S6562 CONGRESSIONAL RECORD — SENATE September 18, 2013 Meaning the ObamaCare language The PRESIDING OFFICER. The the equivalent of taking all passenger —to mean that the taxpayer-funded federal clerk will call the roll. cars and light trucks off the road for a health insurance subsidies dispensed to those The legislative clerk proceeded to year. on Congress’s payroll—which now range from call the roll. Making buildings more efficient is $5,000 to $11,000 a year—would have to end. Mr. CARDIN. Madam President, I ask more cost-effective than developing A little later in the same opinion unanimous consent that the order for new energy sources. Current building piece they wrote: the quorum call be rescinded. codes are already making new con- Under behind-the-scenes pressure from The PRESIDING OFFICER. Without struction significantly more efficient, members of Congress in both parties, Presi- objection, it is so ordered. but a boost is needed for older struc- dent Obama used the quiet of the August re- Mr. CARDIN. I wish to commend tures. cess to personally order the Office of Per- Senator SHAHEEN and Senator Up to 80 percent of the buildings sonnel Management, which supervisors Fed- PORTMAN for their hard work in bring- standing today will still be here in 2050, eral employment issues, to interpret the law so encouraging the retrofitting of ex- so as to retain the generous Congressional ing a bipartisan bill to the floor that benefits. will boost energy efficiency in govern- isting buildings needs to be a priority. Even buildings that are fairly new can The Wall Street Journal has also ment, in industry, and in commercial benefit from retrofitting. For example, weighed in. I think they are right. and residential buildings. This bill will help increase our economic competi- Bush Stadium, home of the St. Louis The issue is the White House’s recent Cardinals, was built in 2006, but energy ObamaCare bailout for members of Congress tiveness, enhance our national secu- and their staffs. If Republicans want to show rity, and combat global climate improvements in 2011 reduced energy that they stand for something, this is it. If change. consumption by 23 percent. they really are willing to do whatever it Energy efficiency improvements are We could see more successful projects takes to oppose this law, there would be no a smart, cost-effective way to reduce such as this proliferate across the Na- more meaningful way to prove it. pollution, increase the competitiveness tion, but our current tax policies have As I said, the author of this original of our manufacturers, and put people not yet proved to be meaningful incen- provision of ObamaCare made it per- back to work in the building trades. tives for making energy-efficient up- fectly clear where he was coming from. We don’t have an energy problem in grades to existing buildings. For exam- That is our distinguished colleague this country; we have a waste problem. ple, the landmark upgrade of the Em- CHUCK GRASSLEY. ‘‘The more that Con- Last October the Department of En- pire State Building, which is under gress experiences the laws it passes, ergy and Lawrence Livermore National contract to lower energy consumption the better.’’ The distinguished lawyer Labs calculated that we waste 57 per- by almost 40 percent, could not qualify regarding this area of law, David cent of all energy produced—57 percent. for a 179D deduction under the law’s current structure. Senator FEINSTEIN Ermer, also said, it is clear: ‘‘I do not We are becoming more energy efficient, and I are working on legislation that think members of Congress and their but we have a long way to go, which is would make commonsense reforms to staff can get funds for coverage in the why the Shaheen-Portman bill is so the existing section 179D tax deduc- exchanges under existing law.’’ important. tion. That is why we have to act and have I wish to speak about two changes I Section 179D of the Internal Revenue to vote before October 1. would like to see in the Tax Code that Finally, in closing, let me say, I want Code provides a tax deduction that al- would help us achieve our goals of en- to be very direct and ask Members and lows cost recovery of energy-efficient ergy efficiency. I have worked on two the public to beware of another ap- windows, roofs, lighting, and heating bills in this regard and I will be speak- proach to defeating this ‘‘no Wash- and cooling systems that meet certain ing about them as we go through this ington exemption’’ language. That ap- energy savings targets. Section 179D session of Congress. I have noted proach is pretty clever and it is pretty allows for an accelerated depreciation amendments, but as I think the Pre- cynical. That approach is to say: Oh, that encourages real estate owners to siding Officer is well aware, to try to this is a great idea, but we actually make the significant front-end invest- need to expand this to all Federal em- put a tax provision on a bill that origi- ments in energy-efficient upgrades. ployees. nates in the Senate causes what is The deduction is scheduled to expire at There are Members promoting this known as the blue slip when the bill is the end of this year. By extending, approach, particularly on the Repub- taken to the House, since all tax bills modifying, and simplifying this impor- lican side. That will have one effect must originate in the House of Rep- tant provision, we can encourage en- and one effect only: It will help