GRANTS AND held by a lessee under this section; and integrated thermal systems in reducing de- LOANS TO RURAL AND REMOTE (B) promptly publish a certification when mand for oil and protecting the environ- COMMUNITIES WITH EXTREMELY the total amount of royalty withheld by the ment; and HIGH ELECTRICITY COSTS. lessee under this section is equal to— (2) examine the feasibility of using total ‘‘(a) IN GENERAL.—The Secretary, acting (i) the dollar amount stated at page 47 of integrated thermal systems in Department through the Rural Utilities Service, may— Senate Report number 101–534, which is des- of Defense and other Federal motor vehicle ‘‘(1) in coordination with State rural devel- ignated therein as the total drainage claim fleets. opment initiatives, make grants and loans to for the West Delta field; plus persons, States, political subdivisions of SEC. 1310. UNIVERSITY COLLABORATION. (ii) interest as described at page 47 of that Not later than 2 years after the date of en- States, and other entities organized under Report. the laws of States, to acquire, construct, ex- actment of this Act, the Secretary of Energy (b) PERIOD OF ROYALTY RELIEF.—Sub- shall transmit to Congress a report that extend, upgrade, and otherwise improve electric generation, transmission, and distribu- section (a) shall apply to royalty amounts amines the feasibility of promoting collabo- that are due and payable in the period begin- rations between large institutions of higher tion facilities serving communities in which the average revenue per kilowatt hour of ning on January 1, 2008, and ending on the education and small institutions of higher date on which the Secretary of the Treasury education through grants, contracts, and co- electricity for all consumers is greater than 150 percent of the average revenue per kilo- publishes a certification under subsection operative agreements made by the Secretary (a)(4)(B). for energy projects. The Secretary shall also watt hour of electricity for all consumers in consider providing incentives for the inclu- the United States (as determined by the En- (c) DEFINITIONS.—As used in this section: sion of small institutions of higher edu- ergy Information Administration using the (1) COVERED LEASE TRACT.—The term ‘‘cov- cation, including minority-serving institu- most recent data available); ered lease tract’’ means a leased tract (or tions, in energy research grants, contracts, ‘‘(2) make grants and loans to the Denali portion of a leased tract)— and cooperative agreements. Commission established by the Denali Com- (A) lying seaward of the zone defined and SEC. 1311. RELIABILITY AND CONSUMER PROTEC- mission Act of 1998 (42 U.S.C. 3121 note; Pub- governed by section 8(g) of the Outer Conti- TION ASSESSMENT. lic 105–277) to be used for the purpose of pro- nental Shelf Lands Act (43 U.S.C. 1337(g)); or Not later than 5 years after the date of en- viding funds to acquire, construct, extend, (B) lying within such zone but to which actment of this Act, and each 5 years there- upgrade, finance, and otherwise improve such section does not apply. after, the Federal Energy Regulatory Com- electric generation, transmission, and dis- (2) LESSEE.—The term ‘‘lessee’’— mission shall assess the effects of the exemp- tribution facilities serving communities de- (A) means a person or entity that, on the tion of electric cooperatives and govern- scribed in paragraph (1); and date of the enactment of the Oil Pollution ment-owned utilities from Commission regu- ‘‘(3) make grants to State entities to estab- Act of 1990, was a lessee referred to in sec- lation under section 201(f) of the Federal lish and support a revolving fund to provide tion 6004(c) of that Act (as in effect on that Power Act. The assessment shall include any a more cost-effective means of purchasing date of the enactment), but did not hold effects on— fuel in areas where the fuel cannot be lease rights in Federal offshore lease OCS–G– (1) reliability of interstate electric trans- shipped by means of surface transpor- 5669; and mission networks; tation.’’. (B) includes successors and affiliates of a (2) benefit to consumers, and efficiency, of (b) DEFINITION OF PERSON.—Section 13 of person or entity described in subparagraph competitive wholesale electricity markets; the Rural Electrification Act of 1936 (7 U.S.C. (A).

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00147 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.103 S28PT1 S4592 CONGRESSIONAL RECORD — SENATE April 28, 2004 SEC. 1412. DOMESTIC OFFSHORE ENERGY REIN- ury shall deposit into the Fund the fol- ‘‘(A) determine the amount and composi- VESTMENT. lowing: tion of Outer Continental Shelf revenues (a) DOMESTIC OFFSHORE ENERGY REINVEST- ‘‘(A) Notwithstanding section 9, all quali- that were received by the United States in MENT PROGRAM.—The Outer Continental fied Outer Continental Shelf revenues attrib- each of the fiscal years 2004 through 2008; Shelf Lands Act (43 U.S.C. 1331 et seq.) is utable to royalties received by the United ‘‘(B) project the amount and composition amended by adding at the end the following: States in the fiscal year that are in excess of of Outer Continental Shelf revenues that will ‘‘SEC. 32. DOMESTIC OFFSHORE ENERGY REIN- the following amount: be received in the United States in each of VESTMENT PROGRAM. ‘‘(i) $3,455,000,000 in the case of royalties re- the fiscal years 2009 through 2013; and ‘‘(a) DEFINITIONS.—In this section: ceived in fiscal year 2004. ‘‘(C) submit to the Congress a report re- ‘‘(1) APPROVED PLAN.—The term ‘approved ‘‘(ii) $3,726,000,000 in the case of royalties garding whether any of the dollar amounts plan’ means a Secure Energy Reinvestment received in fiscal year 2005. set forth in clauses (v) through (x) of para- Plan approved by the Secretary under this ‘‘(iii) $4,613,000,000 in the case of royalties graph (2)(A) or paragraph (2)(B) should be section. received in fiscal year 2006. modified to reflect those projections. ‘‘(2) COASTAL ENERGY STATE.—The term ‘‘(iv) $5,226,000,000 in the case of royalties ‘‘(6) AUTHORIZATION OF APPROPRIATION OF ‘Coastal Energy State’ means a Coastal received in fiscal year 2007. ADDITIONAL AMOUNTS.—In addition to the State off the coastline of which, within the ‘‘(v) $5,841,000,000 in the case of royalties amounts deposited into the Fund under para- seaward lateral boundary as determined by received in fiscal year 2008. graph (2) there are authorized to be appro- the map referenced in subsection (c)(2)(A), ‘‘(vi) $5,763,000,000 in the case of royalties priated to the Fund— Outer Continental Shelf bonus bids or royal- received in fiscal year 2009. ‘‘(A) for each of fiscal years 2004 through ties are generated, other than bonus bids or ‘‘(vii) $6,276,000,000 in the case of royalties 2013 up to $500,000,000; and ‘‘(B) for each fiscal year after fiscal year royalties from a leased tract within any area received in fiscal year 2010. ‘‘(viii) $6,351,000,000 in the case of royalties 2013 up to 25 percent of qualified Outer Conti- of the Outer Continental Shelf for which a received in fiscal year 2011. nental Shelf revenues received by the United moratorium on new leasing was in effect as ‘‘(ix) $6,551,000,000 in the case of royalties States in the preceding fiscal year. of January 1, 2002, unless the lease was received in fiscal year 2012. ‘‘(c) USE OF SECURE ENERGY REINVESTMENT issued before the establishment of the mora- ‘‘(x) $5,120,000,000 in the case of royalties FUND.— torium and was in production on such date. received in fiscal year 2013. ‘‘(1) IN GENERAL.—(A) Amounts into the ‘‘(3) COASTAL POLITICAL SUBDIVISION.—The ‘‘(B) Notwithstanding section 9, all quali- Fund shall be available for obligation or ex- term ‘coastal political subdivision’ means a fied Outer Continental shelf revenues attrib- penditure only for the purposes of this sec- county, parish, or other equivalent subdivi- utable to bonus bids received by the United tion, and only as provided for in an appro- sion of a Coastal Energy State, all or part of States in each of the fiscal years 2004 priations Act. The appropriations may be which lies within the boundaries of the through 2013 that are in excess of made without fiscal year limitation. coastal zone of the State, as identified in the $1,000,000,000. ‘‘(B) Of amounts made available under sub- State’s approved coastal zone management ‘‘(C) Notwithstanding section 9, in addition section (m), the Secretary shall use amounts program under the Coastal Zone Manage- to amounts deposited under subparagraphs remaining after the application of sub- ment Act of 1972 (16 U.S.C. 1451 et seq.) on (A) and (B), $35,000,000 of amounts received sections (h) and (i) to pay to each Coastal the date of the enactment of this section. by the United States each fiscal year as roy- Energy State that has a Secure Energy Rein- ‘‘(4) COASTAL POPULATION.—The term alties for oil or gas production on the Outer vestment Plan approved by the Secretary ‘coastal population’ means the population of Continental Shelf, except that no amounts under this section, and to coastal political a coastal political subdivision, as determined shall be deposited under this subparagraph subdivisions of such State, the amount allo- by the most recent official data of the Cen- before fiscal year 2004 or after fiscal year cated to the State or coastal political sub- sus Bureau. 2013. division, respectively, under this subsection. ‘‘(5) COASTLINE.—The term ‘coastline’ has ‘‘(D) All interest earned under paragraph ‘‘(C) The Secretary shall make payments the same meaning as the term ‘coast line’ in (4). under this paragraph in December of 2004, subsection 2(c) of the Submerged Lands Act ‘‘(E) All repayments under subsection (f). and of each year thereafter, or as soon as (43 U.S.C. 1301(c)). ‘‘(3) REDUCTION IN DEPOSIT.—(A) For each practicable thereafter. ‘‘(6) FUND.—The term ‘Fund’ means the Se- fiscal year after fiscal year 2013 in which ‘‘(2) ALLOCATION.—The Secretary shall al- cure Energy Reinvestment Fund established amounts received by the United States as locate amounts made available under sub- by this section. royalties for oil or gas production on the section (m) in a fiscal year, and other ‘‘(7) LEASED TRACT.—The term ‘leased Outer Continental Shelf are less than the amounts determined by the Secretary to be tract’ means a tract maintained under sec- sum of the amounts described in subpara- available to carry out this section, among tion 6 or leased under section 8 for the pur- graph (B) (before the application of this sub- Coastal Energy States that have an approved pose of drilling for, developing, and pro- paragraph), the Secretary of the Treasury plan, and to coastal political subdivisions of ducing oil and natural gas resources. shall reduce each of the amounts described such States, as follows: ‘‘(8) QUALIFIED OUTER CONTINENTAL SHELF in subparagraph (B) proportionately. ‘‘(A)(i) Of the amounts made available for REVENUES.—(A) Except as provided in sub- ‘‘(B) The amounts referred to in subpara- each of the first 10 fiscal years for which paragraph (B), the term ‘qualified Outer Con- graph (A) are the following: amounts are available for allocation under tinental Shelf revenues’ means all amounts ‘‘(i) The amount required to be covered this paragraph, the allocation for each received by the United States on or after Oc- into the Historic Preservation Fund under Coastal Energy State shall be calculated tober 1, 2003, from each leased tract or por- section 108 of the National Historic Preserva- based on the ratio of qualified Outer Conti- tion of a leased tract lying seaward of the tion Act (16 U.S.C. 470h) on the date of the nental Shelf revenues generated off the zone defined and governed by section 8(g), or enactment of this paragraph. coastline of the Coastal Energy State to the lying within such zone but to which section ‘‘(ii) The amount required to be credited to qualified Outer Continental Shelf revenues 8(g) does not apply, including bonus bids, the Land and Water Conservation Fund generated off the coastlines of all Coastal rents, royalties (including payments for roy- under section 2(c)(2) of the Land and Water Energy States for the period beginning Janu- alties taken in kind and sold), net profit Conservation Fund Act of 1965 (16 U.S.C. ary 1, 1992, and ending December 31, 2001. share payments, and related interest. 4601–5(c)(2)) on the date of the enactment of ‘‘(ii) Of the amounts available for a fiscal ‘‘(B) Such term does not include any reve- this paragraph. year in a subsequent 10-fiscal-year period, nues from a leased tract or portion of a ‘‘(iii) The amount required to be deposited the allocation for each Coastal Energy State leased tract that is included within any area under subparagraph (C) of paragraph (2) of shall be calculated based on such ratio deter- of the Outer Continental Shelf for which a this subsection. mined by the Secretary with respect to moratorium on new leasing was in effect as ‘‘(4) INVESTMENT.—The Secretary of the qualified Outer Continental Shelf revenues of January 1, 2002, unless the lease was Treasury shall invest moneys in the Fund generated in each subsequent corresponding issued before the establishment of the mora- (including interest) in public debt securities 10-year period. torium and was in production on such date. with maturities suitable to the needs of the ‘‘(iii) For purposes of this subparagraph, ‘‘(9) SECRETARY.—The term ‘Secretary’ Fund, as determined by the Secretary of the qualified Outer Continental Shelf revenues means the Secretary of the Interior. Treasury, and bearing interest at rates de- shall be considered to be generated off the ‘‘(b) SECURE ENERGY REINVESTMENT termined by the Secretary of the Treasury, coastline of a Coastal Energy State if the ge- FUND.— taking into consideration current market ographic center of the lease tract from which ‘‘(1) ESTABLISHMENT.—There is established yields on outstanding marketable obliga- the revenues are generated is located within in the Treasury of the United States a sepa- tions of the United States of comparable ma- the area formed by the extension of the rate account which shall be known as the turity. Such invested moneys shall remain State’s seaward lateral boundaries, cal- ‘Secure Energy Reinvestment Fund’. The invested until needed to meet requirements culated using the strict and scientifically de- Fund shall consist of amounts deposited for disbursement under this section. rived conventions established to delimit under paragraph (2), and such other amounts ‘‘(5) REVIEW AND REVISION OF BASELINE international lateral boundaries under the as may be appropriated to the Fund. AMOUNTS.—Not later than December 31, 2008, Law of the Sea, as indicated on the map enti- ‘‘(2) DEPOSITS.—For each fiscal year after the Secretary of the Interior, in consultation tled ‘Calculated Seaward Lateral Bound- fiscal year 2003, the Secretary of the Treas- with the Secretary of the Treasury, shall— aries’ and dated October 2003, on file in the

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Office of the Director, Minerals Management greater than the amount that would be allo- ‘‘(B) PROCEDURE AND TIMING.—The Sec- Service. cated to such States under this subsection if retary shall approve or disapprove each plan ‘‘(B) 35 percent of each Coastal Energy paragraph (4) did not apply, then the alloca- submitted in accordance with this subsection State’s allocable share as determined under tions under this subsection to all other within 90 days after its submission. subparagraph (A) shall be allocated among Coastal Energy States shall be paid from the ‘‘(3) AMENDMENT OR REVISION.—Any amend- and paid directly to the coastal political sub- amount remaining after deduction of the ment to or revision of an approved plan shall divisions of the State by the Secretary based amounts allocated under paragraph (4), but be prepared and submitted in accordance on the following formula: shall be reduced on a pro rata basis by the with the requirements under this paragraph ‘‘(i) 25 percent shall be allocated based on sum of the allocations under paragraph (4) so for the submittal of plans, and shall be ap- the ratio of each coastal political subdivi- that not more than 100 percent of the funds proved or disapproved by the Secretary in sion’s coastal population to the coastal pop- available in the Fund for allocation with re- accordance with paragraph (2)(B). ulation of all coastal political subdivisions spect to that fiscal year is allocated. ‘‘(e) AUTHORIZED USES.—A Coastal Energy of the Coastal Energy State. ‘‘(d) SECURE ENERGY REINVESTMENT State, and a coastal political subdivision of ‘‘(ii) 25 percent shall be allocated based on PLAN.— such a State, shall use amounts paid under the ratio of each coastal political subdivi- ‘‘(1) DEVELOPMENT AND SUBMISSION OF this section (including any such amounts de- sion’s coastline miles to the coastline miles STATE PLANS.—The Governor of each State posited into a trust fund administered by the of all coastal political subdivisions of the seeking to receive funds under this section State or coastal political subdivision dedi- State. In the case of a coastal political sub- shall prepare, and submit to the Secretary, a cated to uses consistent with this subdivision without a coastline, the coastline of Secure Energy Reinvestment Plan describing section), in compliance with Federal and the political subdivision for purposes of this planned expenditures of funds received under State law and the approved plan of the clause shall be one-third the average length this section. The Governor shall include in State, only for one or more of the following of the coastline of the other coastal political the State plan submitted to the Secretary purposes: subdivisions of the State. plans prepared by the coastal political sub- ‘‘(1) Projects and activities, including edu- ‘‘(iii) 50 percent shall be allocated based on divisions of the State. The Governor and the cational activities, for the conservation, pro- a formula that allocates 75 percent of the coastal political subdivision shall solicit tection, or restoration of coastal areas in- funds based on such coastal political subdivi- local input and provide for public participa- cluding wetlands. sion’s relative distance from any leased tract tion in the development of the State plan. In ‘‘(2) Mitigating damage to, or the protec- used to calculate that State’s allocation and describing the planned expenditures, the tion of, fish, wildlife, or natural resources. 25 percent of the funds based on the relative State and coastal political subdivisions shall ‘‘(3) To the extent of such sums as are con- level of Outer Continental Shelf oil and gas include only items that are uses authorized sidered reasonable by the Secretary, plan- activities in a coastal political subdivision under subsection (e). ning assistance and administrative costs of to the level of Outer Continental Shelf oil ‘‘(2) APPROVAL OR DISAPPROVAL.— complying with this section. and gas activities in all coastal political sub- ‘‘(A) IN GENERAL.—The Secretary may not ‘‘(4) Implementation of federally approved divisions in such State, as determined by the disburse funds to a State or coastal political plans or programs for marine, coastal, sub- Secretary, except that in the case of a coast- subdivision of a State under this section be- sidence, or conservation management or for al political subdivision in the State of Cali- fore the date the State has an approved plan. protection of resources from natural disas- fornia that has a coastal shoreline, that is The Secretary shall approve a Secure Energy ters. not within 200 miles of the geographic center Reinvestment Plan submitted by a State ‘‘(5) Mitigating impacts of Outer Conti- of a leased tract or portion of a leased tract, under paragraph (1) if the Secretary deter- nental Shelf activities through funding on- and in which there is located one or more oil mines that the expenditures provided for in shore infrastructure and public service refineries the allocation under this clause the plan are uses authorized under sub- needs. shall be determined as if that coastal polit- section (e), and that the plan contains each ‘‘(f) COMPLIANCE WITH AUTHORIZED USES.— ical subdivision were located within a dis- of the following: If the Secretary determines that an expendi- tance of 50 miles from the geographic center ‘‘(i) The name of the State agency that will ture of an amount made by a Coastal Energy of the closest leased tract with qualified have the authority to represent and act for State or coastal political subdivision is not Outer Continental Shelf revenues. the State in dealing with the Secretary for in accordance with the approved plan of the ‘‘(3) REALLOCATION.—Any amount allocated purposes of this section. State (including the plans of coastal polit- to a Coastal Energy State or coastal polit- ‘‘(ii) A program for the implementation of ical subdivisions included in such plan), the ical subdivision of such a State but not dis- the plan, that (I) has as a goal improving the Secretary shall not disburse any further bursed because of a failure of a Coastal En- environment, (II) has as a goal addressing amounts under this section to that Coastal ergy State to have an approved plan shall be the impacts of oil and gas production from Energy State or coastal political subdivision reallocated by the Secretary among all other the Outer Continental Shelf, and (III) in- until— Coastal Energy States in a manner concludes a description of how the State and ‘‘(1) the amount is repaid to the Secretary; sistent with this subsection, except that the coastal political subdivisions of the State or Secretary— will evaluate the effectiveness of the plan. ‘‘(2) the Secretary approves an amendment ‘‘(A) shall hold the amount in escrow with- ‘‘(iii) Certification by the Governor that to the plan that authorizes the expenditure. in the Fund until the earlier of the end of ample opportunity has been accorded for ‘‘(g) ARBITRATION OF STATE AND LOCAL DIS- the next fiscal year in which the allocation public participation in the development and PUTES.—The Secretary may require, as a is made or the final resolution of any appeal revision of the plan. condition of any payment under this section, regarding the disapproval of a plan sub- ‘‘(iv) Measures for taking into account that a State or coastal political subdivision mitted by the State under this section; and other relevant Federal resources and pro- in a State must submit to arbitration— ‘‘(B) shall continue to hold such amount in grams. The plan shall be correlated so far as ‘‘(1) any dispute between the State or escrow until the end of the subsequent fiscal practicable with other State, regional, and coastal political subdivision (or both) and year thereafter, if the Secretary determines local plans. the Secretary regarding implementation of that such State is making a good faith effort ‘‘(v) For any State for which the ratio de- this section; and to develop and submit, or update, a Secure termined under subsection (c)(2)(A)(i) or ‘‘(2) any dispute between the State and po- Energy Reinvestment Plan under subsection (c)(2)(A)(ii), as appropriate, expressed as a litical subdivision regarding implementation (d). percentage, exceeds 25 percent, a plan to of this section, including any failure to in- ‘‘(4) MINIMUM SHARE.—Notwithstanding spend not less than 30 percent of the total clude, in the plan submitted by the State for any other provision of this subsection, the funds provided under this section each fiscal purposes of subsection (d), any spending plan amount allocated under this subsection to year to that State and appropriate coastal of the coastal political subdivision. each Coastal Energy State each fiscal year political subdivisions, to address the socio- ‘‘(h) ADMINISTRATIVE EXPENSES.—Of shall be not less than 5 percent of the total economic or environmental impacts identi- amounts made available under subsection amount available for that fiscal year for al- fied in the plan that remain significant or (m) for each fiscal year, the Secretary may location under this subsection to Coastal En- progressive after implementation of mitiga- use up to one-half of one percent for the ad- ergy States, except that for any Coastal En- tion measures identified in the most current ministrative costs of implementing this sec- ergy State determined by the Secretary to environmental impact statement (as of the tion. have an area formed by the extension of the date of the enactment of this clause) re- ‘‘(i) FUNDING FOR CONSORTIUM.— State’s seaward lateral boundary, as des- quired under the National Environmental ‘‘(1) IN GENERAL.—Of amounts made avail- ignated by the map referenced in paragraph Protection Act of 1969 for lease sales under able under subsection (m) for each of fiscal (2)(A)(iii), of less than 490 square statute this Act. year 2004 through 2013, 2 percent shall be miles, the amount allocated to such State ‘‘(vi) A plan to utilize at least one-half of used by the Secretary of the Interior to pro- shall not be less than 10 percent of the total the funds provided pursuant to subsection vide funding for the Coastal Restoration and amount available for that fiscal year for al- (c)(2)(B), and a portion of other funds pro- Enhancement through Science and Tech- location under this subsection. vided to such State under this section, on nology program. ‘‘(5) RECOMPUTATION.—If the allocation to programs or projects that are coordinated ‘‘(2) TREATMENT.—Any amount provided by one or more Coastal Energy States under and conducted in partnership between the the Secretary of the Interior under this subparagraph (4) with respect to a fiscal year is State and coastal political subdivision. section for a fiscal year shall, for purposes of

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determining the amount appropriated under (C) establishes a mechanism to collect, or- ‘‘(1) IN GENERAL.—Five of the members of any other provision of law that authorizes ganize, and make available information and the Board shall constitute a quorum for the appropriations to carry out the program re- findings on coastal restoration. transaction of business. ferred to in paragraph (1), be treated as ap- (3) REPORT.—Not later than September 30, ‘‘(2) VACANCIES.—A vacancy on the Board propriated under that other provision. 2008, the Secretary of the Interior, in con- shall not impair the power of the Board to ‘‘(j) DISPOSITION OF FUNDS.—A Coastal En- sultation with the Secretary of Commerce, act. ergy State or coastal political subdivision shall transmit a report to the Congress on ‘‘(f) COMPENSATION.— may use funds provided to such entity under the effectiveness of any Federal and State ‘‘(1) IN GENERAL.—A member of the Board this section, subject to subsection (e), for restoration efforts conducted pursuant to shall be entitled to receive— any payment that is eligible to be made with this subsection and make recommendations ‘‘(A) a stipend of— funds provided to States under section 35 of to improve coordinated coastal restoration ‘‘(i) $45,000 per year; or the Mineral Leasing Act (30 U.S.C. 191). efforts. ‘‘(ii)(I) in the case of the chairman of any ‘‘(k) REPORTS.—Each fiscal year following (4) FUNDING.—For each of fiscal years 2004 committee of the Board created by the a fiscal year in which a Coastal Energy State through 2013, there is authorized to be appro- Board, $46,000 per year; or or coastal political subdivision of a Coastal priated to the Secretary $10,000,000 to carry ‘‘(II) in the case of the chairman of the Energy State receives funds under this sec- out activities under this subsection. Board, $50,000 per year; and tion, the Governor of the Coastal Energy ‘‘(B) travel expenses, including per diem in State, in coordination with such State’s Subtitle C—Reforms to the Board of lieu of subsistence, in the same manner as coastal political subdivisions, shall account Directors of the Tennessee Valley Authority persons employed intermittently in Govern- for all funds so received for the previous fis- SEC. 1431. CHANGE IN COMPOSITION, OPER- ment service under section 5703 of title 5, cal year in a written report to the Secretary. ATION, AND DUTIES OF THE BOARD United States Code. The report shall include, in accordance with OF DIRECTORS OF THE TENNESSEE ‘‘(2) ADJUSTMENTS IN STIPENDS.—The regulations prescribed by the Secretary, a VALLEY AUTHORITY. amount of the stipend under paragraph description of all projects and activities that The Tennessee Valley Authority Act of (1)(A)(i) shall be adjusted by the same per- received such funds. In order to avoid dupli- 1933 (16 U.S.C. 831 et seq.) is amended by centage, at the same time and manner, and cation, such report may incorporate, by ref- striking section 2 and inserting the fol- subject to the same limitations as are appli- erence, any other reports required to be sub- lowing: cable to adjustments under section 5318 of mitted under other provisions of law. ‘‘SEC. 2. MEMBERSHIP, OPERATION, AND DUTIES title 5, United States Code. ‘‘(l) SIGNS.—The Secretary shall require, as OF THE BOARD OF DIRECTORS. ‘‘(g) DUTIES.— ‘‘(1) IN GENERAL.—The Board shall— a condition of any allocation of funds pro- ‘‘(a) MEMBERSHIP.— ‘‘(A) establish the broad goals, objectives, vided with amounts made available by this ‘‘(1) APPOINTMENT.—The Board of Directors section, that each State and coastal political of the Corporation (referred to in this Act as and policies of the Corporation that are appropriate to carry out this Act; subdivision shall include on any sign other- the ‘Board’) shall be composed of 9 members ‘‘(B) develop long-range plans to guide the wise installed at any site at or near an en- appointed by the President by and with the Corporation in achieving the goals, objec- trance or public use focal point area for advice and consent of the Senate, at least 5 tives, and policies of the Corporation and which such funds are used, a statement that of whom shall be a legal resident of a State provide assistance to the chief executive offi- the existence or development of the site (or any part of which is in the service area of cer to achieve those goals, objectives, and both), as appropriate, is a product of such the Corporation. policies; funds. ‘‘(2) CHAIRMAN.—The members of the Board ‘‘(C) ensure that those goals, objectives, ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.— shall select 1 of the members to act as Chair- and policies are achieved; There are authorized to be appropriated from man of the Board. the Fund to the Secretary to carry out this ‘‘(D) approve an annual budget for the Cor- ‘‘(b) QUALIFICATIONS.—To be eligible to be section, for fiscal year 2004 and each fiscal poration; appointed as a member of the Board, an indi- year thereafter, the amounts deposited into ‘‘(E) adopt and submit to Congress a con- vidual— the Fund during the preceding fiscal year.’’. flict-of-interest policy applicable to mem- ‘‘(1) shall be a citizen of the United States; (b) ADDITIONAL AMENDMENTS.—Section 31 bers of the Board and employees of the Cor- of the Outer Continental Shelf Lands Act (43 ‘‘(2) shall have management expertise rel- poration; U.S.C. 1356a) is amended— ative to a large for-profit or nonprofit cor- ‘‘(F) establish a compensation plan for em- (1) by striking subsection (a); porate, government, or academic structure; ployees of the Corporation in accordance (2) in subsection (c) by striking ‘‘For fiscal ‘‘(3) shall not be an employee of the Cor- with subsection (i); year 2001, $150,000,000 is’’ and inserting ‘‘Such poration; and ‘‘(G) approve all compensation (including sums as may be necessary to carry out this ‘‘(4) shall make full disclosure to Congress salary or any other pay, bonuses, benefits, section are’’; of any investment or other financial interest incentives, and any other form of remunera- (3) in subsection (d)(1)(B) by striking ‘‘, ex- that the individual holds in the energy in- tion) of all managers and technical personnel cept’’ and all that follows through the end of dustry. that report directly to the chief executive of- the sentence and inserting a period; ‘‘(c) RECOMMENDATIONS.—In appointing ficer (including any adjustment to com- (4) by redesignating subsections (b) members of the Board, the President shall— pensation); through (g) in order as subsection (a) ‘‘(1) consider recommendations from such ‘‘(H) ensure that all activities of the Cor- through (f); and public officials as— poration are carried out in compliance with (5) by striking ‘‘subsection (f)’’ each place ‘‘(A) the Governors of States in the service applicable law; it appears and inserting ‘‘subsection (e)’’. area; ‘‘(I) create an audit committee, composed (c) UTILIZATION OF COASTAL RESTORATION ‘‘(B) individual citizens; solely of Board members independent of the AND ENHANCEMENT THROUGH SCIENCE AND ‘‘(C) business, industrial, labor, electric management of the Corporation, which TECHNOLOGY PROGRAM.— power distribution, environmental, civic, shall— (1) AUTHORIZATION.—The Secretary of the and service organizations; and ‘‘(i) in consultation with the inspector gen- Interior and the Secretary of Commerce may ‘‘(D) the congressional delegations of the eral of the Corporation, recommend to the each use the Coastal Restoration and En- States in the service area; and Board an external auditor; hancement through Science and Technology ‘‘(2) seek qualified members from among ‘‘(ii) receive and review reports from the program for the purposes of— persons who reflect the diversity, including external auditor of the Corporation and in- (A) assessing the effects of coastal habitat the geographical diversity, and needs of the spector general of the Corporation; and restoration techniques; service area of the Corporation. ‘‘(iii) make such recommendations to the (B) developing improved ecosystem mod- ‘‘(d) TERMS.— Board as the audit committee considers nec- eling capabilities for improved predictions of ‘‘(1) IN GENERAL.—A member of the Board essary; coastal conditions and habitat change and shall serve a term of 5 years. A member of ‘‘(J) create such other committees of Board for developing new technologies for restora- the Board whose term has expired may con- members as the Board considers to be appro- tion activities; and tinue to serve after the member’s term has priate; (C) identifying economic options to address expired until the date on which a successor ‘‘(K) conduct such public hearings as it socioeconomic consequences of coastal deg- takes office, except that the member shall deems appropriate on issues that could have radation. not serve beyond the end of the session of a substantial effect on— (2) CONDITION.—The Secretary of the Inte- Congress in which the term of the member ‘‘(i) the electric ratepayers in the service rior, in consultation with the Secretary of expires. area; or Commerce, shall ensure that the program— ‘‘(2) VACANCIES.—A member appointed to ‘‘(ii) the economic, environmental, social, (A) establishes procedures designed to fill a vacancy on the Board occurring before or physical well-being of the people of the avoid duplicative activities among Federal the expiration of the term for which the service area; agencies and entities receiving Federal predecessor of the member was appointed ‘‘(L) establish the electricity rates charged funds; shall be appointed for the remainder of that by the Corporation; and (B) coordinates with persons involved in term. ‘‘(M) engage the services of an external similar activities; and ‘‘(e) QUORUM.— auditor for the Corporation.

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‘‘(2) MEETINGS.—The Board shall meet at (b) Section 9 of the Tennessee Valley Au- ‘‘(A) for review of any order or action of least 4 times each year. thority Act of 1933 (16 U.S.C. 831h) is amend- any Federal or State administrative agency ‘‘(h) CHIEF EXECUTIVE OFFICER.— ed— or officer to issue, condition, or deny any ‘‘(1) APPOINTMENT.—The Board shall ap- (1) by striking ‘‘The Comptroller General permit, license, concurrence, or approval point a person to serve as chief executive of- of the United States shall audit’’ and insert- issued under authority of any Federal law, ficer of the Corporation. ing the following: other than the Coastal Zone Management ‘‘(2) QUALIFICATIONS.— ‘‘(c) AUDITS.—The Comptroller General of Act of 1972 (16 U.S.C. 1451 et seq.), required ‘‘(A) IN GENERAL.—To serve as chief execu- the United States shall audit’’; and for the construction of a natural gas pipeline tive officer of the Corporation, a person— (2) by striking ‘‘The Corporation shall de- for which a certificate of public convenience ‘‘(i) shall have senior executive-level man- termine’’ and inserting the following: and necessity is issued by the Commission agement experience in large, complex orga- ‘‘(d) ADMINISTRATIVE ACCOUNTS AND BUSI- under this section; nizations; NESS DOCUMENTS.—The Corporation shall de- ‘‘(B) alleging unreasonable delay by any ‘‘(ii) shall not be a current member of the termine’’. Federal or State administrative agency or Board or have served as a member of the (c) Title 5, United States Code, is amend- officer in entering an order or taking other Board within 2 years before being appointed ed— action described in subparagraph (A); or chief executive officer; and (1) in section 5314, by striking ‘‘Chairman, ‘‘(C) challenging any decision made or ac- ‘‘(iii) shall comply with the conflict-of-in- Board of Directors of the Tennessee Valley tion taken under this subsection. terest policy adopted by the Board. Authority.’’; and ‘‘(2)(A) If the Court finds that the order, ‘‘(B) EXPERTISE.—In appointing a chief ex- (2) in section 5315, by striking ‘‘Members, action, or failure to act is not consistent ecutive officer, the Board shall give par- Board of Directors of the Tennessee Valley with the public convenience and necessity ticular consideration to appointing an indi- Authority.’’. (as determined by the Commission under this vidual with expertise in the electric industry SEC. 1434. APPOINTMENTS; EFFECTIVE DATE; section), or would prevent the construction and with strong financial skills. TRANSITION. and operation of natural gas facilities au- ‘‘(3) TENURE.—The chief executive officer (a) APPOINTMENTS.— thorized by the certificate of public conven- shall serve at the pleasure of the Board. (1) IN GENERAL.—As soon as practicable ience and necessity, the permit, license, con- ‘‘(i) COMPENSATION PLAN.— after the date of enactment of this Act, the currence, or approval that is the subject of ‘‘(1) IN GENERAL.—The Board shall approve President shall submit to the Senate nomi- the order, action, or failure to act shall be a compensation plan that specifies all com- nations of 6 persons to serve as members of deemed to have been issued subject to any pensation (including salary or any other pay, the Board of Directors of the Tennessee Val- conditions set forth in the reviewed order or bonuses, benefits, incentives, and any other ley Authority in addition to the members action that the Court finds to be consistent form of remuneration) for the chief execu- serving on the date of enactment of this Act. with the public convenience and necessity. tive officer and employees of the Corpora- (2) INITIAL TERMS.—Notwithstanding sec- ‘‘(B) For purposes of paragraph (1)(B), the tion. tion 2(d) of the Tennessee Valley Authority failure of an agency or officer to issue any ‘‘(2) ANNUAL SURVEY.—The compensation Act of 1933 (as amended by this subtitle), in such permit, license, concurrence, or ap- plan shall be based on an annual survey of making the appointments under paragraph proval within the later of 1 year after the the prevailing compensation for similar posi- (1), the President shall appoint— date of filing of an application for the per- tions in private industry, including engineer- (A) 2 members for a term to expire on May mit, license, concurrence, or approval or 60 ing and electric utility companies, publicly 18, 2006; days after the date of issuance of the certifi- owned electric utilities, and Federal, State, (B) 2 members for a term to expire on May cate of public convenience and necessity and local governments. 18, 2008; and under this section, shall be considered to be ‘‘(3) CONSIDERATIONS.—The compensation (C) 2 members for a term to expire on May unreasonable delay unless the Court, for plan shall provide that education, experi- 18, 2010. good cause shown, determines otherwise. ence, level of responsibility, geographic dif- (b) EFFECTIVE DATE.—The amendments ferences, and retention and recruitment made by this section and sections 1431, 1432, ‘‘(C) The Court shall set any action needs will be taken into account in deter- and 1433 take effect on the later of the date brought under paragraph (1) for expedited mining compensation of employees. on which at least 3 persons nominated under consideration.’’. ‘‘(4) POSITIONS AT OR BELOW LEVEL IV.—The subsection (a) take office or May 18, 2005. SEC. 1443. ATTAINMENT DATES FOR DOWNWIND chief executive officer shall determine the (c) SELECTION OF CHAIRMAN.—The Board of OZONE NONATTAINMENT AREAS. salary and benefits of employees whose an- Directors of the Tennessee Valley Authority Section 181 of the Clean Air Act (42 U.S.C. nual salary is not greater than the annual shall select 1 of the members to act as Chair- 7511) is amended by adding the following new rate payable for positions at level IV of the man of the Board not later than 30 days after subsection at the end thereof: Executive Schedule under section 5315 of the effective date of this section. ‘‘(d) EXTENDED ATTAINMENT DATE FOR CER- title 5, United States Code. (d) CONFLICT-OF-INTEREST POLICY.—The TAIN DOWNWIND AREAS.— ‘‘(5) POSITIONS ABOVE LEVEL IV.—On the Board of Directors of the Tennessee Valley ‘‘(1) DEFINITIONS.—(A) The term ‘upwind recommendation of the chief executive offi- Authority shall adopt and submit to Con- area’ means an area that— cer, the Board shall approve the salaries of gress a conflict-of-interest policy, as re- ‘‘(i) significantly contributes to nonattain- employees whose annual salaries would be in quired by section 2(g)(1)(E) of the Tennessee ment in another area, hereinafter referred to excess of the annual rate payable for posi- Valley Authority Act of 1933 (as amended by as a ‘downwind area’; and tions at level IV of the Executive Schedule this subtitle), as soon as practicable after ‘‘(ii) is either— under section 5315 of title 5, United States the effective date of this section. ‘‘(I) a nonattainment area with a later at- Code.’’. (e) TRANSITION.—A person who is serving as tainment date than the downwind area, or a member of the Board of Directors of the SEC. 1432. CHANGE IN MANNER OF APPOINT- ‘‘(II) an area in another State that the Ad- MENT OF STAFF. Tennessee Valley Authority on the date of ministrator has found to be significantly Section 3 of the Tennessee Valley Author- enactment of this Act— contributing to nonattainment in the down- ity Act of 1933 (16 U.S.C. 831b) is amended— (1) shall continue to serve until the end of wind area in violation of section 110(a)(2)(D) (1) by striking the first undesignated para- the current term of the member; but and for which the Administrator has estab- graph and inserting the following: (2) after the effective date specified in sub- lished requirements through notice and com- ‘‘(a) APPOINTMENT BY THE CHIEF EXECUTIVE section (b), shall serve under the terms of ment rulemaking to eliminate the emissions OFFICER.—The chief executive officer shall the Tennessee Valley Authority Act of 1933 causing such significant contribution. appoint, with the advice and consent of the (as amended by this subtitle); and ‘‘(B) The term ‘current classification’ Board, and without regard to the provisions (3) may not be reappointed. of the civil service laws applicable to officers means the classification of a downwind area and employees of the United States, such Subtitle D—Other Provisions under this section at the time of the deter- managers, assistant managers, officers, em- SEC. 1441. CONTINUATION OF TRANSMISSION SE- mination under paragraph (2). ployees, attorneys, and agents as are nec- CURITY ORDER. ‘‘(2) EXTENSION.—If the Administrator— essary for the transaction of the business of Department of Energy Order No. 202–03–2, ‘‘(A) determines that any area is a down- the Corporation.’’; and issued by the Secretary of Energy on August wind area with respect to a particular na- (2) by striking ‘‘All contracts’’ and insert- 28, 2003, shall remain in effect unless re- tional ambient air quality standard for ing the following: scinded by Federal statute. ozone; and ‘‘(b) WAGE RATES.—All contracts’’. SEC. 1442. REVIEW OF AGENCY DETERMINA- ‘‘(B) approves a plan revision for such area SEC. 1433. CONFORMING AMENDMENTS. TIONS. as provided in paragraph (3) prior to a reclas- (a) The Tennessee Valley Authority Act of Section 7 of the Natural Gas Act (15 U.S.C. sification under subsection (b)(2)(A)— 1933 (16 U.S.C. 831 et seq.) is amended— 717f) is amended by adding at the end the fol- the Administrator, in lieu of such reclassi- (1) by striking ‘‘board of directors’’ each lowing: fication, shall extend the attainment date place it appears and inserting ‘‘Board of Di- ‘‘(i)(1) The United States Court of Appeals for such downwind area for such standard in rectors’’; and for the District of Columbia Circuit shall accordance with paragraph (5). (2) by striking ‘‘board’’ each place it ap- have original and exclusive jurisdiction over ‘‘(3) REQUIRED APPROVAL.—In order to ex- pears and inserting ‘‘Board’’. any civil action— tend the attainment date for a downwind

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00151 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.104 S28PT1 S4596 CONGRESSIONAL RECORD — SENATE April 28, 2004

area under this subsection, the Adminis- SEC. 1445. USE OF GRANULAR MINE TAILINGS. ‘‘(i) IN GENERAL.—The term ‘renewable trator must approve a revision of the appli- (a) AMENDMENT.—Subtitle F of the Solid fuel’ means motor vehicle fuel that— cable implementation plan for the downwind Waste Disposal Act (42 U.S.C. 6961 et seq.) is ‘‘(I)(aa) is produced from grain, starch, oil- area for such standard that— amended by adding at the end the following: seeds, or other biomass; or ‘‘(A) complies with all requirements of this ‘‘SEC. 6006. USE OF GRANULAR MINE TAILINGS. ‘‘(bb) is natural gas produced from a biogas Act applicable under the current classifica- ‘‘(a) MINE TAILINGS.— source, including a landfill, sewage waste tion of the downwind area, including any re- ‘‘(1) IN GENERAL.—Not later than 180 days treatment plant, feedlot, or other place quirements applicable to the area under sec- after the date of enactment of this section, where decaying organic material is found; tion 172(c) for such standard; and the Administrator, in consultation with the and ‘‘(B) includes any additional measures Secretary of Transportation and heads of ‘‘(II) is used to replace or reduce the quan- needed to demonstrate attainment by the ex- other Federal agencies, shall establish cri- tity of fossil fuel present in a fuel mixture tended attainment date provided under this teria (including an evaluation of whether to used to operate a motor vehicle. subsection. establish a numerical standard for con- ‘‘(ii) INCLUSION.—The term ‘renewable fuel’ ‘‘(4) PRIOR RECLASSIFICATION DETERMINA- centration of lead and other hazardous sub- includes cellulosic biomass ethanol, waste TION.—If, no more than 18 months prior to stances) for the safe and environmentally derived ethanol, and biodiesel (as defined in the date of enactment of this subsection, the protective use of granular mine tailings from section 312(f) of the Energy Policy Act of 1992 Administrator made a reclassification deter- the Tar Creek, Oklahoma Mining District, (42 U.S.C. 13220(f)) and any blending compo- mination under subsection (b)(2)(A) for any known as ‘chat’, for— nents derived from renewable fuel (provided downwind area, and the Administrator ap- ‘‘(A) cement or concrete projects; and that only the renewable fuel portion of any proves the plan revision referred to in para- ‘‘(B) transportation construction projects such blending component shall be considered graph (3) for such area within 12 months (including transportation construction part of the applicable volume under the re- after the date of enactment of this sub- projects involving the use of asphalt) that newable fuel program established by this section, the reclassification shall be with- are carried out, in whole or in part, using subsection). drawn and the attainment date extended in Federal funds. ‘‘(C) SMALL REFINERY.—The term ‘small re- accordance with paragraph (5) upon such ap- ‘‘(2) REQUIREMENTS.—In establishing cri- finery’ means a refinery for which average proval. The Administrator shall also with- teria under paragraph (1), the Administrator aggregate daily crude oil throughput for the draw a reclassification determination under shall consider— calendar year (as determined by dividing the subsection (b)(2)(A) made after the date of ‘‘(A) the current and previous uses of aggregate throughput for the calendar year enactment of this subsection and extend the granular mine tailings as an aggregate for by the number of days in the calendar year) attainment date in accordance with para- asphalt; and does not exceed 75,000 barrels. graph (5) if the Administrator approves the ‘‘(B) any environmental and public health ‘‘(2) RENEWABLE FUEL PROGRAM.— plan revision referred to in paragraph (3) risks and benefits derived from the removal, ‘‘(A) IN GENERAL.—Not later than 1 year within 12 months of the date the reclassifica- transportation, and use in transportation after the enactment of this subsection, the tion determination under subsection projects of granular mine tailings. Administrator shall promulgate regulations (b)(2)(A) is issued. In such instances the ‘cur- ‘‘(3) PUBLIC PARTICIPATION.—In establishing ensuring that motor vehicle fuel sold or dis- rent classification’ used for evaluating the the criteria under paragraph (1), the Admin- pensed to consumers in the contiguous revision of the applicable implementation istrator shall solicit and consider comments United States, on an annual average basis, plan under paragraph (3) shall be the classi- from the public. contains the applicable volume of renewable fication of the downwind area under this sec- ‘‘(4) APPLICABILITY OF CRITERIA.—On the es- fuel as specified in subparagraph (B). Regard- tion immediately prior to such reclassifica- tablishment of the criteria under paragraph less of the date of promulgation, such regulation. (1), any use of the granular mine tailings de- tions shall contain compliance provisions for ‘‘(5) EXTENDED DATE.—The attainment date scribed in paragraph (1) in a transportation refiners, blenders, and importers, as appro- extended under this subsection shall provide project that is carried out, in whole or in priate, to ensure that the requirements of for attainment of such national ambient air part, using Federal funds, shall meet the cri- this section are met, but shall not restrict quality standard for ozone in the downwind teria established under paragraph (1). where renewable fuel can be used, or impose area as expeditiously as practicable but no ‘‘(b) EFFECT OF SECTIONS.—Nothing in this any per-gallon obligation for the use of re- later than the date on which the last reduc- section or section 6005 affects any require- newable fuel. If the Administrator does not tions in pollution transport necessary for at- ment of any law (including a regulation) in promulgate such regulations, the applicable tainment in the downwind area are required effect on the date of enactment of this sec- percentage referred to in paragraph (4), on a to be achieved by the upwind area or areas.’’. tion.’’. volume percentage of gasoline basis, shall be 2.2 in 2005. SEC. 1444. ENERGY PRODUCTION INCENTIVES. (b) CONFORMING AMENDMENT.—The table of contents of the Solid Waste Disposal Act (42 ‘‘(B) APPLICABLE VOLUME.— (a) IN GENERAL.—A State may provide to U.S.C. prec. 6901) is amended by adding at ‘‘(i) CALENDAR YEARS 2005 THROUGH 2012.— any entity— the end of the items relating to subtitle F For the purpose of subparagraph (A), the ap- (1) a credit against any tax or fee owed to the following: plicable volume for any of calendar years the State under a State law, or 2005 through 2012 shall be determined in ac- ‘‘Sec. 6006. Use of granular mine tailings.’’. (2) any other tax incentive— cordance with the following table: TITLE XV—ETHANOL AND MOTOR FUELS determined by the State to be appropriate, ‘‘Applicable volume of renewable fuel Subtitle A—General Provisions in the amount calculated under and in ac- Calendar year: (In billions of cordance with a formula determined by the SEC. 1501. RENEWABLE CONTENT OF MOTOR VE- gallons) State, for production described in subsection HICLE FUEL. 2005 ...... 3.1 (b) in the State by the entity that receives (a) IN GENERAL.—Section 211 of the Clean 2006 ...... 3.3 such credit or such incentive. Air Act (42 U.S.C. 7545) is amended— 2007 ...... 3.5 (1) by redesignating subsection (o) as sub- 2008 ...... 3.8 (b) ELIGIBLE ENTITIES.—Subsection (a) section (q); and 2009 ...... 4.1 shall apply with respect to the production in (2) by inserting after subsection (n) the fol- 2010 ...... 4.4 the State of— lowing: 2011 ...... 4.7 (1) electricity from coal mined in the State ‘‘(o) RENEWABLE FUEL PROGRAM.— 2012 ...... 5.0 and used in a facility, if such production ‘‘(1) DEFINITIONS.—In this section: ‘‘(ii) CALENDAR YEAR 2013 AND THERE- meets all applicable Federal and State laws ‘‘(A) ETHANOL.—(i) The term ‘cellulosic AFTER.—For the purpose of subparagraph (A), and if such facility uses scrubbers or other biomass ethanol’ means ethanol derived the applicable volume for calendar year 2013 forms of clean coal technology, from any lignocellulosic or hemicellulosic and each calendar year thereafter shall be (2) electricity from a renewable source matter that is available on a renewable or equal to the product obtained by multi- such as wind, solar, or biomass, or recurring basis, including— plying— (3) ethanol. ‘‘(I) dedicated energy crops and trees; ‘‘(I) the number of gallons of gasoline that (c) EFFECT ON INTERSTATE COMMERCE.—Any ‘‘(II) wood and wood residues; the Administrator estimates will be sold or action taken by a State in accordance with ‘‘(III) plants; introduced into commerce in the calendar this section with respect to a tax or fee pay- ‘‘(IV) grasses; year; and able, or incentive applicable, for any period ‘‘(V) agricultural residues; and ‘‘(II) the ratio that— beginning after the date of the enactment of ‘‘(VI) fibers. ‘‘(aa) 5.0 billion gallons of renewable fuels; this Act shall— ‘‘(ii) The term ‘waste derived ethanol’ bears to (1) be considered to be a reasonable regula- means ethanol derived from— ‘‘(bb) the number of gallons of gasoline tion of commerce; and ‘‘(I) animal wastes, including poultry fats sold or introduced into commerce in cal- (2) not be considered to impose an undue and poultry wastes, and other waste mate- endar year 2012. burden on interstate commerce or to other- rials; or ‘‘(3) NON-CONTIGUOUS STATE OPT-IN.—Upon wise impair, restrain, or discriminate, ‘‘(II) municipal solid waste. the petition of a non-contiguous State, the against interstate commerce. ‘‘(B) RENEWABLE FUEL.— Administrator may allow the renewable fuel

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00152 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.104 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4597 program established by subtitle A of title XV the credits to another person, for the pur- economy or environment of a State, a re- of the Energy Policy Act of 2003 to apply in pose of complying with paragraph (2). gion, or the United States; or such non-contiguous State at the same time ‘‘(C) LIFE OF CREDITS.—A credit generated ‘‘(ii) based on a determination by the Ad- or any time after the Administrator promul- under this paragraph shall be valid to show ministrator, after public notice and oppor- gates regulations under paragraph (2). The compliance— tunity for comment, that there is an inad- Administrator may promulgate or revise reg- ‘‘(i) in the calendar year in which the cred- equate domestic supply or distribution ca- ulations under paragraph (2), establish appli- it was generated or the next calendar year; pacity to meet the requirement. cable percentages under paragraph (4), pro- or ‘‘(B) PETITIONS FOR WAIVERS.—The Admin- vide for the generation of credits under para- ‘‘(ii) in the calendar year in which the istrator, in consultation with the Secretary graph (6), and take such other actions as credit was generated or next two consecutive of Agriculture and the Secretary of Energy, may be necessary to allow for the applica- calendar years if the Administrator promul- shall approve or disapprove a State petition tion of the renewable fuels program in a non- gates regulations under paragraph (7). for a waiver of the requirement of paragraph contiguous State. ‘‘(D) INABILITY TO PURCHASE SUFFICIENT (2) within 90 days after the date on which the ‘‘(4) APPLICABLE PERCENTAGES.— CREDITS.—The regulations promulgated to petition is received by the Administrator. ‘‘(A) PROVISION OF ESTIMATE OF VOLUMES OF carry out this subsection shall include provi- ‘‘(C) TERMINATION OF WAIVERS.—A waiver GASOLINE SALES.—Not later than October 31 sions allowing any person that is unable to granted under subparagraph (A) shall termi- of each of calendar years 2004 through 2011, generate or purchase sufficient credits to nate after 1 year, but may be renewed by the the Administrator of the Energy Information meet the requirements under paragraph (2) Administrator after consultation with the Administration shall provide to the Adminis- to carry forward a renewable fuel deficit pro- Secretary of Agriculture and the Secretary trator of the Environmental Protection vided that, in the calendar year following of Energy. Agency an estimate of the volumes of gaso- the year in which the renewable fuel deficit ‘‘(9) STUDY AND WAIVER FOR INITIAL YEAR OF line that will be sold or introduced into com- is created, such person shall achieve compli- PROGRAM.—Not later than 180 days after the merce in the United States during the fol- ance with the renewable fuel requirement enactment of this subsection, the Secretary lowing calendar year. under paragraph (2), and shall generate or of Energy shall complete for the Adminis- ‘‘(B) DETERMINATION OF APPLICABLE PER- purchase additional renewable fuel credits to trator a study assessing whether the renew- CENTAGES.— offset the renewable fuel deficit of the pre- able fuels requirement under paragraph (2) ‘‘(i) IN GENERAL.—Not later than November vious year. will likely result in significant adverse con- 30 of each of the calendar years 2004 through ‘‘(7) SEASONAL VARIATIONS IN RENEWABLE sumer impacts in 2005, on a national, re- 2011, based on the estimate provided under FUEL USE.— gional, or State basis. Such study shall subparagraph (A), the Administrator shall ‘‘(A) STUDY.—For each of the calendar evaluate renewable fuel supplies and prices, determine and publish in the Federal Reg- years 2005 through 2012, the Administrator of blendstock supplies, and supply and distribu- ister, with respect to the following calendar the Energy Information Administration tion system capabilities. Based on such year, the renewable fuel obligation that en- shall conduct a study of renewable fuels study, the Secretary shall make specific rec- sures that the requirements of paragraph (2) blending to determine whether there are ex- ommendations to the Administrator regard- are met. cessive seasonal variations in the use of re- ing waiver of the requirements of paragraph ‘‘(ii) REQUIRED ELEMENTS.—The renewable newable fuels. (2), in whole or in part, to avoid any such ad- fuel obligation determined for a calendar ‘‘(B) REGULATION OF EXCESSIVE SEASONAL verse impacts. Within 270 days after the en- year under clause (i) shall— VARIATIONS.—If, for any calendar year, the actment of this subsection, the Adminis- ‘‘(I) be applicable to refiners, blenders, and Administrator of the Energy Information trator shall, consistent with the rec- importers, as appropriate; Administration, based on the study under ommendations of the Secretary, waive, in ‘‘(II) be expressed in terms of a volume per- subparagraph (A), makes the determinations whole or in part, the renewable fuels require- centage of gasoline sold or introduced into specified in subparagraph (C), the Adminis- ment under paragraph (2) by reducing the na- commerce; and trator shall promulgate regulations to en- tional quantity of renewable fuel required ‘‘(III) subject to subparagraph (C)(i), con- sure that 35 percent or more of the quantity under this subsection in 2005. This paragraph sist of a single applicable percentage that of renewable fuels necessary to meet the re- shall not be interpreted as limiting the Ad- applies to all categories of persons specified quirement of paragraph (2) is used during ministrator’s authority to waive the require- in subclause (I). each of the periods specified in subparagraph ments of paragraph (2) in whole, or in part, ‘‘(C) ADJUSTMENTS.—In determining the (D) of each subsequent calendar year. under paragraph (8) or paragraph (10), per- applicable percentage for a calendar year, ‘‘(C) DETERMINATIONS.—The determina- taining to waivers. the Administrator shall make adjustments— tions referred to in subparagraph (B) are ‘‘(10) ASSESSMENT AND WAIVER.—The Ad- ‘‘(i) to prevent the imposition of redundant that— ministrator, in consultation with the Sec- obligations to any person specified in sub- ‘‘(i) less than 35 percent of the quantity of retary of Energy and the Secretary of Agri- paragraph (B)(ii)(I); and renewable fuels necessary to meet the re- culture, shall evaluate the requirement of ‘‘(ii) to account for the use of renewable quirement of paragraph (2) has been used paragraph (2) and determine, prior to Janu- fuel during the previous calendar year by during one of the periods specified in sub- ary 1, 2007, and prior to January 1 of any sub- small refineries that are exempt under para- paragraph (D) of the calendar year; sequent year in which the applicable volume graph (11). ‘‘(ii) a pattern of excessive seasonal vari- of renewable fuel is increased under para- ‘‘(5) EQUIVALENCY.—For the purpose of ation described in clause (i) will continue in graph (2)(B), whether the requirement of paragraph (2), 1 gallon of either cellulosic subsequent calendar years; and paragraph (2), including the applicable vol- biomass ethanol or waste derived ethanol— ‘‘(iii) promulgating regulations or other re- ume of renewable fuel contained in para- ‘‘(A) shall be considered to be the equiva- quirements to impose a 35 percent or more graph (2)(B) should remain in effect, in whole lent of 1.5 gallon of renewable fuel; or seasonal use of renewable fuels will not pre- or in part, during 2007 or any year or years ‘‘(B) if the cellulosic biomass ethanol or vent or interfere with the attainment of na- subsequent to 2007. In evaluating the require- waste derived ethanol is derived from agri- tional ambient air quality standards or sig- ment of paragraph (2) and in making any de- cultural residue or is an agricultural byprod- nificantly increase the price of motor fuels termination under this section, the Adminis- uct (as that term is used in section 919 of the to the consumer. trator shall consider the best available infor- Energy Policy Act of 2003), shall be consid- ‘‘(D) PERIODS.—The two periods referred to mation and data collected by accepted meth- ered to be the equivalent of 2.5 gallons of rein this paragraph are— ods or best available means regarding— newable fuel. ‘‘(i) April through September; and ‘‘(A) the capacity of renewable fuel pro- ‘‘(6) CREDIT PROGRAM.— ‘‘(ii) January through March and October ducers to supply an adequate amount of re- ‘‘(A) IN GENERAL.—The regulations promul- through December. newable fuel at competitive prices to fulfill gated to carry out this subsection shall pro- ‘‘(E) EXCLUSIONS.—Renewable fuels blended the requirement of paragraph (2); vide for the generation of an appropriate or consumed in 2005 in a State which has re- ‘‘(B) the potential of the requirement of amount of credits by any person that refines, ceived a waiver under section 209(b) shall not paragraph (2) to significantly raise the price blends, or imports gasoline that contains a be included in the study in subparagraph (A). of gasoline, food (excluding the net price im- quantity of renewable fuel that is greater ‘‘(8) WAIVERS.— pact on the requirement in paragraph (2) on than the quantity required under paragraph ‘‘(A) IN GENERAL.—The Administrator, in commodities used in the production of eth- (2). Such regulations shall provide for the consultation with the Secretary of Agri- anol), or heating oil for consumers in any generation of an appropriate amount of cred- culture and the Secretary of Energy, may significant area or region of the country its for biodiesel fuel. If a small refinery noti- waive the requirement of paragraph (2) in above the price that would otherwise apply fies the Administrator that it waives the ex- whole or in part on petition by one or more to such commodities in the absence of such emption provided paragraph (11), the regula- States by reducing the national quantity of requirement; tions shall provide for the generation of renewable fuel required under this sub- ‘‘(C) the potential of the requirement of credits by the small refinery beginning in section— paragraph (2) to interfere with the supply of the year following such notification. ‘‘(i) based on a determination by the Ad- fuel in any significant gasoline market or re- ‘‘(B) USE OF CREDITS.—A person that gen- ministrator, after public notice and oppor- gion of the country, including interference erates credits under subparagraph (A) may tunity for comment, that implementation of with the efficient operation of refiners, use the credits, or transfer all or a portion of the requirement would severely harm the blenders, importers, wholesale suppliers, and

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00153 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.104 S28PT1 S4598 CONGRESSIONAL RECORD — SENATE April 28, 2004 retail vendors of gasoline, and other motor Hirschman Index, all marketing arrange- (5) the fuel industry responded to the fuel fuels; and ments among industry participants shall be oxygenate standard established by Public ‘‘(D) the potential of the requirement of considered. Law 101–549 by making substantial invest- paragraph (2) to cause or promote ‘‘(B) REPORT.—Not later than December 1, ments in— exceedances of Federal, State, or local air 2004, and annually thereafter, the Federal (A) MTBE production capacity; and quality standards. Trade Commission shall submit to Congress (B) systems to deliver MTBE-containing If the Administrator determines, by clear and the Administrator a report on the re- gasoline to the marketplace; and convincing information, after public no- sults of the market concentration analysis (6) having previously required oxygenates tice and the opportunity for comment, that performed under subparagraph (A)(i).’’. like MTBE for air quality purposes, Congress the requirement of paragraph (2) would have (b) PENALTIES AND ENFORCEMENT.—Section has— significant and meaningful adverse impact 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) (A) reconsidered the relative value of on the supply of fuel and related infrastruc- is amended as follows: MTBE in gasoline; ture or on the economy, public health, or en- (1) In paragraph (1)— (B) decided to establish a date certain for vironment of any significant area or region (A) in the first sentence, by striking ‘‘or action by the Environmental Protection of the country, the Administrator may (n)’’ each place it appears and inserting ‘‘(n), Agency to prohibit the use of MTBE in gaso- waive, in whole or in part, the requirement or (o)’’; and line; and of paragraph (2) in any one year for which (B) in the second sentence, by striking ‘‘or (C) decided to provide for the elimination the determination is made for that area or (m)’’ and inserting ‘‘(m), or (o)’’. of the oxygenate requirement for reformu- region of the country, except that any such (2) In the first sentence of paragraph (2), by lated gasoline and to provide for a renewable waiver shall not have the effect of reducing striking ‘‘and (n)’’ each place it appears and fuels content requirement for motor fuel; the applicable volume of renewable fuel spec- inserting ‘‘(n), and (o)’’. and ified in paragraph (2)(B) with respect to any (c) SURVEY OF RENEWABLE FUEL MARKET.— (7) it is appropriate for Congress to provide year for which the determination is made. In (1) SURVEY AND REPORT.—Not later than some limited transition assistance— determining economic impact under this December 1, 2006, and annually thereafter, (A) to merchant producers of MTBE who paragraph, the Administrator shall not con- the Administrator of the Environmental produced MTBE in response to a market cre- sider the reduced revenues available from Protection Agency (in consultation with the ated by the oxygenate requirement con- the Highway Trust Fund (section 9503 of the Secretary of Energy acting through the Ad- tained in the Clean Air Act; and Internal Revenue Code of 1986) as a result of ministrator of the Energy Information Ad- (B) for the purpose of mitigating any fuel the use of ethanol. ministration) shall— supply problems that may result from the ‘‘(11) SMALL REFINERIES.— (A) conduct, with respect to each conven- elimination of the oxygenate requirement ‘‘(A) IN GENERAL.—The requirement of tional gasoline use area and each reformu- for reformulated gasoline and from the deci- paragraph (2) shall not apply to small refin- lated gasoline use area in each State, a sur- sion to establish a date certain for action by eries until the first calendar year beginning vey to determine the market shares of— more than 5 years after the first year set the Environmental Protection Agency to (i) conventional gasoline containing eth- prohibit the use of MTBE in gasoline. forth in the table in paragraph (2)(B)(i). Not anol; later than December 31, 2007, the Secretary (ii) reformulated gasoline containing eth- (b) PURPOSES.—The purpose of this section of Energy shall complete for the Adminis- anol; is to provide assistance to merchant pro- trator a study to determine whether the re- (iii) conventional gasoline containing re- ducers of MTBE in making the transition quirement of paragraph (2) would impose a newable fuel; and from producing MTBE to producing other disproportionate economic hardship on small (iv) reformulated gasoline containing refuel additives. refineries. For any small refinery that the newable fuel; and (c) MTBE MERCHANT PRODUCER CONVER- Secretary of Energy determines would expe- (B) submit to Congress, and make publicly rience a disproportionate economic hardship, available, a report on the results of the sur- SION ASSISTANCE.—Section 211(c) of the Clean the Administrator shall extend the small re- vey under subparagraph (A). Air Act (42 U.S.C. 7545(c)) is amended by add- finery exemption for such small refinery for (2) RECORDKEEPING AND REPORTING REQUIRE- ing at the end the following: no less than two additional years. MENTS.—The Administrator of the Environ- ‘‘(5) MTBE MERCHANT PRODUCER CONVER- ‘‘(B) ECONOMIC HARDSHIP.— mental Protection Agency (hereinafter in SION ASSISTANCE.— ‘‘(i) EXTENSION OF EXEMPTION.—A small re- this subsection referred to as the ‘‘Adminis- ‘‘(A) IN GENERAL.— finery may at any time petition the Admin- trator’’) may require any refiner, blender, or ‘‘(i) GRANTS.—The Secretary of Energy, in istrator for an extension of the exemption importer to keep such records and make consultation with the Administrator, may from the requirement of paragraph (2) for the such reports as are necessary to ensure that make grants to merchant producers of meth- reason of disproportionate economic hard- the survey conducted under paragraph (1) is yl tertiary butyl ether (hereinafter in this ship. In evaluating a hardship petition, the accurate. The Administrator, to avoid dupli- subsection referred to as ‘MTBE’) in the Administrator, in consultation with the Sec- cative requirements, shall rely, to the extent United States to assist the producers in the retary of Energy, shall consider the findings practicable, on existing reporting and rec- conversion of eligible production facilities of the study in addition to other economic ordkeeping requirements and other informa- described in subparagraph (C) to the produc- factors. tion available to the Administrator includ- tion of iso-octane, iso-octene, alkylates, or ‘‘(ii) DEADLINE FOR ACTION ON PETITIONS.— ing gasoline distribution patterns that in- renewable fuels. The Administrator shall act on any petition submitted by a small refinery for a hardship clude multistate use areas. ‘‘(ii) DETERMINATION.—The Administrator, exemption not later than 90 days after the (3) APPLICABLE LAW.—Activities carried in consultation with the Secretary of En- receipt of the petition. out under this subsection shall be conducted ergy, may determine that transition assist- in a manner designed to protect confiden- ‘‘(C) CREDIT PROGRAM.—If a small refinery ance for the production of iso-octane, iso- notifies the Administrator that it waives the tiality of individual responses. octene, alkylates, or renewable fuels is in- exemption provided by this Act, the regula- SEC. 1502. FINDINGS AND MTBE TRANSITION AS- consistent with the provisions of subpara- tions shall provide for the generation of SISTANCE. graph (B) and, on that basis, may deny appli- credits by the small refinery beginning in (a) FINDINGS.—Congress finds that— cations for grants authorized by this para- the year following such notification. (1) since 1979, methyl tertiary butyl ether graph. ‘‘(D) OPT-IN FOR SMALL REFINERS.—A small (hereinafter in this section referred to as ‘‘(B) FURTHER GRANTS.—The Secretary of refinery shall be subject to the requirements ‘‘MTBE’’) has been used nationwide at low Energy, in consultation with the Adminis- of this section if it notifies the Adminis- levels in gasoline to replace lead as an oc- trator, may also further make grants to mer- trator that it waives the exemption under tane booster or anti-knocking agent; chant producers of MTBE in the United subparagraph (A). (2) Public Law 101–549 (commonly known as States to assist the producers in the conver- ‘‘(12) ETHANOL MARKET CONCENTRATION the ‘‘Clean Air Act Amendments of 1990’’) (42 sion of eligible production facilities de- ANALYSIS.— U.S.C. 7401 et seq.) established a fuel oxygen- scribed in subparagraph (C) to the produc- ‘‘(A) ANALYSIS.— ate standard under which reformulated gaso- tion of such other fuel additives (unless the ‘‘(i) IN GENERAL.—Not later than 180 days line must contain at least 2 percent oxygen Administrator determines that such fuel ad- after the date of enactment of this sub- by weight; ditives may reasonably be anticipated to en- section, and annually thereafter, the Federal (3) at the time of the adoption of the fuel danger public health or the environment) Trade Commission shall perform a market oxygen standard, Congress was aware that that, consistent with this subsection— concentration analysis of the ethanol pro- significant use of MTBE would result from ‘‘(i) have been registered and have been duction industry using the Herfindahl- the adoption of that standard, and that the tested or are being tested in accordance with Hirschman Index to determine whether there use of MTBE would likely be important to the requirements of this section; and is sufficient competition among industry the cost-effective implementation of that ‘‘(ii) will contribute to replacing gasoline participants to avoid price setting and other program; volumes lost as a result of amendments anticompetitive behavior. (4) Congress was aware that gasoline and made to subsection (k) of this section by sec- ‘‘(ii) SCORING.—For the purpose of scoring its component additives can and do leak tions 1503(a) and 1505 of the Energy Policy under clause (i) using the Herfindahl- from storage tanks; Act of 2003.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00154 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.104 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4599