ensure resentatives. Therefore, I will be look- ergy savings, create thousands of retro- absolutely, no ifs, ands, or buts, that ing for opportunities to advance these fitting jobs in the construction indus- my language does not pass or that lan- two energy-related bills but will not try, and reduce energy bills for all con- guage does not pass. In fact, one of the have the opportunity on the legislation sumers—a win-win-win situation. Our main Republican proponents of that that is before us. legislation would make this critical in- language said in a meeting which I at- Energy efficiency is as important as centive more accessible and effective tended: This will be perfect because renewables, nuclear, and fossil fuels in for existing buildings that are cur- under that scenario, under that lan- an ‘‘all of the above’’ strategy to meet rently using inefficient lighting sys- guage, all Republicans can vote yes, all the Nation’s energy demands. In fact, tems, antiquated heating and cooling Democrats can vote no, and it will be the cheapest, cleanest ‘‘energy’’ we systems, and poor insulation. Upgrad- killed and we will keep the subsidy. have is the energy we don’t need be- ing and improving the 179D deduction That is the game. That is the point. cause of energy efficiency improve- will make thousands of businesses That is what is going on. We need a ments. more competitive and create good-pay- straight up-or-down vote on this ‘‘no Our Tax Code in turn can be an effec- ing jobs right here in the United Washington exemption’’ language tive tool in promoting energy effi- States. which is filed as an amendment to this ciency. Consider that buildings account In addition to commercial properties, bill on the floor, which is filed as a sep- for more than 40 percent of our energy our bill will also help promote energy arate bill. I very much look forward to consumption in the United States. So efficiency in private residences. Homes that before October 1. by encouraging businesses to make en- consume more than 20 percent of our I yield the floor. ergy-efficient upgrades in their build- Nation’s energy, so we need to give The PRESIDING OFFICER. The Sen- ings, we can reach substantial energy American homeowners a helping hand ator from Utah. savings. A recent study by McKinsey & to increase the energy efficiency of (The remarks of Mr. HATCH per- Company backs me up. The study con- their properties. Our legislation does taining to the introduction of S. 1518 cluded that maximizing energy effi- this by establishing a section 25E tax are located in today’s RECORD under ciency for homes and commercial credit for homeowners. Homeowners ‘‘Statements on Introduced Bills and buildings could help our country re- would receive a 30-percent tax credit of Joint Resolutions.’’) duce energy consumption by 23 percent up to $5,000 for making an investment Mr. HATCH. I suggest the absence of by 2020 and cut greenhouse gas emis- in energy efficiency and reducing en- a quorum. sions by 1.1 gigatons annually. This is ergy consumption and costs. Simply

VerDate Mar 15 2010 01:48 Sep 19, 2013 Jkt 029060 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\CR\FM\G18SE6.023 S18SEPT1 tjames on DSK6SPTVN1PROD with SENATE September 18, 2013 CONGRESSIONAL RECORD — SENATE S6563 put, it is an incentive that encourages policy because the average lifespan of a Current law has the perverse effect of dis- homeowners to choose the most inex- typical commercial roof is only 17 couraging energy improvements. Utility pensive option for saving energy. At a years. So this legislation corrects an bills and the costs of energy consumption are time of Federal budget constraints, we inequity in the Tax Code by aligning part of a business’s ordinary and necessary operating expenses, and are thus fully and must prioritize tax policies so they the depreciation period closer to the immediately deductible. Section 179D is a promote the most cost-effective meth- lifespan of commercial roofs. critical provision because, by encouraging ods of bolstering our energy security. Securing America’s energy and eco- greater building efficiency, it aligns the code Performance-based energy efficiency nomic future requires a renewed focus to properly incentivize energy savings. More- improvements can transform Amer- on energy efficiency. I hope we can over, relative to the code’s incentives for en- ica’s homes and lower energy bills for pass the legislation that is before us ergy creation, taxpayers get more ‘‘bang for the families who live in them. and send it to the House. I hope the the buck’’ through efficiency incentives like Finally, our legislation targets the House will send us a tax bill that can the section 179D deduction. Dollar for dollar, it is much cheaper to avoid using a kilowatt sector with the largest potential for in- serve as the basis for using the Tax Code to promote energy efficiency. of energy than to create a new one (such as creasing energy efficiency in our coun- through deployment of fossil fuel or renew- try—the industrial sector. Our bill of- Energy efficiency gains are a win-win able technologies). As a matter of tax, budg- fers focused, short-term incentives in for families, businesses, job seekers, et, and an ‘‘all of the above’’ energy policy, four areas to help manufacturers make taxpayers, our human health, and the section 179D checks all of the right boxes. the efficiency investments necessary to environment. We can create