‘‘(C) ELIGIBLE PRODUCTION FACILITIES.—A ant to section 1503 shall not take place and gated under subparagraph (A) and paragraph production facility shall be eligible to re- that the legal authority contained in section (3)(B). ceive a grant under this paragraph if the pro- 1503 to prohibit the use of MTBE in motor ‘‘(iv) CREDIT PROGRAM.—The Administrator duction facility— vehicle fuel shall become null and void. shall provide for the granting and use of ‘‘(i) is located in the United States; and SEC. 1505. ELIMINATION OF OXYGEN CONTENT credits for emissions of toxic air pollutants ‘‘(ii) produced MTBE for consumption be- REQUIREMENT FOR REFORMU- in the same manner as provided in paragraph fore April 1, 2003 and ceased production at LATED GASOLINE. (7). any time after the date of enactment of this (a) ELIMINATION.— ‘‘(v) REGIONAL PROTECTION OF TOXICS RE- paragraph. (1) IN GENERAL.—Section 211(k) of the DUCTION BASELINES.— ‘‘(D) AUTHORIZATION OF APPROPRIATIONS.— Clean Air Act (42 U.S.C. 7545(k)) is amended ‘‘(I) IN GENERAL.—Not later than 60 days There are authorized to be appropriated to as follows: after the date of enactment of this subpara- carry out this paragraph $250,000,000 for each (A) In paragraph (2)— graph, and not later than April 1 of each cal- of fiscal years 2005 through 2012, to remain (i) in the second sentence of subparagraph endar year that begins after that date of en- available until expended.’’. (A), by striking ‘‘(including the oxygen con- actment, the Administrator shall publish in tent requirement contained in subparagraph (d) EFFECT ON STATE LAW.—The amend- the Federal Register a report that specifies, ments made to the Clean Air Act by this (B))’’; with respect to the previous calendar year— title have no effect regarding any available (ii) by striking subparagraph (B); and ‘‘(aa) the quantity of reformulated gasoline authority of States to limit the use of meth- (iii) by redesignating subparagraphs (C) produced that is in excess of the average an- yl tertiary butyl ether in motor vehicle fuel. and (D) as subparagraphs (B) and (C), respec- nual quantity of reformulated gasoline pro- tively. duced in 1999 and 2000; and SEC. 1503. USE OF MTBE. (B) In paragraph (3)(A), by striking clause ‘‘(bb) the reduction of the average annual (a) IN GENERAL.—Subject to subsections (e) (v). aggregate emissions of toxic air pollutants and (f), not later than December 31, 2014, the (C) In paragraph (7)— in each PADD, based on retail survey data or use of methyl tertiary butyl ether (herein- (i) in subparagraph (A)— data from other appropriate sources. after in this section referred to as ‘‘MTBE’’) (I) by striking clause (i); and ‘‘(II) EFFECT OF FAILURE TO MAINTAIN AG- in motor vehicle fuel in any State other than (II) by redesignating clauses (ii) and (iii) as GREGATE TOXICS REDUCTIONS.—If, in any cal- a State described in subsection (c) is prohib- clauses (i) and (ii), respectively; and endar year, the reduction of the average an- ited. (ii) in subparagraph (C)— nual aggregate emissions of toxic air pollut- (b) REGULATIONS.—The Administrator of (I) by striking clause (ii). the Environmental Protection Agency (here- (II) by redesignating clause (iii) as clause ants in a PADD fails to meet or exceed the after referred to in this section as the ‘‘Ad- (ii). reduction of the average annual aggregate emissions of toxic air pollutants in the ministrator’’) shall promulgate regulations (2) EFFECTIVE DATE.—The amendments to effect the prohibition in subsection (a). made by paragraph (1) take effect 270 days PADD in calendar years 1999 and 2000, the (c) STATES THAT AUTHORIZE USE.—A State after the date of enactment of this Act, ex- Administrator, not later than 90 days after described in this subsection is a State in cept that such amendments shall take effect the date of publication of the report for the which the Governor of the State submits a upon such date of enactment in any State calendar year under subclause (I), shall— notification to the Administrator author- that has received a waiver under section ‘‘(aa) identify, to the maximum extent izing the use of MTBE in motor vehicle fuel 209(b) of the Clean Air Act. practicable, the reasons for the failure, in- sold or used in the State. (b) MAINTENANCE OF TOXIC AIR POLLUTANT cluding the sources, volumes, and character- (d) PUBLICATION OF NOTICE.—The Adminis- EMISSION REDUCTIONS.—Section 211(k)(1) of istics of reformulated gasoline that contrib- trator shall publish in the Federal Register the Clean Air Act (42 U.S.C. 7545(k)(1)) is uted to the failure; and each notice submitted by a State under sub- amended as follows: ‘‘(bb) promulgate revisions to the regula- section (c). (1) By striking ‘‘Within 1 year after the en- tions promulgated under clause (ii), to take (e) TRACE QUANTITIES.—In carrying out actment of the Clean Air Act Amendments of effect not earlier than 180 days but not later subsection (a), the Administrator may allow 1990,’’ and inserting the following: than 270 days after the date of promulgation, trace quantities of MTBE, not to exceed 0.5 ‘‘(A) IN GENERAL.—Not later than Novem- to provide that, notwithstanding clause percent by volume, to be present in motor ber 15, 1991,’’. (iii)(II), all reformulated gasoline produced vehicle fuel in cases that the Administrator (2) By adding at the end the following: or distributed at each refinery or importer determines to be appropriate. ‘‘(B) MAINTENANCE OF TOXIC AIR POLLUTANT shall meet the standards applicable under (f) LIMITATION.—The Administrator, under EMISSIONS REDUCTIONS FROM REFORMULATED clause (ii) not later than April 1 of the year authority of subsection (a), shall not pro- GASOLINE.— following the report in subclause (II) and for hibit or control the production of MTBE for ‘‘(i) DEFINITIONS.—In this subparagraph the subsequent years. export from the United States or for any term ‘PADD’ means a Petroleum Adminis- ‘‘(vi) REGULATIONS TO CONTROL HAZARDOUS other use other than for use in motor vehicle tration for Defense District. AIR POLLUTANTS FROM MOTOR VEHICLES AND fuel. ‘‘(ii) REGULATIONS REGARDING EMISSIONS OF MOTOR VEHICLE FUELS.—Not later than July 1, 2004, the Administrator shall promulgate SEC. 1504. NATIONAL ACADEMY OF SCIENCES RE- TOXIC AIR POLLUTANTS.—Not later than 270 VIEW AND PRESIDENTIAL DETER- days after the date of enactment of this sub- final regulations to control hazardous air MINATION. paragraph the Administrator shall establish, pollutants from motor vehicles and motor (a) NAS REVIEW.—Not later than May 31, for each refinery or importer, standards for vehicle fuels, as provided for in section 2013, the Secretary shall enter into an ar- toxic air pollutants from use of the reformu- 80.1045 of title 40, Code of Federal Regula- rangement with the National Academy of lated gasoline produced or distributed by the tions (as in effect on the date of enactment Sciences to review the use of methyl tertiary refinery or importer that maintain the re- of this subparagraph).’’. butyl ether (hereafter referred to in this sec- duction of the average annual aggregate (c) CONSOLIDATION IN REFORMULATED GASO- tion as ‘‘MTBE’’) in fuel and fuel additives. emissions of toxic air pollutants for reformu- LINE REGULATIONS.—Not later than 180 days The review shall only use the best available lated gasoline produced or distributed by the after the date of enactment of this Act, the scientific information and data collected by refinery or importer during calendar years Administrator of the Environmental Protec- tion Agency shall revise the reformulated accepted methods or the best available 1999 and 2000, determined on the basis of data gasoline regulations under subpart D of part means. The review shall examine the use of collected by the Administrator with respect 80 of title 40, Code of Federal Regulations, to MTBE in fuel and fuel additives, significant to the refinery or importer. consolidate the regulations applicable to beneficial and detrimental effects of this use ‘‘(iii) STANDARDS APPLICABLE TO SPECIFIC VOC-Control Regions 1 and 2 under section on environmental quality or public health or REFINERIES OR IMPORTERS.— 80.41 of that title by eliminating the less welfare including the costs and benefits of ‘‘(I) APPLICABILITY OF STANDARDS.—For stringent requirements applicable to gaso- such effects, likely effects of controls or pro- any calendar year, the standards applicable line designated for VOC-Control Region 2 and hibitions on MTBE regarding fuel avail- to a refinery or importer under clause (ii) instead applying the more stringent require- ability and price, and other appropriate and shall apply to the quantity of gasoline pro- ments applicable to gasoline designated for reasonable actions that are available to produced or distributed by the refinery or im- VOC-Control Region 1. tect the environment or public health or wel- porter in the calendar year only to the ex- (d) SAVINGS CLAUSE.—Nothing in this sec- fare from any detrimental effects of the use tent that the quantity is less than or equal tion is intended to affect or prejudice either of MTBE in fuel or fuel additives. The review to the average annual quantity of reformu- any legal claims or actions with respect to shall be peer-reviewed prior to publication lated gasoline produced or distributed by the regulations promulgated by the Adminis- and all supporting data and analytical mod- refinery or importer during calendar years trator of the Environmental Protection els shall be available to the public. The re- 1999 and 2000. Agency (hereinafter in this subsection review shall be completed no later than May ‘‘(II) APPLICABILITY OF OTHER STANDARDS.— ferred to as the ‘‘Administrator’’) prior to 31, 2014. For any calendar year, the quantity of gaso- the date of enactment of this Act regarding (b) PRESIDENTIAL DETERMINATION.—No line produced or distributed by a refinery or emissions of toxic air pollutants from motor later than June 30, 2014, the President may importer that is in excess of the quantity vehicles or the adjustment of standards ap- make a determination that restrictions on subject to subclause (I) shall be subject to plicable to a specific refinery or importer the use of MTBE to be implemented pursu- standards for toxic air pollutants promul- made under such prior regulations and the

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00155 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.104 S28PT1 S4600 CONGRESSIONAL RECORD — SENATE April 28, 2004 Administrator may apply such adjustments ‘‘(F) Such other analyses or evaluations as (C) the effect of Federal, State, and local to the standards applicable to such refinery the Administrator finds is necessary to motor vehicle fuel regulations, including or importer under clause (iii)(I) of section achieve the purposes of this section. multiple motor vehicle fuel requirements, 211(k)(1)(B) of the Clean Air Act, except ‘‘(2) The Administrator shall also collect or on— that— estimate information both on a national and (i) domestic refineries; (1) the Administrator shall revise such ad- regional basis, pursuant to subparagraphs (ii) the fuel distribution system; and justments to be based only on calendar years (A) through (F) of paragraph (1), for the 5 (iii) industry investment in new capacity; 1999–2000; and years prior to implementation of this sub- (D) the effect of the requirements de- (2) for adjustments based on toxic air pol- section. scribed in paragraph (1) on emissions from lutant emissions from reformulated gasoline ‘‘(3) This subsection does not affect the au- vehicles, refineries, and fuel handling facili- significantly below the national annual aver- thority of the Administrator to collect data ties; age emissions of toxic air pollutants from all under section 52 of the Federal Energy Ad- (E) the feasibility of developing national or reformulated gasoline, the Administrator ministration Act of 1974 (15 U.S.C. 790a).’’. regional motor vehicle fuel slates for the 48 may revise such adjustments to take ac- SEC. 1508. REDUCING THE PROLIFERATION OF contiguous States that, while improving air count of the scope of Federal or State prohi- STATE FUEL CONTROLS. quality at the national, regional and local bitions on the use of methyl tertiary butyl (a) EPA APPROVAL OF STATE PLANS WITH levels consistent with the attainment of na- ether imposed after the date of the enact- FUEL CONTROLS.—Section 211(c)(4)(C) of the tional ambient air quality standards, could— ment of this paragraph, except that any such Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is (i) enhance flexibility in the fuel distribu- adjustment shall require such refiner or im- amended by adding at the end the following: tion infrastructure and improve fuel porter, to the greatest extent practicable, to ‘‘The Administrator shall not approve a con- fungibility; maintain the reduction achieved during cal- trol or prohibition respecting the use of a (ii) reduce price volatility and costs to endar years 1999–2000 in the average annual fuel or fuel additive under this subparagraph consumers and producers; aggregate emissions of toxic air pollutants unless the Administrator, after consultation (iii) provide increased liquidity to the gas- from reformulated gasoline produced or dis- with the Secretary of Energy, publishes in oline market; and tributed by the refinery or importer: Pro- the Federal Register a finding that, in the (iv) enhance fuel quality, consistency, and vided, That any such adjustment shall not be Administrator’s judgment, such control or supply; made at a level below the average percentage prohibition will not cause fuel supply or dis- (F) the feasibility of providing incentives of reductions of emissions of toxic air pollut- tribution interruptions or have a significant to promote cleaner burning motor vehicle ants for reformulated gasoline supplied to adverse impact on fuel producibility in the fuel; and PADD I during calendar years 1999–2000. affected area or contiguous areas.’’. (G) the extent to which improvements in SEC. 1506. ANALYSES OF MOTOR VEHICLE FUEL (b) STUDY.—The Administrator of the Envi- air quality and any increases or decreases in CHANGES. ronmental Protection Agency (hereinafter in the price of motor fuel can be projected to this subsection referred to as the ‘‘Adminis- Section 211 of the Clean Air Act (42 U.S.C. result from the Environmental Protection trator’’), in cooperation with the Secretary 7545) is amended by inserting after sub- Agency’s Tier II requirements for conven- of Energy, shall undertake a study of the section (o) the following: tional gasoline and vehicle emission sys- projected effects on air quality, the pro- tems, the reformulated gasoline program, ‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL liferation of fuel blends, fuel availability, the renewable content requirements estab- CHANGES AND EMISSIONS MODEL.— and fuel costs of providing a preference for lished by this subtitle, State programs re- ‘‘(1) ANTI-BACKSLIDING ANALYSIS.— each of the following: garding gasoline volatility, and any other re- ‘‘(A) DRAFT ANALYSIS.—Not later than 4 (A) Reformulated gasoline referred to in quirements imposed by States or localities years after the date of enactment of this sub- subsection (k) of section 211 of the Clean Air affecting the composition of motor fuel. section, the Administrator shall publish for Act. (b) REPORT.— public comment a draft analysis of the (B) A low RVP gasoline blend that has (1) IN GENERAL.—Not later than December changes in emissions of air pollutants and been certified by the Administrator as hav- 31, 2007, the Administrator and the Secretary air quality due to the use of motor vehicle ing a Reid Vapor Pressure of 7.0 pounds per of Energy shall submit to Congress a report fuel and fuel additives resulting from imple- square inch (psi). on the results of the study conducted under mentation of the amendments made by sub- (C) A low RVP gasoline blend that has been subsection (a). title A of title XV of the Energy Policy Act certified by the Administrator as having a (2) RECOMMENDATIONS.— of 2003. Reid Vapor Pressure of 7.8 pounds per square (A) IN GENERAL.—The report under this ‘‘(B) FINAL ANALYSIS.—After providing a inch (psi). subsection shall contain recommendations reasonable opportunity for comment but not for legislative and administrative actions later than 5 years after the date of enact- In carrying out such study, the Adminis- trator shall obtain comments from affected that may be taken— ment of this paragraph, the Administrator (i) to improve air quality; shall publish the analysis in final form. parties. The Administrator shall submit the results of such study to the Congress not (ii) to reduce costs to consumers and pro- ‘‘(2) EMISSIONS MODEL.—For the purposes of later than 18 months after the date of enact- ducers; and this subsection, as soon as the necessary (iii) to increase supply liquidity. data are available, the Administrator shall ment of this Act, together with any recommended legislative changes. (B) REQUIRED CONSIDERATIONS.—The rec- develop and finalize an emissions model that ommendations under subparagraph (A) shall SEC. 1509. FUEL SYSTEM REQUIREMENTS HAR- reasonably reflects the effects of gasoline take into account the need to provide ad- characteristics or components on emissions MONIZATION STUDY. (a) STUDY.— vance notice of required modifications to re- from vehicles in the motor vehicle fleet dur- finery and fuel distribution systems in order ing calendar year 2005.’’. (1) IN GENERAL.—The Administrator of the Environmental Protection Agency (herein- to ensure an adequate supply of motor vehi- SEC. 1507. DATA COLLECTION. after in this section referred to as the ‘‘Ad- cle fuel in all States. Section 205 of the Department of Energy ministrator’’) and the Secretary of Energy (3) CONSULTATION.—In developing the re- Organization Act (42 U.S.C. 7135) is amended shall jointly conduct a study of Federal, port under this subsection, the Adminis- by adding at the end the following: State, and local requirements concerning trator and the Secretary of Energy shall con- ‘‘(m) RENEWABLE FUELS SURVEY.—(1) In motor vehicle fuels, including— sult with— order to improve the ability to evaluate the (A) requirements relating to reformulated (A) the Governors of the States; effectiveness of the Nation’s renewable fuels gasoline, volatility (measured in Reid vapor (B) automobile manufacturers; mandate, the Administrator shall conduct pressure), oxygenated fuel, and diesel fuel; (C) motor vehicle fuel producers and dis- and publish the results of a survey of renew- and tributors; and able fuels demand in the motor vehicle fuels (B) other requirements that vary from (D) the public. market in the United States monthly, and in State to State, region to region, or locality SEC. 1510. COMMERCIAL BYPRODUCTS FROM MU- a manner designed to protect the confiden- to locality. NICIPAL SOLID WASTE AND CEL- LULOSIC BIOMASS LOAN GUAR- tiality of individual responses. In conducting (2) REQUIRED ELEMENTS.—The study shall ANTEE PROGRAM. the survey, the Administrator shall collect assess— (a) DEFINITION OF MUNICIPAL SOLID information both on a national and regional (A) the effect of the variety of require- WASTE.—In this section, the term ‘‘munic- basis, including each of the following: ments described in paragraph (1) on the sup- ipal solid waste’’ has the meaning given the ‘‘(A) The quantity of renewable fuels pro- ply, quality, and price of motor vehicle fuels term ‘‘solid waste’’ in section 1004 of the duced. available to consumers in various States and Solid Waste Disposal Act (42 U.S.C. 6903). ‘‘(B) The quantity of renewable fuels blend- localities; (b) ESTABLISHMENT OF PROGRAM.—The Sec- ed. (B) the effect of the requirements described retary of Energy (hereinafter in this section ‘‘(C) The quantity of renewable fuels im- in paragraph (1) on achievement of— referred to as the ‘‘Secretary’’) shall estab- ported. (i) national, regional, and local air quality lish a program to provide guarantees of loans ‘‘(D) The quantity of renewable fuels de- standards and goals; and by private institutions for the construction manded. (ii) related environmental and public of facilities for the processing and conver- ‘‘(E) Market price data. health protection standards and goals; sion of municipal solid waste and cellulosic

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00156 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.105 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4601 biomass into fuel ethanol and other commer- cated one or more covered areas (as defined ‘‘(A) each batch of gasoline to be blended cial byproducts. in section 211(k)(10)(D) of the Clean Air Act has been individually certified as in compli- (c) REQUIREMENTS.—The Secretary may (42 U.S.C. 7545(k)(10)(D)). ance with subsections (h) and (k) prior to provide a loan guarantee under subsection (b) AUTHORIZATION OF APPROPRIATIONS FOR being blended; (b) to an applicant if— RESOURCE CENTER.—There are authorized to ‘‘(B) the retailer notifies the Adminis- (1) without a loan guarantee, credit is not be appropriated, for a resource center to fur- trator prior to such blending, and identifies available to the applicant under reasonable ther develop bioconversion technology using the exact location of the retail station and terms or conditions sufficient to finance the low-cost biomass for the production of eth- the specific tank in which such blending will construction of a facility described in sub- anol at the Center for Biomass-Based Energy take place; section (b); at the University of Mississippi and the Uni- ‘‘(C) the retailer retains and, as requested (2) the prospective earning power of the ap- versity of Oklahoma, $4,000,000 for each of by the Administrator or the Administrator’s plicant and the character and value of the fiscal years 2004 through 2006. designee, makes available for inspection security pledged provide a reasonable assur- (c) RENEWABLE FUEL PRODUCTION RESEARCH such certifications accounting for all gaso- ance of repayment of the loan to be guaran- AND DEVELOPMENT GRANTS.— line at the retail outlet; and teed in accordance with the terms of the (1) IN GENERAL.—The Administrator of the ‘‘(D) the retailer does not, between June 1 loan; and Environmental Protection Agency shall pro- and September 15 of each year, blend a batch (3) the loan bears interest at a rate deter- vide grants for the research into, and devel- of VOC-controlled, or ‘summer’, gasoline mined by the Secretary to be reasonable, opment and implementation of, renewable with a batch of non-VOC-controlled, or ‘win- taking into account the current average fuel production technologies in RFG States ter’, gasoline (as these terms are defined yield on outstanding obligations of the with low rates of ethanol production, includ- under subsections (h) and (k)). United States with remaining periods of ma- ing low rates of production of cellulosic bio- ‘‘(2) LIMITATIONS.— turity comparable to the maturity of the mass ethanol. ‘‘(A) FREQUENCY LIMITATION.—A retailer loan. (2) ELIGIBILITY.— shall only be permitted to blend batches of (d) CRITERIA.—In selecting recipients of (A) IN GENERAL.—The entities eligible to compliant reformulated gasoline under this loan guarantees from among applicants, the receive a grant under this subsection are subsection a maximum of two blending peri- Secretary shall give preference to proposals academic institutions in RFG States, and ods between May 1 and September 15 of each that— consortia made up of combinations of aca- calendar year. (1) meet all applicable Federal and State demic institutions, industry, State govern- ‘‘(B) DURATION OF BLENDING PERIOD.—Each permitting requirements; ment agencies, or local government agencies blending period authorized under subpara- (2) are most likely to be successful; and in RFG States, that have proven experience graph (A) shall extend for a period of no (3) are located in local markets that have and capabilities with relevant technologies. more than 10 consecutive calendar days. the greatest need for the facility because (B) APPLICATION.—To be eligible to receive ‘‘(3) SURVEYS.—A sample of gasoline taken of— a grant under this subsection, an eligible en- from a retail location that has blended gaso- (A) the limited availability of land for tity shall submit to the Administrator an line within the past 30 days and is in compli- waste disposal; application in such manner and form, and ac- ance with subparagraphs (A), (B), (C), and (D) (B) the availability of sufficient quantities companied by such information, as the Ad- of paragraph (1) shall not be used in a VOC of cellulosic biomass; or ministrator may specify. survey mandated by 40 CFR Part 80. (C) a high level of demand for fuel ethanol (3) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(4) STATE IMPLEMENTATION PLANS.—A or other commercial byproducts of the facil- There are authorized to be appropriated to State shall be held harmless and shall not be ity. carry out this subsection $25,000,000 for each required to revise its State implementation (e) MATURITY.—A loan guaranteed under of fiscal years 2004 through 2008. plan under section 110 to account for the subsection (b) shall have a maturity of not SEC. 1512. CELLULOSIC BIOMASS AND WASTE-DE- emissions from blended gasoline authorized more than 20 years. RIVED ETHANOL CONVERSION AS- under paragraph (1). (f) TERMS AND CONDITIONS.—The loan SISTANCE. ‘‘(5) PRESERVATION OF STATE LAW.—Nothing agreement for a loan guaranteed under sub- Section 211 of the Clean Air Act (42 U.S.C. in this subsection shall— section (b) shall provide that no provision of 7545) is amended by adding at the end the fol- the loan agreement may be amended or ‘‘(A) preempt existing State laws or regula- lowing: tions regulating the blending of compliant waived without the consent of the Secretary. ‘‘(r) CELLULOSIC BIOMASS AND WASTE-DE- gasolines; or (g) ASSURANCE OF REPAYMENT.—The Sec- RIVED ETHANOL CONVERSION ASSISTANCE.— ‘‘(B) prohibit a State from adopting such retary shall require that an applicant for a ‘‘(1) IN GENERAL.—The Secretary of Energy restrictions in the future. loan guarantee under subsection (b) provide may provide grants to merchant producers of ‘‘(6) REGULATIONS.—The Administrator an assurance of repayment in the form of a cellulosic biomass ethanol and waste-derived shall promulgate, after notice and comment, performance bond, insurance, collateral, or ethanol in the United States to assist the regulations implementing this subsection other means acceptable to the Secretary in producers in building eligible production fa- within one year after the date of enactment an amount equal to not less than 20 percent cilities described in paragraph (2) for the of this subsection. of the amount of the loan. production of ethanol. (h) GUARANTEE FEE.—The recipient of a ‘‘(7) EFFECTIVE DATE.—This subsection ‘‘(2) ELIGIBLE PRODUCTION FACILITIES.—A loan guarantee under subsection (b) shall shall become effective 15 months after the production facility shall be eligible to re- pay the Secretary an amount determined by date of its enactment and shall apply to ceive a grant under this subsection if the the Secretary to be sufficient to cover the blended batches of reformulated gasoline on production facility— administrative costs of the Secretary relat- or after that date, regardless of whether the ‘‘(A) is located in the United States; and ing to the loan guarantee. implementing regulations required by para- ‘‘(B) uses cellulosic biomass or waste-de- (i) FULL FAITH AND CREDIT.—The full faith graph (6) have been promulgated by the Ad- rived feedstocks derived from agricultural and credit of the United States is pledged to ministrator by that date. residues, municipal solid waste, or agricul- the payment of all guarantees made under ‘‘(8) LIABILITY.—No person other than the tural byproducts as that term is used in sec- this section. Any such guarantee made by person responsible for blending under this tion 919 of the Energy Policy Act of 2003. the Secretary shall be conclusive evidence of subsection shall be subject to an enforce- ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— the eligibility of the loan for the guarantee ment action or penalties under subsection (d) There are authorized to be appropriated the with respect to principal and interest. The solely arising from the blending of compliant following amounts to carry out this sub- validity of the guarantee shall be incontest- reformulated gasolines by the retailers. section: able in the hands of a holder of the guaran- ‘‘(9) FORMULATION OF GASOLINE.—This sub- ‘‘(A) $100,000,000 for fiscal year 2004. teed loan. section does not grant authority to the Ad- ‘‘(B) $250,000,000 for fiscal year 2005. (j) REPORTS.—Until each guaranteed loan ministrator or any State (or any subdivision ‘‘(C) $400,000,000 for fiscal year 2006.’’. under this section has been repaid in full, the thereof) to require reformulation of gasoline Secretary shall annually submit to Congress SEC. 1513. BLENDING OF COMPLIANT REFORMU- at the refinery to adjust for potential or ac- a report on the activities of the Secretary LATED GASOLINES. Section 211 of the Clean Air Act (42 U.S.C. tual emissions increases due to the blending under this section. authorized by this subsection.’’. (k) AUTHORIZATION OF APPROPRIATIONS.— 7545) is amended by adding at the end the fol- There are authorized to be appropriated such lowing: Subtitle B—Underground Storage Tank sums as are necessary to carry out this sec- ‘‘(s) BLENDING OF COMPLIANT REFORMU- Compliance tion. LATED GASOLINES.— SEC. 1521. SHORT TITLE. (l) TERMINATION OF AUTHORITY.—The au- ‘‘(1) IN GENERAL.—Notwithstanding sub- This subtitle may be cited as the ‘‘Under- thority of the Secretary to issue a loan guar- sections (h) and (k) and subject to the limi- ground Storage Tank Compliance Act of antee under subsection (b) terminates on the tations in paragraph (2) of this subsection, it 2003’’. date that is 10 years after the date of enact- shall not be a violation of this subtitle for a SEC. 1522. LEAKING UNDERGROUND STORAGE ment of this Act. gasoline retailer, during any month of the TANKS. SEC. 1511. RESOURCE CENTER. year, to blend at a retail location batches of (a) IN GENERAL.—Section 9004 of the Solid (a) DEFINITION.—In this section, the term ethanol-blended and non-ethanol-blended re- Waste Disposal Act (42 U.S.C. 6991c) is ‘‘RFG State’’ means a State in which is lo- formulated gasoline, provided that— amended by adding at the end the following:

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‘‘(f) TRUST FUND DISTRIBUTION.— ‘‘(V) The ability of the States to use the ‘‘SEC. 9010. OPERATOR TRAINING. ‘‘(1) IN GENERAL.— funds referred to in subparagraph (A) in any ‘‘(a) GUIDELINES.— ‘‘(A) AMOUNT AND PERMITTED USES OF DIS- year. ‘‘(1) IN GENERAL.—Not later than 2 years TRIBUTION.—The Administrator shall dis- ‘‘(3) DISTRIBUTIONS TO STATE AGENCIES.— after the date of enactment of the Under- tribute to States not less than 80 percent of Distributions from the Trust Fund under ground Storage Tank Compliance Act of 2003, the funds from the Trust Fund that are made this subsection shall be made directly to a in consultation and cooperation with States available to the Administrator under section State agency that— and after public notice and opportunity for 9014(2)(A) for each fiscal year for use in pay- ‘‘(A) enters into a cooperative agreement comment, the Administrator shall publish ing the reasonable costs, incurred under a referred to in paragraph (2)(A); or guidelines that specify training require- cooperative agreement with any State for— ‘‘(B) is enforcing a State program approved ments for persons having primary daily on- ‘‘(i) actions taken by the State under sec- under this section. site management responsibility for the oper- tion 9003(h)(7)(A); ‘‘(4) COST RECOVERY PROHIBITION.—Funds ation and maintenance of underground stor- ‘‘(ii) necessary administrative expenses, as from the Trust Fund provided by States to age tanks. determined by the Administrator, that are owners or operators under paragraph ‘‘(2) CONSIDERATIONS.—The guidelines de- directly related to State fund or State assur- (1)(A)(iii) shall not be subject to cost recov- scribed in paragraph (1) shall take into ac- ance programs under subsection (c)(1); ery by the Administrator under section count— ‘‘(iii) any State fund or State assurance 9003(h)(6).’’. ‘‘(A) State training programs in existence program carried out under subsection (c)(1) (b) WITHDRAWAL OF APPROVAL OF STATE as of the date of publication of the guide- for a release from an underground storage FUNDS.—Section 9004(c) of the Solid Waste lines; tank regulated under this subtitle to the ex- Disposal Act (42 U.S.C. 6991c(c)) is amended ‘‘(B) training programs that are being em- tent that, as determined by the State in ac- by inserting the following new paragraph at ployed by tank owners and tank operators as the end thereof: cordance with guidelines developed jointly of the date of enactment of the Underground ‘‘(6) WITHDRAWAL OF APPROVAL.—After an by the Administrator and the States, the fi- Storage Tank Compliance Act of 2003; opportunity for good faith, collaborative ef- nancial resources of the owner and operator ‘‘(C) the high turnover rate of tank opera- forts to correct financial deficiencies with a of the underground storage tank (including tors and other personnel; State fund, the Administrator may withdraw resources provided by a program in accord- ‘‘(D) the frequency of improvement in un- approval of any State fund or State assurance with subsection (c)(1)) are not adequate derground storage tank equipment tech- ance program to be used as a financial re- to pay the cost of a corrective action with- nology; sponsibility mechanism without without significantly impairing the ability of the ‘‘(E) the nature of the businesses in which drawing approval of a State underground owner or operator to continue in business; or the tank operators are engaged; and storage tank program under section ‘‘(iv) enforcement, by a State or a local ‘‘(F) such other factors as the Adminis- 9004(a).’’. government, of State or local regulations trator determines to be necessary to carry pertaining to underground storage tanks reg- SEC. 1523. INSPECTION OF UNDERGROUND STOR- out this section. AGE TANKS. ‘‘(b) STATE PROGRAMS.— ulated under this subtitle. (a) INSPECTION REQUIREMENTS.—Section ‘‘(1) IN GENERAL.—Not later than 2 years ‘‘(B) USE OF FUNDS FOR ENFORCEMENT.—In 9005 of the Solid Waste Disposal Act (42 after the date on which the Administrator addition to the uses of funds authorized U.S.C. 6991d) is amended by inserting the fol- publishes the guidelines under subsection under subparagraph (A), the Administrator lowing new subsection at the end thereof: (a)(1), each State that receives funding under may use funds from the Trust Fund that are ‘‘(c) INSPECTION REQUIREMENTS.— this subtitle shall develop State-specific not distributed to States under subparagraph ‘‘(1) UNINSPECTED TANKS.—In the case of training requirements that are consistent (A) for enforcement of any regulation pro- underground storage tanks regulated under with the guidelines developed under sub- mulgated by the Administrator under this this subtitle that have not undergone an in- section (a)(1). subtitle. spection since December 22, 1998, not later ‘‘(2) REQUIREMENTS.—State requirements ‘‘(C) PROHIBITED USES.—Funds provided to than 2 years after the date of enactment of described in paragraph (1) shall— a State by the Administrator under subpara- this subsection, the Administrator or a State ‘‘(A) be consistent with subsection (a); graph (A) shall not be used by the State to that receives funding under this subtitle, as ‘‘(B) be developed in cooperation with tank provide financial assistance to an owner or appropriate, shall conduct on-site inspec- owners and tank operators; operator to meet any requirement relating tions of all such tanks to determine compli- ‘‘(C) take into consideration training pro- to underground storage tanks under subparts ance with this subtitle and the regulations grams implemented by tank owners and tank B, C, D, H, and G of part 280 of title 40, Code under this subtitle (40 CFR 280) or a require- operators as of the date of enactment of this of Federal Regulations (as in effect on the ment or standard of a State program devel- section; and date of enactment of this subsection). oped under section 9004. ‘‘(D) be appropriately communicated to ‘‘(2) ALLOCATION.— ‘‘(2) PERIODIC INSPECTIONS.—After comple- tank owners and operators. ‘‘(A) PROCESS.—Subject to subparagraphs tion of all inspections required under para- ‘‘(3) FINANCIAL INCENTIVE.—The Adminis- (B) and (C), in the case of a State with which graph (1), the Administrator or a State that trator may award to a State that develops the Administrator has entered into a cooper- receives funding under this subtitle, as ap- and implements requirements described in ative agreement under section 9003(h)(7)(A), propriate, shall conduct on-site inspections paragraph (1), in addition to any funds that the Administrator shall distribute funds of each underground storage tank regulated the State is entitled to receive under this from the Trust Fund to the State using an under this subtitle at least once every 3 subtitle, not more than $200,000, to be used to allocation process developed by the Adminis- years to determine compliance with this sub- carry out the requirements. trator. title and the regulations under this subtitle ‘‘(c) OPERATORS.—All persons having pri- ‘‘(B) DIVERSION OF STATE FUNDS.—The Ad- (40 CFR 280) or a requirement or standard of mary daily on-site management responsi- ministrator shall not distribute funds under a State program developed under section bility for the operation and maintenance of subparagraph (A)(iii) of subsection (f)(1) to 9004. The Administrator may extend for up any underground storage tank shall— any State that has diverted funds from a to one additional year the first 3-year inspec- ‘‘(1) meet the training requirements devel- State fund or State assurance program for tion interval under this paragraph if the oped under subsection (b); and purposes other than those related to the reg- State demonstrates that it has insufficient ‘‘(2) repeat the applicable requirements de- ulation of underground storage tanks cov- resources to complete all such inspections veloped under subsection (b), if the tank for ered by this subtitle, with the exception of within the first 3-year period. which they have primary daily on-site man- those transfers that had been completed ear- ‘‘(3) INSPECTION AUTHORITY.—Nothing in agement responsibilities is determined to be lier than the date of enactment of this sub- this section shall be construed to diminish out of compliance with— section. the Administrator’s or a State’s authorities ‘‘(A) a requirement or standard promul- ‘‘(C) REVISIONS TO PROCESS.—The Adminis- under section 9005(a).’’. gated by the Administrator under section trator may revise the allocation process re- (b) STUDY OF ALTERNATIVE INSPECTION PRO- 9003; or ferred to in subparagraph (A) after— GRAMS.—The Administrator of the Environ- ‘‘(B) a requirement or standard of a State ‘‘(i) consulting with State agencies respon- mental Protection Agency, in coordination program approved under section 9004.’’. sible for overseeing corrective action for re- with a State, shall gather information on (b) STATE PROGRAM REQUIREMENT.—Sec- leases from underground storage tanks; and compliance assurance programs that could tion 9004(a) of the Solid Waste Disposal Act ‘‘(ii) taking into consideration, at a min- serve as an alternative to the inspection pro- (42 U.S.C. 6991c(a)) is amended by striking imum, each of the following: grams under section 9005(c) of the Solid ‘‘and’’ at the end of paragraph (7), by strik- ‘‘(I) The number of confirmed releases from Waste Disposal Act (42 U.S.C. 6991d(c)) and ing the period at the end of paragraph (8) and federally regulated leaking underground shall, within 4 years after the date of enact- inserting ‘‘; and’’, and by adding the fol- storage tanks in the States. ment of this Act, submit a report to the Con- lowing new paragraph at the end thereof: ‘‘(II) The number of federally regulated un- gress containing the results of such study. ‘‘(9) State-specific training requirements derground storage tanks in the States. SEC. 1524. OPERATOR TRAINING. as required by section 9010.’’. ‘‘(III) The performance of the States in im- (a) IN GENERAL.—Section 9010 of the Solid (c) ENFORCEMENT.—Section 9006(d)(2) of plementing and enforcing the program. Waste Disposal Act (42 U.S.C. 6991i) is such Act (42 U.S.C. 6991e) is amended as fol- ‘‘(IV) The financial needs of the States. amended to read as follows: lows:

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00158 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.105 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4603 (1) By striking ‘‘or’’ at the end of subpara- ‘‘(i) regulated under this subtitle; and this section. The processes and procedures graph (B). ‘‘(ii) owned or operated by the Federal, include, at a minimum— (2) By adding the following new subpara- State, or local government. ‘‘(A) the criteria for determining which un- graph after subparagraph (C): ‘‘(C) The Administrator shall make each derground storage tank facilities are ineli- ‘‘(D) the training requirements established report, received under subparagraph (A), gible for delivery or deposit; by States pursuant to section 9010 (relating available to the public through an appro- ‘‘(B) the mechanisms for identifying which to operator training); or’’. priate media. facilities are ineligible for delivery or de- (d) TABLE OF CONTENTS.—The item relating ‘‘(2) FINANCIAL INCENTIVE.—The Adminis- posit to the underground storage tank own- to section 9010 in table of contents for the trator may award to a State that develops a ing and fuel delivery industries; Solid Waste Disposal Act is amended to read report described in paragraph (1), in addition ‘‘(C) the process for reclassifying ineligible as follows: to any other funds that the State is entitled facilities as eligible for delivery or deposit; ‘‘Sec. 9010. Operator training.’’. to receive under this subtitle, not more than and SEC. 1525. REMEDIATION FROM OXYGENATED $50,000, to be used to carry out the report. ‘‘(D) a delineation of, or a process for de- FUEL ADDITIVES. ‘‘(3) NOT A SAFE HARBOR.—This subsection termining, the specified geographic areas Section 9003(h) of the Solid Waste Disposal does not relieve any person from any obliga- subject to paragraph (4). Act (42 U.S.C. 6991b(h)) is amended as fol- tion or requirement under this subtitle.’’. ‘‘(3) DELIVERY PROHIBITION NOTICE.— lows: (c) PUBLIC RECORD.—Section 9002 of the ‘‘(A) ROSTER.—The Administrator and each (1) In paragraph (7)(A)— Solid Waste Disposal Act (42 U.S.C. 6991a) is State implementing agency that receives (A) by striking ‘‘paragraphs (1) and (2) of amended by adding at the end the following: funding under this subtitle shall establish this subsection’’ and inserting ‘‘paragraphs ‘‘(d) PUBLIC RECORD.— within 24 months after the date of enactment (1), (2), and (12)’’ ; and ‘‘(1) IN GENERAL.—The Administrator shall of this section a Delivery Prohibition Roster (B) by striking ‘‘and including the authori- require each State that receives Federal listing underground storage tanks under the ties of paragraphs (4), (6), and (8) of this sub- funds to carry out this subtitle to maintain, Administrator’s or the State’s jurisdiction section’’ and inserting ‘‘and the authority update at least annually, and make available that are determined to be ineligible for de- under sections 9011 and 9012 and paragraphs to the public, in such manner and form as livery or deposit pursuant to paragraph (2). (4), (6), and (8),’’. the Administrator shall prescribe (after con- ‘‘(B) NOTIFICATION.—The Administrator (2) By adding at the end the following: sultation with States), a record of under- and each State, as appropriate, shall make ‘‘(12) REMEDIATION OF OXYGENATED FUEL ground storage tanks regulated under this readily known, to underground storage tank CONTAMINATION.— subtitle. owners and operators and to product delivery ‘‘(A) IN GENERAL.—The Administrator and ‘‘(2) CONSIDERATIONS.—To the maximum industries, the underground storage tanks the States may use funds made available extent practicable, the public record of a listed on a Delivery Prohibition Roster by: under section 9014(2)(B) to carry out correc- State, respectively, shall include, for each ‘‘(i) posting such Rosters, including the tive actions with respect to a release of a year— physical location and street address of each fuel containing an oxygenated fuel additive ‘‘(A) the number, sources, and causes of un- listed underground storage tank, on official that presents a threat to human health or derground storage tank releases in the State; web sites and, if the Administrator or the welfare or the environment. ‘‘(B) the record of compliance by under- State so chooses, other electronic means; ‘‘(B) APPLICABLE AUTHORITY.—The Admin- ground storage tanks in the State with— ‘‘(ii) updating these Rosters periodically; istrator or a State shall carry out subpara- ‘‘(i) this subtitle; or and graph (A) in accordance with paragraph (2), ‘‘(ii) an applicable State program approved ‘‘(iii) installing a tamper-proof tag, seal, or and in the case of a State, in accordance under section 9004; and other device blocking the fill pipes of such with a cooperative agreement entered into ‘‘(C) data on the number of underground underground storage tanks to prevent the by the Administrator and the State under storage tank equipment failures in the delivery of product into such underground paragraph (7).’’. State.’’. storage tanks. SEC. 1526. RELEASE PREVENTION, COMPLIANCE, (d) INCENTIVE FOR PERFORMANCE.—Section ‘‘(C) ROSTER UPDATES.—The Administrator AND ENFORCEMENT. 9006 of the Solid Waste Disposal Act (42 and the State shall update the Delivery Pro- (a) RELEASE PREVENTION AND COMPLI- U.S.C. 6991e) is amended by adding at the end hibition Rosters as appropriate, but not less ANCE.—Subtitle I of the Solid Waste Disposal the following: than once a month on the first day of the Act (42 U.S.C. 6991 et seq.) is amended by ‘‘(e) INCENTIVE FOR PERFORMANCE.—Both of month. adding at the end the following: the following may be taken into account in ‘‘(D) TAMPERING WITH DEVICE.— ‘‘SEC. 9011. USE OF FUNDS FOR RELEASE PRE- determining the terms of a civil penalty ‘‘(i) PROHIBITION.—It shall be unlawful for VENTION AND COMPLIANCE. under subsection (d): any person, other than an authorized rep- ‘‘Funds made available under section ‘‘(1) The compliance history of an owner or resentative of the Administrator or a State, 9014(2)(D) from the Trust Fund may be used operator in accordance with this subtitle or as appropriate, to remove, tamper with, de- to conduct inspections, issue orders, or bring a program approved under section 9004. stroy, or damage a device installed by the actions under this subtitle— ‘‘(2) Any other factor the Administrator Administrator or a State, as appropriate, ‘‘(1) by a State, in accordance with a grant considers appropriate.’’. under subparagraph (B)(iii) of this sub- or cooperative agreement with the Adminis- (e) TABLE OF CONTENTS.—The table of con- section. trator, of State regulations pertaining to un- tents for such subtitle I is amended by add- ‘‘(ii) CIVIL PENALTIES.—Any person vio- derground storage tanks regulated under ing the following new item at the end there- lating clause (i) of this subparagraph shall be this subtitle; and of: subject to a civil penalty not to exceed ‘‘(2) by the Administrator, for tanks regu- ‘‘Sec. 9011. Use of funds for release preven- $10,000 for each violation. lated under this subtitle (including under a tion and compliance.’’. ‘‘(4) LIMITATION.— State program approved under section ‘‘(A) RURAL AND REMOTE AREAS.—Subject SEC. 1527. DELIVERY PROHIBITION. 9004).’’. to subparagraph (B), the Administrator or a (a) IN GENERAL.—Subtitle I of the Solid (b) GOVERNMENT-OWNED TANKS.—Section State shall not include an underground stor- Waste Disposal Act (42 U.S.C. 6991 et seq.) is 9003 of the Solid Waste Disposal Act (42 age tank on a Delivery Prohibition Roster amended by adding at the end the following: U.S.C. 6991b) is amended by adding at the end under paragraph (3) if an urgent threat to the following: ‘‘SEC. 9012. DELIVERY PROHIBITION. public health, as determined by the Adminis- ‘‘(i) GOVERNMENT-OWNED TANKS.— ‘‘(a) REQUIREMENTS.— trator, does not exist and if such a delivery ‘‘(1) STATE COMPLIANCE REPORT.—(A) Not ‘‘(1) PROHIBITION OF DELIVERY OR DEPOSIT.— prohibition would jeopardize the availability later than 2 years after the date of enact- Beginning 2 years after the date of enact- of, or access to, fuel in any rural and remote ment of this subsection, each State that re- ment of this section, it shall be unlawful to areas. ceives funding under this subtitle shall sub- deliver to, deposit into, or accept a regulated ‘‘(B) APPLICABILITY OF LIMITATION.—The mit to the Administrator a State compliance substance into an underground storage tank limitation under subparagraph (A) shall report that— at a facility which has been identified by the apply only during the 180-day period fol- ‘‘(i) lists the location and owner of each Administrator or a State implementing lowing the date of a determination by the underground storage tank described in sub- agency to be ineligible for fuel delivery or Administrator or the appropriate State that paragraph (B) in the State that, as of the deposit. exercising the authority of paragraph (3) is date of submission of the report, is not in ‘‘(2) GUIDANCE.—Within 1 year after the limited by subparagraph (A). compliance with section 9003; and date of enactment of this section, the Ad- ‘‘(b) EFFECT ON STATE AUTHORITY.—Noth- ‘‘(ii) specifies the date of the last inspec- ministrator and States that receive funding ing in this section shall affect the authority tion and describes the actions that have been under this subtitle shall, in consultation of a State to prohibit the delivery of a regu- and will be taken to ensure compliance of with the underground storage tank owner lated substance to an underground storage the underground storage tank listed under and product delivery industries, for territory tank. clause (i) with this subtitle. for which they are the primary imple- ‘‘(c) DEFENSE TO VIOLATION.—A person ‘‘(B) An underground storage tank de- menting agencies, publish guidelines detail- shall not be in violation of subsection (a)(1) scribed in this subparagraph is an under- ing the specific processes and procedures if the underground storage tank into which a ground storage tank that is— they will use to implement the provisions of regulated substance is delivered is not listed

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00159 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.105 S28PT1 S4604 CONGRESSIONAL RECORD — SENATE April 28, 2004 on the Administrator’s or the appropriate penalty under any Federal, State, interstate, ‘‘(1) giving priority to releases that present State’s Prohibited Delivery Roster 7 cal- or local law concerning underground storage the greatest threat to human health or the endar days prior to the delivery being tanks with respect to any act or omission environment, to take necessary corrective made.’’. within the scope of the official duties of the action in response to releases from leaking (b) ENFORCEMENT.—Section 9006(d)(2) of agent, employee, or officer. An agent, em- underground storage tanks located wholly such Act (42 U.S.C. 6991e(d)(2)) is amended as ployee, or officer of the United States shall within the boundaries of— follows: be subject to any criminal sanction (includ- ‘‘(A) an Indian reservation; or (1) By adding the following new subpara- ing, but not limited to, any fine or imprison- ‘‘(B) any other area under the jurisdiction graph after subparagraph (D): ment) under any Federal or State law con- of an Indian tribe; and ‘‘(E) the delivery prohibition requirement cerning underground storage tanks, but no ‘‘(2) to implement and enforce require- established by section 9012,’’. department, agency, or instrumentality of ments concerning underground storage tanks (2) By adding the following new sentence at the executive, legislative, or judicial branch located wholly within the boundaries of— the end thereof: ‘‘Any person making or ac- of the Federal Government shall be subject ‘‘(A) an Indian reservation; or cepting a delivery or deposit of a regulated to any such sanction. The President may ex- ‘‘(B) any other area under the jurisdiction substance to an underground storage tank at empt any underground storage tank of any of an Indian tribe. an ineligible facility in violation of section department, agency, or instrumentality in ‘‘(b) REPORT.—Not later than 2 years after 9012 shall also be subject to the same civil the executive branch from compliance with the date of enactment of this section, the penalty for each day of such violation.’’. such a requirement if he determines it to be Administrator shall submit to Congress a re- (c) TABLE OF CONTENTS.—The table of con- in the paramount interest of the United port that summarizes the status of imple- tents for such subtitle I is amended by add- States to do so. No such exemption shall be mentation and enforcement of this subtitle ing the following new item at the end there- granted due to lack of appropriation unless in areas located wholly within— of: the President shall have specifically re- ‘‘(1) the boundaries of Indian reservations; ‘‘Sec. 9012. Delivery prohibition.’’. quested such appropriation as a part of the and SEC. 1528. FEDERAL FACILITIES. budgetary process and the Congress shall ‘‘(2) any other areas under the jurisdiction Section 9007 of the Solid Waste Disposal have failed to make available such requested of an Indian tribe. Act (42 U.S.C. 6991f) is amended to read as appropriation. Any exemption shall be for a The Administrator shall make the report follows: period not in excess of one year, but addi- under this subsection available to the public. ‘‘SEC. 9007. FEDERAL FACILITIES. tional exemptions may be granted for peri- ‘‘(c) NOT A SAFE HARBOR.—This section ‘‘(a) IN GENERAL.—Each department, agen- ods not to exceed one year upon the Presi- does not relieve any person from any obliga- cy, and instrumentality of the executive, dent’s making a new determination. The tion or requirement under this subtitle. legislative, and judicial branches of the Fed- President shall report each January to the ‘‘(d) STATE AUTHORITY.—Nothing in this eral Government (1) having jurisdiction over Congress all exemptions from the require- section applies to any underground storage any underground storage tank or under- ments of this section granted during the pre- tank that is located in an area under the ju- ground storage tank system, or (2) engaged ceding calendar year, together with his rea- risdiction of a State, or that is subject to in any activity resulting, or which may re- son for granting each such exemption. regulation by a State, as of the date of en- sult, in the installation, operation, manage- ‘‘(b) REVIEW OF AND REPORT ON FEDERAL actment of this section.’’. ment, or closure of any underground storage UNDERGROUND STORAGE TANKS.— (b) TABLE OF CONTENTS.—The table of con- tank, release response activities related ‘‘(1) REVIEW.—Not later than 12 months tents for such subtitle I is amended by add- thereto, or in the delivery, acceptance, or de- after the date of enactment of the Under- ing the following new item at the end there- posit of any regulated substance to an underground Storage Tank Compliance Act of 2003, of: ground storage tank or underground storage each Federal agency that owns or operates 1 ‘‘Sec. 9013. Tanks on Tribal lands.’’. tank system shall be subject to, and comply or more underground storage tanks, or that SEC. 1530. FUTURE RELEASE CONTAINMENT with, all Federal, State, interstate, and local manages land on which 1 or more under- TECHNOLOGY. requirements, both substantive and proce- ground storage tanks are located, shall sub- Not later than 2 years after the date of en- dural (including any requirement for permits mit to the Administrator, the Committee on actment of this Act, the Administrator of or reporting or any provisions for injunctive Energy and Commerce of the United States the Environmental Protection Agency, after relief and such sanctions as may be imposed House of Representatives, and the Com- consultation with States, shall make avail- by a court to enforce such relief), respecting mittee on the Environment and Public able to the public and to the Committee on underground storage tanks in the same man- Works of the United States Senate a compli- Energy and Commerce of the House of Rep- ner, and to the same extent, as any person is ance strategy report that— resentatives and the Committee on Environ- subject to such requirements, including the ‘‘(A) lists the location and owner of each ment and Public Works of the Senate infor- payment of reasonable service charges. The underground storage tank described in this mation on the effectiveness of alternative Federal, State, interstate, and local subparagraph; possible methods and means for containing stantive and procedural requirements re- ‘‘(B) lists all tanks that are not in compli- releases from underground storage tanks ferred to in this subsection include, but are ance with this subtitle that are owned or op- systems. not limited to, all administrative orders and erated by the Federal agency; SEC. 1531. AUTHORIZATION OF APPROPRIATIONS. all civil and administrative penalties and ‘‘(C) specifies the date of the last inspec- (a) IN GENERAL.—Subtitle I of the Solid fines, regardless of whether such penalties or tion by a State or Federal inspector of each Waste Disposal Act (42 U.S.C. 6991 et seq.) is fines are punitive or coercive in nature or underground storage tank owned or operated amended by adding at the end the following: are imposed for isolated, intermittent, or by the agency; ‘‘SEC. 9014. AUTHORIZATION OF APPROPRIA- continuing violations. The United States ‘‘(D) lists each violation of this subtitle re- TIONS. hereby expressly waives any immunity oth- specting any underground storage tank ‘‘There are authorized to be appropriated erwise applicable to the United States with owned or operated by the agency; to the Administrator the following amounts: respect to any such substantive or proce- ‘‘(E) describes the operator training that ‘‘(1) To carry out subtitle I (except sections dural requirement (including, but not lim- has been provided to the operator and other 9003(h), 9005(c), 9011 and 9012) $50,000,000 for ited to, any injunctive relief, administrative persons having primary daily on-site man- each of fiscal years 2004 through 2008. order or civil or administrative penalty or agement responsibility for the operation and ‘‘(2) From the Trust Fund, notwithstanding fine referred to in the preceding sentence, or maintenance of underground storage tanks section 9508(c)(1) of the Internal Revenue reasonable service charge). The reasonable owned or operated by the agency; and Code of 1986: service charges referred to in this subsection ‘‘(F) describes the actions that have been ‘‘(A) to carry out section 9003(h) (except include, but are not limited to, fees or and will be taken to ensure compliance for section 9003(h)(12)) $200,000,000 for each of fis- charges assessed in connection with the each underground storage tank identified cal years 2004 through 2008; processing and issuance of permits, renewal under subparagraph (B). ‘‘(B) to carry out section 9003(h)(12), of permits, amendments to permits, review ‘‘(2) NOT A SAFE HARBOR.—This subsection $200,000,000 for each of fiscal years 2004 of plans, studies, and other documents, and does not relieve any person from any obliga- through 2008; inspection and monitoring of facilities, as tion or requirement under this subtitle.’’. ‘‘(C) to carry out sections 9004(f) and 9005(c) well as any other nondiscriminatory charges SEC. 1529. TANKS ON TRIBAL LANDS. $100,000,000 for each of fiscal years 2004 that are assessed in connection with a Fed- (a) IN GENERAL.—Subtitle I of the Solid through 2008; and eral, State, interstate, or local underground Waste Disposal Act (42 U.S.C. 6991 et seq.) is ‘‘(D) to carry out sections 9011 and 9012 storage tank regulatory program. Neither amended by adding the following at the end $55,000,000 for each of fiscal years 2004 the United States, nor any agent, employee, thereof: through 2008.’’. or officer thereof, shall be immune or ex- ‘‘SEC. 9013. TANKS ON TRIBAL LANDS. (b) TABLE OF CONTENTS.—The table of con- empt from any process or sanction of any ‘‘(a) STRATEGY.—The Administrator, in co- tents for such subtitle I is amended by add- State or Federal Court with respect to the ordination with Indian tribes, shall, not ing the following new item at the end there- enforcement of any such injunctive relief. No later than 1 year after the date of enactment of: agent, employee, or officer of the United of this section, develop and implement a ‘‘Sec. 9014. Authorization of appropria- States shall be personally liable for any civil strategy— tions.’’.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00160 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.105 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4605 SEC. 1532. CONFORMING AMENDMENTS. criminatory taxes on electronic com- such property is used under the leaseback re- (a) IN GENERAL.—Section 9001 of the Solid merce imposed by the Internet Tax ferred to in clause (ii). Waste Disposal Act (42 U.S.C. 6991) is amend- Freedom Act; which was ordered to lie ‘‘(d) SPECIAL ALLOCATION RULES.— ‘‘(1) CURRENT GENERATION BROADBAND SERV- ed as follows: on the table; as follows: (1) By striking ‘‘For the purposes of this ICES.—For purposes of determining the cur- subtitle—’’ and inserting ‘‘In this subtitle:’’. On page 5, line 2, strike ‘‘2006.’’ and insert rent generation broadband credit under sub- (2) By redesignating paragraphs (1), (2), (3), ‘‘2007.’’. section (a)(1) with respect to qualified equip- (4), (5), (6), (7), and (8) as paragraphs (10), (7), On page 5, line 20, strike ‘‘2005.’’ and insert ment through which current generation (4), (3), (8), (5), (2), and (6), respectively. ‘‘2007.’’. broadband services are provided, if the quali- (3) By inserting before paragraph (2) (as re- fied equipment is capable of serving both designated by paragraph (2) of this sub- SA 3053. Mr. ROCKEFELLER sub- qualified subscribers and other subscribers, section) the following: mitted an amendment intended to be the qualified expenditures shall be multi- ‘‘(1) INDIAN TRIBE.— proposed to amendment SA 3048 pro- plied by a fraction— ‘‘(A) IN GENERAL.— The term ‘Indian tribe’ posed by Mr. MCCAIN to the bill S. 150, ‘‘(A) the numerator of which is the sum of means any Indian tribe, band, nation, or to make permanent the moratorium on the number of potential qualified subscribers other organized group or community that is within the rural areas and the underserved taxes on Internet access and multiple areas which the equipment is capable of serv- recognized as being eligible for special pro- and discriminatory taxes on electronic grams and services provided by the United ing with current generation broadband serv- States to Indians because of their status as commerce imposed by the Internet Tax ices, and Indians. Freedom Act; which was ordered to lie ‘‘(B) the denominator of which is the total ‘‘(B) INCLUSIONS.—The term ‘Indian tribe’ on the table; as follows: potential subscriber population of the area includes an Alaska Native village, as defined At the appropriate place, insert the fol- which the equipment is capable of serving in or established under the Alaska Native lowing: with current generation broadband services. ‘‘(2) NEXT GENERATION BROADBAND SERV- Claims Settlement Act (43 U.S.C. 1601 et SEC. . BROADBAND INTERNET ACCESS TAX ICES.—For purposes of determining the next seq.); and’’. CREDIT. generation broadband credit under sub- (4) By inserting after paragraph (8) (as re- (a) IN GENERAL.—Subpart E of part IV of section (a)(2) with respect to qualified equip- designated by paragraph (2) of this subchapter 1 of the Internal Revenue Code of ment through which next generation section) the following: 1986 (relating to rules for computing invest- broadband services are provided, if the quali- ‘‘(9) TRUST FUND.— The term ‘Trust Fund’ ment credit) is amended by inserting after fied equipment is capable of serving both means the Leaking Underground Storage section 48 the following: qualified subscribers and other subscribers, Tank Trust Fund established by section 9508 ‘‘SEC. 48A. BROADBAND INTERNET ACCESS CRED- of the Internal Revenue Code of 1986.’’. the qualified expenditures shall be multi- IT. plied by a fraction— (b) CONFORMING AMENDMENTS.—The Solid ‘‘(a) GENERAL RULE.—For purposes of sec- Waste Disposal Act (42 U.S.C. 6901 and fol- ‘‘(A) the numerator of which is the sum tion 46, the broadband credit for any taxable of— lowing) is amended as follows: year is the sum of— (1) Section 9003(f) (42 U.S.C. 6991b(f)) is ‘‘(i) the number of potential qualified sub- ‘‘(1) the current generation broadband scribers within the rural areas and under- amended— credit, plus (A) in paragraph (1), by striking served areas, plus ‘‘(2) the next generation broadband credit. ‘‘(ii) the number of potential qualified sub- ‘‘9001(2)(B)’’ and inserting ‘‘9001(7)(B)’’; and ‘‘(b) CURRENT GENERATION BROADBAND scribers within the area consisting only of (B) in paragraphs (2) and (3), by striking CREDIT; NEXT GENERATION BROADBAND CRED- residential subscribers not described in ‘‘9001(2)(A)’’ each place it appears and insert- IT.—For purposes of this section— clause (i), ing ‘‘9001(7)(A)’’. ‘‘(1) CURRENT GENERATION BROADBAND which the equipment is capable of serving (2) Section 9003(h) (42 U.S.C. 6991b(h)) is CREDIT.—The current generation broadband amended in paragraphs (1), (2)(C), (7)(A), and with next generation broadband services, and credit for any taxable year is equal to 10 per- ‘‘(B) the denominator of which is the total (11) by striking ‘‘Leaking Underground Stor- cent of the qualified expenditures incurred age Tank Trust Fund’’ each place it appears potential subscriber population of the area with respect to qualified equipment pro- which the equipment is capable of serving and inserting ‘‘Trust Fund’’. viding current generation broadband services (3) Section 9009 (42 U.S.C. 6991h) is amend- with next generation broadband services. to qualified subscribers and taken into ac- ‘‘(e) DEFINITIONS.—For purposes of this sec- ed— count with respect to such taxable year. (A) in subsection (a), by striking tion— ‘‘(2) NEXT GENERATION BROADBAND CREDIT.— ‘‘(1) ANTENNA.—The term ‘antenna’ means ‘‘9001(2)(B)’’ and inserting ‘‘9001(7)(B)’’; and The next generation broadband credit for any device used to transmit or receive sig- (B) in subsection (d), by striking ‘‘section any taxable year is equal to 20 percent of the nals through the electromagnetic spectrum, 9001(1) (A) and (B)’’ and inserting ‘‘subpara- qualified expenditures incurred with respect including satellite equipment. graphs (A) and (B) of section 9001(10)’’. to qualified equipment providing next gen- ‘‘(2) CABLE OPERATOR.—The term ‘cable op- SEC. 1533. TECHNICAL AMENDMENTS. eration broadband services to qualified sub- erator’ has the meaning given such term by The Solid Waste Disposal Act is amended scribers and taken into account with respect section 602(5) of the Communications Act of as follows: to such taxable year. 1934 (47 U.S.C. 522(5)). (1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) ‘‘(c) WHEN EXPENDITURES TAKEN INTO AC- ‘‘(3) COMMERCIAL MOBILE SERVICE CAR- is amended by striking ‘‘sustances’’ and in- COUNT.—For purposes of this section— RIER.—The term ‘commercial mobile service serting ‘‘substances’’. ‘‘(1) IN GENERAL.—Qualified expenditures carrier’ means any person authorized to pro- (2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is with respect to qualified equipment shall be vide commercial mobile radio service as de- amended by striking ‘‘subsection (c) and (d) taken into account with respect to the first fined in section 20.3 of title 47, Code of Fed- of this section’’ and inserting ‘‘subsections taxable year in which— eral Regulations. (c) and (d)’’. ‘‘(A) current generation broadband services ‘‘(4) CURRENT GENERATION BROADBAND SERV- (3) Section 9004(a) (42 U.S.C. 6991c(a)) is are provided through such equipment to ICE.—The term ‘current generation amended by striking ‘‘in 9001(2) (A) or (B) or qualified subscribers, or broadband service’ means the transmission both’’ and inserting ‘‘in subparagraph (A) or ‘‘(B) next generation broadband services of signals at a rate of at least 1,000,000 bits (B) of section 9001(7)’’. are provided through such equipment to per second to the subscriber and at least (4) Section 9005 (42 U.S.C. 6991d) is amend- qualified subscribers. 128,000 bits per second from the subscriber. ed— ‘‘(2) LIMITATION.— ‘‘(5) MULTIPLEXING OR DEMULTIPLEXING.— (A) in subsection (a), by striking ‘‘study ‘‘(A) IN GENERAL.—Qualified expenditures The term ‘multiplexing’ means the trans- taking’’ and inserting ‘‘study, taking’’; shall be taken into account under paragraph mission of 2 or more signals over a single (B) in subsection (b)(1), by striking (1) only with respect to qualified equip- channel, and the term ‘demultiplexing’ ‘‘relevent’’ and inserting ‘‘relevant’’; and ment— means the separation of 2 or more signals (C) in subsection (b)(4), by striking ‘‘(i) the original use of which commences previously combined by compatible multi- ‘‘Evironmental’’ and inserting ‘‘Environ- with the taxpayer, and plexing equipment. mental’’. ‘‘(ii) which is placed in service, after De- ‘‘(6) NEXT GENERATION BROADBAND SERV- f cember 31, 2003. ICE.—The term ‘next generation broadband ‘‘(B) SALE-LEASEBACKS.—For purposes of service’ means the transmission of signals at TEXT OF AMENDMENTS subparagraph (A), if property— a rate of at least 22,000,000 bits per second to SA 3052. Mrs. FEINSTEIN submitted ‘‘(i) is originally placed in service after De- the subscriber (or its equivalent when the an amendment intended to be proposed cember 31, 2003, by any person, and data rate is measured before being com- ‘‘(ii) sold and leased back by such person pressed for transmission) and at least to amendment SA 3048 proposed by Mr. within 3 months after the date such property 5,000,000 bits per second from the subscriber MCCAIN to the bill S. 150, to make per- was originally placed in service, such prop- (or its equivalent as so measured). manent the moratorium on taxes on erty shall be treated as originally placed in ‘‘(7) NONRESIDENTIAL SUBSCRIBER.—The Internet access and multiple and dis- service not earlier than the date on which term ‘nonresidential subscriber’ means any

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00161 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.105 S28PT1 S4606 CONGRESSIONAL RECORD — SENATE April 28, 2004 person who purchases broadband services ‘‘(iii) extends from the customer side of the ‘‘(A) is not within 10 miles of any incor- which are delivered to the permanent place headend to the outside of the unit, building, porated or census designated place con- of business of such person. dwelling, or office owned or leased by a sub- taining more than 25,000 people, and ‘‘(8) OPEN VIDEO SYSTEM OPERATOR.—The scriber in the case of a cable operator or ‘‘(B) is not within a county or county term ‘open video system operator’ means open video system operator, or equivalent which has an overall population any person authorized to provide service ‘‘(iv) extends from a transmission/receive density of more than 500 people per square under section 653 of the Communications Act antenna (including such antenna) which mile of land. of 1934 (47 U.S.C. 573). transmits and receives signals to or from ‘‘(18) RURAL SUBSCRIBER.—The term ‘rural ‘‘(9) OTHER WIRELESS CARRIER.—The term multiple subscribers, to a transmission/re- subscriber’ means any residential subscriber ‘other wireless carrier’ means any person ceive antenna (including such antenna) on residing in a dwelling located in a rural area (other than a telecommunications carrier, the outside of the unit, building, dwelling, or or nonresidential subscriber maintaining a commercial mobile service carrier, cable op- office owned or leased by a subscriber in the permanent place of business located in a erator, open video system operator, or sat- case of a satellite carrier or other wireless rural area. ellite carrier) providing current generation carrier, unless such other wireless carrier is ‘‘(19) SATELLITE CARRIER.—The terns ‘sat- broadband services or next generation also a telecommunications carrier. ellite carrier’ means any person using the fa- broadband service to subscribers through the ‘‘(C) PACKET SWITCHING EQUIPMENT.—Pack- cilities of a satellite or satellite service li- wireless transmission of energy through et switching equipment, regardless of loca- censed by the Federal Communications Com- radio or light waves. tion, shall be taken into account under submission and operating in the Fixed-Satellite ‘‘(10) PACKET SWITCHING.—The term ‘packet paragraph (A) only if it is deployed in con- Service under part 25 of title 47 of the Code switching’ means controlling or routing the nection with equipment described in sub- of Federal Regulations or the Direct Broad- path of a digitized transmission signal which paragraph (B) and is uniquely designed to cast Satellite Service under part 100 of title is assembled into packets or cells. perform the function of packet switching for 47 of such Code to establish and operate a ‘‘(11) PROVIDER.—The term ‘provider’ current generation broadband services or channel of communications for distribution means, with respect to any qualified equip- next generation broadband services, but only of signals, and owning or leasing a capacity ment any— if such packet switching is the last in a se- or service on a satellite in order to provide ‘‘(A) cable operator, ries of such functions performed in the trans- such distribution. ‘‘(B) commercial mobile service carrier, mission of a signal to a subscriber or the ‘‘(20) SATURATED MARKET.—The term ‘satu- ‘‘(C) open video system operator, first in a series of such functions performed rated market’ means any census tract in ‘‘(D) satellite carrier, in the transmission of a signal from a sub- which; as of the date of the enactment of ‘‘(E) telecommunications carrier, or scriber. this section— ‘‘(A) current generation broadband services ‘‘(F) other wireless carrier, ‘‘(D) MULTIPLEXING AND DEMULTIPLEXING EQUIPMENT.—Multiplexing and have been provided by a, single provider to 85 providing current generation broadband percent or more of the total number of po- services or next generation broadband serv- demultiplexing equipment shall be taken into account under subparagraph (A) only to tential residential subscribers residing in ices to subscribers through such qualified dwellings located within such census tract, equipment. the extent it is deployed in connection with equipment described in subparagraph (B) and and ‘‘(12) PROVISION OF SERVICES.—A provider is uniquely designed to perform the function ‘‘(B) such services can be utilized— shall be treated as providing services to 1 or ‘‘(i) at least a majority of the time during of multiplexing and demultiplexing packets more subscribers if— periods of maximum demand by each such or cells of data and making associated appli- ‘‘(A) such a subscriber has been passed by subscriber who is utilizing such services, and cation adaptions, but only if such multi- the provider’s equipment and can be con- ‘‘(ii) in a manner substantially the same as plexing or demultiplexing equipment is lo- nected to such equipment for a standard con- such services are provided by the provider to cated between packet switching equipment nection fee, subscribers through equipment with respect described in subparagraph (C) and the sub- ‘‘(B) the provider is physically able to de- to which no credit is allowed under subscriber’s premises. liver current generation broadband services section (a)(1). ‘‘(14) QUALIFIED EXPENDITURE.— or next generation broadband services, as ap- ‘‘(21) SUBSCRIBER.—The term ‘subscriber’ ‘‘(A) IN GENERAL.—The term ‘qualified ex- plicable, to such a subscriber without mak- means any person who purchases current penditure’ means any amount— ing more than an insignificant investment generation broadband services or next gen- ‘‘(i) chargeable to capital account with re- with respect to such subscriber, eration broadband services. spect to the purchase and installation of ‘‘(C) the provider has made reasonable ef- ‘‘(22) TELECOMMUNICATIONS CARRIER.—The qualified equipment (including any upgrades forts to make such subscribers aware of the term ‘telecommunications carrier’ has the thereto) for which depreciation is allowable availability of such services, meaning given such term by section 3(44) of under section 168, and the Communications Act of 1934 (47 U.S.C. ‘‘(D) such services have been purchased by ‘‘(ii) incurred after December 31, 2003, and 153(44)), but— 1 or more such subscribers, and before January 1, 2008. ‘‘(E) such services are made available to ‘‘(A) includes all members of an affiliated ‘‘(B) CERTAIN SATELLITE EXPENDITURES EX- such subscribers at average prices com- group of which a telecommunications carrier CLUDED.—Such term shall not include any is a member, and parable to those at which the provider makes expenditure with respect to the launching of available similar services in any areas in ‘‘(B) does not include any commercial mo- any satellite equipment. bile service carrier. which the provider makes available such ‘‘(C) LEASED EQUIPMENT.—Such term shall services. ‘‘(23) TOTAL POTENTIAL SUBSCRIBER POPU- include so much of the purchase price paid LATION.—The term ‘total potential sub- ‘‘(13) QUALIFIED EQUIPMENT.— by the lessor of equipment subject to a lease scriber population’ means, with respect to ‘‘(A) IN GENERAL.—The term ‘qualified described in subsection (c)(2)(B) as is attrib- any area and based on the most recent cen- equipment’ means equipment which provides utable to expenditures incurred by the lessee current generation broadband services or sus data, the total number of potential resi- which would otherwise be described in sub- dential subscribers residing in dwellings lo- next generation broadband services— paragraph (A). ‘‘(i) at least a majority of the time during cated in such area and potential nonresiden- ‘‘(15) QUALIFIED SUBSCRIBER.—The term tial subscribers maintaining permanent periods of maximum demand to each sub- ‘qualified subscriber’ means— scriber who is utilizing such services, and places of business located in such area. ‘‘(A) with respect to the provision of cur- ‘‘(24) UNDERSERVED AREA.—The term ‘un- ‘‘(ii) in a manner substantially the same as rent generation broadband services— derserved area,’ means any census tract such services are provided by the provider to ‘‘(i) any nonresidential subscriber main- which is located in— subscribers through equipment with respect taining a permanent place of business in a ‘‘(A) an empowerment zone or enterprise to which no credit is allowed under sub- rural area, or underserved area, or community designated under section 1391, section (a)(1). ‘‘(ii) any residential subscriber residing in ‘‘(B) the District of Columbia. Enterprise ‘‘(B) ONLY CERTAIN INVESTMENT TAKEN INTO a dwelling located in a rural area or under- Zone established under section 1400, ACCOUNT.—Except as provided in subpara- served area which is not a saturated market, ‘‘(C) a renewal community designated graph (C) or (D), equipment shall be taken and under section 1400E, or into account under subparagraph (A) only to ‘‘(B) with respect to the provision of next ‘‘(D) a low-income community designated the extent it— generation broadband services— under section 45D. ‘‘(i) extends from the last point of switch- ‘‘(i) any nonresidential subscriber main- ‘‘(25) UNDERSERVED SUBSCRIBER.— The term ing to the outside of the unit, building, taining a permanent place of business in a ‘underserved subscriber’ means any residen- dwelling, or office owned or leased by a sub- rural area, or underserved area, or tial subscriber residing in a dwelling located scriber in the case of a telecommunications ‘‘(ii) any residential subscriber. in an underserved area or nonresidential sub- carrier, ‘‘(16) RESIDENTIAL SUBSCRIBER.—The term scriber maintaining a permanent place of ‘‘(ii) extends from the customer side of the ‘residential subscriber’ means any individual business located in an underserved area.’’. mobile telephone switching office to a trans- who purchases broadband services which are (b) CREDIT TO BE PART OF INVESTMENT mission/receive antenna (including such an- delivered to such individual’s dwelling. CREDIT.—Section 46 of the Internal Revenue tenna) owned or leased by a subscriber in the ‘‘(17) RURAL AREA.—The term ‘rural area’ Code of 1986 (relating to the amount of in- case of a commercial mobile service carrier, means any census tract which— vestment credit) is amended by striking