jobs, we Regardless of the ultimate result of com- innovate and compete. These critical can help our economy, we can become prehensive tax reform, the section 179D de- more competitive, and we can have a duction is scheduled to expire at the end of areas include water reuse and replacing this year. While the provision should be care- old chillers that harm the atmosphere. cleaner environment if we do the right thing with the legislation before us and fully considered as part of the code’s possible I have a letter dated September 17, overhaul, Congress should also extend this 2013, from a large coalition of business, are able to improve our Tax Code to important incentive with reasonable im- labor, and environmental groups sup- help achieve those goals. provements that better facilitate ‘‘deep’’ en- I yield the floor. ergy retrofit improvements in buildings. In porting the Cardin-Feinstein approach There being no objection, the mate- to the reform of section 179D. The Real this regard, the Commercial Building Mod- rial was ordered to be printed in the ernization Act (S. 3591) from last Congress— Estate Roundtable spearheaded the let- RECORD, as follows: introduced by Senators Cardin and Fein- ter, but 50 different organizations have SEPTEMBER 17, 2013. stein, and former Senators Bingaman and signed on. I want to quote one part of Re: 179D Tax Deduction for Energy Efficient Snowe—is a step in the right direction of a that letter. This is a quote from the Buildings. ‘‘performance based’’ and ‘‘technology neu- letter that was sent in support of the tral’’ deduction that both of your commit- Hon. MAX BAUCUS, tees have emphasized must be the hallmarks legislation: Chairman, Committee on Finance, The Section 179D deduction is a key incen- of any energy tax incentive. Revisions of the U.S. Senate. sort proposed by S. 3591 would improve the tive to leverage significant amounts of pri- Hon. ORRIN HATCH, vate sector investment capital in buildings. section 179D deduction by providing a sliding Ranking Member, Committee on Finance, scale of incentives that correlate to actual It will help spur construction and manufac- U.S. Senate. and verifiable improvements in a retrofitted turing jobs through retrofits, save businesses Hon. DAVE CAMP, building’s energy performance. S. 3591 does billions of dollars in fuel bills as buildings Chairman, Committee on Ways and Means, not select technology ‘‘winners or losers’’ become more energy efficient, place lower House of Representatives. but respects the underlying contractual ar- demands on the power grid, help move our Hon. SANDER LEVIN, rangements of building owners and their ret- country closer to energy independence, and Ranking Member, Committee on Ways and rofit project design teams, who are best suit- reduce carbon emissions. Means, House of Representatives. ed to decide which equipment options in a I think that is exactly what we DEAR CHAIRMEN AND RANKING MEMBERS: given structure may achieve high levels of should be doing. These are the types of Our organizations and companies represent a cost-effective energy savings. incentives we should be working for. If broad spectrum of the U.S. economy and in- Furthermore, any 179D reform proposal clude real estate, manufacturing, architec- should ensure that building owners have you look at the groups that have ture, contracting, building services firms, fi- signed on to this letter, these are their own ‘‘skin in the game’’ of a retrofit nancing sources, and environmental and en- project—such as S. 3591’s specification that groups that understand how to create ergy efficiency advocates. Many of the enti- the financial benefits of the tax deduction jobs and that Congress can help in that ties we represent are small businesses that cannot exceed more than half of project regard. drive and sustain American job growth. We costs. Madam President, I ask unanimous support the tax deduction at section 179D of Congress should extend and improve the consent that a copy of that letter be the Internal Revenue Code, which encour- section 179D tax deduction before it expires ages greater energy efficiency in our nation’s printed in the RECORD following my re- at the end of 2013. We urge you to look to S. commercial and larger multifamily build- 3591 from last Congress as the starting point marks. ings. As Congress continues to assess com- Senator CRAPO and I will be intro- for further deliberations and refinements prehensive tax reform, we support section this fall. ducing legislation that will fix a prob- 179D’s extension and necessary reforms to SUPPORTING ORGANIZATIONS lem that is keeping energy-efficient spur retrofit projects in existing buildings. roofing materials from being deployed. The section 179D deduction is a key incen- ABM Industries; Air Conditioning Contrac- tive to leverage significant amounts of pri- tors of America; Air-Conditioning, Heating This is a separate bill that I think and Refrigeration Institute; American Coun- could help us create jobs, save energy, vate sector investment capital in buildings. It will help spur construction and manufac- cil for an Energy-Efficient Economy; Amer- and help our environment. turing jobs through retrofits, save businesses ican Gas Association; American Hotel & The current Tax Code acts as an ob- billions of dollars in fuel bills as buildings Lodging Association; American Institute of stacle to retrofitting old roofs with en- become more energy efficient, place lower Architects; American Public Gas Associa- ergy-efficient ones because, generally demands on the power grid, help move our tion; American Society of Interior Designers; speaking, commercial roofs are depre- country closer to energy independence, and ASHRAE; Bayer MaterialScience LLC; ciated over 39 years. Our bill would reduce carbon emissions. Building Owners and Managers Association shorten the depreciation schedule to 20 Section 179D provides a tax deduction (not (BOMA) International; CCIM Institute; Con- a credit) that allows for cost recovery of en- cord Energy Strategies, LLC; Consolidated years for roofs that meet certain en- ergy efficient windows, roofs, lighting, and Edison Solutions, Inc.; Council of North ergy efficiency standards and that are heating and cooling systems meeting certain American Insulation Manufacturers Associa- put in place over the next 2 years. By energy savings performance targets. Without tion. shortening the depreciation schedule, section 179D, the same building equipment Danfoss; Empire State Building Company/ we are lowering the amount of tax would be depreciated over 39 years (business Malkin Holdings; Energy Systems Group; businesses would otherwise have to property) or 27.5 years (residential property). First Potomac Realty Trust; Independent pay. They get the advantage of their These horizons do not meaningfully encour- Electrical Contractors; Institute for Market age real estate owners to bear the immediate Transformation; Institute of Real Estate savings in the early years. and expensive front-end costs associated Management; International Council of Shop- This change will create more jobs by with complex energy efficiency upgrades. ping Centers; International Union of Paint- encouraging the construction of new Section 179D allows for accelerated deprecia- ers & Allied Trades (IUPAT); Johnson Con- roofs and by putting more cash into tion of high performance equipment that trols, Inc.; Mechanical Contractors Associa- the hands of businesses. It is good tax achieves significant energy savings. tion of America (MCAA); Metrus Energy,

VerDate Mar 15 2010 01:48 Sep 19, 2013 Jkt 029060 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\CR\FM\G18SE6.027 S18SEPT1 tjames on DSK6SPTVN1PROD with SENATE S6564 CONGRESSIONAL RECORD — SENATE September 18, 2013 Inc.; NAIOP, the Commercial Real Estate reason be frustrated. Of course, eco- year than in 1972. Today, 48 million Development Association; National Apart- nomically this country is moving, in a Americans are uninsured, no health in- ment Association; National Association of very significant way, in the wrong di- surance. That will change as a result of Energy Service Companies (NAESCO); Na- rection. ObamaCare. But as of today, 48 million tional Association of Home Builders; Na- tional Association of REALTORS®; National This is what the Census Bureau re- Americans are uninsured, 3 million Association of Real Estate Investment ported yesterday: They said the typical more than in 2008. Trusts. middle-class family, the family right in So when people call the Presiding Of- National Association of State Energy Offi- the middle of American society, that ficer’s office in Delaware or my office cials; National Electrical Contractors Asso- median family income today is less in Vermont and they say: You know ciation; National Electrical Manufacturers than it was 24 years ago. Median family what: we are hurting, they are telling Association; National Lumber and Building income today for that typical Amer- the truth. What they are saying is Con- Material Dealers Association; National Multi Housing Council; National Roofing ican family is less than it was 24 years gress seems to deal with everything ex- Contractors Association; Natural Resources ago. cept the reality facing the middle class Defense Council; Owens Corning; Plumbing- In 2002, typical middle-class families, and working families of this country. Heating-Cooling Contractors—National As- that family right in the middle, made People worry desperately not only sociation; Polyisocyanurate Insulation Man- $51,017. Back in 1989, that family made for themselves, they worry more for ufacturers Association (PIMA); Real Estate $51,681. What does that mean? It means their kids. What kind of education will Board of New York; The Real Estate Round- that 24 years later, after all of the ef- their kids have? Will there be enough table; The Sheet Metal, Air, Rail and Trans- fort and the hard work of people, today teachers in the classroom? Will their portation International Association; Sheet they are worse off than they were 24 kids be able to afford to go to college Metal and Air Conditioning Contractors’ Na- tional Association; U.S. Green Building years ago. or will young working families be able Council; Window and Door Manufacturers Let’s think about what that means. to find quality, affordable child care? Association. It means that despite the explosion of What kind of job will their kids have Mr. CARDIN. I suggest the absence of technology and all of the robotics, all when they get out of high school or a quorum. of the cell phones and everything else they get out of college? The PRESIDING OFFICER. The that has made this economy more pro- Those are the questions that tens of clerk will call the roll. ductive, the median family income millions of Americans are asking all The bill clerk proceeded to call the today is worse than it was 24 years ago. over this