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00162 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.138 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4607 ‘‘and’’ at the end of paragraph (2), by strik- broadband Internet access credit under sec- to provide accurate customer notice regarding the period at the end of paragraph (3) and tion 48A of the Internal Revenue Code of 1986 ing the implementation and purpose of end- inserting ‘‘, and’’, and by adding at the end (as added by this section) to provide incen- user charges for telecommunications serv- the following: tives for the purchase, installation, and con- ices. ‘‘(4) the broadband Internet access credit.’’ nection of equipment and facilities offering (b) PURPOSE.—It is the purpose of this Act (c) SPECIAL RULE FOR MUTUAL OR COOPERA- expanded broadband access to the Internet to require the Federal Communications TIVE TELEPHONE COMPANIES.—Section for users in certain low income and rural Commission and the Federal Trade Commis- 501(c)(12)(B) of the Internal Revenue Code of areas of the United States, as well as to resi- sion to protect and empower consumers of 1986 (relating to list of exempt organizations) dential users nationwide, in a manner that telecommunications services by assuring is amended by striking ‘‘or’’ at the end of maintains competitive neutrality among the that telecommunications bills, including clause (iii), by striking the period at the end various classes of providers of broadband line-item charges, issued by telecommuni- of clause (iv) and inserting ‘‘, or’’, and by services. Accordingly, the Secretary of the cations carriers nationwide are both accu- adding at the end the following new clause: Treasury shall prescribe such regulations as rate and comprehensible. ‘‘(v) from the sale of property subject to a may be necessary or appropriate to carry out SEC.—03. INVESTIGATION OF TELECOMMUNI- lease described in section 48A(c)(2)(B), but the purposes of section 48A of such Code, in- CATIONS CARRIER BILLING PRAC- only to the extent such income does not in cluding— TICES. any year exceed amount equal to the credit (A) regulations to determine how and when (a) INVESTIGATION.— for qualified expenditures which would be de- a taxpayer that incurs qualified expenditures (1) REQUIREMENT.—The Federal Commu- termined under section 48A for such year if satisfies the requirements of section 48A of nications Commission and the Federal Trade the mutual or cooperative telephone com- such Code to provide broadband services, and Commission shall jointly conduct an inves- pany was not exempt from taxation and was (B) regulations describing the information, tigation of the billing practices of tele- treated as the owner of the property subject records, and data taxpayers are required to communications carriers. to such lease.’’. provide the Secretary to substantiate com- (2) PURPOSE.—The purpose of the investiga- (d) CONFORMING AMENDMENT.—The table of pliance with the requirements of section 48A tion is to determine whether the bills sent sections for subpart E of part IV of sub- of such Code. by telecommunications carriers to their cus- chapter A of chapter 1 of the Internal Rev- (g) EFFECTIVE DATE.—The amendments tomers accurately assess and correctly char- enue Code of 1986 is amended by inserting made by this section shall apply to expendi- acterize the services received and fees after the item relating to section 48 the fol- tures incurred after December 31, 2003. charged for such services, including any fees lowing: imposed as line-item charges. ETERMINATIONS.—In carrying out the ‘‘Sec. 48A. Broadband internet access cred- SA 3054. Mr. ROCKEFELLER sub- (b) D investigation under subsection (a), the Fed- it.’’. mitted an amendment intended to be eral Communications Commission and the (e) DESIGNATION OF CENSUS TRACTS.— proposed to amendment SA 3048 pro- Federal Trade Commission shall determine (1) IN GENERAL.—The Secretary of the posed by Mr. MCCAIN to the bill S. 150, the following: Treasury shall, not later than 90 days after to make permanent the moratorium on (1) The prevalence of incomprehensible or the date of the enactment of this Act, des- taxes on Internet access and multiple confusing telecommunications bills. ignate and publish those census tracts meet- and discriminatory taxes on electronic (2) The most frequent causes for confusion ing the criteria described in paragraphs (17) commerce imposed by the Internet Tax on telecommunications bills. and (24) of section 48A(e) of the Internal Rev- Freedom Act; which was ordered to lie (3) Whether or not any best practices exist, enue Code of 1986 (as added by this section). which, if utilized as an industry standard, In making such designations, the Secretary on the table; as follows: would reduce confusion and improve com- of the Treasury shall consult with such other At the end add the following: prehension of telecommunications bills. departments and agencies as the Secretary TITLE —PHONE BILL FAIRNESS ACT. (4) Whether or not telecommunications determines appropriate. bills that impose fees through line-item SECTION—01. SHORT TITLE. (2) SATURATED MARKET.— charges characterize correctly the nature This title may be cited as the ‘‘Phone Bill (A) IN GENERAL.—For purposes of desig- and basis of such fees, including, in par- Fairness Act’’. nating and publishing those census tracts ticular, whether or not such fees are required meeting the criteria described in subsection SEC.—02. FINDINGS; PURPOSE. by the Federal Government or State govern- (e)(20) of such section 48A— (a) FINDINGS.—Congress makes the fol- ments. (i) the Secretary of the Treasury shall pre- lowing findings: (c) REVIEW OF RECORDS.— scribe not later than 30 days after the date of (1) Customer bills for telecommunications (1) AUTHORITY.—For purposes of the inves- the enactment of this Act the form upon services are unreasonably complicated, and tigation under subsection (a), the Federal which any provider which takes the position many Americans are unable to understand Communications Commission and the Fed- that it meets such criteria with respect to the nature of services provided to them and eral Trade Commission may obtain from any any census tract shall submit a list of such the charges for which they are responsible. telecommunications carrier any record of census tracts (and any other information re- (2) One of the purposes of the Tele- such carrier that is relevant to the inves- quired by the Secretary) not later, than 60 communications Act of 1996 (Public Law 104– tigation, including any record supporting days after the date of the publication of such 104) was to unleash competitive and market such carrier’s basis for setting fee levels or form, and forces for telecommunications services. percentages. (ii) the Secretary of the Treasury shall (3) Unless customers can understand their (2) USE.—The Federal Communications publish an aggregate list of such census telecommunications bills they cannot take Commission and the Federal Trade Commis- tracts submitted and the applicable pro- advantage of the newly competitive market sion may use records obtained under this viders not later than 30 days after the last for telecommunications services. subsection only for purposes of the investiga- date such submissions are allowed under (4) Confusing telecommunications bills tion. clause (i). allow a small minority of providers of tele- (d) DISCIPLINARY ACTIONS.— (B) NO SUBSEQUENT LISTS REQUIRED.—The communications services to commit fraud (1) IN GENERAL.—If the Federal Commu- Secretary of the Treasury shall not be re- more easily. The best defense against tele- nications Commission or the Federal Trade quired to publish any list of census tracts communications fraud is a well informed Commission determines as a result of the in- meeting such criteria subsequent to the list consumer. Consumers cannot be well investigation under subsection (a) that the described in subparagraph (A)(ii). formed when their telecommunications bills bills sent by a telecommunications carrier to (C) AUTHORITY TO DISREGARD FALSE SUBMIS- are incomprehensible. its customers do not accurately assess or SIONS.—In addition to imposing any other ap- (5) Certain providers of telecommuni- correctly characterize any service or fee con- plicable penalties, the Secretary of the cations services have established new, spe- tained in such bills, the Federal Communica- Treasury shall have the discretion to dis- cific charges on customer bills commonly tions Commission or the Federal Trade Com- regard any form described in subparagraph known as ‘‘line-item charges’’. mission, as the case may be, may take such (A)(i) on which a provider knowingly sub- (6) These line-item charges have pro- action against such carrier as such Commis- mitted false information. liferated and are often described with inac- sion is authorized to take under law. (f) OTHER REGULATORY MATTERS.— curate and confusing names. (2) CHARACTERIZATION OF FEES.—If the Fed- (1) PROHIBITION.—No Federal or State agen- (7) These line-item charges have generated eral Communications Commission or the cy or, instrumentality shall adopt regula- significant confusion among customers re- Federal Trade Commission determines as a tions or rate making procedures that would garding the nature and scope of universal result of the investigation under subsection have the effect of confiscating any credit or service and of the fees associated with uni- (a) that a telecommunications carrier has portion thereof allowed under section 48A of versal service. characterized a fee on bills sent to its cus- the Internal Revenue Code of 1986 (as added (8) The National Association of Regulatory tomers as mandated or otherwise required by by this section) or otherwise subverting the Utility Commissioners adopted a resolution the Federal Government or a State and that purpose of this section. in February 1998 supporting action by the such characterization is incorrect, the Fed- (2) TREASURY REGULATORY AUTHORITY.—It Federal Communications Commission to re- eral Communications Commission or the is the intent of Congress in providing the quire interstate telecommunications carriers Federal Trade Commission, as the case may

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00163 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.140 S28PT1 S4608 CONGRESSIONAL RECORD — SENATE April 28, 2004 be, may require the carrier to discontinue SEC. l06. REQUIREMENTS FOR TELECOMMUNI- amendment SA 3048 proposed by Mr. CATIONS CARRIERS IMPOSING CER- such characterization. MCCAIN to the bill S. 150, to make per- TAIN CHARGES FOR SERVICES. (3) ADDITIONAL ACTIONS.—If the Federal (a) BILLING REQUIREMENTS.—Any tele- manent the moratorium on taxes on Communications Commission or the Federal Internet access and multiple and dis- Trade Commission determines that such communications carrier shall include on the bills for telecommunications services sent to Commission does not have authority under criminatory taxes on electronic com- its customers the following: law to take actions under paragraph (1) that merce imposed by the Internet Tax (1) An accurate name and description of Freedom Act; which was ordered to lie would be appropriate in light of a determina- any covered charge. tion described in paragraph (1), the Federal (2) The recipient or class of recipients of on the table; as follows: Communications Commission or the Federal the monies collected through each such On page 4, beginning with line 9, strike Trade Commission, as the case may be, shall charge. through line 20 on page 5, and insert the fol- notify Congress of the determination under (3) A statement whether each such charge lowing: this paragraph in the report under sub- is required by law or collected pursuant to a ‘‘SEC. 1104. GRANDFATHERING OF PRE-OCTOBER section (e). requirement imposed by a governmental en- 1998 TAXES. (e) REPORT.—Not later than one year after tity under its discretionary authority. ‘‘(a) IN GENERAL.—Section 1101(a) does not the date of the enactment of this Act, the (4) A specific explanation of any reduction apply to a tax on Internet access that was Federal Communications Commission and in charges or fees to customers, and the class generally imposed and actually enforced the Federal Trade Commissions shall jointly of telephone customer that such reduction, prior to October 1, 1998, if, before that date, submit to Congress a report on the results of that are related to each such charge. the tax was authorized by statute and ei- the investigation under subsection (a). The (b) UNIVERSAL SERVICE CONTRIBUTIONS AND ther— report shall include the determination, if RECEIPTS.—Not later than January 31 each ‘(1) a provider of Internet access services any, of either Commission under subsection year, each telecommunications carrier re- had a reasonable opportunity to know, by (d)(3) and any recommendations for further quired to contribute to universal service dur- virtue of a rule or other public proclamation legislative action that such Commissions ing the previous year under section 254(d) of made by the appropriate administrative consider appropriate. the Communications Act of 1934 (47 U.S.C. agency of the State or political subdivision 254(d)) shall submit to the Federal Commu- SEC. l04. TREATMENT OF MISLEADING TELE- thereof, that such agency has interpreted COMMUNICATIONS BILLS AND TELE- nications Commission a report on the fol- and applied such tax to Internet access serv- COMMUNICATIONS RATE PLANS. lowing: ices; or (1) The total contributions of the carrier to (a) FEDERAL TRADE COMMISSION.—The Fed- ‘‘(2) a State or political subdivision thereof the universal service fund during the pre- eral Trade Commission shall treat any tele- generally collected such tax on charges for vious year. Internet access. communications billing practice or tele- (2) The total receipts from customers dur- communications rate plan that the Commis- ‘‘(b) TERMINATION.—Subsection (a) shall ing such year designed to recover contribu- not apply after November 1, 2006.’’. sion determines to be intentionally mis- tions to the fund. leading as an unfair business practice under (c) ACTION ON UNIVERSAL SERVICE CON- SA 3057. Mr. ALLEN submitted an the Federal Trade Commission Act (15 U.S.C. TRIBUTIONS AND RECEIPTS DATA.— 41 et seq.). (1) REVIEW.—The Federal Communications amendment intended to be proposed to (b) FEDERAL COMMUNICATIONS COMMIS- Commission shall review the reports sub- amendment SA 3048 proposed by Mr. SION.—The Federal Communications Com- mitted to the Commission under subsection MCCAIN to the bill S. 150, to make per- missions shall, upon finding that any holder (b) in order to determine whether or not the manent the moratorium on taxes on of a license under the Commission has re- amount of the contributions of a tele- Internet access and multiple and dis- peatedly and intentionally engaged in a telecommunications carrier to the universal criminatory taxes on electronic com- phone billing practice, or has repeatedly and service fund in any year is equal to the merce imposed by the Internet Tax intentionally utilized a telephone rate plan, amount of the receipts of the telecommuni- that is misleading, treat such holder as act- cations carrier from its customers in such Freedom Act; which was ordered to lie ing against the public interest for purposes year for purposes of contributions to the on the table; as follows: of the Communications Act of 1934 (47 U.S.C. fund. On page 2, strike lines 1 through 6, and in- 151 et seq.). (2) ADDITIONAL CONTRIBUTIONS.—If the sert the following: SEC. l05. REQUIREMENTS FOR ALL BILLS FOR Commission determines as a result of a re- ‘‘(a) MORATORIA.— TELECOMMUNICATIONS SERVICES. view under paragraph (1) that the amount of ‘‘(1) MULTIPLE OR DISCRIMINATORY TAXES ON (a) AVERAGE PER MINUTE RATE CALCULA- the receipts of a telecommunications carrier ELECTRONIC COMMERCE.—No State or political TION.—Each telecommunications carrier from its customers in a year for purposes of subdivision thereof may impose multiple or shall display on the first page of each cus- contributions to the universal service fund discriminatory taxes on electronic com- tomer bill for telecommunications services exceeded the amount contributed by the car- merce. the average per-minute charge of tele- rier in such year to the fund, the Commis- ‘‘(2) TAXES ON INTERNET ACCESS.—No State communications services of such customer sion shall have the authority to require the or political subdivision thereof may impose a for the billing period covered by such bill. carrier to deposit in the fund an amount tax on Internet access during the period beginning November 1, 2003, and ending Novem- (b) CALLING PATTERNS.—Each tele- equal to the amount of such excess. communications carrier shall display on the (d) COVERED CHARGES.—For purposes of ber 1, 2007.’’. first page of each customer bill for tele- subsection (a), a covered charge shall include communications services the percentage of any charge on a bill for telecommunications SA 3058. Mr. ALLEN submitted an the total number of telephone calls of such services that is separate from a per-minute amendment intended to be proposed to customer for the billing period covered by rate charge, including a universal service amendment SA 3048 proposed by Mr. such bill as follows: charge, a subscriber line charge, and a resub- MCCAIN to the bill S. 150, to make per- scribed interchange carrier charge. (1) That began on a weekday. manent the moratorium on taxes on (2) That began on a weekend. SEC. l07. TELECOMMUNICATIONS CARRIER DE- FINED. Internet access and multiple and dis- (3) That began from 8 a.m. to 8 p.m. In this Act, the term ‘‘telecommunications criminatory taxes on electronic com- (4) That began from 8:01 p.m. to 7:59 a.m. carrier’’ has the meaning given that term in merce imposed by the Internet Tax (5) That were billed to a calling card. section 3(44) of the Communications Act of Freedom Act; which was ordered to lie (c) AVERAGE PER-MINUTE CHARGE DE- 1934 (47 U.S.C. 153(44)). on the table; as follows: FINED.—IN THIS SECTION, THE TERM ‘‘AVERAGE On page 2, strike lines 1 through 7, and in- PER-MINUTE CHARGE’’, IN THE CASE OF A BILL SA 3055. Mr. ALLEN submitted an sert the following: OF A CUSTOMER FOR A BILLING PERIOD, MEANS amendment intended to be proposed to ‘‘(a) MORATORIUM.—No State or political (1) the sum of— amendment SA 3048 proposed by Mr. subdivision thereof may impose any of the (A) the aggregate amount of monthly or MCCAIN to the bill S. 150, to make per- following taxes: other recurring charges, if any, for tele- manent the moratorium on taxes on ‘‘(1) Taxes on Intenet access. communications services imposed on the Internet access and multiple and dis- ‘‘(2) Multiple or discriminatory taxes on customer by the bill for the billing period; electronic commerce.’’. and criminatory taxes on electronic commerce imposed by the Internet Tax On page 8, between lines 9 and 10, insert (B) the total amount of all per-minute the following: Freedom Act; which was ordered to lie charges for telecommunications services im- SEC. 7. RESTORATION OF ORIGINAL DEFINITION posed on the customer by the bill for the on the table; as follows: OF INTERNET ACCESS AFTER 4 billing period; divided by On page 5, line 2, strike ‘‘2006.’’ and insert YEARS. (2) the total number of minutes of tele- ‘‘2005.’’. ‘‘(a) IN GENERAL.— communications services provided to the ‘‘(1) Paragraph (3)(D) of section 1101(d) (as customer during the billing period and cov- SA 3056. Mr. ALLEN submitted an redesignated by section 2(b)(1) of this Act) is ered by the bill. amendment intended to be proposed to amended by striking the second sentence and

VerDate jul 14 2003 05:17 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00164 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.074 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4609 inserting ‘‘Such term does not include tele- (1) ‘‘to end the imposition, in the absence (2) it is unfair to force the United States communications services.’’. of full consideration by Congress, of Federal taxpayer to support unnecessary subsidies, ‘‘(2) Paragraph (5) of section 1105 (as redes- mandates on State, local, and tribal govern- including tax advantages, that do not pro- ignated by section 3(1) of this Act) is amendments without adequate Federal funding, in vide a substantial public benefit or serve the ed by striking the second sentence and in- a manner that may displace other essential public interest; serting ‘‘Such term does not include tele- State, local, and tribal governmental prior- (3) the Congress has been unable to evalu- communications services.’’. ities’’; ate methodically those Federal subsidies ‘‘(b) EFFECTIVE DATE.—The amendments (2) to provide ‘‘for the development of in- that are unfair and unnecessary and require made by subsection (a) shall take effect on formation about the nature and size of man- reform or elimination; and November 2, 2007. dates in proposed legislation’’; (4) a Commission to advise the Congress is On page 8, line 10, strike ‘‘SEC. 7.’’ and in- (3) ‘‘to establish a point-of-order vote on essential to a comprehensive review of such sert ‘‘SEC. 8.’’. the consideration in the Senate and House of unfair corporate subsidies and to the reform On page 8, line 11, strike ‘‘The’’ and insert Representatives of legislation containing or elimination of such subsidies. ‘‘Except as provided in section 7(b), the’’. significant Federal intergovernmental man- SEC. 203. PURPOSE. SA 3059. Mr. BINGAMAN submitted dates without providing adequate funding to The purpose of this title is to establish a an amendment intended to be proposed comply with such mandates’’; fair and deliberative process that will result (4) to require that ‘‘Federal agencies pre- to amendment SA 3048 proposed by Mr. in the timely identification, review, and re- pare and consider better estimates of the form or elimination of unnecessary and in- MCCAIN to the bill S. 150, to make per- budgetary impact of regulations containing equitable subsidies, including tax advan- manent the moratorium on taxes on Federal mandates upon State, local, and tages, provided by the Federal Government Internet access and multiple and dis- tribal governments before adopting such reg- to entities or industries engaged in profit- criminatory taxes on electronic com- ulations, and ensuring that small govern- making enterprises. merce imposed by the Internet Tax ments are given special consideration in that SEC. 204. DEFINITION. Freedom Act; which was ordered to lie process’’; and For purposes of this title, the term ‘‘in- on the table; as follows: (5) to establish the general rule that Con- equitable Federal subsidy’’— gress shall not impose Federal mandates on On page 5, line 2, strike ‘‘2006’’ and insert (1) except as provided in paragraph (2), State, local, and tribal governments without ‘‘2007’’. means a payment, benefit, service, or tax ad- providing adequate funding to comply with vantage that— SA 3060. Mr. CARPER submitted an such mandates. (A) is provided by the Federal Government (b) SENSE OF THE SENATE.—It is the sense to any corporation, partnership, joint ven- amendment intended to be proposed to of the Senate that— amendment SA 3048 proposed by Mr. ture, association, or business trust other (1) the Unfunded Mandates Reform Act of than— MCCAIN to the bill S. 150, to make per- 1995 constituted an important pledge on the manent the moratorium on taxes on (i) a nonprofit organization described part of the Federal Government, in general, under section 501(c)(3) of the Internal Rev- Internet access and multiple and dis- and Congress, in particular, to refrain from enue Code of 1986 that is exempt from tax- criminatory taxes on electronic com- imposing Federal mandates on State, local, ation under section 501(a) of the Internal merce imposed by the Internet Tax and tribal governments without providing Revenue Code of 1986; or Freedom Act; which was ordered to lie adequate resources to compensate State, (ii) a State or local government or Indian on the table; as follows: local, and tribal governments for the cost of Tribe; and complying with such mandates; At the appropriate place, insert the fol- (B) provides an unfair competitive advan- (2) at this time when State, local, and trib- tage or financial windfall; and lowing: al governments are struggling to cope with SEC. l. INTERNET TAX PROVIDERS MUST PAY (2) does not include a payment, benefit, the worst State and local fiscal crisis since service, or tax advantage that is awarded for OTHER STATE TAXES THEY ARE RE- World War II, it is urgently important that QUIRED TO PAY. the purposes of research and development in Nothing in the Internet Tax Freedom Act Congress adhere to its commitments under the broad public interest on the basis of a (47 U.S.C. 151 note) may be construed to ex- the Unfunded Mandates Reform Act of 1995; peer reviewed or other open, competitive, empt an Internet access provider (within the and merit-based procedure. (3) Congress should not pass laws man- meaning of that Act) from liability to pay SEC. 205. THE COMMISSION. any tax that is— dating that States or localities spend new money or forgo collecting currently col- (a) ESTABLISHMENT.—There is established (1) generally applied under the authority of an independent commission to be known as State law; and lected revenues, unless Congress— (A) has clear and precise estimates of the the ‘‘Corporate Subsidy Reform Commis- (2) the legal liability of that Internet ac- sion’’ (hereafter in this title referred to as cess provider. budgetary impacts of such mandates upon States, local governments, and tribal govern- the ‘‘Commission’’). (b) DUTIES.—The Commission shall— SA 3061. Mr. CARPER submitted an ments; and (1) examine the programs and laws of the (B) provides adequate funding to cover the amendment intended to be proposed to Federal Government and identify such pro- cost to States and localities of complying amendment SA 3048 proposed by Mr. grams and laws that provide inequitable Fed- with such mandates. MCCAIN to the bill S. 150, to make per- eral subsidies; manent the moratorium on taxes on SA 3063. Mr. CARPER submitted an (2) review inequitable Federal subsidies; Internet access and multiple and dis- amendment intended to be proposed to and (3) submit the report required under sec- criminatory taxes on electronic com- amendment SA 3048 proposed by Mr. merce imposed by the Internet Tax tion 206(c) to the Congress, making rec- MCCAIN to the bill S. 150, to make per- ommendations regarding the termination, Freedom Act; which was ordered to lie manent the moratorium on taxes on on the table; as follows: modification, or retention of inequitable Internet access and multiple and dis- Federal subsidies. On page 2, line 1, strike ‘‘No State or polit- criminatory taxes on electronic com- (c) LIMITATIONS.— ical subdivision thereof may’’ and insert merce imposed by the Internet Tax (1) CREATION OF NEW PROGRAMS OR TAXES.— ‘‘The Federal Government and a State or po- This title is not intended to result in the cre- litical subdivision thereof may not’’. Freedom Act; which was ordered to lie on the table; as follows: ation of new programs or taxes. The Com- mission established in this section shall At the end of the bill, add the following: SA 3062. Mr. CARPER submitted an limit its activities to reviewing existing pro- amendment intended to be proposed to TITLE II—CORPORATE SUBSIDY REFORM grams or laws with the goal of ensuring fair- amendment SA 3048 proposed by Mr. SEC. 201. SHORT TITLE. ness and equity in the operation and applica- MCCAIN to the bill S. 150, to make per- This title may be cited as the ‘‘Corporate tion thereof. manent the moratorium on taxes on Subsidy Reform Commission Act of 2004’’. (2) ELIMINATION OF AGENCIES AND DEPART- Internet access and multiple and dis- SEC. 202. FINDINGS. MENTS.—The Commission— criminatory taxes on electronic com- The Congress finds that— (A) shall limit its recommendations to the (1) Federal subsidies, including tax advan- merce imposed by the Internet Tax termination or reform of payments, benefits, tages, which may have been enacted with a services, or tax advantages; and Freedom Act; which was ordered to lie valid purpose for specific industries or indus- (B) shall not recommend the termination on the table; as follows: try segments can— of any Federal agency or department. At the appropriate place, insert the fol- (A) fall subject to abuse, causing unantici- (d) ADVISORY COMMITTEE.—The Commis- lowing: pated and unjustified windfalls to some in- sion shall be considered an advisory com- SEC. ll. SENSE OF THE SENATE. dustries and industry segments; or mittee within the meaning of that term in (a) FINDINGS.—The Senate finds that the (B) become obsolete, anticompetitive, or the Federal Advisory Committee Act (5 Unfunded Mandates Reform Act of 1995 (P.L. no longer in the public interest, making such U.S.C. App.). 104–4) was passed— subsidies unnecessary or undesired; (e) APPOINTMENT.—

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(1) MEMBERS.—The members of the Com- U.S.C.), the Director shall be paid at the rate Senate and the Committee on Government mission— of basic pay payable for level IV of the Exec- Reform of the House of Representatives. (A) shall be appointed for the life of the utive Schedule under section 5315 of title 5, (G) LIMITATION ON FEDERAL OFFICER.—No Commission; and United States Code. member of a Federal agency and no em- (B) shall be composed of 8 members, of (3) REPORTS.—The Director shall submit ployee of a Federal agency may serve as a whom— periodic reports on administrative and per- member of the Commission or as a paid (i) 2 shall be appointed by the Speaker of sonnel matters to the co-chairs of the Com- member of its staff. the House of Representatives; mission and the Chairman and ranking mi- (6) ASSISTANCE.— (ii) 2 shall be appointed by the minority nority member of the Committee on Govern- (A) IN GENERAL.—The Comptroller General leader of the House of Representatives; mental Affairs of the Senate and the Com- of the United States may provide assistance, (iii) 2 shall be appointed by the majority mittee on Government Reform of the House including the detailing of employees, to the leader of the Senate, one of whom shall be of Representatives. Commission in accordance with an agree- designated by the majority leader to serve as (j) STAFF.— ment entered into with the Commission. a co-chair; and (1) ADDITIONAL PERSONNEL.—Subject to (B) CONSULTATION.—The Commission and (iv) 2 shall be appointed by the minority paragraphs (2) and (4), the Director, with the the Comptroller General of the United States leader of the Senate, one of whom shall be approval of the Commission, may appoint shall consult with the Committee on Govern- designated by the minority leader to serve as and fix the pay of additional personnel. mental Affairs of the Senate and the Com- a co-chair. (2) APPOINTMENTS.—The Director may mittee on Government Reform of the House (2) CONSULTATION REQUIRED.—The Speaker make such appointments without regard to of Representatives on the agreement referred of the House of Representatives, the minor- the provisions of title 5, United States Code, to under subparagraph (A) before entering ity leader of the House of Representatives, governing appointments in the competitive into such agreement. the majority leader of the Senate, and the service, and any personnel so appointed may (k) OTHER AUTHORITY.— minority leader of the Senate shall consult be paid without regard to the provisions of (1) EXPERTS AND CONSULTANTS.—The Com- among themselves prior to the appointment chapter 51 and subchapter III of chapter 53 of mission may procure by contract, to the ex- of the members of the Commission in order that title relating to classification and Gen- tent funds are available, the temporary or to achieve, to the maximum extent possible, eral Schedule pay rates. intermittent services of experts or consult- fair and equitable representation of various (3) LEGAL STAFF.—The Director shall ap- ants pursuant to section 3109 of title 5, points of view with respect to the matters to point under paragraph (2) such professional United States Code. be studied by the Commission under sub- legal staff as are necessary for the perform- (2) LEASING.—The Commission may lease section (b). ance of the functions of the Commission. space and acquire personal property to the (3) BACKGROUND.—The members shall rep- (4) DETAILEES.—Upon the request of the Di- extent that funds are available. resent a broad array of expertise covering, to (l) FUNDING.—There is authorized to be ap- rector, the head of any Federal department the extent practical, all subject matter, pro- propriated to the Commission $4,000,000 to or agency may detail any of the personnel of grams, and laws the Commission is likely to carry out its duties under this title. that department or agency to the Commis- review. (m) TERMINATION.—The Commission shall sion to assist the Commission in accordance (f) MEETINGS.— terminate on January 1, 2006. with an agreement entered into with the (1) INITIAL MEETING.—No later than April 1, SEC. 206. PROCEDURE FOR MAKING REC- 2004, the Commission shall conduct its first Commission. OMMENDATIONS TO TERMINATE meeting. (5) RESTRICTIONS ON PERSONNEL AND CORPORATE SUBSIDIES. (2) OPEN MEETINGS.—Each meeting of the DETAILEES.—The following restrictions shall (a) AGENCY PLAN.— Commission shall be open to the public, ex- apply to personnel and detailees of the Com- (1) IN GENERAL.—The head of each Federal cept that in cases in which classified infor- mission: department or agency shall include in the mation, trade secrets, or personnel matters (A) PERSONNEL.—No more than one-third of documents submitted in support of the budg- are discussed, the co-chairs may close the the personnel detailed to the Commission et of the agency for fiscal year 2005 a list meeting. All proceedings, information, and may be on detail from Federal agencies that identifying all programs and laws adminis- deliberations of the Commission shall be deal directly or indirectly with the Federal tered by that department or agency that the available, upon request, to the Chairman and subsidies the Commission intends to review. head of the department or agency determines ranking minority member of the relevant (B) ANALYSTS.—No more than one-fifth of provide inequitable Federal subsidies. Committee of the Congress having jurisdic- the professional analysts of the Commission (2) CONTENTS.—Such list shall include— tion to report legislation regarding the sub- may be persons detailed from a Federal (A) a detailed description of each program ject matter thereof. agency that deals directly or indirectly with or law in question; (g) VACANCIES.—A vacancy on the Commis- the Federal subsidies the Commission in- (B) a statement identifying and detailing sion shall be filled in the same manner as the tends to review. the extent to which each payment, benefit, original appointment. (C) LEAD ANALYST.—No person detailed service, or tax advantage under such pro- (h) PAY AND TRAVEL EXPENSES.— from a Federal agency to the Commission gram or law is an inequitable Federal sub- (1) PAY.—Notwithstanding section 7 of the may be assigned as the lead professional ana- sidy; Federal Advisory Committee Act (5 App. lyst with respect to an entity or industry the (C) a statement summarizing the legisla- U.S.C.), each member of the Commission, Commission intends to review if the person tive history and purpose of such payment, other than the co-chairs, shall be paid at a has been involved in regulatory or policy- benefit, service, or tax advantage, and the rate equal to the daily equivalent of the min- making decisions affecting any such entity laws or policies directly or indirectly giving imum annual rate of basic pay for level IV of or industry in the 12 months preceding such rise to the need for such programs or law; the Executive Schedule under section 5315 of assignment. and title 5, United States Code, for each day (in- (D) DETAILEE.—A person may not be de- (D) a recommendation to the Commission cluding travel time) during which the mem- tailed from a Federal agency to the Commis- regarding the termination, modification, or ber is engaged in the actual performance of sion if, within 12 months before the detail is retention of each inequitable Federal sub- duties vested in the Commission. to begin, that person participated personally sidy identified in the list. (2) CHAIRMEN.—Notwithstanding section 7 and substantially in any matter within that (b) REVIEW BY THE COMMISSION.— of the Federal Advisory Committee Act (5 particular agency concerning the prepara- (1) IN GENERAL.—At any time after the sub- App. U.S.C.), the co-chairs shall be paid for tion of recommendations under this title. mission of the budget documents to the Con- each day referred to in paragraph (1) at a (E) FEDERAL OFFICER OR EMPLOYEE.—No of- gress, the Commission shall conduct public rate equal to the daily payment of the min- ficer or employee of a Federal agency may— hearings on the termination, modification, imum annual rate of basic pay payable for (i) prepare any report concerning the effec- or retention of inequitable Federal subsidies, level III of the Executive Schedule under sec- tiveness, fitness, or efficiency of the per- including the recommendations included in tion 5314 of title 5, United States Code. formance on the staff of the Commission of the lists required under subsection (a). (3) TRAVEL EXPENSES.—Members of the any person detailed from a Federal agency to (2) TESTIMONY UNDER OATH.—All testimony Commission shall receive travel expenses, in- that staff; before the Commission at a public hearing cluding per diem in lieu of subsistence, in ac- (ii) review the preparation of such report; conducted under this paragraph shall be pre- cordance with section 5702 and 5703 of title 5, or sented under oath. United States Code. (iii) approve or disapprove such a report. (c) REPORT AND RECOMMENDATIONS OF COM- (i) DIRECTOR OF STAFF.— (F) LIMITATION ON STAFF SIZE.—(i) Subject MISSION.— (1) QUALIFICATIONS.—The co-chairs shall to clause (ii), there may not be more than 25 (1) REPORT TO CONGRESS.— appoint as Director an individual who has persons (including any detailees) on the staff (A) REQUIREMENT.—No later than March 31, not, during the 12 months preceding the date at any time. 2005, the Commission shall submit a report of such appointment, served in any of the en- (ii) The Commission may increase the to the Congress containing the Commission’s tities or industries that the Commission in- member of its personnel in excess of the lim- findings and recommendations for termi- tends to review. itation under clause (i), 15 days after submit- nation, modification, or retention of each of (2) PAY.—Notwithstanding section 7 of the ting notification of such increase to the the inequitable Federal subsidies reviewed Federal Advisory Committee Act (5 App. Committee on Governmental Affairs of the by the Commission.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00166 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.064 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4611 (B) CONTENTS.—Such findings and rec- recommendation made by the Commission by her to the bill S. 150, to make per- ommendations shall specify— that is different from a recommendation manent the moratorium on taxes on (i) all actions, circumstances, and consid- made by an agency under subsection (a). Internet access and multiple and dis- erations relating to or bearing upon the rec- (6) PROVISION OF INFORMATION TO MEMBERS criminatory taxes on electronic com- ommendations; and OF CONGRESS.—After March 31, 2005, the Com- (ii) to the maximum extent practicable, mission shall, upon request, promptly pro- merce imposed by the Internet Tax the estimated effect of the recommendations vide to any Member of Congress the informa- Freedom Act; which was ordered to lie upon the policies, laws, and programs dition used by the Commission in making its on the table; as follows: rectly or indirectly affected by the rec- recommendations. At the end of the bill, add the following: ommendations. (7) COMPTROLLER GENERAL.—The Comp- SEC. . GRANDFATHER FOR EXISTING TAXES. (C) SUPERMAJORITY REQUIREMENT.—The troller General of the United States shall— (a) IN GENERAL.—Notwithstanding any pro- Commission may not include a recommenda- (A) assist the Commission, to the extent vision of the Internet Tax Freedom Act (47 tion in the report unless inclusion of the rec- requested, in the Commission’s review and U.S.C. 151 note), as amended by this Act, to ommendation is approved by at least 6 mem- analysis of the lists, statements, and rec- the contrary section 1101(a) of that Act does bers of the Commission. ommendations made by departments and not apply to— (2) INFORMATION AND JUSTIFICATIONS.—The agencies under subsection (a); and (1) a tax on Internet access that was gen- Commission shall include in its report infor- (B) no later than 60 days after April 1, 2004, erally imposed and actually enforced prior to mation specifying— or the public release of the President’s budg- October 1, 1998, if, before that date, the tax (A) the reasons and justifications for the et documents in 2004, whichever is earlier, was authorized by statute and either— recommendations of the Commission; submit to the Congress and to the Commis- (A) a provider of Internet access services (B) to the maximum extent practicable, sion a report containing a detailed analysis had a reasonable opportunity to know, by the estimated fiscal, economic, and budg- of the list, statements, and recommenda- virtue of a rule or other public proclamation etary impact of accepting its recommendations of each department or agency. made by the appropriate administrative tions; SEC. 207. CONGRESSIONAL ACTION ON COMMIS- agency of the State or political subdivision (C) the amount of the projected savings re- SION RECOMMENDATIONS. thereof, that such agency has interpreted sulting from each of its recommendations; It is the sense of the Congress that, fol- and applied such tax to Internet access serv- (D) all actions, circumstances, and consid- lowing submission of the report of the Cor- ices; or erations relating to or bearing upon the rec- porate Subsidy Reform Commission under (B) a State or political subdivision thereof ommendations and to the maximum extent section 206, the House of Representatives and generally collected such tax on charges for practicable, the estimated effect of the rec- the Senate should promptly consider legisla- Internet access; or ommendations upon the policies, laws and tion that would enact changes in Federal (2) a tax on Internet access that was gen- programs directly or indirectly affected by statutes necessary to implement the rec- erally imposed and actually enforced as of the recommendations; and ommendations of the Commission. November 1, 2003, if, as of that date, the tax (E) the specific changes in Federal statutes was authorized by statute and— necessary to implement the recommenda- SA 3064. Mrs. FEINSTEIN submitted (A) a provider of Internet access services tions, including citation of the relevant pro- an amendment intended to be proposed had a reasonable opportunity to know by vir- visions of existing law. to amendment SA 3048 proposed by Mr. tue of a public rule or other public proclama- (3) SUBMISSION TO CONGRESS.—The report tion made by the appropriate administrative submitted to the Congress under this sub- MCCAIN to the bill S. 150, to make permanent the moratorium on taxes on agency of the State or political subdivision section shall be submitted to the Senate and thereof, that such agency has interpreted the House of Representatives on the same Internet access and multiple and dis- and applied such tax to Internet access serv- day, and shall be delivered to the Secretary criminatory taxes on electronic com- ices; and of the Senate if the Senate is not in session, merce imposed by the Internet Tax (B) a State or political subdivision thereof and to the Clerk of the House of the Rep- Freedom Act; which was ordered to lie generally collected such tax on charges for resentatives if the House is not in session. on the table; as follows: Internet access. (4) FEDERAL REGISTER.—The report sub- At the end of the bill, add the following: mitted under this subsection shall be printed SA 3066. Mr. DORGAN submitted an SEC. . 4–YEAR GRANDFATHER FOR EXISTING in the first issue of the Federal Register amendment intended to be proposed by after such submission. TAXES. (a) IN GENERAL.—Notwithstanding any pro- him to the bill S. 150, to make perma- (5) CHANGES IN AGENCY OR DEPARTMENT REC- vision of the Internet Tax Freedom Act (47 nent the moratorium on taxes on Inter- OMMENDATIONS.— U.S.C. 151 note), as amended by this Act, to (A) IN GENERAL.—Subject to the deadline in net access and multiple and discrimi- paragraph (1) and to subparagraphs (B) and the contrary section 1101(a) of that Act does natory taxes on electronic commerce (C) of this paragraph, in making its rec- not apply to— imposed by the Internet Tax Freedom (1) a tax on Internet access that was gen- ommendations, the Commission may make erally imposed and actually enforced prior to Act; which was ordered to lie on the changes in any of the recommendations table; as follows: made by a department or agency if the Com- October 1, 1998, if, before that date, the tax At the appropriate place, insert the fol- mission determines that such department or was authorized by statute and either— (A) a provider of Internet access services lowing: agency, in treating any matter as an inequi- had a reasonable opportunity to know, by table Federal subsidy, deviated substantially SEC. . RESTORATION OF EXISTING DEFINI- virtue of a rule or other public proclamation TION OF INTERNET ACCESS. from the provisions of section 204. made by the appropriate administrative (a) IN GENERAL.— (B) LIMITATION.—The Commission may agency of the State or political subdivision (1) Paragraph (3)(D) of section 1101(d) (as make a change in the recommendations thereof, that such agency has interpreted redesignated by section 2(b)(1) of this Act) is made by a department or agency, only if the and applied such tax to Internet access serv- amended by striking the second sentence and Commission— ices; or inserting ‘‘Such term does not include tele- (i) makes the determination required (B) a State or political subdivision thereof communications services.’’. under subparagraph (B); and generally collected such tax on charges for (2) Paragraph (5) of section 1105 (as redesig- (ii) conducts a public hearing on the Com- Internet access; or nated by section 3(1) of this Act) is amended mission’s proposed changes. (2) a tax on Internet access that was gen- by striking the second sentence and insert- (C) APPLICATION OF LIMITATION.—Subpara- erally imposed and actually enforced as of ing ‘‘Such term does not include tele- graph (B) shall apply only to a change by the November 1, 2003, if, as of that date, the tax communications services.’’. Commission in a department or agency rec- was authorized by statute and— (b) EFFECTIVE DATE.—The amendments ommendation that would— (A) a provider of Internet access services made by subsection (a) shall take effect on (i) add or delete a payment, benefit, serv- had a reasonable opportunity to know by vir- November 3, 2003. ice, or tax advantage to or from, respec- tue of a public rule or other public proclama- SEC. . LIMITATION ON TAXATION OF TELE- tively, the list recommended for termi- tion made by the appropriate administrative COMMUNICATIONS SERVICES RE- nation; agency of the State or political subdivision LATED TO ADVANCED TELE- (ii) add or delete a payment, benefit, serv- thereof, that such agency has interpreted COMMUNICATIONS CAPABILITY. ice, or tax advantage to or from, respec- and applied such tax to Internet access serv- Notwithstanding any provision of the tively, the list recommended for modifica- ices; and Internet Tax Freedom Act (47 U.S.C. 151 tion; or (B) a State or political subdivision thereof note) to the contrary, no State or political (iii) increase or decrease the extent of a generally collected such tax on charges for subdivision thereof may impose a tax on the recommendation to modify a payment, ben- Internet access. retail provision of advanced telecommuni- efit, service, or tax advantage included in a (b) TERMINATION.—This section shall not cations capability (as defined in section department’s or agency’s recommendation. apply after November l, 2007. 706(c)(1) of the Telecommunications Act of (D) JUSTIFICATION.—The Commission shall 1996 (47 U.S.C. 157 note)) to consumers during explain and justify in the report submitted SA 3065. Mrs. FEINSTEIN submitted the period specified in section 1101(a) of that to the Congress under this subsection any an amendment intended to be proposed Act.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00167 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.064 S28PT1 S4612 CONGRESSIONAL RECORD — SENATE April 28, 2004 SEC. . VOIP AND BROADBAND TELEPHONY EX- SEC. . LIMITATION ON TAXATION OF TELE- SA 3069. Mr. ALEXANDER submitted CLUSION. COMMUNICATIONS SERVICES RE- an amendment intended to be proposed LATED TO ADVANCED TELE- Section 1101(a) of the Internet Tax Free- to amendment SA 3048 proposed by Mr. dom Act (47 U.S.C. 151 note) shall not apply COMMUNICATIONS CAPABILITY. to the imposition or collection of any tax, Notwithstanding any provision of the MCCAIN to the bill S. 150, to make per- fee, or charge on a service advertised or of- Internet Tax Freedom Act (47 U.S.C. 151 manent the moratorium on taxes on fered to consumers for the provision of note) to the contrary, no State or political Internet access and multiple and dis- realtime voice telecommunications regard- subdivision thereof may impose a tax on the criminatory taxes on electronic com- less of whether such service employs circuit- retail provision of advanced telecommuni- merce imposed by the Internet Tax switched technology, packet switched tech- cations capability (as defined in section 706(c)(1) of the Telecommunications Act of Freedom Act; which was ordered to lie nology, or any successor technology or on the table; as follows: transmission protocol. 1996 (47 U.S.C. 157 note)) to consumers during the period specified in section 1101 (a) of that At the appropriate place, insert the fol- SEC. . GRANDFATHERING OF EXISTING TAXES. Act. lowing: (a) IN GENERAL.—Section 1104 of the Inter- net Tax Freedom Act (47 U.S.C. 151 note) is SEC. . VOIP AND BROADBAND TELEPHONY EX- SEC. . $25 PER MONTH CAP. amended to read as follows: CLUSION. Notwithstanding any provision of the Section 1101(a) of the Internet Tax Free- Internet Tax Freedom Act (47 U.S.C. 151 ‘‘SEC. 1104. EXCEPTIONS FOR CERTAIN TAXES. dom Act (47 U.S.C. 151 note) shall not apply note) to the contrary, the prohibition on the ‘‘(a) PRE-OCTOBER, 1998, TAXES.—Section to the imposition or collection of any tax, imposition of tax on Internet access provided 1101(a) does not apply to a tax on Internet fee, or charge on a service advertised or of- by section 1101(a) of that Act shall apply access (as that term was defined in section fered to consumers for the provision of only with respect to the first $25 of charges 1104(5) of this Act as that section was in ef- realtime voice telecommunications regard- per month per subscriber for Internet access. fect on the day before the date of enactment less of whether such service employs circuit- of the Internet Tax Ban Extension and Im- switched technology, packet switched tech- SA 3070. Mr. ALEXANDER submitted provement Act) that was generally imposed nology, or any successor technology or an amendment intended to be proposed and actually enforced prior to October 1, transmission protocol. 1998, if, before that date, the tax was author- to amendment SA 3048 proposed by Mr. MCCAIN to the bill S. 150, to make per- ized by statute and either— SA 3068. Mr. ALEXANDER submitted manent the moratorium on taxes on ‘‘(1) a provider of Internet access services an amendment intended to be proposed had a reasonable opportunity to know by vir- Internet access and multiple and dis- to amendment SA 3048 proposed by Mr. tue of a rule or other public proclamation criminatory taxes on electronic com- MCCAIN to the bill S. 150, to make per- made by the appropriate administrative merce imposed by the Internet Tax manent the moratorium on taxes on agency of the State or political subdivision Freedom Act; which was ordered to lie thereof, that such agency has interpreted Internet access and multiple and dis- on the table; as follows: and applied such tax to Internet access serv- criminatory taxes on electronic com- ices; or merce imposed by the Internet Tax In lieu of the matter proposed to be inserted, insert the following: ‘‘(2) a State or political subdivision thereof Freedom Act; which was ordered to lie generally collected such tax on charges for on the table; as follows: SECTION 1. SHORT TITLE. Internet access. This Act may be cited as the ‘‘Internet Tax ‘‘(b) TAXES ON TELECOMMUNICATIONS SERV- At the appropriate place, insert the fol- Ban Extension and Improvement Act’’. lowing: ICES.—Section 1101(a) does not apply to a tax SEC. 2. 2–YEAR EXTENSION OF MORATORIUM. on Internet access that was generally im- SEC. . REIMBURSEMENT OF STATE AND LOCAL Section 1101(a) of the Internet Tax Free- GOVERNMENTS FOR REVENUES posed and actually enforced as of November dom Act (47 U.S.C. 151 nt) is amended— 1, 2003, if, as of that date, the tax was author- FORGONE DUE TO INTERNET TAX FREEDOM ACT. (1) by striking ‘‘2003—’’ and inserting ized by statute and either— (a) APPLICATION.—Upon a proper account- ‘‘2005:’’; ‘‘(1) a provider of Internet access services ing and showing, at such time, in such form, (2) by striking paragraph (1) and inserting had a reasonable opportunity to know by vir- and containing such information as the Sec- the following: tue of a rule or other public proclamation retary of the Treasury shall require, each ‘‘(1) Taxes on Internet access.’’; and made by the appropriate administrative State, local government, or other taxing au- (3) by striking ‘‘multiple’’ in paragraph (2) agency of the State or political subdivision thority shall request reimbursement from and inserting ‘‘Multiple’’. thereof, that such agency has interpreted the Treasury of the United States for tax SEC. 3. EXCEPTIONS FOR CERTAIN TAXES. and applied such tax to Internet access serv- revenues forgone by that State, local govern- The Internet Tax Freedom Act (47 U.S.C. ices; or ment, or other taxing authority because of 151 note) is amended— ‘‘(2) a State or political subdivision thereof section 1101 of the Internet Tax Freedom Act (1) by redesignating section 1104 as section generally collected such tax on charges for (47 U.S.C. 151). Any such request shall be 1105; and Internet access service.’’. made by written application, signed under (2) by inserting after section 1103 the fol- (b) EFFECTIVE DATE.—The amendment penalty of perjury, by the chief executive of- lowing: made by subsection (a) takes effect on No- ficer of the State, local government, or other ‘‘SEC. 1104. EXCEPTIONS FOR CERTAIN TAXES. vember 3, 2003. taxing authority requesting reimbursement. ‘‘(a) PRE-OCTOBER, 1998, TAXES.—Section (b) CERTAIN TAXES INELIGIBLE FOR REIM- 1101(a) does not apply to a tax on Internet SA 3067. Mr. DORGAN submitted an BURSEMENT.—Subsection (a) shall not apply access (as that term was defined in section amendment intended to be proposed by to revenues lost from— 1104(5) of this Act as that section was in ef- him to the bill S. 150, to make perma- (1) any tax imposed only on Internet ac- fect on the day before the date of enactment nent the moratorium on taxes on Inter- cess; or of the Internet Tax Ban Extension and Im- net access and multiple and discrimi- (2) any rate of tax imposed on Internet ac- provement Act) that was generally imposed natory taxes on electronic commerce cess that exceeds the rate at which that tax and actually enforced prior to October 1, imposed by the Internet Tax Freedom is imposed on other taxable activities to 1998, if, before that date, the tax was author- Act; which was ordered to lie on the which the tax applies. ized by statute and either— (c) NO INTEREST OR PENALTIES.—No pay- ‘‘(1) a provider of Internet access services table; as follows: ment may be made under this section for any had a reasonable opportunity to know by vir- At the appropriate place, insert the fol- amount attributable to interest or penalties. tue of a rule or other public proclamation lowing: (d) AUTHORITY TO PAY.—The Secretary of made by the appropriate administrative SEC. . RESTORATION OF EXISTING DEFINI- the Treasury shall pay, upon application, agency of the State or political subdivision TION OF INTERNET ACCESS. such amounts as the Secretary determines to thereof, that such agency has interpreted (a) IN GENERAL.— be requested in accordance with subsection and applied such tax to Internet access serv- (1) Paragraph (3)(D) of section 1101(d) (as (a) and supported by such documentation as ices; or redesignated by section 2(b)(1) of this Act) is the Secretary may require, to any State, ‘‘(2) a State or political subdivision thereof amended by striking the second sentence and local government, or other taxing authority generally collected such tax on charges for inserting ‘‘Such term does not include tele- that requests reimbursement under sub- Internet access. communications services.’’. section (a). ‘‘(b) TAXES ON TELECOMMUNICATIONS SERV- (2) Paragraph (5) of section 1105 (as redesig- (e) FUNDING.—Notwithstanding any other ICES.—Section 1101(a) does not apply to a tag nated by section 3(l) of this Act) is amended provision of law to the contrary, amounts re- on Internet access that was generally im- by striking the second sentence and insert- ceived in the general fund of the Treasury posed and actually enforced as of November ing ‘‘Such term does not include tele- attributable to taxes imposed and collected 1, 2003, if, as of that date, the tax was author- communications services.’’. under subchapter B of chapter 33 of the In- ized by statute and either— (b) EFFECTIVE DATE.—The amendments ternal Revenue Code of 1986 shall be avail- ‘‘(1) a provider of Internet access services made by subsection (a) shall take effect on able, without further appropriation, to make had a reasonable opportunity to know by vir- November 3, 2003. payments under this section. tue of a rule or other public proclamation