country. Here in Washington, roll. I will give you an example of what we are not giving them clear and Mr. SANDERS. Mr. President, I ask that means. If during the period from straightforward answers. What makes unanimous consent that the order for 1989 through 2012 that typical Amer- this moment in American history the quorum call be rescinded. ican family had received just a 2-per- unique is that while the great Amer- The PRESIDING OFFICER (Mr. cent increase in their income—just 2 ican middle class is disappearing and COONS). Without objection, it is so or- percent, a very modest increase—that while the number of Americans living dered. family today, instead of making $51,000 in poverty is at an alltime high, some- THE ECONOMY a year, would be making $81,000 a year. thing else is going on in this society; Mr. SANDERS. Mr. President, 5 years That is a $30,000 gap. that is, that the people on top, the top ago, as a result of the greed and the If over that 24-year period people had 1 percent, have never, ever had it so recklessness and the illegal behavior seen a modest—I am not taking about good. Last week we learned an as- on Wall Street, this country was a huge increase—a modest increase in tounding fact I want everybody to hear plunged into the worst economic crisis their income of 2 percent, which people clearly; that is, between 2009 and 2012, since the Great Depression of the 1930s. certainly deserve, that family would the last years we have information on, As a result, millions of people lost make $81,000 a year. Today that family 95 percent of all new income created in their homes, lost their jobs, and lost is making $51,000 a year—less than that this country went to the top 1 per- their life savings. And about 5 years family was making 24 years ago. cent—95 percent of all of the new in- ago we were looking at a situation This is what the Census Bureau also come created in America went to the where some 700,000 Americans a month reported. They said the typical middle- top 1 percent. were losing their jobs—an unbelievable class family has seen its income go The bottom 99 percent shared in 4 number. The stock market plummeted. down by more than $5,000 since 1999, percent of the new income. So what we There was panic in the financial sector. after adjusting for inflation—$5,000. are seeing as a nation is the disappear- The good news is that to a significant They told us the average male work- ance of the middle class, millions of degree we have stabilized that situa- er made $283 less last year than that families leaving the middle class and tion. We are not losing hundreds of same worker made 44 years ago. Do you descending into poverty, struggling thousands of jobs a month. The stock want to know why people are angry? desperately to feed their families, to market is, in fact, doing very well. But They see an explosion of technology, put gas in their car, to get to work, to what is important to understand is they see an explosion of productivity, survive on an $8-an-hour wage. that it is imperative we not accept the and yet a male worker today is making You have that reality over here, and ‘‘new normal’’ for the economy as it is less than a male worker—the average then you have another reality; that is, today because the reality is that today, male worker—made 44 years ago. the people on top are doing better than while the situation is better than it The average female worker earned at any time since before the Great De- was 5 years ago, for the middle class $1,775 less than they did in 2007. A rec- pression. and for the working families of this ordbreaking 46.5 million Americans Today, the top 1 percent own 38 per- country the economy is still in very lived in poverty last year. That is more cent of the Nation’s financial wealth. bad shape. And I am not just talking people living in poverty than at any Meanwhile, the bottom 60 percent, the about a 5-year period; I am talking time in American history. Sixteen mil- majority of the American people to- about a generational situation. lion children live in poverty. That is gether, own only 2.3 percent of the Mr. President, you may have seen almost 22 percent of all kids in Amer- wealth in this country. When I was in that just yesterday the Census Bureau ica. That is the highest rate of child- school we used to—and I am sure all came out with some new and extremely hood poverty in the industrialized over this country—study what we disturbing statistics, and it tells us world. That is the future of America. called an oligarchy. An oligarchy is a why so many Americans are frustrated Over one out of five kids in the country nation in which a handful of very and angry with what is going on in is living in poverty. wealthy people control the economy, Washington and why so many people A higher percentage of African Amer- control the politics of the nation. It respond to pollsters and say: Yes, we icans lived in poverty last year than does not matter about political parties believe the country is going in the was the case 15 years ago, and 9.1 per- because they own those parties as well. wrong direction. cent of seniors lived in poverty last Guess what. What we used to look at What they are saying is true. They year, higher than in 2009. More Amer- in Latin America and laugh about or have every reason to be angry, every ican seniors were living in poverty last worry about has now come home to

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