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00168 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.109 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4613 made by the appropriate administrative and advance Federal universal service or inserting ‘‘The term ‘Internet access service’ agency of the State or political subdivision similar State programs— does not include telecommunications serv- thereof, that such agency has interpreted ‘‘(1) authorized by section 254 of the Com- ices, except to the extent such services are and applied such tax to Internet access serv- munications Act of 1934 (47 U.S.C. 254); or purchased, used, or sold by an Internet ac- ices; or ‘‘(2) in effect on February 8, 1996. cess provider to connect a purchaser of Inter- ‘‘(2) a State or political subdivision thereof ‘‘(b) 911 AND E–911 SERVICES.—Nothing in net access to the Internet access provider.’’. generally collected such tax on charges for this Act shall prevent the imposition or col- (2) INTERNET ACCESS.—Section 1104(5) of Internet access service.’’. lection on a service used for access to 911 or that Act is amended by striking the second SEC. 4. CHANGE IN DEFINITIONS. OF INTERNET E–911 services, of any fee or charge specifi- sentence and inserting ‘‘The term ‘Internet ACCESS SERVICE. cally designated or presented as dedicated by access’ does not include telecommunications (a) IN GENERAL. Paragraph (3)(D) of section a State or political subdivision thereof for services, except to the extent such services 1101(e) of the Internet Tax Freedom Act (47 the support of 911 or E–911 services if no por- are purchased, used, or sold by an Internet U.S.C. 151 note) is amended by striking the tion of the revenue derived from such fee or access provider to connect a purchaser of second sentence and inserting ‘‘The term charge is obligated or expended for any pur- Internet access to the Internet access pro- ‘Internet access service’ does not include pose other than support of 911 or E–911 serv- vider.’’. telecommunications services, except to the ices. SEC. 3. GRANDFATHERING OF STATES THAT TAX extent such services are purchased, used, or ‘‘(c) NON-TAX REGULATORY PROCEEDINGS.— INTERNET ACCESS. sold by an Internet access provider to con- Nothing in this Act shall be construed to af- The Internet Tax Freedom Act (47 U.S.C. nect a purchaser of Internet access to the fect any Federal or State regulatory pro- 151 note) is amended— Internet access provider.’’. ceeding that is not related to taxation.’’. (1) by redesignating section 1104 as section (b) CONFORMING AMENDMENTS.— SEC. 7. EFFECTIVE DATE. 1105; and (1) Paragraph (2)(B)(1) of section 1105 of The amendments made by this Act take ef- (2) by inserting after section 1103 the fol- that Act, as redesignated by subsection (a), fect November 1, 2003. lowing: is amended by striking ‘‘except with respect ‘‘SEC. 1104. GRANDFATHERING OF STATES THAT to a tax (on Inter net access) that was gen- SA 3071. Mr. ALEXANDER submitted TAX INTERNET ACCESS. erally imposed and actually enforced prior to an amendment intended to be proposed ‘‘(a) PRE-OCTOBER 1998 TAXES.— October 1, 1998,’’. to amendment SA 3048 proposed by Mr. ‘‘(1) IN GENERAL.—Section 1101(a) does not (2) INTERNET ACCESS.—Paragraph (5) of sec- apply to a tax on Internet access (as that tion 1105 of that Act, as redesignated by sub- MCCAIN to the bill S. 150, to make permanent the moratorium on taxes on term was defined in section 1104(5) of this section (a), is amended by striking the sec- Act as that section was in effect on the day ond sentence and inserting ‘‘The term ‘Inter- Internet access and multiple and dis- before the date of enactment of the Internet net access’’ does not include telecommuni- criminatory taxes on electronic com- Tax Nondiscrimination Act) that was gen- cations services, except to the extent such merce imposed by the Internet Tax erally imposed and actually enforced prior to services are purchased, used, or sold by an Freedom Act; which was ordered to lie October 1, 1998, if, before that date, the tax Internet access provider to connect a pur- on the table; as follows: was authorized by statute and either— chaser of Internet access to the Internet ac- Strike all after the first word and insert ‘‘(A) a provider of Internet access services cess provider.’’. the following: had a reasonable opportunity to know, by (3) Paragraph (10) of section 1105 of that virtue of a rule or other public proclamation SECTION 1. SHORT TITLE. Act, as redesignated by subsection (a), is made by the appropriate administrative This Act may be cited as the ‘‘Internet Tax amended to read as follows: agency of the State or political subdivision Nondiscrimination Act’’. ‘‘(10) TAX ON INTERNET ACCESS.— thereof, that such agency has interpreted ‘‘(A) IN GENERAL.—The term ‘tax on Inter- SEC. 2. TWO-YEAR EXTENSION OF INTERNET TAX and applied such tax to Internet access serv- MORATORIUM. net access’’ means a tax on Internet access, ices; or (a) IN GENERAL.—Subsection (a) of section regardless of whether such tax is imposed on ‘‘(B) a State or political subdivision there- 1101 of the Internet Tax Freedom Act (47 a provider of Internet access or a buyer of of generally collected such tax on charges for U.S.C. 151 note) is amended to read as fol- Internet access and regardless of the termi- Internet access. lows: nology used to describe the tax. ‘‘(2) TERMINATION.—This subsection shall ‘‘(a) MORATORIUM.—No State or political ‘‘(B) GENERAL EXCEPTION.—The term ‘tax not apply after November 1, 2006. subdivision thereof may impose any of the on Internet access’’ does not include a tax ‘‘(b) PRE-NOVEMBER 2003 TAXES.— following taxes during the period beginning levied upon or measured by net income, cap- ‘‘(1) IN GENERAL.—Section 1101(a) does not ital stock, net worth, or property value.’’. November 1, 2003, and ending November 1, apply to a tax on Internet access that was SEC. 5. ACCOUNTING RULE. 2005: generally imposed and actually enforced as The Internet Tax Freedom Act (47 U.S.C. ‘‘(1) Taxes on Internet access. of November 1, 2003, if, as of that date, the ‘‘(2) Multiple or discriminatory taxes on 151 note) is amended by adding at the end the tax was authorized by statute and— following: electronic commerce.’’. ‘‘(A) a provider of Internet access services (b) CONFORMING AMENDMENTS.— had a reasonable opportunity to know by vir- ‘‘SEC. 1106. ACCOUNTING RULE. (1) Section 1101 of the Internet Tax Free- tue of a public rule or other public proclama- ‘‘(a) IN GENERAL.—If charges for Internet dom Act (47 U.S.C. 151 note) is amended by tion made by the appropriate administrative access are aggregated with and not sepa- striking subsection (d) and redesignating agency of the State or political subdivision rately stated from charges for telecommuni- subsections (e) and (f) as subsections (d) and thereof, that such agency has interpreted cations services or other charges that are (e), respectively. and applied such tax to Internet access serv- subject to taxation, then the charges for (2) Section 1104(10) of the Internet Tax ices; and Internet access may be subject to taxation Freedom Act (47 U.S.C. 151 note) is amended ‘‘(B) a State or political subdivision there- unless the Internet access provider can rea- to read as follows: of generally collected such tax on charges for sonably identify the charges for Internet ac- ‘‘(10) TAX ON INTERNET ACCESS.— Internet access. cess from its books and records kept in the ‘‘(A) IN GENERAL.—The term ‘tax on Inter- ‘‘(2) TERMINATION.—This subsection shall regular course of business. net access’ means a tax on Internet access, not apply after November 1, 2005.’’. ‘‘(b) DEFINITIONS.—In this section: regardless of whether such tax is imposed on ‘‘(1) CHARGES FOR INTERNET ACCESS.—The a provider of Internet access or a buyer of SEC. 4. ACCOUNTING RULE. term ‘charges for Internet access’ means all Internet access and regardless of the termi- The Internet Tax Freedom Act (47 U.S.C. charges for Internet access as defined in sec- nology used to describe the tax. 151 note) is amended by adding at the end the tion 1105(5). ‘‘(B) GENERAL EXCEPTION.—The term ‘tax following: ‘‘(2) CHARGES FOR TELECOMMUNICATIONS on Internet access’ does not include a tax ‘‘SEC. 1106. ACCOUNTING RULE. SERVICES.—The term ‘charges for tele- levied upon or measured by net income, cap- ‘‘(a) IN GENERAL.—If charges for Internet communications services’ means all charges ital stock, net worth, or property value.’’. access are aggregated with and not sepa- for telecommunications services except to (3) Section 1104(2)(B)(1) of the Internet Tax rately stated from charges for telecommuni- the extent such services are purchased, used, Freedom Act (47 U.S.C. 151 note) is amended cations services or other charges that are or sold by an Internet access provider to con- by striking ‘‘except with respect to a tax (on subject to taxation, then the charges for nect a purchaser of Internet access to the Internet access) that was generally imposed Internet access may be subject to taxation Internet access provider.’’. and actually enforced prior to October 1, unless the Internet access provider can rea- SEC. 6. EFFECT ON OTHER LAWS. 1998,’’. sonably identify the charges for Internet ac- The Internet Tax Freedom Act (47 U.S.C. (c) INTERNET ACCESS SERVICE; INTERNET cess from its books and records kept in the 151 note), amended by section 4, is amended ACCESS.— regular course of business. by adding at the end the following: (1) INTERNET ACCESS SERVICE.—Paxagraph ‘‘(b) DEFINITIONS.—In this section: ‘‘SEC. 1107. EFFECT ON OTHER LAWS. (3)(D) of section 1101(d) (as redesignated by ‘‘(1) CHARGES FOR INTERNET ACCESS.—The ‘‘(a) UNIVERSAL SERVICE.—Nothing in this subsection (b)(1) of this section) of the Inter- term ‘charges for Internet access’ means all Act shall prevent the imposition or collec- net Tax Freedom Act (47 U.S.C. 151 note) is charges for Internet access as defined in section of any fees or charges used to preserve amended by striking the second sentence and tion 1105(5).

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‘‘(2) CHARGES FOR TELECOMMUNICATIONS (b) CONFORMING AMENDMENTS.— ‘‘(A) a provider of Internet access services SERVICES.—The term ‘charges for tele- (1) Section 1101 of the Internet Tax Free- had a reasonable opportunity to know by vir- communications services’ means all charges dom Act (47 U.S.C. 151 note) is amended by tue of a public rule or other public proclama- for telecommunications services, except, to striking subsection (d) and redesignating tion made by the appropriate administrative the extent such services are purchased, used, subsections (e) and (f) as subsections (d) and agency of the State or political subdivision or sold by an Internet access provider to con- (e), respectively. thereof, that such agency has interpreted nect a purchaser of Internet access to the (2) Section 1104(10) of the Internet Tax and applied such tax to Internet access serv- Internet access provider.’’. Freedom Act (47 U.S.C. 151 note) is amended ices; and SEC. 5. EFFECT ON OTHER LAWS. to read as follows: ‘‘(B) a State or political subdivision there- The Internet Tax Freedom Act (47 U.S.C. ‘‘(10) TAX ON INTERNET ACCESS.— of generally collected such tax on charges for 151 note), as amended by section 4, is amend- ‘‘(A) IN GENERAL.—The term ‘tax on Inter- Internet access. ‘‘(2) TERMINATION.—This subsection shall ed by adding at the end the following: net access’ means a tax on Internet access, not apply after November 1, 2005.’’. ‘‘SEC. 1107. EFFECT ON OTHER LAWS. regardless of whether such tax is imposed on a provider of Internet access or a buyer of SEC. 4. ACCOUNTING RULE. ‘‘(a) UNIVERSAL SERVICE.—Nothing in this The Internet Tax Freedom Act (47 U.S.C. Act shall prevent the imposition or collec- Internet access and regardless of the terminology used to describe the tax. 151 note) is amended by adding at the end the tion of any fees or charges used to preserve following: and advance Federal universal service or ‘‘(B) GENERAL EXCEPTION.—The term ‘tax ‘‘SEC. 1106. ACCOUNTING RULE. similar State programs— on Internet access’ does not include a tax ‘‘(a) IN GENERAL.—If charges for Internet ‘‘(1) authorized by section 254 of the Com- levied upon or measured by net income, cap- access are aggregated with and not sepa- munications Act of 1934 (47 U.S.C. 254); or ital stock, net worth, or property value.’’. rately stated from charges for telecommuni- ‘‘(2) in effect on February 8, 1996. (3) Section 1104(2)(B)(i) of the Internet Tax cations services or other charges that are ‘‘(b) 911 AND E–911 SERVICES.—Nothing in Freedom Act (47 U.S.C. 151 note) is amended this Act shall prevent the imposition or col- by striking ‘‘except with respect to a tax (on subject to taxation, then the charges for lection, on a service used for access to 911 or Internet access) that was generally imposed Internet access may be subject to taxation E–911 services, of any fee or charge specifi- and actually enforced prior to October 1, unless the Internet access provider can rea- cally designated or presented as dedicated by 1998,’’. sonably identify the charges for Internet ac- a State or political subdivision thereof for (c) INTERNET ACCESS SERVICE; INTERNET cess from its books and records kept in the the support of 911 or E–911 services if no por- ACCESS.— regular course of business. ‘‘(b) DEFINITIONS.—In this section: tion of the revenue derived from such fee or (1) INTERNET ACCESS SERVICE.—Paragraph ‘‘(1) CHARGES FOR INTERNET ACCESS.—The charge is obligated or expended for any pur- (3)(D) of section 1101(d) (as redesignated by subsection (b)(1) of this section) of the Inter- term ‘charges for Internet access’’ means all pose other than support of 911 or E–911 serv- charges for Internet access as defined in sec- ices. net Tax Freedom Act (47 U.S.C. 151 note) is amended by striking the second sentence and tion 1105(5). ‘‘(c) NON-TAX REGULATORY PROCEEDINGS.— ‘‘(2) CHARGES FOR TELECOMMUNICATIONS inserting ‘‘The term ‘Internet access service’ Nothing in this Act shall be construed to af- SERVICES.—The term ‘charges for tele- does not include telecommunications serv- fect any Federal or State regulatory pro- communications services’ means all charges ices, except to the extent such services are ceeding that is not related to taxation.’’. for telecommunications services, except to purchased, used, or sold by an Internet ac- SEC. 6. EXCEPTION FOR VOICE AND OTHER SERV- the extent such services are purchased, used, cess provider to connect a purchaser of Inter- ICES OVER THE INTERNET. or sold by an Internet access provider to con- net access to the Internet access provider.’’. The Internet Tax Freedom Act (47 U.S.C. nect a purchaser of Internet access to the (2) INTERNET ACCESS.—Section 1104(5) of 151 note), as amended by section 5, is amend- Internet access provider.’’. ed by adding at the end the following: that Act is amended by striking the second sentence and inserting ‘‘The term ‘Internet SEC. 5. EFFECT ON OTHER LAWS. ‘‘SEC. 1108. TAXATION OF TELEPHONE SERVICE. access’ does not include telecommunications The Internet Tax Freedom Act (47 U.S.C. Section 1101(a) of the Internet Tax Free- services, except to the extent such services 151 note), as amended by section 4, is amend- dom Act (47 U.S.C. 151 note) shall not apply are purchased, used, or sold by an Internet ed by adding at the end the following: to the imposition or collection of any tax, access provider to connect a purchaser of ‘‘SEC. 1107. EFFECT ON OTHER LAWS. fee, or charge on a service advertised or of- Internet access to the Internet access pro- ‘‘(a) UNIVERSAL SERVICE.—Nothing in this fered to consumers for the provision of vider.’’. Act shall prevent the imposition or collec- realtime voice telecommunications regard- tion of any fees or charges used to preserve less of whether such service employs circuit- SEC. 3. GRANDFATHERING OF STATES THAT TAX and advance Federal universal service or INTERNET ACCESS. switched technology, packet switched tech- similar State programs— nology, or any successor technology or The Internet Tax Freedom Act (47 U.S.C. ‘‘(1) authorized by section 254 of the Com- transmission protocol. 151 note) is amended— munications Act of 1934 (47 U.S.C. 254); or (1) by redesignating section 1104 as section SEC. 7. EFFECTIVE DATE. ‘‘(2) in effect on February 8, 1996. 1105; and ‘‘(b) 911 AND E–911 SERVICES.—Nothing in The amendments made by this Act take ef- (2) by inserting after section 1103 the fol- fect on November 1, 2003. this Act shall prevent the imposition or col- lowing: lection, on a service used for access to 911 or Mr. ALEXANDER submitted ‘‘SEC. 1104. GRANDFATHERING OF STATES THAT E–911 services, of any fee or charge specifi- SA 3072. TAX INTERNET ACCESS. an amendment intended to be proposed cally designated or presented as dedicated by ‘‘(a) PRE-OCTOBER 1998 TAXES.— a State or political subdivision thereof for to amendment SA 3048 proposed by Mr. ‘‘(1) IN GENERAL.—Section 1101(a) does not the support of 911 or E–911 services if no por- MCCAIN to the bill S. 150, to make per- apply to a tax on Internet access (as that tion of the revenue derived from such fee or manent the moratorium on taxes on term was defined in section 1104(5) of this charge is obligated or expended for any pur- Internet access and multiple and dis- Act as that section was in effect on the day pose other than support of 911 or E–911 serv- criminatory taxes on electronic com- before the date of enactment of the Internet ices. merce imposed by the Internet Tax Tax Nondiscrimination Act) that was gen- ‘‘(c) NON-TAX REGULATORY PROCEEDINGS.— Freedom Act; which was ordered to lie erally imposed and actually enforced prior to Nothing in this Act shall be construed to af- October 1, 1998, if, before that date, the tax fect any Federal or State regulatory pro- on the table; as follows: was authorized by statute and either— ceeding that is not related to taxation.’’. In lieu of the matter proposed to be in- ‘‘(A) a provider of Internet access services SEC. 6. EXCEPTION FOR VOICE AND OTHER SERV- serted, insert the following: had a reasonable opportunity to know, by ICES OVER THE INTERNET. SECTION 1. SHORT TITLE. virtue of a rule or other public proclamation The Internet Tax Freedom Act (47 U.S.C. This Act may be cited as the ‘‘Internet Tax made by the appropriate administrative 151 note), as amended by section 5, is amend- Nondiscrimination Act’’. agency of the State or political subdivision ed by adding at the end the following: SEC. 2. TWO-YEAR, EXTENSION OF INTERNET TAX thereof, that such agency has interpreted ‘‘SEC. 1108. TAXATION OF TELEPHONE SERVICE. MORATORIUM. and applied such tax to Internet access serv- Section 1101(a) of the Internet Tax Free- (a) IN GENERAL.—Subsection (a) of section ices; or dom Act (47 U.S.C. 151 note) shall not apply 1101 of the Internet Tax Freedom Act (47 ‘‘(B) a State or political subdivision there- to the imposition or collection of any tax, U.S.C. 151 note) is amended to read as fol- of generally collected such tax on charges for fee, or charge on a service advertised or of- lows: Internet access. fered to consumers for the provision of ‘‘(a) MORATORIUM.—No State or political ‘‘(2) TERMINATION.—This subsection shall realtime voice telecommunications regard- subdivision thereof may impose any of the not apply after November 1, 2006. less of whether such service employs circuit- following taxes during the period beginning ‘‘(b) PRE-NOVEMBER 2003 TAXES.— switched technology, packet switched tech- November 1, 2003, and ending November 1, ‘‘(1) IN GENERAL.—Section 1101(a) does not nology, or any successor technology or 2005: apply to a tax on Internet access that was transmission protocol. ‘‘(1) Taxes on Internet access. generally imposed and actually enforced as SEC. 7. EFFECTIVE DATE. ‘‘(2) Multiple or discriminatory taxes on of November 1, 2003, if, as of that date, the The amendments made by this Act take ef- electronic commerce.’’. tax was authorized by statute and— fect on November 1, 2003.

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VOIP AND BROADBAND TELEPHONY EX- an amendment intended to be proposed to a tax (on Internet access) that was gen- CLUSION. to amendment SA 3048 proposed by Mr. erally imposed and actually enforced prior to Section 1101(a) of the Internet Tax Free- October 1, 1998,’’. dom Act (47 U.S.C. 151 note) shall not apply MCCAIN to the bill S. 150, to make per- (2) INTERNET ACCESS.—Paragraph (5) of sec- to the imposition or collection of any tax, manent the moratorium on taxes on tion 1105 of that Act, as redesignated by sub- fee, or charge on a service advertised or of- Internet access and multiple and dis- section (a), is amended by striking the sec- fered to consumers for the provision of criminatory taxes on electronic com- ond sentence and inserting ‘‘The term ‘Inter- realtime voice telecommunications regard- merce imposed by the Internet Tax net access’ does not include telecommuni- less of whether such service employs circuit- Freedom Act; which was ordered to lie cations services, except to the extent such switched technology, packet switched tech- on the table; as follows: services are purchased, used, or sold by an nology, or any successor technology or Internet access provider to connect a pur- transmission protocol. In lieu of the matter proposed to be in- chaser of Internet access to the Internet ac- serted, insert the following: cess provider.’’. SA 3074. Mr. GRAHAM of Florida SECTION 1. SHORT TITLE. (3) Paragraph (10) of section 1105 of that submitted an amendment intended to This Act may be cited as the ‘‘Internet Tax Act, as redesignated by subsection (a), is Ban Extension and Improvement Act’’. be proposed to amendment SA 3048 pro- amended to read as follows: C AIN SEC. 2. 2–YEAR EXTENSION OF MORATORIUM. posed by Mr. M C to the bill S. 150, ‘‘(10) TAX ON INTERNET ACCESS. to make permanent the moratorium on Section 1101 (a) of the Internet Tax Free- ‘‘(A) IN GENERAL.—The term ‘tax on Inter- dom Act (47 U.S.C. 151 nt) is amended— net access’ means a tax on Internet access, taxes on Internet access and multiple (1) by striking ‘‘2003—’’ and inserting regardless of whether such tax is imposed on and discriminatory taxes on electronic ‘‘2005:’’; a provider of Internet access or a buyer of commerce imposed by the Internet Tax (2) by striking paragraph (1) and inserting Internet access and regardless of the termi- Freedom Act; which was ordered to lie the following: nology used to describe the tax. on the table; as follows: ‘‘(1) Taxes on Internet access.’’; and ‘‘(B) GENERAL EXCEPTION.—The term ‘tax At the appropriate place, add the fol- (3) by striking ‘‘multiple’’ in paragraph (2) on Internet access’ does not include a tax lowing: and inserting ‘‘Multiple’’. levied upon or measured by net income, cap- Whereas the United States, its people and SEC. 3. EXCEPTIONS FOR CERTAIN TAXES. ital stock, net worth, or property value.’’. The Internet Tax Freedom Act (47 U.S.C. its armed forces, are committed to winning SEC. 5. ACCOUNTING RULE. the war on terrorism; 151 note) is amended— The Internet Tax Freedom Act (47 U.S.C. (1) by redesignating section 1104 as section Whereas winning this global war will re- 151 note) is amended by adding at the end the quire a sustained sacrifice from our troops, 1105; and following: (2) by inserting after section 1103 the fol- an expensive commitment of U.S. resources, lowing: ‘‘SEC. 1106. ACCOUNTING RULE. and effective and credible intelligence com- ‘‘(a) IN GENERAL.—If charges for Internet ‘‘SEC. 1104. EXCEPTIONS FOR CERTAIN TAXES. munity, and considerable cooperation of the access are aggregated with and not sepa- ‘‘(a) PRE-OCTOBER, 1998, TAXES.—Section international community; rately stated from charges for telecommuni- 1101(a) does not apply to a tax on Internet Whereas winning this global war will also cations services or other charges that are access (as that term was defined in section require that our leaders correctly prioritize subject to taxation, then the charges for 1104(5) of this Act as that section was in ef- the national security threats facing this na- Internet access may be subject to taxation fect on the day before the date of enactment tion, develop a plan for defeating those unless the Internet access provider can rea- of the Internet Tax Ban Extension and Im- threats, and urgently implement the meas- sonably identify the charges for Internet ac- provement Act) that generally imposed and ures required to defeat those threats; cess from its books and records kept in the actually enforced prior to October 1, 1998, if, Whereas senior Bush Administration offi- regular course of business. before that date, the tax was authorized by cials have acknowledged that terrorism was ‘‘(b) DEFINITIONS.—In this section: statute and either— not their top priority prior to September 11, ‘‘(1) CHARGES FOR INTERNET ACCESS.—The 2001, their strategy to counter this threat ‘‘(1) a provider of Internet access services term ‘charges for Internet access’ means all had a reasonable opportunity to know by vir- took eight months to develop, and this strat- charges for Internet access as defined in sec- egy was not implemented until after Sep- tue of a rule or other public proclamation tion 1105(5). made by the appropriate administrative tember 11, 2001. ‘‘(2) CHARGES FOR TELECOMMUNICATIONS agency of the State or political subdivision Whereas Richard Clarke, President Bush’s SERVICE.—The term ‘charges for tele- thereof, that such agency has interpreted former senior counter-terrorism advisor, has communications services’ means all charges testified under oath that the Bush Adminis- and applied such tax to Internet, access serv- for telecommunications services except to ices; or tration did not consider terrorism the top the extent such services are purchased, used, priority and reports indicate that terrorism ‘‘(2) a State or political subdivision thereof or sold by an Internet access provider to con- generally collected such tax on charges for was discussed at only two of the 100 meetings nect a purchaser of Internet access to the of the Bush Administration’s National Secu- Internet access. Internet access provider.’’. ‘‘(b) TAXES ON TELECOMMUNICATIONS SERV- rity Council prior to September 11, 2001; SEC. 6. EFFECT ON OTHER LAWS. ICES.—Section 1101(a) does not apply to a tax Whereas Richard Clarke also testified that on Internet access that was generally im- The Internet Tax Freedom Act (47 U.S.C. he provided Bush Administration officials a posed and actually enforced as of November 151 note), as amended by section 4, is amend- memo on January 25, 2001 outlining a 1, 2003, if, as of that date, the tax was authored by adding at the end the following: counter-terrorism strategy and in Sep- ized by statute and either— ‘‘SEC. 1107. EFFECT ON OTHER LAWS. tember, 2001 the Administration approved a ‘‘(1) a provider of Internet access services ‘‘(a) UNIVERSAL SERVICE.—Nothing in this counter-terrorism strategy that, according had a reasonable opportunity to know by vir- Act shall prevent the imposition or collec- to Clarke, was virtually identical to the tue of a rule or other public proclamation tion of any fees or charges used to preserve strategy outlined in his January memo; made by the appropriate administrative and advance Federal universal service or Whereas the terrorist attacks of Sep- agency of the State or political subdivision similar State programs— tember 11, 2001, were the deadliest ever di- thereof, that such agency has interpreted ‘‘(1) authorized by section 254 of the Com- rected against the United States and there and applied such tax to Internet access serv- munications Act of 1934 (47 U.S.C. 254); or have been more terrorist attacks by al-Qaeda ices; or ‘‘(2) in effect on February 8, 1996. and related groups in the 30 months since ‘‘(2) a State or political subdivision thereof ‘‘(b) 911 AND E–911 SERVICES.—Nothing in September 11, 2001 than there were in the 30 generally collected such tax on charges for this Act shall prevent the imposition or col- months before September 11; Internet access service.’’. lection, on a service used for access to 911 or Whereas the Administration’s policies SEC. 4. CHANGE IN DEFINITIONS OF INTERNET E–911 services, of any fee or charge specifi- have generated growing hostility and resent- ACCESS SERVICE. cally designated or presented as dedicated by ment of the United States throughout the (a) IN GENERAL.—Paragraph (3)(D) of sec- a State or political subdivision thereof for Middle East and the world and majorities in tion 1101(e) of the Internet Tax Freedom Act the support of 911 or E–911 services if no por- key Muslim countries have a more favorable (47 U.S.C. 151 note) is amended by striking tion of the revenue derived from such fee or opinion of Osama Bin Laden than they do the second sentence and inserting ‘‘The term charge is obligated or expended for any pur- the United States; ‘Internet access service’ does not include pose other than support of 911 or E–911 serv- Whereas the assessment by David Kay, the telecommunications services, except to the ices. Administration’s chief weapons inspector, extent such services are purchased, used, or ‘‘(c) NON-TAX REGULATORY PROCEEDINGS.— that there are no weapons of mass destruc- sold by an Internet access provider to con- Nothing in this Act shall be construed to af- tion in Iraq has eroded the confidence of the nect a purchaser of Internet access to the fect any Federal or State regulatory pro- American people and the world in the assess- Internet access provider.’’. ceeding that is not related to taxation.’’. ment of our intelligence community and our (b) CONFORMING AMENDMENTS.— SEC. 7. EFFECTIVE DATE. policymakers; (1) Paragraph (2)(B)(i) of section 1105 of The amendments made by this Act take ef- Whereas the bipartisan, bicameral joint that Act, as redesignated by subsection (a), fect November 1, 2003. congressional inquiry into the intelligence

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community’s activities before and after Sep- Sec. — 205. Report on universal service and ‘‘PART C—ASSISTANCE TO PROMOTE tember 11, 2001, discovered many strengths competition. BROADBAND DEPLOYMENT AND DEMAND and weaknesses within the community per- Sec. — 206. Block grants to States for ‘‘SEC. 131. BROADBAND DEPLOYMENT AND DE- taining to counter-terrorism; broadband deployment. MAND TRUST FUND. Whereas many of the joint inquiry’s testi- Sec. — 207. GAO to study broadband deploy- ‘‘(a) CREATION OF TRUST FUND.—There is mony and documents remain classified and ment in other countries. established in the Treasury of the United inaccessible, including June 11, 2002 testi- Sec. — 208. Assessment of homeland security States a trust fund to be known as the mony by Richard Clarke and a twenty-eight and public safety needs in rural Broadband Deployment and Demand Trust page section that addresses the involvement and underserved areas. Fund. of a foreign government in supporting sev- Subtitle C—Research on Technical and Fi- ‘‘(b) EXPENDITURES FROM TRUST FUND.— eral of the hijackers who carried out the nancial Requirements for Faster Amounts in the Trust Fund shall be avail- September 11 attacks; Broadband Services able for making expenditures to carry out Whereas Richard Clarke and the Majority Sec. — 301. Research enhancement of the provisions of the Broadband Tele- and Minority Leaders of the United States broadband telecommunications communications Deployment Act of 2004, and Senate have requested that Clarke’s June 11, services. for such expenditures as may be necessary to 2002, testimony before the Joint Inquiry be Sec. — 302. Grants to colleges and univer- administer the programs established therein. declassified; and sities to research faster ‘‘(c) TREATMENT AS TRUST FUND.—Sub- Whereas an Administration decision to se- chapter B of chapter 98 of the Internal Rev- lectively declassify parts of documents or of broadband technology. Subtitle D—Stimulating Demand for enue Code of 1986 shall apply to the adminis- individual documents will not present to our tration of the Trust Fund. troops and the American people the complete Broadband Services information they need and deserve; Sec. — 401. Grants to colleges and univer- ‘‘SEC. 132. REGULATIONS. Now, therefore, be it sities for research. ‘‘The Secretary of Commerce may pre- Resolved, that it is the sense of the Senate Sec. — 402. Grants to libraries to digitize scribe such regulations as may be necessary that— collections. to carry out this part. (1) the June 11, 2002 testimony of Richard Sec. — 403. Grants to museums to digitize ‘‘SEC. 133. AUTHORIZATION OF APPROPRIATIONS. Clarke before the joint inquiry should imme- collections. ‘‘(a) AUTHORIZATION.—For each of fiscal diately be declassified and publicly released Sec. — 404. Grants for DTV conversion and years 2005 through 2009 there are authorized in its entirety; programming. to be appropriated to the Broadband Deploy- (2) the twenty-eight pages of the joint in- SEC. —02. FINDINGS. ment and Demand Trust Fund an amount quiry report discussing foreign government The Congress finds the following: equivalent to 50 percent of the taxes received involvement in the September 11 terrorist (1) Broadband service could revolutionize in the Treasury after September 30, 2004, and plot should be immediately declassified and the way Americans live. Therefore, it is im- before October 1, 2009, under section 4251 (re- publicly released in their entirety, as well as portant that Congress examine the issues lating to tax on communications) of the In- any other joint inquiry documents and testi- surrounding the availability and subscrip- ternal Revenue Code of 1986. mony whose classification can no longer be tion to broadband service. ‘‘(b) SUNSET OF APPROPRIATIONS STREAM.— justified; (2) The Federal Communications Commis- The authorization of appropriations by sub- (3) the January 25, 2001 memorandum pre- sion recently concluded that advanced tele- section (a) to the Trust Fund shall terminate pared by Richard Clarke outlining a plan of communications capability is being deployed at the end of fiscal year 2009, but any bal- action against the al-Qaeda terrorist organi- in a reasonable and timely manner and that ances remaining in the Trust Fund at the zation and the Bush Administration’s Sep- although investment trends in general have close of that fiscal year, and any repayments tember 4, 2001 National Security Directive slowed recently, investment in infrastruc- of loans made from the Trust Fund received addressing terrorism should be immediately ture for advanced telecommunications re- after fiscal year 2009, shall remain available declassified and publicly released in their en- mains strong. for obligation and expenditure from the tirety; and (3) Approximately 89 percent of Americans Trust Fund.’’. (4) the Bush Administration should imme- have access to broadband service provided by Subtitle B—Access to Broadband diately prepare and publicly release a list of either the cable or telephone companies. Telecommunications Services in Rural Areas the dates and topics of all National Security (4) Some communities, such as those in Council meetings that took place before Sep- SEC. —201. LOAN PROGRAM. rural and urban areas do not have access to tember 11, 2001. (a) PURPOSE.—The purpose of this section broadband service. is to provide loans to fund the costs of the SA 3075. Mr. HOLLINGS submitted (5) According to numerous reports approxi- construction, improvement, and acquisition an amendment intended to be proposed mately 21 percent of consumers subscribe to of facilities and equipment for broadband broadband service, leading many to believe by him to the bill S. 150, to make per- service in eligible rural and underserved that the low adoption of broadband by con- communities. manent the moratorium on taxes on sumers is not due to low availability, but in- (b) DEFINITIONS.—In this section: Internet access and multiple and dis- stead to a lack of demand by consumers. (1) BROADBAND SERVICE.—The term criminatory taxes on electronic com- (6) Cable and telephone companies gen- ‘‘broadband service’’ means any technology merce imposed by the Internet Tax erally provide broadband service with speeds identified by the National Telecommuni- Freedom Act; which was ordered to lie of up to 1.5 megabits per second to residen- cations and Information Administration, in on the table; as follows: tial consumers. How ever, many in the tech- consultation with the Rural Utilities Service nology industry state that higher speeds are At the appropriate place add the following: of the Department of Agriculture, as having needed to provide telemedicine, video confer- TITLE —BROADBAND DEPLOYMENT the capacity to transmit data to enable a encing, movie and music over the internet subscriber to the service to originate and re- SEC.—01. SHORT TITLE; TABLE OF CONTENTS. and other internet applications. ceive high-quality voice, high-speed data, (a) SHORT TITLE.—This title may be cited (7) The Federal Communications Commis- graphics, or video. as the ‘‘Broadband Telecommunications De- sion’s policies for promoting broadband de- (2) ELIGIBLE RURAL COMMUNITY.—The term ployment Act of 2004.’’. ployment must not undermine competition ‘‘eligible rural community’’ means any in- (b) TABLE OF CONTENTS.— or universal service. corporated or unincorporated place that— The table of contents for this title is as fol- (8) Congress must explore ways to ensure lows: (A) has not more than 50,000 inhabitants, that broadband service is available to all based on the most recent available popu- Sec. —01. Short title; table of contents. Americans and that no one is left behind. lation statistics of the Bureau of the Census; Sec. —02. Findings. This includes exploring ways to increase de- and Subtitle A—Trust Fund for Broadband Loans ployment in unserved and underserved areas, (B) is not located in an area designated as and Grants address consumer demand factors, facilitate a standard metropolitan statistical area. innovation that results in higher service Sec. —101. Broadband deployment trust fund. (3) ELIGIBLE UNDERSERVED COMMUNITY.— speeds, and promote consumer confidence Subtitle B—Access to Broadband The term ‘‘eligible underserved community’’ when using the Internet. Telecommunications Services in Rural Areas means any census tract located in— Sec. — 201. Loan program. Subtitle A—Trust Fund for Broadband Loans (A) an empowerment zone or enterprise Sec. — 202. Grants for planning and feasi- and Grants community designated under section 1391 of bility studies on broadband de- SEC. —101. BROADBAND DEPLOYMENT TRUST the Internal Revenue Code of 1986; ployment. FUND. (B) the District of Columbia Enterprise Sec. — 203. Pilot program for wireless or (a) IN GENERAL.—The National Tele- Zone established under section 1400 of such satellite broadband trials in communications and Information Adminis- Code; rural areas. tration Organization Act is amended— (C) a renewal community designated under Sec. — 204. Rural and underserved commu- (1) by redesignating part C as part D; and section 1400E of such Code; or nity broadband technology ini- (2) by inserting after part B (47 U.S.C. 921 (D) a low-income community designated tiative. et seq.) the following new part: under section 45D of such Code.

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(c) LOANS.— (i) INCUMBENT LOCAL EXCHANGE CARRIER of fiscal years 2005 through 2009 as a reserve (1) IN GENERAL.—The Rural Utilities Serv- MUST MAKE UPGRADED FACILITIES AVAIL- for grants under this section. ice, in consultation with National Tele- ABLE.—In addition to any other requirement (2) RELEASE.—Funds reserved under para- communications and Information Adminis- to provide unbundled network elements, any graph (1) for a fiscal year shall be reserved tration, shall make loans to eligible entities incumbent local exchange carrier (as defined only until April 1 of the fiscal year. to provide funds for the construction, im- in section 251(h) of the Communications Act (f) SUPPLEMENT NOT SUPPLANT.— provement, or acquisition of facilities and of 1934 (47 U.S.C. 251(h))) that uses funds (1) IN GENERAL.—Eligibility for a grant equipment for the provision of broadband made available under subsection (c)(2) shall under this section shall not affect eligibility service in eligible rural and underserved make remote terminals and fiber optic cable for a grant or loan under another section of communities. so funded, and any loop that includes such this title. (2) CONSIDERATIONS.—The National Tele- (2) LOANS TO LECS.—The Rural Utilities components, available to a requesting telecommunications and Information Adminis- Service, in consultation with National Tele- communications carrier on an unbundled tration may not take into account the award communications and Information Adminis- basis in accordance with the requirements of of a grant under this section, or the award of tration, shall make loans to local exchange sections 251 and 252 of the Communications a grant or loan under another section of this carriers (as defined in section 3(26) of the Act of 1934 (47 U.S.C. 251, 252). title, in awarding a grant or loan under this Communications Act of 1934 (47 U.S.C. (j) FUNDING.— section or another section of this title, as 151(26)) that are eligible entities to provide (1) IN GENERAL.—The Secretary of Com- the case may be. funds to upgrade or install remote terminals merce shall make available from amounts in located more than 25,000 feet from the clos- (g) TERMINATION OF AUTHORITY.— the Broadband Deployment and Demand (1) IN GENERAL.—No grant may be made est central office of the local exchange car- Trust Fund not more than $125,000,000 for rier, and for the installation of fiber optic under this section after September 30, 2009. each of fiscal years 2005 through 2009 for (2) EFFECT ON VALIDITY OF GRANT.—Not- cable or broadband wireless facilities be- loans under this section, of which $25,000,000 withstanding paragraph (1), any grant made tween such remote terminals and the closest shall be for loans under subsection (c) (2). under this section before the date specified central office of a local exchange carrier, in (2) VALUE OF LOANS OUTSTANDING.—The ag- in paragraph (1) shall be valid. order to provide broadband service to eligi- gregate value of all loans made under this ble rural and underserved communities. SEC. ll203. PILOT PROGRAM FOR WIRELESS OR section shall be at least $2,500,000,000 for each SATELLITE BROADBAND TRIALS IN (3) EFFECT OF COMMUNICATIONS POLICY.— such fiscal year, including not more than RURAL AREAS. Notwithstanding any other provision of this $500,000,000 for outstanding loans under sub- (a) IN GENERAL.—The National Tele- section, the Rural Utilities Service may not section (c)(2). communications and Information Adminis- make a loan under this subsection if the Na- (3) ALLOCATION OF FUNDS.— tration shall support up to 7 pilot programs tional Telecommunications and Information (A) IN GENERAL.—From amounts made in each of fiscal years 2005 through 2009 for Administration determines that the loan available for each fiscal year under para- conducting innovative applications of wire- would have an adverse effect on communica- graph (1), the Rural Utilities Service shall less, satellite, and other non-wireline tech- tions policy, including competition in the establish a national reserve for loans to eli- nologies capable of delivering broadband communications marketplace. gible entities in States under this section. service (as defined in section ll201(b)(1)) to (d) ELIGIBLE ENTITIES.—To be eligible to (B) UNOBLIGATED AMOUNTS.—Any amounts an eligible rural community (as defined in obtain a loan under this section, an entity in the reserve established for a State for a section ll201(b)(2)) or an eligible under- shall— fiscal year under subparagraph (A) that are (1) be able to furnish, improve, or extend a served community (as defined in section not obligated by April 1 of the fiscal year broadband service to an eligible rural or un- ll201(b)(3)). The National Telecommuni- shall be available to the Rural Utilities derserved community; and cations and Information Administration Service to make loans under this section to (2) submit to the Rural Utilities Service a shall support 1 pilot program per year for eligible entities in any State, as determined proposal for a project that meets the require- fiber-to-the-home technology under this sub- by the Rural Utilities Service. ments of this section. section except for any year for which no ap- (e) BROADBAND SERVICE.—The National SEC. ll202. GRANTS FOR PLANNING AND FEASI- plication is received for such a program. Telecommunications and Information Ad- BILITY STUDIES ON BROADBAND DE- (b) APPLICATION PROCEDURES AND CONDI- PLOYMENT. ministration shall, from time to time as ad- TIONS.—The National Telecommunications (a) IN GENERAL.—The National Tele- vances in technology warrant, re view and and Information Administration shall estab- communications and Information Adminis- recommend modifications to the rate-of-data lish such application procedures and condi- tration shall make grants to non-profit orga- transmission criteria for purposes of the tions for grants under this section as it nizations for planning and feasibility studies identification of broadband service tech- deems appropriate. on the deployment of broadband services in nologies under subsection (b) (1). (c) FUNDING.—The Secretary of Commerce (f) TECHNOLOGICAL NEUTRALITY.—For pur- different geographic areas, including towns, shall make available from the Broadband De- poses of determining whether to make a loan cities, counties, and States. ployment and Demand Trust Fund up to for a project under this section, the Rural (b) ELIGIBILITY CRITERIA.— $2,000,000 per year for each pilot program (1) IN GENERAL.—The National Tele- Utilities Service shall apply technologically under subsection (a). communications and Information Adminis- neutral criteria and encourage the use of a SEC. ll204. RURAL AND UNDERSERVED COMMU- tration may establish additional criteria for variety of landline and wireless technologies NITY BROADBAND TECHNOLOGY INI- eligibility for grants under this section, in- TIATIVE. among applications. The Director of the National Institute of (g) TERMS AND CONDITIONS FOR LOANS.—A cluding criteria for the scope of the planning loan under subsection (d) shall— and feasibility studies to be carried out with Standards and Technology, through the Ad- (1) be made available in accordance with grants under this section. vanced Technology Program, may hold a the requirements of the Federal Credit Re- (2) CONTRIBUTION BY GRANTEE.—An organi- portion of the Institute’s competitions in form Act of 1990 (2 U.S.C. 661 et seq.); zation may not be awarded a grant under thematic areas, selected after consultation (2) bear interest at an annual rate, as de- this section unless the entity agrees to con- with industry, academics, and other Federal termined by the National Telecommuni- tribute (out of funds other than the grant Agencies, designed to develop and improve cations and Information Administration, in amount) to the planning and feasibility technical capabilities with respect to the consultation with the Rural Utilities Serv- study to be funded by the grant an amount speed, quality, and availability of tech- ice, of— equal to the amount of the grant. nologies that will extend the reach of (A) 4 percent per annum; or (c) APPLICATION.—An organization seeking broadband Internet services to individuals (B) the current applicable market rate; and a grant under this section shall submit an living in eligible rural communities (as de- (3) have a term not to exceed the useful life application for the grant to National Tele- fined in section —201(b)(2)) and eligible un- of the assets constructed, improved, or ac- communications and Information Adminis- derserved communities (as defined in section quired with the proceeds of the loan or ex- tration that is in such form, and that con- ll201(b)(3)). tension of credit. tains such information, as the National Tele- SEC. ll205. REPORT ON UNIVERSAL SERVICE (h) USE OF LOAN PROCEEDS TO REFINANCE communications and Information Adminis- AND COMPETITION. LOANS FOR DEPLOYMENT OF BROADBAND SERV- tration shall require. No later than May 1, 2005, a Federal-State ICE.—Notwithstanding any other provision of (d) LIMITATION ON USE OF GRANT Joint Board established pursuant to section this title, the proceeds of any loan made by AMOUNTS.—Grant amounts under this sec- 410(c) of the Communications Act of 1934 (47 the Rural Utilities Service under this title tion may not be used for the acquisition of U.S.C. 410(c)) and the National Exchange may be used by the recipient of the loan for office equipment, the construction of build- Carriers Association shall report to the Fed- the purpose of refinancing an outstanding ings or other facilities, the acquisition or eral Communications Commission and to the obligation of the recipient on another tele- improvement of existing buildings or facili- Senate Committee on Commerce, Science, communications loan made under this title ties, or the leasing of office space. and Transportation and the House of Rep- if the use of the proceeds for that purpose (e) RESERVATION OF FUNDS FOR GRANTS.— resentatives Committee on Energy and Com- will further the construction, improvement, (1) IN GENERAL.—The Secretary of Com- merce on— or acquisition of facilities and equipment for merce shall make available from amounts in (1) the effect of reclassifying telecommuni- the provision of broadband service in eligible the Broadband Deployment and Demand cations services provided by incumbent local rural and underserved communities. Trust Fund not more than $60,000,000 for each exchange carriers on—

VerDate jul 14 2003 05:24 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00173 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.122 S28PT1 S4618 CONGRESSIONAL RECORD — SENATE April 28, 2004 (A) the level of support available for uni- National Telecommunications and Informa- priate, the results of any research carried versal service; tion Administration shall issue a report on out under this section. (B) the universal service contribution obli- the potential role of broadband in rural and (d) FUNDING.—The Secretary of Commerce gations of telecommunications carriers and underserved areas in addressing homeland shall make available from amounts in the other providers of telecommunications; and security and public safety needs, and, as nec- Broadband Deployment and Demand Trust (C) the ability of the Commission and essary, make recommendations to enhance Fund for each of fiscal years 2005 through State commissions to fulfill the require- deployment to improve emergency response 2009 to carry out this section not more ments of subsections (b), (h), and (i) of sec- systems. than— tion 254 of the Communications Act of 1934 (b) FUNDING.—The Secretary of Commerce (1) $60,000,000 to the Director of the Insti- (47 U.S.C. 254); shall make available from the Broadband De- tute of Telecommunications Sciences of the (2) the effect on universal service of— ployment and Demand Trust Fund up to National Telecommunications and Informa- (A) reducing the availability of network $500,000 for the study under subsection (a). tion Administration, of which not more than elements provided by incumbent local ex- $10,000,000 shall be used to carry out sub- change carriers; SUBTITLE C—RESEARCH ON TECHNICAL section (a)(2); (B) modifying the rates, terms, and condi- AND FINANCIAL REQUIREMENTS FOR (2) $15,000,000 to the Director of the Na- tions for the purchasing or leasing of such FASTER BROADBAND SERVICES tional Institute of Science and Technology elements; and SEC. —301. RESEARCH ENHANCEMENT OF Laboratories; and (C) reducing the oversight of the rates, BROADBAND TELECOMMUNI- (3) $50,000,000 to the Director of the Na- charges, terms, and conditions for the pur- CATIONS SERVICES. tional Science Board. chasing or leasing of telecommunications (a) IN GENERAL.— SEC. —302. GRANTS TO COLLEGES AND UNIVER- services provided by such carriers; and (1) NATIONAL SCIENCE BOARD RESEARCH.— SITIES TO RESEARCH FASTER (3) the effect of such changes on competi- The Director of the National Science Board, BROADBAND TECHNOLOGY. tion in the provision of telecommunications without considering any changes in tele- (a) IN GENERAL.—The Director of the Na- services. communications regulation, shall research— tional Science Foundation shall establish SEC. —206. BLOCK GRANTS TO STATES FOR (A) technical changes that would be nec- and administer a grant program to fund re- BROADBAND DEPLOYMENT. essary with respect to wireline, wireless fa- search at colleges and universities into ad- (a) IN GENERAL.—The Secretary of Com- cilities, and satellite facilities to provide vancing the technical aspects of broadband merce shall establish a grant program to broadband telecommunications services in technology in order to provide speeds be- provide funding to State and local govern- order to provide speeds between 50 megabits- tween 50 megabits-per-second and 100 mega- ments to encourage and support the deploy- per-second and 100 megabits-per-second; and bits-per-second. In carrying out this sub- ment of broadband technologies and services, (B) the financial cost of ensuring that all section, the Director shall ensure that particularly in eligible rural communities Americans have access to broadband services grants are geographically distributed nation- (as defined in section —201(b)(2)) and eligible with speeds between 50 megabits-per-second wide. underserved communities (as defined in sec- (b) FUNDING.—The Secretary of Commerce and 100 megabits-per-second. tion —201(b)(3)). shall make available from amounts in the (2) ITS BROADBAND RESEARCH.—The Direc- (b) PURPOSES.—State and local govern- Broadband Deployment and Demand Trust ments receiving grants under this section tor of the Institute of Telecommunications Fund not more than $50,000,000 for each of shall use the funds— Sciences of the National Telecommuni- fiscal years 2005 through 2009 to the National (1) to spur investment in broadband facili- cations and Information Administration, in Science Board for purposes of activities ties; consultation with the Director of the Na- under this section. tional Institute of Science and Technology (2) to stimulate deployment of broadband Subtitle D—Stimulating Demand for Laboratories, shall engage in research and technology and services; Broadband Services (3) to encourage the adoption of broadband development— in eligible rural communities (as defined in (A) of wireline, wireless facilities, and sat- SEC.—401. GRANTS TO COLLEGES AND UNIVER- section —201(b)(2)) and eligible underserved ellite facilities to provide broadband tele- SITIES FOR RESEARCH. (a) IN GENERAL.—The National Tele- communities (as defined in section communications services in order to provide communications and Information Adminis- —201(b)(3)); and speeds between 50 megabits-per-second and tration shall establish and administer a (4) to provide e-government services 100 megabits-per-second; grant program to fund research at colleges through improved access to government (B) of new broadband technologies to meet and universities to develop computer or services through broadband Internet connec- government and commercial needs; and Internet applications that require broadband tions. (C) with respect to the technical capabili- (c) APPLICATIONS.—To be eligible to receive facilities and are of particular use to resi- ties of existing technologies to improve their dential consumers. a grant under this section, a State or local speed, quality, and availability and extend government shall submit an application to (b) FUNDING.—The Secretary of Commerce the reach of broadband services to individ- shall make available from amounts in the the Secretary at such time, in such manner, uals living in rural areas. Broadband Deployment and Demand Trust and containing such information as the Sec- (3) SPECTRUM-SHARING AND INTERFERENCE Fund not more than $50,000,000 for each of retary may require. The Secretary shall es- ISSUES.—The Director of the Institute of fiscal years 2005 through 2009 for grants tablish a procedure for accepting, processing, Telecommunications Sciences shall also con- under this section. and evaluating applications and publish an duct research or studies— announcement of the procedure, including a SEC.—402. GRANTS TO LIBRARIES TO DIGITIZE (A) to enhance spectrum-sharing between COLLECTIONS. statement regarding the availability of governmental and private sector users of (a) IN GENERAL.—The National Tele- funds, in the Federal Register. broadband services; communications and Information Adminis- (d) FUNDING.—The Secretary shall make (B) to develop technologies that would en- tration shall establish and administer a available from amounts in the Broadband able government and private sector users to grant program for libraries to enable them Deployment and Demand Trust Fund use spectrum more efficiently; and to make a record in digital format of their $1,000,000,000 for each of fiscal years 2005 (C) to provide recommendations to the Ad- collections. through 2009 for grants under this section, of ministrator of the National Telecommuni- (b) CONSULTATION WITH KNOWLEDGEABLE which $250,000,000 shall be made available for cations and Information Administration that PERSONS.—In making grants under sub- each such fiscal year for e-government en- would enhance— section (a), the National Telecommuni- hancement activities described in subsection cations and Information Administration (b)(4) in all communities. (i) government and private sector spectrum sharing opportunities and coordination; and shall consult with— SEC. —207. GAO TO STUDY BROADBAND DEPLOY- (1) the Librarian of Congress; MENT IN OTHER COUNTRIES. (ii) private sector innovation of new wireless technologies that benefit government (2) the Archivist of the United States; and The Comptroller General shall survey (4) representatives of libraries, academic and private sector users. countries with broadband deployment and institutions, and other individuals with pro- subscriber rates that are similar to, or great- (b) CONSULTATION AND COORDINATION.—The fessional responsibilities related to collec- er than, the broadband deployment and sub- Directors of the National Science Board, the tion, curation, preservation, and display of scriber rates in the United States in order to Institute of Telecommunications Sciences, books, records, films, and other written or determine the actions governments, carriers, and the National Institute of Science and recorded matter of public interest. and other parties have taken to facilitate Technology Laboratories shall— (c) FUNDING.—The Secretary of Commerce the deployment of broadband (including the (1) consult with governmental and com- shall make available from amounts in the factors that encourage consumers to sub- mercial users of broadband services as appro- Broadband Deployment and Demand Trust scribe to broadband service) and report the priate to facilitate research under subsection Fund not more than $100,000,000 for each of results of his survey to the Congress by May (a); and fiscal years 2005 through 2009 for grants 1, 2005. (2) consult with each other in order to co- under this section. SEC. —208. ASSESSMENT OF HOMELAND SECU- ordinate their activities under subsection SEC.—403. GRANTS TO MUSEUMS TO DIGITIZE RITY AND PUBLIC SAFETY NEEDS IN (a). COLLECTIONS. RURAL AND UNDERSERVED AREAS. (c) RESULTS OF RESEARCH.—The Director (a) IN GENERAL.—The National Tele- (a) IN GENERAL.—No later than 6 months shall make available to the public, in such communications and Information Adminis- after the date of enactment of this title, the manner as the Director considers appro- tration shall establish and administer a

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00174 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.126 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4619 grant program for museums to enable them census, have petitioned for membership bitrary, capricious, an abuse of discretion, or to make a record in digital format of their under the Streamlined Sales and Use Tax otherwise not in accordance with law. collections. Agreement in the manner required by the (e) JURISDICTION.—Chapter 91 of Title 28 of (b) CONSULTATION WITH KNOWLEDGEABLE Agreement, have been found to be in compli- the United States Code is amended by adding PERSONS.—In making grants under sub- ance with the Agreement pursuant to the at the end thereof: section (a), the National Telecommuni- terms of the Agreement, and have become § 1510. Jurisdiction regarding the Stream- cations and Information Administration Member States under the Agreement, any lined Sales and Use Tax Agreement shall consult with— Member State under the Agreement is au- (1) the Secretary of the Smithsonian Insti- thorized, notwithstanding any other provi- The United States Court of Federal Claims tution; sion of law, to require all sellers not quali- shall have exclusive jurisdiction over actions (2) the Chairman of the National Endow- fying for the small business exception pro- for judicial review of determination of the ment for the Arts; vided under subsection (b) to collect and Governing Board of the Streamlined Sales (3) the Chairman of the National Endow- remit sales and use taxes with respect to re- and Use Tax Agreement under the terms and ment for the Humanities; and mote sales to purchasers located in such conditions provided in section 5 of the Sales (4) representatives of museums, academic State. Such authorization shall terminate if and Tax Fairness Act. institutions, and other individuals with pro- the requirements of the preceding sentence SEC. 6. LIMITATION. fessional responsibilities related to collec- cease to be met. Such authorization shall (a) IN GENERAL.—Nothing in this Act shall tion, curation, preservation, and display of also terminate for any Member State if such be construed as subjecting sellers to fran- objects of significant public interest. Member State no longer complies with the chise taxes, income taxes, or licensing re- (c) FUNDING.—The Secretary of Commerce minimum requirements of the Agreement ex- quirements of a State or political subdivi- shall make available from amounts in the isting on November 12, 2002, or if such re- sion thereof, nor shall anything in this Act Broadband Deployment and Demand Trust quirements are no longer complied with by be construed as affecting the application of Fund not more than $100,000,000 for each of ten States that otherwise meet the require- such taxes or requirements or enlarging or fiscal years 2005 through 2009 for grants ments of this subsection. Determinations re- reducing the authority of any State to im- under this section. garding compliance with the requirements of pose such taxes or requirements. SEC.—404. GRANTS FOR DTV CONVERSION AND this subsection shall be made by the Gov- (b) NO EFFECT ON NEXUS, ETC.—No obliga- PROGRAMMING. erning Board (or, where provided by the tion imposed by virtue of the authority The Secretary of Commerce shall make Agreement, the States petitioning for mem- granted by section 4 of this Act shall be con- available from amounts in the Broadband bership under the Agreement) subject to the sidered in determining whether a seller has a Deployment and Demand Trust Fund not governance provisions of Section 5. nexus with any State for any other tax pur- more than $50,000,000 for each of fiscal years (b) SMALL BUSINESS EXCEPTION.—No seller pose. Except as provided in Section 4 of this 2005 through 2009 to the National Tele- shall be subject to a requirement of any Act, nothing in this Act permits or prohibits communications and Information Adminis- State to collect and remit sales and use a State— taxes with respect to a remote sale where tration for grants under the Public Tele- (1) to license or regulate any person; communications Facilities Program for fa- the seller and its affiliates collectively had (2) to require any person to qualify to cility upgrades to transmit digital television gross sales nationwide of less than $5,000,000 transact intrastate business; or programming and to develop educational and in the calendar year preceding the date of public interest digital programming. such sale. (3) to subject any person to State taxes not (c) REASONABLE SELLER COMPENSATION.— related to the sale of goods or services. SA 3076. Mr. GRAHAM of Florida The authority provided in subsection (a) SEC. 7. DEFINITIONS. submitted an amendment intended to shall be conditioned on acceptance and im- For the purposes of this Act— be proposed to amendment SA 3048 pro- plementation by all Member States under (1) AFFILIATE.—The term ‘‘affiliate’’ means the Agreement of a requirement that such posed by Mr. MCCAIN to the bill S. 150, any entity that controls, is controlled by, or States provide reasonable and uniform com- is under common control with a seller. to make permanent the moratorium on pensation for expenses incurred by sellers re- taxes on Internet access and multiple (2) GOVERNING BOARD.—The term ‘‘Gov- lated to the collection and remittance of the erning Board’’ means the governing board es- and discriminatory taxes on electronic sales and use taxes of such States. tablished by the Streamlined Sales and Use commerce imposed by the Internet Tax SEC. 5. GOVERNANCE. Tax Agreement. Freedom Act; which was ordered to lie (a) PETITION.—Any person who may be af- (3) MEMBER STATE.—The term ‘‘Member on the table; as follows: fected by the Agreement may petition the State’’ means a member state under the At the appropriate place, add the fol- Governing Board for a determination on any Streamlined Sales and Use Tax Agreement. lowing: issue relating to the implementation of the (4) PERSON.—The term ‘‘person’’ means an SECTION 1. SHORT TITLE. Agreement. individual, trust, estate, fiduciary, partner- This Act may be cited as the ‘‘Sales and (b) REVIEW IN COURT OF FEDERAL CLAIMS.— ship, corporation, or any other legal entity, Use Tax Fairness Act’’. Any person who has submitted a petition and includes a State or local government. under subsection (a) may bring an action SEC. 2. FINDINGS. (5) REMOTE SALE.—The terms ‘‘remote against the Governing Board in the United sale’’ and ‘‘remote seller’’ refer to a sale of The Congress finds that— States Court of Federal Claims for judicial (1) the November 12, 2002, Streamlined goods or services attributed to a particular review of the action of the Governing Board taxing jurisdiction with respect to which the Sales and Use Tax Agreement establishes on that petition if— minimum requirements for a sales and use seller did not have adequate nexus under the (1) The petition related to (A) an issue of law existing on the day before the date of en- tax system that simplifies and harmonizes whether a State has met or continues to State sales and use tax laws and administra- actment of this Act to allow such jurisdic- meet the requirements for Member State tion to require the seller to collect and remit tive procedures; and status under the Agreement, or (B) an issue (2) the Agreement, once implemented, will sales or use taxes with respect to such sale. of whether the Governing Board has per- (6) STATE.—The term ‘‘State’’ means any eliminate any undue burden on interstate formed a non-discretionary duty of the Gov- commerce associated with requiring remote State of the United States of America and erning Board under the Agreement; and includes the District of Columbia. sellers to collect and remit sales and use (2) The petition was denied by the Gov- (7) STREAMLINED SALES AND USE TAX AGREE- taxes. erning Board in whole or in part with respect MENT.—The term ‘‘Streamlined Sales and SEC. 3. SENSE OF THE CONGRESS. to that issue, or the Governing Board failed It is the sense of the Congress that the Use Tax Agreement’’ (or ‘‘the Agreement’’) to act on the petition with respect to that means the multistate agreement with the sales and use tax system established by the issue within six months of the date on which Streamlined Sales and Use Tax Agreement title adopted on November 12, 2002, and as the petition was submitted. amended from time to time. provides sufficient simplification and uni- (c) TIMING OF ACTION FOR REVIEW.—An ac- formity to warrant Federal authorization to tion for review under this section shall be States that are parties to the Agreement to initiated within 60 days of the Governing SA 3077. Mr. LAUTENBERG sub- require remote sellers, subject to the condi- Board’s denial of the petition as provided in mitted an amendment intended to be tions provided in this Act, to collect and subsection (b), or, if the Governing Board proposed by him to the bill S. 150, to remit the sales and use taxes of such States failed to act on the petition as provided in make permanent the moratorium on and of local taxing jurisdictions of such subsection (b), within 90 days following the taxes on Internet access and multiple States. expiration of the six-month period following and discriminatory taxes on electronic SEC. 4. AUTHORIZATION TO REQUIRE COLLEC- the date on which the petition was sub- commerce imposed by the Internet Tax TION OF SALES AND USE TAXES. mitted. Freedom Act; which was ordered to lie (a) GRANT OF AUTHORITY.—Once ten States (d) STANDARD OF REVIEW.—In any action comprising at least twenty percent of the for review under this section, the court shall on the table; as follows: total population of all States imposing a set aside the actions, findings, and conclu- At the appropriate place, insert the fol- sales tax, as determined by the 2000 Federal sions of the Governing Board found to be ar- lowing:

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SEC. ll. GAO STUDY OF EFFECTS OF INTERNET (c) INTERNET ACCESS SERVICE; INTERNET ‘‘(2) CHARGES FOR TELECOMMUNICATIONS TAX MORATORIUM ON STATE AND ACCESS.— SERVICES.—The term ‘charges for tele- LOCAL GOVERNMENTS AND ON (1) INTERNET ACCESS SERVICE.—Paragraph communications services’ means all charges BROADBAND DEPLOYMENT. (3)(D) of section 1101(d) (as redesignated by for telecommunications services, except to The Comptroller General shall conduct a subsection (b)(1) of this section) of the Inter- the extent such services are purchased, used, study of the impact of the Internet tax mor- net Tax Freedom Act (47 U.S.C. 151 note) is or sold by a provider of Internet access to atorium, including its effects on the reve- amended by striking the second sentence and provide Internet access.’’. nues of State and local governments and on inserting ‘‘The term ‘Internet access service’ SEC. 5. EFFECT ON OTHER LAWS. the deployment and adoption of broadband does not include telecommunications serv- The Internet Tax Freedom Act (47 U.S.C. technologies for Internet access throughout ices, except to the extent such services are 151 note), as amended by section 4, is amend- the United States, including the impact of purchased, used, or sold by a provider of ed by adding at the end the following: the Internet Tax Freedom Act (47 U.S.C. 151 Internet access to provide Internet access.’’. ‘‘SEC. 1107. EFFECT ON OTHER LAWS. note) on build-out of broadband technology (2) INTERNET ACCESS.—Section 1104(5) of ‘‘(a) UNIVERSAL SERVICE.—Nothing in this resources in rural under served areas of the that Act is amended by striking the second Act shall prevent the imposition or collec- country. The study shall compare deploy- sentence and inserting ‘‘The term ‘Internet tion of any fees or charges used to preserve ment and adoption rates in States that tax access’ does not include telecommunications and advance Federal universal service or broadband Internet access service with services, except to the extent such services similar State programs— States that do not tax such service, and take are purchased, used, or sold by a provider of ‘‘(1) authorized by section 254 of the Com- into account other factors to determine Internet access to provide Internet access.’’. munications Act of 1934 (47 U.S.C. 254); or whether the Internet Tax Freedom Act has SEC. 3. GRANDFATHERING OF STATES THAT TAX ‘‘(2) in effect on February 8, 1996. had an impact on the deployment or adop- INTERNET ACCESS. ‘‘(b) 911 AND E–911 SERVICES.—Nothing in tion of broadband Internet access services. The Internet Tax Freedom Act (47 U.S.C. this Act shall prevent the imposition or col- The Comptroller General shall report the 151 note) is amended— lection, on a service used for access to 911 or findings, conclusions, and any recommenda- (1) by redesignating section 1104 as section E–911 services, of any fee or charge specifi- tions from the study to the Senate Com- 1105; and cally designated or presented as dedicated by mittee on Commerce, Science, and Transpor- (2) by inserting after section 1103 the fol- a State or political subdivision thereof for tation and the House of Representatives lowing: the support of 911 or E–911 services if no por- Committee on Energy and Commerce no ‘‘SEC. 1104. GRANDFATHERING OF STATES THAT tion of the revenue derived from such fee or later than November 1, 2005. TAX INTERNET ACCESS. charge is obligated or expended for any pur- ‘‘(a) PRE-OCTOBER 1998 TAXES.— pose other than support of 911 or E–911 serv- ‘‘(1) IN GENERAL.—Section 1101(a) does not ices. SA 3078. Mr. LAUTENBERG sub- apply to a tag on Internet access that was ‘‘(c) NON-TAX REGULATORY PROCEEDINGS.— mitted an amendment intended to be generally imposed and actually enforced Nothing in this Act shall be construed to af- proposed to amendment SA 3048 pro- prior to October 1, 1998, if, before that date, fect any Federal or State regulatory proceeding that is not related to taxation.’’. posed by Mr. MCCAIN to the bill S. 150, the tax was authorized by statute and either— SEC. 6. EXCEPTION FOR VOICE AND OTHER SERV- to make permanent the moratorium on ‘‘(A) a provider of Internet access services ICES OVER THE INTERNET. taxes on Internet access and multiple had a reasonable opportunity to know, by The Internet Tax Freedom Act (47 U.S.C. and discriminatory taxes on electronic virtue of a rule or other public proclamation 151 note), as amended by section 5, is amend- commerce imposed by the Internet Tax made by the appropriate administrative ed by adding at the end the following: Freedom Act; which was ordered to lie agency of the State or political subdivision ‘‘SEC. 1108. EXCEPTION FOR VOICE AND OTHER on the table; as follows: thereof, that such agency has interpreted SERVICES OVER THE INTERNET. and applied such tax to Internet access serv- ‘‘Nothing in this Act shall be construed to In lieu of the matter proposed to be in- affect the imposition of tax on a charge for serted, insert the following: ices; or ‘‘(B) a State or political subdivision there- voice or any other service utilizing Internet SECTION 1. SHORT TITLE. of generally collected such tax on charges for Protocol or any successor protocol. This sec- This Act may be cited as the ‘‘Internet Tax Internet access. tion shall not apply to Internet access or to Nondiscrimination Act’’. ‘‘(2) TERMINATION.—This subsection shall any services that are incidental to Internet SEC. 2. TWO-YEAR EXTENSION OF INTERNET TAX not apply after November 1, 2005. access, such as e-mail, text instant mes- MORATORIUM. ‘‘(b) PRE-NOVEMBER 2003 TAXES.— saging, and instant messaging with voice ca- (a) IN GENERAL.—Subsection (a) of section ‘‘(1) IN GENERAL.—Section 1101(a) does not pability.’’. 1101 of the Internet Tax Freedom Act (47 apply to a tax on Internet access that was SEC. 7. EFFECTIVE DATE. U.S.C. 151 note) is amended to read as fol- generally imposed and actually enforced as The amendments made by this Act take ef- lows: of November 1, 2003, if, as of that date, the fect on November 1, 2003. ‘‘(a) MORATORIUM.—No State or political tax was authorized by statute and— subdivision thereof may impose any of the ‘‘(A) a provider of Internet access services SA 3079. Mr. GRAHAM of Florida following taxes during the period beginning had a reasonable opportunity to know by vir- submitted an amendment intended to November 1, 2003, and ending November 1, tue of a public rule or other public proclama- be proposed to amendment SA 3048 pro- 2005: tion made by the appropriate administrative posed by Mr. MCCAIN to the bill S. 150, ‘‘(1) Taxes on Internet access. agency of the State or political subdivision to make permanent the moratorium on ‘‘(2) Multiple or discriminatory taxes on thereof, that such agency has interpreted taxes on Internet access and multiple electronic commerce.’’. and applied such tax to Internet access serv- and discriminatory taxes on electronic ices; and (b) CONFORMING AMENDMENTS.— commerce imposed by the Internet Tax (1) Section 1101 of the Internet Tax Free- ‘‘(B) a State or political subdivision there- dom Act (47 U.S.C. 151 note) is amended by of generally collected such tax on charges for Freedom Act; which was ordered to lie striking subsection (d) and redesignating Internet access. on the table; as follows: subsections (e) and (f) as subsections (d) and ‘‘(2) TERMINATION.—This subsection shall At the appropriate place in Amdt. No. 3048, (e), respectively. not apply after November 1, 2005.’’. insert the following: (2) Section 1104(10) of the Internet Tax SEC. 4. ACCOUNTING RULE. SEC. ll. SENSE OF THE SENATE. Freedom Act (47 U.S.C. 151 note) is amended The Internet Tax Freedom Act (47 U.S.C. (a) FINDINGS.—The Senate finds that the to read as follows: 151 note) is amended by adding at the end the Unfunded Mandates Reform Act of 1995 (P.L. ‘‘(10) TAX ON INTERNET ACCESS.— following: 104–4) was passed— ‘‘(A) IN GENERAL.—The term ‘tax on Inter- ‘‘SEC. 1106. ACCOUNTING RULE. (1) ‘‘to end the imposition, in the absence net access’ means a tax on Internet access, ‘‘(a) IN GENERAL.—If charges for Internet of full consideration by Congress, of Federal regardless of whether such tax is imposed on access are aggregated with and not sepa- mandates on State, local, and tribal govern- a provider of Internet access or a buyer of rately stated from charges for telecommuni- ments without adequate Federal funding, in Internet access and regardless of the termi- cations services or other charges that are a manner that may displace other essential nology used to describe the tax. subject to taxation, then the charges for State, local, and tribal governmental prior- ‘‘(B) GENERAL EXCEPTION.—The term ‘tax Internet access may be subject to taxation ities’’; on Internet access’ does not include a tax unless the Internet access provider can rea- (2) to provide ‘‘for the development of in- levied upon or measured by net income, cap- sonably identify the charges for Internet ac- formation about the nature and size of man- ital stock, net worth, or property value.’’. cess from its books and records kept in the dates in proposed legislation’’; (3) Section 1104(2)(B)(i) of the Internet Tax regular course of business. (3) ‘‘to establish a point-of-order vote on Freedom Act (47 U.S.C. 151 note) is amended ‘‘(b) DEFINITIONS.—In this section: the consideration in the Senate and House of by striking ‘‘except with respect to a tax (on ‘‘(1) CHARGES FOR INTERNET ACCESS.—The Representatives of legislation containing Internet access) that was generally imposed term ‘charges for Internet access’ means all significant Federal intergovernmental man- and actually enforced prior to October 1, charges for Internet access as defined in sec- dates without providing adequate funding to 1998,’’. tion 1105(5). comply with such mandates’’;

VerDate jul 14 2003 05:24 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00176 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.066 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4621 (4) to require that ‘‘Federal agencies pre- Internet access and multiple and dis- conduct a study on the preservation pare and consider better estimates of the criminatory taxes on electronic com- and interpretation of the historic sites budgetary impact of regulations containing merce imposed by the Internet Tax of the Manhattan Project for potential Federal mandates upon State, local, and Freedom Act; which was ordered to lie inclusion in the National Park System. tribal governments before adopting such regulations, and ensuring that small govern- on the table; as follows: Agenda Item 13: S. 1778—A bill to au- ments are given special consideration in that On page 5, line 2, strike ‘‘2006’’ and insert thorize a land conveyance between the process’’; and ‘‘2007’’. United States and the City of Craig, AK, and for other purposes. (5) to establish the general rule that Con- f gress shall not impose Federal mandates on Agenda Item 14: S. 1791—A bill to State, local, and tribal governments without AUTHORITY FOR COMMITTEES TO amend the Lease Lot Conveyance Act providing adequate funding to comply with MEET of 2002 to provide that the amounts re- such mandates. COMMITTEE ON ARMED SERVICES ceived by the United States under that (b) SENSE OF THE SENATE.—It is the sense Act shall be deposited in the reclama- of the Senate that— Mr. ALLEN. Mr. President, I ask (1) the Unfunded Mandates Reform Act of unanimous consent that the Com- tion fund, and for other purposes. Agenda Item 15: S. 2180—A bill to di- 1995 constituted an important pledge on the mittee on Armed Services be author- rect the Secretary of Agriculture to ex- part of the Federal Government, in general, ized to meet during the session of the change certain lands in the Arapaho and Congress, in particular, to refrain from Senate on April 28, 2004, at 11 a.m., in imposing Federal mandates on State, local, and Roosevelt National Forests in the closed session, to receive a briefing re- and tribal governments without providing State of Colorado. adequate resources to compensate State, garding the performance of force pro- Agenda Item 16: S. Res. 321—A resolu- local, and tribal governments for the cost of tection equipment for ground forces in tion recognizing the loyal service and complying with such mandates; Iraq, including the up-armored outstanding contributions of J. Robert (2) at this time when State, local, and trib- HMMWV, and potential alternatives to Oppenheimer to the United States and al governments are struggling to cope with meet force protection needs of the the worst State and local fiscal crisis since calling on the Secretary of Energy to combatant commander. observe the 100th anniversary of Dr. World War II, it is urgently important that The PRESIDING OFFICER. Without Congress adhere to its commitments under Oppenheimer’s birth with appropriate the Unfunded Mandates Reform Act of 1995; objection, it is so ordered. programs at the Department of Energy and COMMITTEE ON COMMERCE, SCIENCE AND and the Los Alamos National Labora- (3) Congress should not pass laws man- TRANSPORTATION tory. dating that States or localities spend new Mr. ALLEN. Mr. President, I ask Agenda Item 20: H.R. 1521—To pro- money or forgo collecting currently col- unanimous consent that the Com- lected revenues, unless Congress— vide for additional lands to be included mittee on Commerce, Science, and within the boundary of the Johnstown (A) has clear and precise estimates of the Transportation be authorized to meet budgetary impacts of such mandates upon Flood National Memorial in the State States, local governments, and tribal govern- on Wednesday, April 28, 2004, at 9:30 of Pennsylvania, and for other pur- ments; and a.m., on Telecommunications Policy poses. (B) provides adequate funding to cover the Review: A Look Ahead, in SR–253. Agenda Item 21: H.R. 3249—To extend cost to States and localities of complying The PRESIDING OFFICER. Without the term of the Forest Counties Pay- with such mandates. objection, it is so ordered. ments Committee. COMMITTEE ON ENERGY AND NATURAL In addition, the Committee may turn SA 3080. Mr. ENZI submitted an RESOURCES to any other measures that are ready amendment intended to be proposed by Mr. ALLEN. Mr. President, I ask for consideration. him to the bill S. 150, to make perma- unanimous consent that the Com- The PRESIDING OFFICER. Without nent the moratorium on taxes on Inter- mittee on Energy and Natural Re- objection, it is so ordered. net access and multiple and discrimi- sources be authorized to meet during COMMITTEE ON ENVIRONMENT AND PUBLIC natory taxes on electronic commerce the session of the Senate, on Wednes- WORKS imposed by the Internet Tax Freedom day, April 28 at 11:30 a.m. to consider Mr. ALLEN. Mr. President, I ask Act; which was ordered to lie on the pending calendar business. unanimous consent that the Com- table; as follows: Agenda Item 1: S. 203—A bill to open mittee on Environment and Public In lieu of the matter proposed to be in- certain withdrawn land in Big Horn Works be authorized to meet on serted, insert the following: County, WY to locatable mineral devel- Wednesday, April 28th at 9:30 a.m. to SECTION 1. EXTENSION OF THE INTERNET TAX FREEDOM ACT. opment for bentonite mining. conduct a hearing to receive testimony Section 1101(a) of the Internet Tax Free- Agenda Item 5: S. 1071—A bill to au- on the reauthorization of the Economic dom Act (47 U.S.C. 151 note) is amended by thorize the Secretary of the Interior, Development Administration. striking ‘‘November 1, 2003’’ and inserting through the Bureau of Reclamation, to The hearing will be held in SD 406, ‘‘May 31, 2005’’. conduct a feasibility study on a water hearing room. conservation project within the Arch The PRESIDING OFFICER. Without SA 3081. Mr. ENZI submitted an Hurley Conservancy District in the objection, it is so ordered. amendment intended to be proposed by State of New Mexico, and for other pur- COMMITTEE ON FINANCE him to the bill S. 150, to make perma- poses. Mr. ALLEN. Mr. President, I ask nent the moratorium on taxes on Inter- Agenda Item 6: S. 1097—A bill to au- unanimous consent that the Com- net access and multiple and discrimi- thorize the Secretary of the Interior to mittee on Finance be authorized to natory taxes on electronic commerce implement the Calfed Bay-Delta Pro- meet during the session on Wednesday, imposed by the Internet Tax Freedom gram. April 28, 2004, at 10 a.m., in 215 Dirksen Act; which was ordered to lie on the Agenda Item 9: S. 1467—A bill to es- Senate Office Building, to hear testi- table; as follows: tablish the Rio Grande Outstanding mony on ‘‘Taking the Taxpayers for a Strike all after the first word and insert Natural Area in the State of Colorado, Ride: Fraud and Abuse in the Power the following: and for other purposes. Wheelchair Program.’’ 1. EXTENSION OF THE INTERNET TAX FREEDOM Agenda Item 10: S. 1582—A bill to The PRESIDING OFFICER. Without ACT. amend the Valles Preservation Act to objection, it is so ordered. Section 1101(a) of the Internet Tax Free- improve the preservation of the Valles COMMITTEE ON FOREIGN RELATIONS dom Act (47 U.S.C. 151 note) is amended by striking ‘‘November 1, 2003’’ and inserting Caldera, and for other purposes. Mr. ALLEN. Mr. President, I ask ‘‘June 1, 2005’’. Agenda Item 11: S. 1649—A bill to des- unanimous consent that the Com- ignate the Ojito Wilderness Study Area mittee on Foreign Relations be author- SA 3082. Mr. LOTT submitted an as wilderness, to take certain land into ized to meet during the session of the amendment intended to be proposed to trust for the Pueblo of Zia, and for Senate on Wednesday, April 28, 2004 at amendment SA 3048 proposed by Mr. other purposes. 10 a.m. to hold a Nomination hearing. MCCAIN to the bill S. 150, to make per- Agenda Item 12: S. 1687—A bill to di- The PRESIDING OFFICER. Without manent the moratorium on taxes on rect the Secretary of the Interior to objection, it is so ordered.

VerDate jul 14 2003 05:24 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00177 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.081 S28PT1 S4622 CONGRESSIONAL RECORD — SENATE April 28, 2004 COMMITTEE ON FOREIGN RELATIONS The PRESIDING OFFICER. Without The resolution (S. Res. 168) was Mr. ALLEN. Mr. President, I ask objection, it is so ordered. agreed to. unanimous consent that the Com- JOINT ECONOMIC COMMITTEE The preamble was agreed to. mittee on Foreign Relations be author- Mr. ALLEN. Mr. President, I ask The resolution, with its preamble, ized to meet during the session of the unanimous consent that the Joint Eco- reads as follows: Senate on Wednesday, April 28, 2004 at nomic Committee be authorized to con- S. RES. 168 3 p.m. to hold a Nomination hearing. duct a hearing in Room 628 of the Dirk- Whereas the United States of America is The PRESIDING OFFICER. Without sen Senate Office Building, Wednesday, the world leader in motorcycle safety, pro- objection, it is so ordered. April 28, 2004, from 10 a.m. to 1 p.m. moting education, training, and motorcycle awareness; COMMITTEE ON GOVERNMENTAL AFFAIRS The PRESIDING OFFICER. Without Whereas motorcycles occupy a very impor- Mr. ALLEN. Mr. President, I ask objection, it is so ordered. tant position in the history of this Nation unanimous consent that the Com- SELECT COMMITTEE ON INTELLIGENCE and of the world; mittee on Governmental Affairs be au- Mr. ALLEN. Mr. President, I ask Whereas over two-thirds of car-motorcycle thorized to meet on Wednesday, April unanimous consent that the Select crashes and nearly one-half of all motorcycle 28, 2004, at 10 a.m. for a hearing titled Committee on Intelligence be author- crashes are caused by car drivers, not by mo- ‘‘Government Purchase Cards: Smarter ized to meet during the session of the torcyclists; Whereas of the 1,400 fatal car-motorcycle Use Can Save Taxpayers Hundreds of Senate on April 28, 2004, at 2:30 p.m., to Millions of Dollars.’’ crashes in 2001, 36 percent involved another hold a closed hearing on Intelligence vehicle violating the motorcyclist’s right-of- The PRESIDING OFFICER. Without Matters. way by turning left while the motorcycle objection, it is so ordered. The PRESIDING OFFICER. Without was going straight, passing, or overtaking COMMITTEE ON INDIAN AFFAIRS objection, it is so ordered. the vehicle; Mr. ALLEN. Mr. President, I ask SUBCOMMITTEE ON CHILDREN AND FAMILIES Whereas although the motorcycling community has made efforts to mitigate these unanimous consent that the Com- Mr. ALLEN. Mr. President, I ask mittee on Indian Affairs be authorized right-of-way crashes through enhancing mo- unanimous consent that the Com- torcycle awareness via billboards, posters, to meet on Wednesday, April 28, 2004, mittee on Health, Education, Labor, media, and other campaigns, the message to at 10 a.m. in room 485 of the Russell and Pensions, Subcommittee on Chil- ‘watch for motorcycles’ continues to go Senate Office Building to conduct a dren and Families, be authorized to unheeded by the general motoring public; hearing on S. 2172, Tribal Contract meet for a hearing on Healthy Mar- Whereas the motorcycling community has Support Cost Technical Amendments riage: What is it and why should we invested considerable time and effort to im- of 2004. promote it? During the session of the prove its safety record through safety initiatives such as increased rider training and li- The PRESIDING OFFICER. Without Senate on Wednesday, April 28, 2004, at objection, it is so ordered. censing campaigns, but many times demand 2 p.m. for rider training exceeds enrollment capac- COMMITTEE ON THE JUDICIARY The PRESIDING OFFICER. Without ity and the programs often lack support Mr. ALLEN. Mr. President, I ask objection, it is so ordered. from the larger traffic safety community; unanimous consent that the Com- SUBCOMMITTEE ON SUBSTANCE ABUSE AND Whereas the larger traffic safety commu- mittee on the Judiciary be authorized MENTAL HEALTH SERVICES nity, highway designers, law enforcement, to meet to conduct a hearing on Mr. ALLEN. Mr. President, I ask the medical community, designers of other Wednesday, April 28, 2004 at 2 p.m. on unanimous consent that the Com- vehicles, government, researchers working in related areas, insurers, and all road users ‘‘The Playwrights Licensing Antitrust mittee on Health, Education, Labor, can accomplish much more toward improv- Initiative Act: Safeguarding the Fu- and Pensions, Subcommittee on Sub- ing motorcycle safety; ture of American Live Theater’’ in the stance Abuse and Mental Health Serv- Whereas the motorcycle is an efficient ve- Dirksen Senate Office Building, Room ices be authorized to meet for a hear- hicle which conserves fuel, has little impact 226 ing on Mental Health in Children and on our overworked roads and highway sys- Youth: Issues Throughout the Develop- tem, is an important mode of transportation Witness List ment Process during the session of the involving such activities as commuting, Arthur Miller, Playwright (Death of Senate on Wednesday April 28, 2004, at touring, and recreation, and promotes friendship by attracting riders from all over the a Salesman, The Crucible, All My 10 a.m. Sons); Roxbury, CT. world through various clubs and organiza- The PRESIDING OFFICER. Without tions; Stephen Sondheim, Lyricist (West objection, it is so ordered. Whereas the month of May marks the tra- Side Story, Gypsy, Sweeney Tood); f ditional start of the motorcycle riding sea- New York, NY. son; and Wendy Wasserstein, Playwright (Un- NATIONAL MOTORCYCLE SAFETY Whereas, due to the increased number of common Women and Others, Isn’t It AND AWARENESS MONTH motorcycles on the road, it is appropriate to Romantic, The Heidi Chronicles); New Mr. FRIST. Mr. President, I ask set aside the month of May 2004 to promote York, NY. unanimous consent that the Judiciary motorcycle awareness and safety and to en- Gerald Schoenfeld, Chairman, League courage all citizens to safely share the roads Committee be discharged from further and highways of this great Nation by paying of American Theaters and Producers; consideration of S. Res. 168 and that extra attention to those citizens who ride Chairman, The Shubert Organization; the Senate proceed to its immediate motorcycles: Now, therefore, be it New York, NY. consideration. Resolved, That the Senate— Roger Berlind, Producer, Berlind The PRESIDING OFFICER. Without (1) designates May 2004 as ‘‘National Mo- Productions (Kiss Me Kate, City of An- objection, it is so ordered. The clerk torcycle Safety and Awareness Month’’; and gels, Wonderful Town, Caroline or will report the resolution by title. (2) requests that the President issue a Change); New York, NY. proclamation calling upon the people of the The legislative clerk read as follows: United States to observe the month with ap- The PRESIDING OFFICER. Without A resolution (S. Res. 168) designating May propriate ceremonies and activities. objection, it is so ordered. 2004 as ‘‘National Motorcycle Safety and f COMMITTEE ON SMALL BUSINESS AND Awareness Month.’’ ENTREPRENEURSHIP There being no objection, the Senate NATIONAL RAILROAD HALL OF Mr. ALLEN. Mr. President, I ask proceeded to consider the resolution. FAME unanimous consent that the Com- Mr. FRIST. Mr. President, I ask Mr. FRIST. Mr. President, I ask mittee on Small Business and Entre- unanimous consent that the resolution unanimous consent that the Judiciary preneurship be authorized to meet dur- be agreed to; that the preamble be Committee be discharged from further ing the session of the Senate for a agreed to; that the motions to recon- consideration of S. Res. 255 and that hearing entitled, ‘‘Impact of Stock Op- sider be laid upon the table; and that the Senate then proceed to its imme- tion Expensing on Small Businesses’’ any statement relating to the resolu- diate consideration. on Wednesday, April 28, 2004, beginning tion be printed in the RECORD. The PRESIDING OFFICER. Without at 10 a.m. in Room 428A of the Russell The PRESIDING OFFICER. Without objection, it is so ordered. The clerk Senate Office Building. objection, it is so ordered. will report the resolution by title.

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00178 Fmt 4624 Sfmt 0634 E:\CR\FM\A28AP6.079 S28PT1 April 28, 2004 CONGRESSIONAL RECORD — SENATE S4623 The legislative clerk read as follows: A resolution (S. 340) expressing the sense of S. RES. 342 A resolution (S. Res. 255) supporting the the Senate that the President should des- Whereas many nations throughout the National Railroad Hall of Fame, Inc., of ignate September 26, 2004, as National Good world, and especially within the Western Galesburg, Illinois, in its endeavor to erect a Neighbor Day. hemisphere, celebrate ‘‘Dıá de los Nin˜ os’’ on monument known as the National Railroad There being no objection, the Senate the 30th of April, in recognition and celebra- Hall of Fame. proceeded to consider the resolution. tion of their country’s future—their chil- There being no objection, the Senate Mr. FRIST. I ask unanimous consent dren; Whereas children represent the hopes and proceeded to consider the resolution. that the resolution and preamble be dreams of the people of the United States; Mr. FRIST. Mr. President, I ask agreed to en bloc; the motion to recon- Whereas children are the center of Amer- unanimous consent that the resolution sider be laid upon the table; that any ican families; and preamble be agreed to, en bloc; statements relating thereto be printed Whereas children should be nurtured and that the motion to reconsider be laid in the RECORD; and the above occur invested in to preserve and enhance eco- upon the table; and that any state- with no intervening action or debate. nomic prosperity, democracy, and the Amer- ments relating to the resolution be The PRESIDING OFFICER. Without ican spirit; Whereas Hispanics in the United States, printed in the RECORD, with the above objection, it is so ordered. the youngest and fastest growing ethnic occurring with no intervening action The resolution (S. Res. 340) was community in the Nation, continue the tra- or debate. agreed to. dition of honoring their children on this day, The PRESIDING OFFICER. Without The preamble was agreed to. and wish to share this custom with the rest objection, it is so ordered. The resolution, with its preamble, of the Nation; The resolution (S. Res. 255) was reads as follows: Whereas 1 in 4 Americans is projected to be of Hispanic descent by the year 2050, and as agreed to. S. RES. 340 of 2003, approximately 12,300,000 Hispanic The preamble was agreed to. Whereas our society has developed highly The resolution, with its preamble, children live in the United States; effective means of speedy communication Whereas traditional Hispanic family life reads as follows: around the world, but has failed to ensure centers largely on children; S. RES. 255 meaningful communication among people Whereas the primary teachers of family Whereas Galesburg, Illinois, has been living across the globe, or even across the values, morality, and culture are parents and linked to the history of railroading since 1849 street, from one another; family members, and we rely on children to when the Peoria and Oquawka Railroad was Whereas the endurance of human values pass on these family values, morals, and cul- organized; and consideration for others are critical to ture to future generations; Whereas the citizens of Galesburg sup- the survival of civilization; and Whereas more than 500,000 children drop ported a railroad to Chicago which was char- Whereas being good neighbors to those out of school each year, and Hispanic drop- tered as the Central Military Tract Railroad around us is the first step toward human un- out rates are unacceptably high; in 1851; derstanding: Now, therefore, be it Whereas the importance of literacy and Whereas upon completion of the Central Resolved, education are most often communicated to Military Tract Railroad, the Northern Cross SECTION 1. DESIGNATION OF NATIONAL GOOD children through family members; Railroad joined the Central Military Tract NEIGHBOR DAY. Whereas families should be encouraged to Railroad at Galesburg; (a) SENSE OF THE SENATE.—It is the sense engage in family and community activities Whereas in 1886 Galesburg secured the of the Senate that the President should des- that include extended and elderly family Atchison, Topeka, and Santa Fe Railway and ignate September 26, 2004, as ‘‘National Good members and encourage children to explore, became one of the few places in the world Neighbor Day’’. develop confidence, and pursue their dreams; served by 2 major railroads; (b) PROCLAMATION.—The Senate requests Whereas the designation of a day to honor Whereas the National Railroad Hall of the President to issue a proclamation— the children of the United States will help Fame, Inc., has been established in Gales- (1) designating September 26, 2004, as ‘‘Na- affirm for the people of the United States the burg and chartered under the laws of the tional Good Neighbor Day’’; and significance of family, education, and com- State of Illinois as a not-for-profit corpora- (2) calling on the people of the United munity; tion; States and interested groups and organiza- Whereas the designation of a day of special Whereas the objectives of the National tions to observe ‘‘National Good Neighbor recognition for the children of the United Railroad Hall of Fame, Inc., include (1) per- Day’’ with appropriate ceremonies and ac- States will provide an opportunity for chil- petuating the memory of leaders and tivities. dren to reflect on their future, to articulate innovators in the railroad industry, (2) fos- their dreams and aspirations, and to find tering, promoting, and encouraging a better f comfort and security in the support of their understanding of the origins and growth of family members and communities; DIA DE LOS NINOS: CELEBRATING Whereas the National Latino Children’s In- railroads, especially in the United States, YOUNG AMERICANS and (3) establishing and maintaining a li- stitute, serving as a voice for children, has brary and collection of documents, reports, Mr. FRIST. I ask unanimous consent worked with cities throughout the country to declare April 30 as ‘‘Dıá de los Nin˜ os: Cele- and other items of value to contribute to the that the Judiciary Committee be dis- brating Young Americans’’—a day to bring education of all persons interested in rail- charged from further consideration of together Hispanics and other communities roading; and S. Res. 342, and the Senate proceed to nationwide to celebrate and uplift children; Whereas the National Railroad Hall of its immediate consideration. and Fame, Inc., is planning to erect a monument The PRESIDING OFFICER. Without Whereas the children of a nation are the known as the National Railroad Hall of responsibility of all its people, and people Fame to honor the men and women who ac- objection, it is so ordered. The clerk should be encouraged to celebrate the gifts tively participated in the founding and de- will report the resolution by title. of children to society—their curiosity, velopment of the railroad industry in the The legislative clerk read as follows: laughter, faith, energy, spirit, hopes, and United States: Now, therefore, be it A resolution (S. Res. 342) designating April dreams: Now, therefore, be it Resolved, That the Senate supports the Na- 30, 2004, as Dia de los Ninos: Celebrating Resolved, That the Senate— tional Railroad Hall of Fame, Inc., of Gales- Young Americans, and for other purposes. (1) designates April 30, 2004, as ‘‘Dıá de los burg, Illinois, in its endeavor to erect a There being no objection, the Senate Nin˜ os: Celebrating Young Americans’’; and monument known as the National Railroad (2) requests that the President issue a Hall of Fame. proceeded to consider the resolution. Mr. FRIST. I ask unanimous consent proclamation calling on the people of the f United States to join with all children, fami- that the resolution be agreed to, the NATIONAL GOOD NEIGHBOR DAY lies, organizations, communities, churches, preamble be agreed to, the motion to cities, and States across the United States to Mr. FRIST. Mr. President, I ask reconsider be laid upon the table, and observe the day with appropriate cere- unanimous consent that the Judiciary that any statements relating to the monies, including— Committee be discharged from further resolution be printed in the RECORD. (A) activities that center around children, consideration of S. Res. 340 and that The PRESIDING OFFICER. Without and are free or minimal in cost so as to en- the Senate then proceed to its imme- objection, it is so ordered. courage and facilitate the participation of The resolution (S. Res. 342) was all our people; diate consideration. (B) activities that are positive and uplift- The PRESIDING OFFICER. Without agreed to. ing and that help children express their objection, it is so ordered. The clerk The preamble was agreed to. hopes and dreams; will report the resolution by title. The resolution, with its preamble, (C) activities that provide opportunities The legislative clerk read as follows: reads as follows: for children of all backgrounds to learn

VerDate jul 14 2003 04:44 Apr 29, 2004 Jkt 029060 PO 00000 Frm 00179 Fmt 4624 Sfmt 0634 E:\CR\FM\G28AP6.115 S28PT1 S4624 CONGRESSIONAL RECORD — SENATE April 28, 2004 about one another’s cultures and to share I further ask consent that following morrow. We would just hope that the ideas; the use or yielding back of the time, good offices of the majority leader (D) activities that include all members of the Senate proceed to the cloture vote would allow, if, in fact, cloture is not the family, and especially extended and el- on Daschle amendment No. 3050. invoked on Daschle or Domenici, and derly family members, so as to promote greater communication among the genera- The PRESIDING OFFICER. Is there we have to go to McCain, that we could tions within a family, enabling children to objection? Without objection, it is so have some arrangement that we could appreciate and benefit from the experiences ordered. have a little bit of debate before voting and wisdom of their elderly family members; f on the McCain cloture because we have (E) activities that provide opportunities our party policy luncheon tomorrow. It for families within a community to get ac- PROGRAM may not be a bad idea, and we can cer- quainted; and Mr. FRIST. Mr. President, tomorrow tainly discuss this with others on the (F) activities that provide children with morning, following morning business, majority side, for Senator MCCAIN and the support they need to develop skills and confidence, and to find the inner strength— the Senate will resume consideration others, if, in fact, cloture is not in- the will and fire of the human spirit—to of the Internet tax bill. There will be voked on those first two motions that make their dreams come true. up to 1 hour of debate prior to the clo- have been filed, that we have a little f ture vote on the Daschle amendment time to get rid of the two energy mat- on renewable fuels. If all time is used, ters and get back on Internet and dis- ORDERS FOR THURSDAY, the cloture vote on the Daschle amend- cuss that, and that would put us with APRIL 29, 2004 ment will occur at approximately 12 to- just a short debate of maybe an hour or Mr. FRIST. I ask unanimous consent morrow, and that will be the first roll- so into the end of the policy luncheon. that when the Senate completes its call vote of the day. If cloture is not in- Mr. FRIST. Mr. President, I under- business today, it adjourn until 9:30 voked on the Daschle amendment, the stand their policy luncheon is tomor- a.m. on Thursday, April 29. I further Senate will immediately proceed to a row, and clearly we will make every ask that following the prayer and the cloture vote on Domenici amendment consideration for them to continue pledge, the Journal of proceedings be No. 3051 on energy policy. If cloture with that. We will schedule the votes— approved to date, the morning hour be fails on the Domenici amendment, the it depends on how each of these cloture deemed to have expired, and following Senate will proceed to a cloture vote votes go—after discussion over the the time for the two leaders the Senate on the pending McCain substitute. course of the morning. Again, the first then begin a period of morning busi- Therefore, up to three rollcall votes are rollcall vote will begin at approxi- ness for up to 90 minutes, with the first possible beginning at 12 tomorrow. mately noon tomorrow. 30 minutes of the time under the con- It is my hope we will be able to make trol of the Democratic leader or his progress on the bill tomorrow. If we are f designee, the second 30 minutes under able to invoke cloture, we would move the control of the majority leader or forward with Internet-tax-related ADJOURNMENT UNTIL 9:30 A.M. his designee, and the final 30 minutes amendments. TOMORROW equally divided between the assistant Senators should therefore anticipate Mr. FRIST. If there is no further majority leader and Senator FEINSTEIN; additional votes during tomorrow’s ses- business to come before the Senate, I provided that following that 90-minute sion. ask unanimous consent that the Sen- period the Senate resume consideration The PRESIDING OFFICER. The as- ate stand in adjournment under the of S. 150, the Internet tax bill; provided sistant Democratic leader. previous order. further that there then be up to 1 hour Mr. REID. I chose not to object to There being no objection, the Senate, of debate only equally divided between the unanimous consent request dealing at 6:16 p.m., adjourned until Thursday, the two leaders or their designees. with what we are going to be doing to- April 29, 2004, at 9:30 a.m.

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